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Derek Olson

Can you go to jail for collecting unemployment while working in NY? Scared about my situation

I'm really freaking out right now. I've been collecting unemployment benefits from NYS Department of Labor for the past 8 weeks, but I also picked up some part-time work that I didn't report on my weekly claims. I know I messed up big time but I was desperate for money. The work was only about 15 hours a week at $12/hour so maybe $180 weekly before taxes. Now I'm seeing all these scary stories online about unemployment fraud and people going to jail. Can they actually send you to prison for this? I want to come clean but I'm terrified of what will happen. Has anyone been through something like this? What should I expect?

Danielle Mays

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Yes, unemployment fraud is a serious crime in New York, but jail time typically depends on the amount involved and whether it's considered intentional fraud. For smaller amounts like yours, you're more likely facing repayment of overpaid benefits plus penalties rather than criminal charges. However, you absolutely need to contact NYS Department of Labor immediately to report the unreported income. The longer you wait, the worse it gets. They have a voluntary disclosure process that can help reduce penalties.

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Derek Olson

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Thank you for being honest about this. Do you know how much the penalties usually are? I'm trying to figure out if I can afford to pay this back.

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Roger Romero

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dude you need to calm down, they're not gonna throw you in jail for $180 a week lol. my cousin got caught not reporting like $3000 in cash work and he just had to pay it back with some extra fees. worst case you get disqualified from future benefits but prison is for the big fraudsters claiming in multiple states or using fake identities

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Anna Kerber

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Actually that's not entirely accurate. New York Penal Law Section 155.20 classifies unemployment fraud as theft, and even smaller amounts can result in criminal charges if they determine it was intentional. The key factor is whether NYS Department of Labor believes you knowingly violated the rules versus made an honest mistake.

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Niko Ramsey

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I had a similar situation last year but came forward voluntarily after 3 weeks of unreported work. NYS Department of Labor made me repay the overpayment ($847) plus a 15% penalty, and I was disqualified from receiving benefits for 8 weeks. No criminal charges were filed because I self-reported and cooperated fully. The key is being proactive rather than waiting for them to discover it during an audit. I actually used a service called Claimyr (claimyr.com) to get through to an actual NYS Department of Labor agent to discuss my situation - their video demo at https://youtu.be/qyftW-mnTNI shows exactly how it works. Worth considering if you can't get through on your own.

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Derek Olson

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This gives me some hope. How long did the whole process take once you reported it? And were they understanding about the situation?

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Niko Ramsey

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The whole process took about 6 weeks from when I first reported it to when they issued the final overpayment decision. The agent I spoke with was professional but not particularly sympathetic - they're just doing their job. The important thing is being completely honest about dates, amounts, and circumstances.

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OMG this exact thing happened to my neighbor! She was working part time at a grocery store and collecting UI at the same time. When they caught her she had to pay back like $2400 plus penalties and got banned from filing for benefits for a whole year. She didn't go to jail but it was a huge financial mess. You really should call them before they find out on their own because apparently the penalties are way worse if they discover it during an investigation.

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Jabari-Jo

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The NYS Department of Labor unemployment system is SO BROKEN that they probably won't even notice for months if ever. I know people who've been doing this for years without getting caught. But if you're losing sleep over it then just report it and deal with the consequences. At least then you can move on with your life instead of constantly worrying about getting a letter in the mail.

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Danielle Mays

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This is terrible advice. NYS Department of Labor has sophisticated cross-matching systems that compare unemployment claims with wage reports from employers. They WILL find unreported income eventually, and the penalties for not voluntarily disclosing are much more severe.

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Derek, I understand you're scared, but please don't panic. While unemployment fraud is taken seriously in NY, for the amount you're describing ($180/week for 8 weeks = roughly $1,440), criminal prosecution is unlikely if you come forward voluntarily. The state typically reserves jail time for large-scale fraud cases involving thousands of dollars or identity theft. Your best bet is to contact NYS DOL immediately and be completely honest about the unreported income. Yes, you'll likely have to repay the overpayment plus penalties (usually 15-25%), and you might face a temporary disqualification from future benefits, but this is much better than waiting for them to discover it. They have wage-matching systems that will eventually catch this. Document everything - dates you worked, hours, wages earned - and be prepared to provide this information. Consider speaking with an employment attorney if you're really worried, but most people in similar situations resolve this through repayment without criminal charges.

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Sean Kelly

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This is really solid advice, Diego. I just wanted to add that when you do contact NYS DOL, ask specifically about their "voluntary compliance" program. I've heard they're more lenient with penalties when people come forward on their own versus being caught during an audit. Also, Derek, make sure you stop certifying for benefits immediately until this gets resolved - continuing to claim while you sort this out could make things worse. The anxiety you're feeling is totally understandable, but taking action now is your best path forward.

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Admin_Masters

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Derek, I went through something very similar about 18 months ago. I was collecting unemployment and picked up some gig work that I didn't report for about 6 weeks (around $200/week). The guilt and anxiety was eating me alive just like what you're describing. I finally called NYS DOL and explained the situation honestly. The representative was surprisingly professional about it - they didn't make me feel like a criminal or anything. I had to calculate all the unreported income, and they determined I received about $1,200 in benefits I wasn't entitled to. I paid back the $1,200 plus a 15% penalty ($180), so $1,380 total. They also disqualified me from benefits for 7 weeks, but no criminal charges were filed. The whole process took about 5 weeks to resolve once I reported it. The relief I felt after coming clean was incredible - I could finally sleep at night again. Trust me, the longer you wait, the worse the anxiety gets. Just bite the bullet and call them tomorrow. You're not going to jail over $1,440 in overpayments, especially if you self-report.

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Paolo Marino

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Thank you so much for sharing your experience, Admin_Masters. This is exactly what I needed to hear. The anxiety has been absolutely killing me - I've barely slept in days thinking about this. Your story gives me hope that this can be resolved without ruining my life. Can I ask - when you called NYS DOL, did you just call the main number or is there a specific department for voluntary disclosures? I want to make sure I'm talking to the right people when I call tomorrow. Also, were you able to set up a payment plan for the $1,380 or did you have to pay it all at once?

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CosmicCruiser

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Derek, I completely understand the panic you're feeling right now - I've been there myself. A few years ago, I was in almost the exact same situation with unreported part-time work while collecting benefits. The fear of potential jail time was consuming me, but I want to reassure you that for the amounts you're describing, criminal prosecution is extremely rare. New York typically reserves criminal charges for cases involving intentional fraud of much larger amounts (think tens of thousands) or identity theft schemes. Your situation sounds like you made a mistake under financial pressure, not a deliberate scheme to defraud the state. Here's what I learned from my experience: call NYS DOL as soon as possible and be completely transparent. Yes, you'll face penalties and have to repay the overpayment, but voluntary disclosure almost always results in more lenient treatment than being caught during an audit. The representatives I dealt with were actually pretty understanding when I explained my circumstances honestly. Document everything - your work dates, hours, and wages - before you call. And please, stop losing sleep over this. Take action tomorrow, get it resolved, and you'll be amazed how much better you'll feel once it's behind you.

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