How does unemployment affect the employer - NYS Department of Labor consequences?

Yes, unemployment claims absolutely affect employers! When you file for UI benefits, your former employer pays into the system through what's called an 'experience rating.' The more former employees who successfully claim benefits, the higher their unemployment tax rate goes. That's probably why your boss called - they're trying to see if there are grounds to contest your claim to keep their rates from increasing.

Your employer pays unemployment taxes to the NYS Department of Labor based on their 'experience rating' which is essentially their history of layoffs and terminated employees who collect benefits. Companies with more claims against them pay higher rates. It's designed to make employers think twice before laying people off unnecessarily. If you were legitimately laid off due to lack of work, they shouldn't be able to successfully contest your claim.

ugh this happened to me too! my boss was SO mad when i filed and kept calling the NYS Department of Labor trying to say i quit when i definitely got fired. took forever to get my benefits approved because of his lies. employers really hate paying those taxes

If you're having trouble getting through to the NYS Department of Labor to ask about your claim status or if your employer contested it, I had good luck using claimyr.com - they help you actually reach an agent by phone instead of sitting on hold forever. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me hours of frustration when my employer tried to fight my claim.

Been through this nightmare before. Employers basically subsidize the unemployment system and they HATE paying for it. Some will fight legitimate claims just to try to keep their costs down. Document everything about your layoff just in case they try to claim you were fired for misconduct or something ridiculous.

my cousin works in HR and she says companies budget for unemployment costs but still try to minimize them however they can. sounds like your boss is just worried about their bottom line

Just want to add that the NYS Department of Labor also considers the size of the employer when calculating these experience ratings. Smaller businesses like restaurants often get hit harder by rate increases from unemployment claims because they have fewer employees to spread the cost across. That might explain why your boss seemed particularly concerned - every claim really does impact their quarterly tax bill more significantly than it would for a big corporation.

Don't feel too bad about it - unemployment insurance is literally designed to protect workers like you who lose their jobs through no fault of their own. Yes, employers pay into the system, but that's the whole point - it creates a social safety net while also incentivizing companies to maintain stable employment. Your boss calling you with "weird questions" is concerning though. They might be fishing for information to contest your claim. Just stick to the facts: you were laid off due to lack of work, not fired for cause. The NYS Department of Labor will investigate if they do contest, but legitimate layoff claims usually hold up fine.