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Fatima Al-Rashid

Do you pay back unemployment benefits in NY - confused about overpayment notice

I just received a letter from NYS Department of Labor saying I might owe money back from unemployment I collected last year. I'm really confused because I thought unemployment was something you earned through your previous job contributions. Do you normally have to pay back unemployment benefits? The letter mentions something about an overpayment but I reported everything correctly on my weekly claims. Has anyone else gotten one of these notices? I'm worried they're going to want thousands of dollars back that I don't have.

You generally don't have to pay back regular unemployment benefits unless there was an overpayment due to an error or fraud. The most common reasons for overpayments are: not reporting work earnings properly, being disqualified after benefits were already paid, or receiving benefits while not meeting job search requirements. Check your notice carefully - it should explain exactly why NYS Department of Labor thinks you were overpaid.

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The notice says something about 'failure to meet eligibility requirements' but doesn't give specifics. I definitely did my job searches every week and reported any work I did. Should I call them to get more details?

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ugh same thing happened to me!! they said i owed back like $2800 because apparently i wasn't eligible for some weeks but they never told me that when i was filing my weekly claims. the whole system is so confusing

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Did you appeal the overpayment determination? You have the right to request a hearing if you disagree with their decision. The appeal deadline is usually 30 days from the notice date.

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Just wanted to add - if you're having trouble getting through to NYS Department of Labor to discuss this (and trust me, their phone lines are always jammed), I used a service called Claimyr recently that actually got me connected to a real person. You can check it out at claimyr.com - they have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Really helped me resolve my adjudication issue when I couldn't get through on my own.

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How much does something like that cost? I'm already worried about paying back money I don't have.

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The NYS Department of Labor bureaucracy is absolutely ridiculous. They make it nearly impossible to understand what you did wrong and then expect you to magically figure out how to fix it. I spent MONTHS trying to resolve an overpayment issue that turned out to be their mistake in the first place!

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That's exactly what I'm afraid of. Did you eventually get it resolved or did you have to pay it back?

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You definitely need to request all the documentation related to your overpayment determination. Ask for copies of your weekly claim history, any employer responses to benefit charges, and the specific eligibility issue they're citing. Don't just accept the overpayment without understanding exactly what happened. Many times these can be successfully appealed if you have the right documentation.

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I went through something similar last year and it turned out to be a clerical error on their end. The key thing is to NOT panic and definitely don't ignore the notice. Here's what I learned: 1) You have appeal rights - use them! 2) Request a waiver if you qualify (sometimes they'll waive collection if it wasn't your fault and repayment would cause hardship) 3) If you do owe money, they usually offer payment plans. The worst thing you can do is ignore it because then they can garnish wages or tax refunds. Document everything and keep copies of all correspondence. Good luck!

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This is really helpful advice! I didn't know about the waiver option - that could be a lifesaver if they determine it wasn't my fault. How do you request a waiver? Is it a separate form or do you mention it in your appeal? Also, when you say "hardship," what kind of documentation did they want to prove that? I'm definitely not ignoring this notice but want to make sure I handle it the right way from the start.

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