Is unemployment fraud a felony in NY - worried about NYS Department of Labor investigation

Take a deep breath - not all fraud cases are felonies. In NY, it depends on the amount involved. Under $1,000 is usually a misdemeanor, over $1,000 can be a felony. The key thing is to respond to NYS Department of Labor immediately and be completely honest about what happened. If it was an honest mistake and you cooperate, they often work out payment plans rather than criminal charges.

I went through something similar two years ago. NYS Department of Labor initially flagged my claim for fraud but it turned out to be a simple overpayment issue. They made me pay back what I owed plus a penalty, but no criminal charges. The important thing is documenting everything and showing you're willing to make it right. Most fraud cases that become felonies involve people who deliberately scammed the system for thousands of dollars.

If you're having trouble reaching NYS Department of Labor about this, I found a service called Claimyr (claimyr.com) that helped me get through to an actual agent when I had an adjudication issue. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Might be worth checking out since time is important with fraud investigations.

unemployment fraud is serious but they usually go after the big fish not people who made honest mistakes... my cousin got caught not reporting work and just had to pay it back with interest

The whole system is so confusing though! They don't make it clear what you need to report and when. I almost made the same mistake with some odd jobs I did. The NYS Department of Labor website is useless for explaining this stuff clearly. You shouldn't have to be a lawyer to understand how to file your weekly claims correctly.

just be honest with them and you'll probably be fine... my neighbor had to pay back like 2 grand but no jail time or anything

I understand how scary this must be for you. I work in legal aid and see these cases fairly often. For unemployment fraud in NY, the key factors are the amount and intent. Since you mentioned around $800 total, this would likely be classified as a misdemeanor if charges were even filed, which is less common for first-time cases involving smaller amounts and clear willingness to cooperate. The NYS Department of Labor typically prefers to resolve these through repayment agreements rather than criminal prosecution for cases like yours. Make sure to respond to their investigation promptly, be completely transparent about what happened, and emphasize that the underreporting was unintentional. Consider reaching out to your local legal aid society - many offer free consultations for unemployment issues and can help you navigate the response process.

Hey Axel, I know this is incredibly stressful but you're not alone in this. I went through a similar situation about a year ago with NYS Department of Labor over some freelance work I forgot to report properly. The investigation process is scary but they really do distinguish between honest mistakes and intentional fraud. Since your amount was under $1000 and it sounds like genuine oversight rather than deliberate deception, you're much more likely to face an overpayment determination rather than criminal charges. My advice: respond to everything promptly, gather any documentation you have about the work you did, and be completely upfront about the mistake. I ended up having to repay about $600 plus a 15% penalty, but they let me do it in monthly installments over a year. The whole process took about 3 months to resolve. Hang in there - this will get sorted out.