NYS Department of Labor: What's the difference between underemployment and unemployment for benefits?
I'm really confused about something and hoping someone can clarify. I keep seeing references to 'underemployment' vs 'unemployment' when I'm trying to figure out my NYS Department of Labor claim situation. I was working full-time making $22/hour at a manufacturing plant until they cut my hours to just 2 days a week in December. Now I'm only making about $350 a week instead of my usual $880. Am I considered unemployed or underemployed? Does it matter for my UI claim? I filed but my weekly claim certification asks about any work performed and earnings, so I'm reporting the part-time hours. Will this affect my benefit amount or eligibility? I don't want to mess this up because I really need the extra money to cover my rent and bills.
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Zainab Khalil
You're actually dealing with 'partial unemployment' which is different from both full unemployment and underemployment. When you work reduced hours through no fault of your own, NYS Department of Labor considers this partial unemployment and you can still qualify for benefits. The key is that your hours were cut by your employer, not that you chose to work less. Your weekly benefit amount gets calculated based on your earnings - they'll subtract a portion of what you earn from your weekly benefit amount. Generally, you can earn up to about 25% of your weekly benefit rate before they start reducing your payment. Keep reporting all earnings accurately on your weekly claims.
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Miguel Ortiz
•Thank you! So I should keep filing my weekly claims even though I'm still working some hours? I was worried they'd deny my whole claim.
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QuantumQuest
Underemployment usually refers to people who are working jobs below their skill level or education, like a college graduate working retail. That's different from what you're describing. Your situation sounds like partial unemployment since your employer reduced your hours. I went through something similar last year when my restaurant cut everyone's shifts.
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Connor Murphy
•Exactly right. Underemployment is more of an economic concept about people not using their full potential. For NYS Department of Labor purposes, what matters is whether you're working full-time, part-time, or not at all.
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Yara Haddad
ugh the whole system is so confusing! why cant they just use normal words instead of all this bureaucratic nonsense. i had the same thing happen and it took me forever to figure out i could still get benefits while working reduced hours
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Keisha Robinson
•I know right? I spent weeks thinking I couldn't file because I was still technically employed. Wish they made this stuff clearer on their website.
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Paolo Conti
If you're having trouble getting through to NYS Department of Labor to clarify your specific situation, I used a service called Claimyr (claimyr.com) that helped me get connected to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me hours of trying to call and getting busy signals. Really helpful when you need to discuss the specifics of partial unemployment vs regular unemployment claims.
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Miguel Ortiz
•Thanks, I might need to try that. I've been trying to call for days with no luck and I want to make sure I'm doing everything correctly.
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Amina Sow
Been there! The difference is basically this: unemployed means you have no job at all, underemployed means you have a job but it's not enough hours or pay to meet your needs. NYS Department of Labor has specific rules for partial unemployment which sounds like what you qualify for. Just make sure you keep looking for full-time work and document your job search activities.
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