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NY unemployment deducted $336.25 penalty - will I still get remaining benefits?

I just checked my NY unemployment payment this week and saw they took out $336.25 as a 'penalty deduction.' I'm freaking out a little because I need every dollar right now. The notice says something about an overpayment from 3 weeks ago, but I reported all my income correctly! Will they keep taking money from my benefits every week until it's paid off? Or is this just a one-time thing? Does anyone know if I'll at least get the rest of my weekly benefit amount going forward? I'm already behind on rent and can't afford more surprises.

Miguel Castro

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they'll prolly keep deducting til its paid. happened to me last yr, they took like 20% each week til it was gone

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Ava Williams

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Oh no, that's what I was afraid of! Did they ever explain why you had the penalty in the first place?

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Same thing just happened to me last week! I'm still confused about WHY i got penalized but at least the payments keep coming, just smaller.

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This sounds like a standard overpayment recoupment process. When NYSDOL determines you received more benefits than you were entitled to, they'll typically recover it by taking a percentage from future benefits. The standard deduction is usually 25-50% of your weekly benefit amount until the overpayment is recovered. You should have received a Notice of Determination explaining the overpayment reason. Look for form T402 or similar in your mail or on your online account. You have the right to request a hearing if you believe the determination is incorrect, but you must do so within 30 days of the determination date. To answer your main question - yes, you'll continue receiving the remainder of your benefits after the deduction. They won't stop your benefits completely unless there's a separate disqualification issue.

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Ava Williams

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Thank you so much for explaining! I'll check my mail more carefully for that form. Is there any way to request they take a smaller percentage? $336 is almost half my weekly amount and I can't pay bills with what's left.

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LunarEclipse

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What if they made a mistake??? I would call RIGHT AWAY and challenge this!!!! They did this to me in 2023 and it was THEIR ERROR and I had to fight for WEEKS to get my money back!!!!!

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Ava Williams

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Did you eventually get the money back? What process did you have to go through?

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LunarEclipse

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Yes but it took FOREVER!!!! I had to call like 50 times and got disconnected every time!!!! Finally got through after 3 weeks and they admitted it was their mistake. The system is BROKEN!!!!!

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Yara Khalil

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You need to look at your payment history and determination notices carefully. The $336.25 is likely exactly 25% of your weekly benefit amount (meaning your WBA is around $1,345). This is the standard recoupment rate for non-fraud overpayments in NY. If this causes financial hardship, you can request a reduced recoupment rate by submitting form TC-95W Request for Waiver of Overpayment Recovery. You'll need to document your income, expenses, and explain why the standard rate would cause significant financial hardship. You can download this form from the NYSDOL website. And yes, to directly answer your question, you will continue receiving the remainder of your benefits, just with this deduction applied each week until the overpayment is satisfied.

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Ava Williams

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Thank you!! I didn't know about the waiver form. I'm going to download that right now. Do you know how long it usually takes for them to process the waiver request?

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Yara Khalil

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Processing times vary, but typically 3-4 weeks. The recoupment will continue during the review period, but if approved, they may reimburse some of what was already taken. Make sure to be thorough with your documentation and be specific about your hardship circumstances.

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Keisha Brown

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I went through something similar in January. Tried calling for DAYS to get it fixed. Couldn't get through at all until I found this service called Claimyr that got me connected to an agent in about 15 minutes. Saved me so much time and stress! You can see how it works at https://youtu.be/Rdqa1gKtxuE and their site is claimyr.com - totally worth it since I was able to get my recoupment rate lowered from 50% to 15% after explaining my situation to an actual person. The remaining benefits kept coming, just with the smaller deduction.

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Miguel Castro

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does that really work? I thought those callback services were scams

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Keisha Brown

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It worked for me! I was skeptical too but was desperate after trying to call for a week straight. Got through to someone who actually helped with my case.

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Ava Williams

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I might try this. Been calling all morning and can't get past the automated system. Thanks for the suggestion.

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when this hapened to me it was bcuz i accidently put my hours wrong on one claim i got nervous nd called them the lady i talked to said i could do a payment plan insted of them taking it all from benefits

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You should check if ur eligible for that hardship waiver thing someone mentioned! Also double check if u actually made a mistake on ur claims. My brother had this happen and turns out he reported some income wrong from a side gig.

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To clarify something important - recoupment (getting money back from future benefits) is different from a penalty. If this is actually labeled as a "penalty" rather than just an overpayment recoupment, it might indicate they determined there was willful misrepresentation, which is more serious. Check the exact language on your determination notice. If it specifically mentions penalties for willful misrepresentation, you should definitely appeal this if you believe you reported everything correctly. Penalties can include both monetary recovery and potential disqualification from future benefits.

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Ava Williams

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I double-checked and it does say 'overpayment recoupment' not penalty. So that's a relief! I think I just panicked when I saw the lower amount. I've submitted the hardship waiver form online and am hoping they'll reduce the percentage they're taking each week.

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LunarEclipse

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After all thia drama with my overpayment, I printed out EVERYTHING and kept copies of ALL my communications with them. They kept changing their story about why I owed money!!! Trust me, document EVERYTHING when dealing with unemployment!!!!

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Yara Khalil

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I'm glad you've submitted the hardship waiver. While waiting for the response, you might also want to request an explanation of the overpayment if you haven't received one. Call or check your online message center for a document explaining exactly which week(s) were overpaid and why. Sometimes it's a simple reporting error that can be corrected. And yes, to reassure you again - your benefits will continue with the recoupment deduction applied until the overpayment is satisfied. If your hardship waiver is approved, you'll see the deduction amount decrease in future payments.

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Ava Williams

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Thank you everyone for all the help and advice! I feel much better knowing I'll still get most of my benefits and that there are options for reducing how much they take each week. Going to focus on getting that hardship waiver approved now.

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