Does unemployment affect the employer when I file with NYS Department of Labor?
I'm thinking about filing for unemployment benefits but I'm worried about what happens to my former employer. Will filing a claim with NYS Department of Labor hurt them somehow? Do their taxes go up or do they get penalized? I left on good terms and don't want to cause problems for the small business I worked at for 2 years. Can someone explain how this works?
10 comments


Hugo Kass
Your employer pays unemployment insurance taxes regardless of whether you file or not. When you file a claim, it may affect their experience rating which could impact their future tax rates, but that's part of the system they're already paying into. You earned those benefits through your work, so don't feel guilty about filing.
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Simon White
•Thanks, that makes me feel better about filing. I wasn't sure if I was taking money directly from them or something.
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Nasira Ibanez
Employers pay into the unemployment insurance fund through payroll taxes. When you file with NYS Department of Labor, the benefits come from this fund, not directly from your employer's pocket. However, if they have multiple claims, their experience rating can increase their future UI tax rate. But honestly, that's how the system is designed to work.
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Khalil Urso
•Exactly this. My old boss tried to make me feel bad about filing but it's literally insurance they pay for. Don't let them guilt trip you.
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Myles Regis
The employer will receive a notice from NYS Department of Labor about your claim and they have the right to contest it if they believe you were terminated for misconduct or quit without good cause. If they don't contest it within 10 days, the claim usually gets approved automatically. Most employers don't contest legitimate claims.
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Simon White
•What happens if they do contest it? I was laid off due to budget cuts, not fired for cause.
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Myles Regis
•If they contest a layoff due to budget cuts, they'd need to prove it was actually a termination for cause. That would be pretty difficult since you have documentation of the layoff reason. NYS Department of Labor investigates contested claims.
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Brian Downey
I had trouble reaching NYS Department of Labor when my employer contested my claim and I needed to provide additional information. Kept getting busy signals for weeks. Finally used this service called Claimyr (claimyr.com) that helped me get through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Saved me so much frustration trying to get my questions answered.
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Jacinda Yu
•Never heard of that but anything is better than calling 50 times a day and getting hung up on
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Landon Flounder
Just file already! You paid into this system through your paychecks. Don't worry about some business owner's feelings when you need to pay rent and buy groceries.
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