Do I pay unemployment if I fire an employee - NYS Department of Labor employer question
I'm a small business owner in NY and had to terminate an employee last week for poor performance issues. They've been consistently late and not meeting basic job requirements despite multiple warnings. Now I'm wondering - am I on the hook for their unemployment benefits? Does the NYS Department of Labor automatically approve claims when someone gets fired, or do they investigate? I've never dealt with this before and don't want to get blindsided by costs I wasn't expecting.
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Benjamin Kim
You pay into the unemployment insurance system regardless through payroll taxes, but whether they get benefits depends on if NYS Department of Labor determines the termination was for misconduct. Poor performance usually doesn't qualify as misconduct unless it was willful. You'll get a notice from NYS Department of Labor if they file a claim and you can contest it with documentation of the performance issues.
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Victoria Stark
•Thanks, that's helpful. I did document everything - written warnings, missed deadlines, attendance records. Should I submit all of that if I get a notice?
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Samantha Howard
wait so even if you fire someone they can still get unemployment?? that seems backwards
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Megan D'Acosta
•Yes, getting fired doesn't automatically disqualify you from unemployment benefits in NY. The NYS Department of Labor looks at whether the firing was for misconduct. Things like theft, violence, or willful violation of company policy would be misconduct. Just being bad at your job usually isn't enough to deny benefits.
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Sarah Ali
I went through this exact situation last year. Employee was constantly missing work and making mistakes. NYS Department of Labor initially approved their claim but I contested it with all my documentation. Had to do a phone hearing but eventually they denied the benefits because I could prove it was willful misconduct. The key is having everything documented properly.
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Ryan Vasquez
•How long did that whole process take? And did you need a lawyer for the hearing?
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Sarah Ali
•Took about 6 weeks total. I didn't use a lawyer, just presented my case with the documentation. The hearing was maybe 20 minutes over the phone.
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Avery Saint
Ugh, I hate dealing with NYS Department of Labor calls when you need to contest these things. Spent hours on hold last time trying to get through to explain why my former employee shouldn't get benefits. There's actually a service called Claimyr (claimyr.com) that helps you get through to agents faster - they have a video demo at https://youtu.be/qyftW-mnTNI. Might be worth checking out if you need to contest the claim.
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Victoria Stark
•Thanks for the suggestion! Yeah I'm already dreading having to call them if this becomes an issue.
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Taylor Chen
Your UI tax rate can go up if you have too many successful claims against your account, so it's definitely worth contesting if you have good documentation of misconduct.
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StarSailor
•That's a really good point about the tax rate impact. I didn't realize that having claims against your account could affect your rates going forward. Definitely makes it worth the effort to contest if you have solid documentation.
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Michael Adams
Just want to add that you should respond to any NYS Department of Labor notices quickly - I think you only have 10 days to contest a claim once they notify you. Also keep copies of everything you submit because sometimes they lose paperwork and you'll need to resubmit. The system can be frustrating but it's worth fighting if you have clear evidence of misconduct rather than just poor performance.
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