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Daniela Rossi

Does vacation pay affect unemployment benefits in NY?

I got laid off from my job last week and I'm planning to file for unemployment benefits. My employer is paying out my accrued vacation time (about 2 weeks worth) in my final paycheck. Will this vacation payout affect my unemployment claim or delay when I can start receiving benefits? I'm worried NYS Department of Labor might consider this as wages and make me wait before I'm eligible. Has anyone dealt with this situation before?

Vacation pay can definitely impact your unemployment benefits depending on when it's paid and how it's structured. If it's paid as a lump sum for your final week of work, NYS Department of Labor typically counts it as wages for that week only. But if it's paid 'in lieu of notice' or covers future weeks, it could delay your benefits. You'll need to report it when you file your claim and during your weekly certifications.

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Thanks for the info! It's being paid as a lump sum with my final paycheck, so hopefully that means it won't delay things too much. Do I report the full amount or just divide it by the weeks it represents?

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yeah this happened to me too, my company paid out like 3 weeks vacation when i got terminated. basically nys unemployment made me wait until those weeks were 'used up' before i could collect. super annoying but thats how they do it

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That's not always accurate. It depends on how the vacation pay is allocated. If it's paid as a lump sum but not designated for specific future weeks, it might only affect the week it's received. The key is how your employer codes it on the separation paperwork they send to NYS Department of Labor.

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I had the worst time trying to get through to someone at NYS Department of Labor about this exact issue. Spent hours on hold just to get disconnected. Finally used a service called Claimyr (claimyr.com) that actually got me connected to an agent who explained exactly how my vacation payout would be handled. They have a demo video at https://youtu.be/qyftW-mnTNI that shows how it works. Way easier than dealing with the phone maze.

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That sounds helpful! The NYS Department of Labor phone system is impossible. I'll check that out if I can't get clear answers through the regular channels.

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Never heard of that service before but honestly anything is better than trying to call NYS Department of Labor directly. Their hold times are absolutely ridiculous and half the time you get cut off anyway.

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Make sure you're completely honest about the vacation pay when you file. NYS Department of Labor cross-references with employer reports and if there's a discrepancy it can cause major delays in your claim processing. I've seen people get their benefits held up for weeks because they didn't report vacation pay correctly initially.

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Definitely planning to be upfront about everything. The last thing I need is more complications with my claim.

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this whole system is such BS, they make it so complicated for no reason. vacation pay shouldnt count against unemployment since you already earned it while you were working!!! but nys unemployment doesnt care about logic

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I understand the frustration, but the reasoning is that vacation pay represents compensation for time periods, so if it covers future weeks it could conflict with unemployment benefits for those same weeks. It's not perfect but there is some logic to it.

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I went through this same situation about 6 months ago. The key thing to understand is that NYS Department of Labor looks at vacation pay differently depending on how it's designated. When I filed, they asked me to specify exactly how many weeks the vacation pay covered and whether it was paid "in lieu of notice." In my case, I had 10 days of vacation paid out, and they treated it as covering two work weeks, which delayed my benefits by exactly two weeks. The important thing is to have all the documentation from your employer showing how they calculated the payout - this will help when you're doing your weekly certifications. Also, keep copies of everything because you might need to reference it later if there are any questions about your claim.

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This is really helpful, thank you! Having specific documentation from the employer sounds crucial. When you say they treated your 10 days as covering two work weeks, did that mean you had to wait the full two weeks before you could start collecting, or did it just affect the amount for those weeks? I want to make sure I understand how the timing works when I file my claim.

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@Destiny Bryant That s'exactly the kind of detail I was looking for! So they made you wait the full two weeks before you could start collecting anything? I m'trying to figure out if my two weeks of vacation pay will completely delay my benefits or if there s'any overlap. Did you have to keep certifying during those two weeks even though you weren t'getting paid, or did your benefit period start after the vacation pay period ended?

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@Destiny Bryant This is super useful information! I m'in almost the exact same boat - got laid off and have about 2 weeks of vacation pay coming. When you say they made you wait two weeks, does that mean you couldn t'file your claim at all during that time, or did you file immediately but just couldn t'receive payments until after the vacation period? I m'wondering if I should wait to file my initial claim or file right away and just expect the delay in payments. Also, did your employer specifically mark it as in "lieu of notice or" was it just regular accrued vacation time?

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@Destiny Bryant This is super helpful! I m'in a similar situation with about 2 weeks of vacation pay. Quick question - when you were waiting those two weeks, did you still need to do the weekly job search requirements and certifications, or does that waiting period essentially pause everything? I m'trying to figure out if I should start looking for work immediately or if there s'any flexibility during that vacation pay period. Also, did the NYS Department of Labor automatically know about your vacation pay from your employer, or did you have to provide all the documentation yourself when filing?

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From my experience, the timing of when vacation pay affects your benefits really depends on how your employer reports it to NYS Department of Labor. I had a similar situation where I received 2 weeks of vacation pay, but it was coded as "accrued vacation time" rather than "pay in lieu of notice." This made a big difference - the DOL treated it as wages for the week it was paid rather than spreading it across future weeks. My advice would be to file your claim right away regardless, because there's often a waiting week anyway, and you want to get the process started. When you do your weekly certifications, you'll report the vacation pay amount and they'll determine how it affects your specific claim. The key is being upfront about it from the start. Also, make sure you get a copy of your separation paperwork from HR - it should clearly state how the vacation pay is being handled, which will help when you're answering questions during the filing process.

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@Malik Thomas This is exactly what I needed to hear! The distinction between accrued "vacation time vs" pay "in lieu of notice seems" to be the crucial factor. I ll'definitely file right away and make sure to get that separation paperwork from HR before they process everything. It s'reassuring to know that being upfront from the start is the best approach - I was worried about reporting it and causing problems, but it sounds like transparency actually helps avoid delays. Thanks for the practical advice about the weekly certifications too!

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I'm dealing with this exact situation right now - just got laid off yesterday and have about 1.5 weeks of vacation pay coming in my final check. Reading through all these responses is really helpful, especially the distinction between "accrued vacation time" vs "pay in lieu of notice" that @Malik Thomas mentioned. I'm planning to file my claim this week and be completely transparent about the vacation payout. One thing I'm still unclear on though - if the vacation pay only affects the week it's received (like in Malik's case), does that mean I'd only lose one week of unemployment benefits, or would it reduce the benefit amount for that specific week? Also wondering if anyone knows whether the one-week waiting period that NYS usually has would overlap with a vacation pay week, potentially making the impact less noticeable. Going to call my HR department tomorrow to make sure I get clear documentation about how they're coding the payout.

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@Ashley Adams Great questions! From what I ve'seen in similar cases, if the vacation pay only affects the week it s'received, it typically means you wouldn t'receive unemployment benefits for that specific week rather than just a reduced amount. The benefit calculation is usually all-or-nothing based on whether your total wages for that week exceed the allowable limit. Regarding the waiting week, that s'actually a smart point - if your vacation pay week coincides with the standard one-week waiting period that NYS has, it could work out where you re'not really losing "an" additional week of benefits. Definitely get that HR documentation about the coding - having it clearly marked as accrued "vacation time rather" than pay "in lieu of notice could" make a big difference in how quickly you start receiving payments. Good luck with your claim!

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Just wanted to add another perspective on this - I went through the same thing about a year ago. The most important thing I learned is that NYS Department of Labor will ask you very specific questions about the vacation pay during your phone interview (if you get selected for one). They'll want to know: 1) The exact dollar amount, 2) How many days/weeks it represents, 3) Whether your employer designated it for specific future dates, and 4) If it was part of a severance package. I had 2.5 weeks of vacation pay and because my employer clearly documented it as "accrued vacation time earned during employment" rather than future compensation, it only affected the week I received it. The key is making sure your employer's documentation to the DOL matches what you report. I'd also recommend screenshotting your final pay stub showing the vacation payout breakdown - you might need it later for verification purposes.

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@Yuki Yamamoto This is incredibly detailed and helpful! I hadn t'thought about the possibility of a phone interview, so knowing what specific questions they might ask is really valuable. The four points you mentioned - dollar amount, time period, future dates designation, and severance connection - sound like exactly the kind of details I need to have ready. I m'definitely going to screenshot my pay stub when I get it and make sure I can clearly explain how my employer documented everything. It s'reassuring to hear that proper documentation from the employer as accrued "vacation time rather" than future compensation made such a difference in your case. Thanks for sharing your experience!

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I'm in a very similar situation - just got laid off two days ago and have about 10 days of vacation pay coming. Reading through everyone's experiences here has been incredibly helpful! It sounds like the key factors are: 1) How the employer codes it ("accrued vacation" vs "pay in lieu of notice"), 2) Getting proper documentation, and 3) being completely transparent when filing. I'm planning to contact HR tomorrow to make sure they clearly document it as accrued vacation time and get copies of everything before filing my claim this week. One question - for those who had vacation pay that only affected one week, did you still need to do job search activities during that week, or does the system recognize that week differently? Thanks to everyone who shared their detailed experiences - this is exactly the kind of real-world info that's impossible to find on the official NYS Department of Labor website!

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@Dallas Villalobos Great question about the job search requirements! From what I understand, you typically still need to complete job search activities during any week you re'claiming benefits, even if it s'a week affected by vacation pay. The job search requirement is tied to your weekly certification, not whether you receive payment that week. However, if your vacation pay completely disqualifies you from benefits for that week, you might not need to certify at all for that specific week - but I d'double-check this when you file since the rules can be nuanced. You re'absolutely right that this real-world info is so much more helpful than the official site. The documentation strategy everyone s'mentioned seems crucial - getting HR to clearly code it as accrued "vacation time rather" than anything that sounds like future compensation could make all the difference in how quickly your benefits start.

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I'm also facing this exact situation - got laid off last Friday and have about 12 days of vacation pay being processed with my final paycheck. This thread has been incredibly informative! Based on everyone's experiences, it seems like the most critical factors are getting proper documentation from HR showing it's coded as "accrued vacation time" and being completely upfront when filing. I'm planning to file my claim early this week but want to make sure I have all the right paperwork first. One thing I'm still wondering about - has anyone dealt with vacation pay that spans across multiple pay periods? My HR department mentioned they might split the payout across two paychecks due to tax withholding limits. I'm worried this could complicate how NYS Department of Labor treats it. Also, for those who successfully navigated this, did you find it helpful to mention the vacation pay situation in your initial application, or did you wait until the weekly certifications to report it? Thanks everyone for sharing such detailed experiences - this is way more helpful than anything I could find on the official websites!

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@Ravi Sharma That s'a really good question about vacation pay being split across multiple paychecks! I haven t'dealt with that specific situation personally, but from what I ve'gathered reading through everyone s'experiences, I think the key would be making sure your HR department clearly documents the total vacation time period it represents, even if the payments are split. You d'probably want to report the full amount and time period when you file initially, then report each payment as you receive it during weekly certifications. The splitting might actually work in your favor if it reduces the impact on any single week s'earnings calculation. I d'definitely mention the vacation pay situation upfront in your initial application - transparency from the start seems to be the consistent advice from everyone who s'been through this successfully. You might also want to get written documentation from HR explaining why they re'splitting it and confirming it all represents the same accrued vacation period.

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I'm going through this same situation right now - just got laid off on Monday and have about 8 days of vacation pay coming. This thread has been a lifesaver! From reading everyone's experiences, it seems like the main things to focus on are: 1) Getting HR to properly document it as "accrued vacation time" rather than "pay in lieu of notice", 2) Being completely transparent from day one, and 3) keeping copies of everything. I'm planning to call HR tomorrow morning to make sure they send the right paperwork to NYS Department of Labor before I file my claim later this week. One quick question for those who've been through this - when you reported the vacation pay during your initial filing, did you have to provide the exact dollar amount right away, or were you able to give an estimate and then provide specifics during weekly certifications? My final paycheck isn't processed yet so I only have an estimate of what the vacation payout will be. Thanks to everyone for sharing such detailed real-world experiences - this is exactly the kind of practical info that's impossible to find anywhere else!

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@Liam Fitzgerald From my experience, you can usually provide an estimate when filing initially and then give the exact amount during your weekly certification once you receive your final paycheck. The NYS Department of Labor system seems designed to handle this since many people are in similar situations where final pay details aren t'immediately available. Just make sure to note that it s'an estimate when you file, and then update with the precise amount as soon as you have it. The key is being upfront about the estimate rather than trying to guess exactly. Also, having that HR documentation ready showing it s'accrued "vacation time before" you file will definitely help streamline the process. Good luck with your claim!

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I'm in almost the exact same situation - got laid off yesterday and have about 2.5 weeks of vacation pay coming in my final check next week. This entire thread has been incredibly helpful! Reading through everyone's experiences, it's clear that the key factors are: 1) How HR codes the vacation pay ("accrued vacation time" vs "pay in lieu of notice"), 2) Getting proper documentation before filing, and 3) being completely transparent from the start. I'm going to call my HR department first thing Monday morning to make sure they clearly document it as accrued vacation time and get copies of all the paperwork before I file my claim. One thing I'm curious about - for those who had vacation pay that was treated as affecting only the week it was received, did that week count toward your total benefit year, or was it essentially like a "free" non-counted week? Also, has anyone dealt with a situation where the vacation payout was large enough that it might affect multiple weeks even when coded as accrued vacation time? Thanks to everyone for sharing such detailed real-world experiences - this is exactly the kind of practical guidance that makes all the difference when navigating the NYS unemployment system!

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@Charlie Yang Great questions! From what I ve'observed in similar cases, when vacation pay affects only the week it s'received, that week typically still counts toward your total benefit year - it s'not a free "week," you just don t'receive payment for it. Regarding larger vacation payouts, if the amount is substantial enough, NYS Department of Labor might spread it across the number of weeks it represents regardless of how it s'coded, especially if it exceeds their weekly benefit calculation thresholds. I d'recommend asking HR specifically how many work days/weeks your 2.5 weeks of vacation represents and getting that clearly documented. Also, when you call HR, ask them to confirm in writing exactly how they re'reporting it to the state - this documentation could be crucial if there are any questions later. The transparency approach everyone s'mentioned really does seem to be the best strategy for avoiding complications down the road.

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I'm dealing with this exact situation right now - just got laid off on Friday and have about 1.5 weeks of vacation pay coming. This thread has been incredibly valuable! From everyone's experiences, it's clear the main factors are: 1) Getting HR to code it properly as "accrued vacation time", 2) having solid documentation, and 3) being upfront from the start. I've already reached out to HR to make sure they send the right paperwork to NYS Department of Labor. One thing I'm wondering about - has anyone experienced a situation where their vacation pay amount was right at the borderline of their weekly benefit amount? I'm trying to figure out if my payout might partially affect benefits for that week versus completely disqualifying me. Also, for those who filed right away, did you find it better to mention the vacation pay in your initial application or wait until weekly certifications? The consensus here seems to be transparency from day one, but I want to make sure I'm handling the timing correctly. Thanks to everyone for sharing such detailed real-world experiences - this is way more practical than anything on the official NYS website!

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@Alejandro Castro I haven t'dealt with the borderline situation personally, but from what I ve'gathered reading through everyone s'experiences here, NYS Department of Labor typically uses an all-or-nothing approach for weekly eligibility rather than partial reductions. If your vacation pay exceeds their weekly earnings threshold, you d'likely be disqualified for that entire week rather than receiving a reduced benefit. However, the exact threshold can vary based on your benefit amount, so it s'worth calculating beforehand if possible. Regarding timing, the consistent advice from everyone who s'successfully navigated this seems to be mentioning the vacation pay upfront in your initial application. This way, NYS Department of Labor has the full picture from the start and can process your claim more efficiently. Being transparent from day one appears to prevent delays and complications that could arise if they discover the vacation pay later through employer reports. Good luck with your claim!

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I'm currently going through this exact situation - got laid off this week and have about 3 weeks of vacation pay coming. This entire discussion has been incredibly helpful! Based on everyone's experiences, I'm seeing a clear pattern: the way HR codes the vacation pay makes all the difference. I'm planning to contact my HR department tomorrow to ensure they mark it as "accrued vacation time" rather than "pay in lieu of notice" and get all the documentation before filing my claim. One question I haven't seen addressed yet - has anyone dealt with vacation pay that includes holiday time mixed in? My payout includes both regular vacation days and floating holidays from this year. I'm wondering if NYS Department of Labor treats these differently or if they're typically grouped together as one lump sum. Also, for those who mentioned getting through to an actual agent, what time of day did you have the most success calling? The phone system seems notoriously difficult. Thanks to everyone for sharing such detailed experiences - this real-world advice is invaluable when navigating the system!

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@Klaus Schmidt Great question about holiday time mixed with vacation pay! From what I ve'seen in similar situations, NYS Department of Labor typically treats vacation days and floating holidays the same way when they re'paid out together - they re'usually considered as one combined payout of accrued "paid time off. The" key is making sure HR documents the total as earned time rather than future compensation. When you call HR tomorrow, I d'ask them to specify on the paperwork that it includes both vacation and holiday time that was accrued during your employment period. Regarding phone times, I ve'had the best luck calling right when they open at 8 AM or around 1-2 PM after the lunch rush. Early morning seems to be the sweet spot before the lines get too jammed. The documentation approach everyone s'mentioned really is crucial - having HR clearly code everything as accrued "time off should" help avoid complications with your claim.

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