Does my employer pay for my NY unemployment benefits or get fined when I file a claim?

Your employer doesn't get "fined" when you file for unemployment. What happens is that employers in NY pay unemployment insurance taxes to the state based on their "experience rating." The more former employees who collect unemployment benefits, the higher their tax rate becomes. So when your boss said it would "cost them," they meant their unemployment insurance rates might increase. But that's literally what unemployment insurance is for! You have every right to claim benefits if you were laid off due to budget cuts. That's considered a qualifying job loss through no fault of your own.

My boss tried to make me feel guilty about filing too!!! They make it sound like ur taking money directly from their pocket but thats NOT how it works. They've been paying into the unemployment system the whole time u worked there - its INSURANCE they already paid for!! Dont let them manipulate u!!!

Employers in New York pay unemployment insurance taxes on the first $12,300 of each employee's wages in 2025. Their tax rate is calculated annually based on their 'experience rating' (how many former employees claimed benefits) and several other factors. When you file, your employer doesn't pay your specific benefits directly - the benefits come from the state trust fund that all employers have contributed to. If you were laid off due to budget cuts, that's a clear qualifying reason for benefits. Your employer can't legally retaliate against you for filing a legitimate claim. That would be against NY labor laws.

they DO pay more when u file btw. my cousin owns a small business and says his unemployment insurance rates went up after he had to let ppl go during slow season. but that doesn't mean u shouldn't file!! its ur right if u got laid off.

If you're having trouble reaching anyone at the unemployment office to ask these questions, I had the same problem last month. After spending days trying to get through, I found this service called Claimyr (claimyr.com) that got me connected to an agent in about 20 minutes instead of waiting for hours or days. They have a video showing how it works: https://youtu.be/Rdqa1gKtxuE The agent I spoke with explained that employers don't get fined when you file, but their unemployment insurance tax rate might increase slightly depending on how many claims they've had. The agent reassured me that employers cannot legally retaliate against you for filing for benefits you're entitled to.

One thing to keep in mind - if your employer contests your claim and says you were fired for cause (misconduct) rather than laid off due to budget cuts, you'll need to provide evidence of the real reason. Do you have your layoff notice or any emails about the budget cuts? Save those!

ive been on both sides of this! as someone whos filed for unemployment AND as someone whos worked in HR... your employer has been paying unemployment insurance taxes the whole time youve worked there. its not a fine or penalty when you file, its literally using the insurance system as intended. dont feel bad AT ALL

btw did u get ur official termination letter yet? MAKE SURE it says layoff due to budget cuts! my friend got screwed bc her letter said something about "performance" even tho her boss told her verbally it was budget cuts. get everything in writing!!