How does an employee filing for unemployment affect the employer - NYS Department of Labor impact?
My company just laid off 8 people including myself due to budget cuts. I'm filing for unemployment but I'm worried about how this might affect my former employer since they were a small business and treated us well. Does the NYS Department of Labor charge them extra fees when employees file claims? Will their unemployment insurance rates go up? I don't want to hurt them financially but I also need the benefits to survive until I find another job. Can anyone explain what actually happens to employers when we file for unemployment in NY?
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Cassandra Moon
Your employer pays into the unemployment insurance system regardless of whether you file or not. When you file a claim, the NYS Department of Labor will verify your employment history and wages with them, but there's no immediate extra charge. However, their future UI tax rates can be affected by the number of claims filed against their account - it's called an 'experience rating.' But don't feel bad about filing - this is exactly what the system is designed for!
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Eli Wang
•Thank you! That makes me feel better. So they won't get hit with a huge bill right away when I file my claim?
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Zane Hernandez
The experience rating system means employers with more claims against them pay higher rates over time, but it's calculated annually and spread out. A small business that rarely has layoffs won't see a dramatic increase from one or two claims. The NYS Department of Labor looks at a three-year period when calculating these rates. Your employer was already paying unemployment insurance taxes quarterly, so filing your claim doesn't create any immediate financial burden for them.
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Genevieve Cavalier
•This is correct. I run a small business and had to lay off 3 employees in 2023. My UI rates went up slightly the following year but it wasn't devastating.
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Ethan Scott
wait so if I file for unemployment my old boss has to pay more??? that doesn't seem fair especially if they laid me off through no fault of their own
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Cassandra Moon
•It's not immediate - the rates adjust over time based on overall claim history. Think of it like car insurance - if you have accidents, your rates eventually go up, but you're still covered for the current accident. Employers know this is part of the cost of doing business.
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Lola Perez
Don't worry about this at all. Employers are required to carry unemployment insurance and they budget for these costs. The NYS Department of Labor system is specifically designed so that workers can access benefits without worrying about employer impact. If you were laid off legitimately, file your claim immediately. The longer you wait, the more money you're losing. If you're having trouble getting through to the NYS Department of Labor phone lines, there's a service called Claimyr (claimyr.com) that can help you reach an agent faster. They have a demo video at https://youtu.be/qyftW-mnTNI that shows how it works.
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Eli Wang
•Thanks for the resource! I'll check out that video. I was dreading trying to call the NYS Department of Labor.
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Nathaniel Stewart
been through this before and my advice is just file your claim and don't overthink it. employers know layoffs mean unemployment claims, its part of running a business. the NYS Department of Labor has been processing claims for decades, they have the system figured out
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Riya Sharma
You're being way too considerate! File your claim TODAY. I waited two weeks worrying about the same thing and lost out on $1,200 in benefits because unemployment doesn't pay retroactively for delays. The employer impact is minimal and spread out over years.
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Eli Wang
•You're right, I need to stop overthinking this. Filing my claim this afternoon.
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Zara Khan
As someone who works in HR, I can confirm what others have said - the NYS Department of Labor unemployment insurance system is designed to protect both workers and employers. Your former employer was already paying quarterly UI taxes based on their payroll, and one claim won't cause their rates to skyrocket overnight. The experience rating adjustments happen gradually over a multi-year period. Most small business owners understand that layoffs lead to unemployment claims - it's factored into their business planning. You paid into this system through your work, so don't feel guilty about using the safety net you helped fund. File your claim right away!
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