How to sue unemployment NYS Department of Labor for wrongful denial?
My unemployment claim got denied back in October and I'm pretty sure NYS Department of Labor screwed up big time. I was laid off from my warehouse job after 2 years, no misconduct or anything, just company downsizing. Filed my claim right away but they said I was 'disqualified for voluntary quit' which is completely false. I never quit! I appealed it but lost the hearing because they had some bogus documentation saying I resigned. The hearing officer wouldn't even listen to my side properly. I've been without income for months now and my savings are gone. Can I actually sue NYS Department of Labor for this? What kind of lawyer would I need? This whole system is broken and they're ruining people's lives with these wrong decisions.
14 comments


Kyle Wallace
Unfortunately suing NYS Department of Labor directly is extremely difficult. The state has sovereign immunity which protects government agencies from most lawsuits. Your best bet is to file another appeal if you're still within the time limits, or request a review by the Unemployment Insurance Appeal Board if the hearing decision was wrong. Do you have any documentation from your employer showing you were laid off rather than quitting?
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Malia Ponder
•I have my layoff notice but apparently my former supervisor told them I quit. It's his word against mine and they believed him over me.
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Ryder Ross
same thing happened to my brother last year, employer lied about why he left and unemployment bought it hook line and sinker
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Malia Ponder
•Did he ever get it resolved? I'm running out of options here.
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Ryder Ross
•he eventually got through to someone at nys department of labor who looked at his case again and overturned it but took like 6 months
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Gianni Serpent
Before considering legal action, you should exhaust all administrative remedies first. If you lost your hearing, you can appeal to the Unemployment Insurance Appeal Board within 30 days. If that fails, you might have grounds for an Article 78 proceeding in state court, but that's for procedural errors not disagreements with the decision. You'd need an employment attorney familiar with unemployment law. Most won't take these cases on contingency because damages are limited.
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Malia Ponder
•What's an Article 78? And how much would something like that cost?
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Gianni Serpent
•Article 78 is a special proceeding to challenge government agency decisions. It's expensive though - probably $5,000-$15,000 in legal fees minimum. Only worth it if there were serious procedural violations.
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Henry Delgado
I had trouble reaching NYS Department of Labor for months about my claim issues until I found this service called Claimyr. They actually got me connected to a real person who could review my case. Check out claimyr.com - they have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Might be worth trying before going the lawsuit route since that's so expensive and uncertain.
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Olivia Kay
•How much does that cost though? Sounds like another way to take advantage of desperate people.
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Henry Delgado
•It's way cheaper than hiring a lawyer and actually worked for me. Sometimes you need help navigating the system when they won't return your calls.
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Joshua Hellan
THE WHOLE UNEMPLOYMENT SYSTEM IS A SCAM! They deny legitimate claims left and right then make you jump through hoops to prove you deserve your own money. I've been fighting them for 8 months over an overpayment that isn't even my fault. These people have NO accountability whatsoever!
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Jibriel Kohn
•I feel you man, it's so frustrating when they mess up and you pay the price
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Kyle Wallace
One more thing - if your employer is lying about the reason you left, you might have a claim against them for defamation or interference with benefits. That would be a separate lawsuit from trying to sue NYS Department of Labor. An employment attorney could advise you on both angles.
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