Company shut down permanently - can you collect unemployment in NY?
My employer just announced they're closing all locations permanently next month due to financial problems. This wasn't a layoff - the whole company is shutting down. About 150 of us are losing our jobs. I've never filed for unemployment before and I'm not sure if company closure qualifies you for benefits or if there's something different I need to do? Has anyone been through this with NYS Department of Labor? Really stressed about how I'm going to pay rent.
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CyberSiren
Yes, permanent company closure absolutely qualifies you for unemployment benefits in NY. This is considered involuntary job loss through no fault of your own, which is exactly what unemployment insurance covers. You should file your claim as soon as possible after your last day of work. The company should provide you with separation paperwork that includes your reason for separation.
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Ava Thompson
•Thank you! That's such a relief. Do I need any special documentation from the company since they're shutting down completely?
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Miguel Alvarez
I went through this exact situation two years ago when my company folded. File immediately on my.ny.gov - don't wait thinking you need special paperwork. NYS Department of Labor can verify the company closure themselves. Make sure you have your final pay stub and any severance info. The process is the same as regular layoffs.
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Zainab Yusuf
•How long did it take for your benefits to start? I'm worried about the delay since the company won't be around to respond to any verification requests.
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Miguel Alvarez
•Mine took about 3 weeks which is pretty normal. NYS Department of Labor has ways to verify employment history even when companies close - they use wage records and other databases.
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Connor O'Reilly
ugh this happened to me but it was during covid and everything was a mess. took FOREVER to get through to anyone at NYS Department of Labor because their phone lines were always busy. if you have trouble reaching them about your claim try claimyr.com - they help people get through to unemployment agents by phone. saved me weeks of calling. there's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works.
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Yara Khoury
•Never heard of that service before but honestly anything is better than sitting on hold for 3 hours just to get disconnected
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Keisha Taylor
wait so if the whole company shuts down do we still have to do job searches?? seems weird to look for work when 150 people from the same company are all competing for jobs
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CyberSiren
•Yes, you still need to complete your weekly job search requirements. Company closure doesn't exempt you from that. You'll need to log 3 job contacts per week and keep records of your search activities.
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StardustSeeker
File right away! My sister's company closed and she waited thinking she needed to figure everything out first. Big mistake - you can't get benefits for weeks you don't file even if you're eligible.
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Mateo Warren
So sorry to hear about your company closure - that's really stressful! I just wanted to add that when you file your claim, make sure to keep copies of everything your employer gives you about the closure (any letters, emails, final paystubs, etc.). Even though the company won't be around to respond to requests, having this documentation can help speed up your claim processing. Also, if your company is offering any severance or paying out vacation time, that might affect when your benefits start, so be sure to report those payments accurately. You've got this - unemployment benefits exist exactly for situations like yours!
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Ev Luca
•This is really helpful advice about keeping documentation! I'm wondering though - if I get severance pay, does that mean I have to wait until it runs out before I can start collecting unemployment? Or can I file now and just report the severance when I certify each week?
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