Does unemployment have to be paid back - NYS Department of Labor overpayment confusion
I'm really confused about something. My neighbor told me that unemployment benefits always have to be paid back eventually, like it's some kind of loan from NYS Department of Labor. That doesn't sound right to me but now I'm worried. I've been collecting UI for about 8 weeks after getting laid off from my warehouse job. Do I need to start saving money to pay this back? I thought unemployment was something I earned through working and paying into the system. Can someone please explain if unemployment benefits need to be repaid?
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AstroAlpha
No, unemployment benefits do NOT have to be paid back under normal circumstances. Your neighbor is wrong. UI benefits are an earned benefit that you paid into through payroll taxes while working. You only have to repay if NYS Department of Labor determines you received an overpayment due to fraud, misreporting income, or being ineligible for benefits you received.
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Chloe Davis
•Thank you! That's such a relief. I was starting to panic about how I'd ever pay back thousands of dollars.
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Diego Chavez
your neighbor might be thinking of something else like a loan or advance. unemployment is insurance you already paid for through work
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Anastasia Smirnova
The only time you'd need to repay unemployment is if you get an overpayment notice from NYS Department of Labor. This happens when they discover you weren't eligible for some or all of the benefits you received. Common reasons include working while claiming, not reporting earnings correctly, or being disqualified after an adjudication review. If you've been honest on your weekly claims and truly unemployed, you should be fine.
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Sean O'Brien
•What if you made an honest mistake on reporting? Like forgot to report a day of work or something?
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Anastasia Smirnova
•Honest mistakes usually result in just paying back the overpayment without penalties. Fraud is when they think you deliberately lied, which has much harsher consequences.
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Zara Shah
I actually had to deal with NYS Department of Labor about contacting them when I got an overpayment notice last year. Couldn't get through on the phone for weeks. Finally used claimyr.com to get connected to an actual agent - there's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Turned out my overpayment was their error and they reversed it. Sometimes you need to talk to someone to get these things sorted out properly.
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Chloe Davis
•Good to know there's a way to actually reach someone if needed. The regular phone system is impossible.
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Luca Bianchi
Been on unemployment 3 times over the years and never had to pay anything back. Your neighbor probably doesn't know what they're talking about
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GalacticGuardian
ugh this reminds me of when my sister got that overpayment letter and freaked out. turned out she had reported her part time hours wrong for like 2 weeks. had to pay back like $800 but at least they let her do payment plan. anyway yeah normally you dont pay it back unless theres a problem
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