Is the employer responsible for paying unemployment benefits in NY?
I got laid off last month from my job at a small manufacturing company and filed for unemployment with NYS Department of Labor. My former boss called me yesterday saying he's mad because he has to pay for my unemployment benefits and it's going to hurt his business. Is this actually true? I thought unemployment came from the state, not directly from employers. Can someone explain how this works? I'm worried he might try to contest my claim now.
10 comments


Ravi Sharma
Your employer doesn't pay your unemployment benefits directly. NYS Department of Labor collects unemployment insurance taxes from employers throughout the year, and that money goes into a fund that pays out benefits. Your specific claim doesn't come directly from your employer's pocket, but their tax rate can go up if they have a lot of former employees filing claims.
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Isabella Ferreira
•Oh that makes sense! So he's not writing a check for my weekly benefits, but his future taxes might increase?
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Freya Thomsen
yeah employers pay into the system but not for individual claims... your boss sounds like he doesn't understand how UI works
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Omar Zaki
Employers pay quarterly unemployment insurance taxes to NYS Department of Labor based on their payroll and their experience rating. If they have more former employees collecting benefits, their rate can increase over time. But no, they don't pay your specific weekly benefit amount. That comes from the state unemployment fund. Your employer can contest your claim if they believe you weren't eligible (like if they fired you for misconduct), but being laid off due to business reasons should qualify you for benefits.
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AstroAce
•Wait so if I get fired for poor performance can my employer contest my claim? I'm worried about my current situation now...
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Omar Zaki
•Being fired for poor performance is different from being fired for misconduct. Poor performance usually still qualifies you for benefits, but willful misconduct (like stealing, violating safety rules) typically disqualifies you. NYS Department of Labor will investigate if your employer contests.
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Chloe Martin
I had a similar issue where my employer tried to scare me about the costs. If you're having trouble reaching NYS Department of Labor to get official information about your claim, I used a service called Claimyr (claimyr.com) that helped me get through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Really helped when I needed to verify my claim status and couldn't get through on the regular phone lines.
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Isabella Ferreira
•Thanks for the suggestion! I haven't had trouble reaching them yet but good to know there are options if I do.
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Diego Rojas
Ugh employers always try to make you feel guilty about claiming benefits you EARNED. You paid into this system through your work, don't let him intimidate you!
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Mae Bennett
Your boss is trying to intimidate you, which unfortunately happens more than it should. The NY unemployment system is experience-rated, meaning employers with higher turnover and more claims see gradual increases in their tax rates over time - but this happens slowly and is based on overall patterns, not individual claims. Your specific weekly benefits come from the state fund that all employers pay into. Since you were laid off (not fired for misconduct), you absolutely qualify for benefits and shouldn't feel guilty about claiming them. Document that phone call from your boss in case he tries to contest your claim improperly - harassment of former employees over legitimate UI claims can actually get employers in trouble with the Department of Labor.
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