NYS Department of Labor caught me lying on unemployment - what happens next?
I made a huge mistake and didn't report some cash work I did while collecting unemployment benefits last year. NYS Department of Labor just sent me a notice saying they're investigating my claim for fraud. I'm terrified about what's going to happen. The notice mentions potential criminal charges and having to pay everything back with penalties. Has anyone been through this before? What should I expect and do I need a lawyer?
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Dylan Wright
This is serious but not necessarily the end of the world. NYS Department of Labor fraud investigations can result in overpayment demands, penalties up to 15% of the fraudulent amount, and disqualification from future benefits. Criminal charges are possible but usually reserved for large-scale fraud. You have appeal rights and should respond to their investigation promptly with documentation.
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Fatima Al-Mazrouei
•Thank you for the info. The amount they're claiming is about $2,800 in overpayments. Should I try to pay it back immediately or wait for the investigation to finish?
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NebulaKnight
oh no this happened to my brother in law last year! He had to pay back like $4000 plus penalties but no criminal charges. Just be honest with them about what happened and cooperate fully
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Fatima Al-Mazrouei
•Did he have to pay it all at once or could he set up a payment plan?
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NebulaKnight
•they let him do monthly payments i think it was like $200 a month
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Sofia Ramirez
The key is responding to their investigation honestly and completely. NYS Department of Labor will want documentation of the work you did and when. They may offer a waiver hearing where you can explain circumstances. For the phone contact issues during this process, I had success with Claimyr (claimyr.com) when I needed to speak with an actual agent quickly. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works.
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Fatima Al-Mazrouei
•I'll check that out, thanks. I've been trying to call NYS Department of Labor for days but keep getting hung up on.
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Dmitry Popov
DONT PANIC but take this seriously. The fraud unit doesn't mess around but they're also reasonable if you cooperate. Document everything you can remember about the work dates and earnings. If it was truly accidental they might reduce penalties.
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Ava Rodriguez
Similar thing happened to me a few years ago - forgot to report some freelance work. Ended up paying back $1,500 plus a $225 penalty. No criminal charges but I was disqualified from collecting UI for 6 months. Just be completely honest about what happened and why.
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Fatima Al-Mazrouei
•Did you have to go to a hearing or was it all handled through paperwork?
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Ava Rodriguez
•They offered me a phone hearing but I waived it and just accepted responsibility. Made the process faster.
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Diego Vargas
I went through something similar two years ago. The investigation process took about 6 weeks for me. Here's what I learned: 1) Respond to everything they send you promptly and completely, 2) Gather all records of the unreported work (pay stubs, bank deposits, etc.), 3) Write a clear explanation of why you didn't report it initially. In my case, I genuinely misunderstood the reporting requirements for odd jobs under $100. They still made me pay back $3,200 plus penalties, but no criminal charges. The worst part was the stress of waiting, but being proactive and honest helped. You might also want to consult with an employment attorney for a consultation - many offer free 30-minute consultations for cases like this.
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