NYS Department of Labor claim denied after minimum wage increase - how does increasing minimum wage affect unemployment eligibility?
My employer laid me off last month citing the recent minimum wage increases as making my position too expensive. When I filed for unemployment with NYS Department of Labor, my claim got stuck in adjudication for weeks and was eventually denied. The denial letter mentions something about 'work availability at prevailing wage rates' but I'm confused about how minimum wage changes affect unemployment eligibility. Has anyone else dealt with this after getting laid off due to wage increases? I've been searching for work but most jobs in my area are offering the new minimum wage which my previous employer said they couldn't afford. Not sure if this affects my job search requirements either.
12 comments


Hannah White
The minimum wage increase itself doesn't directly affect your unemployment eligibility. If you were laid off due to lack of work (which is what it sounds like), you should qualify for benefits regardless of the reason for the layoff. The 'work availability at prevailing wage rates' usually refers to whether you're willing to accept suitable work at current market rates. You should appeal this denial - sounds like NYS Department of Labor may have misinterpreted your situation. Make sure you're documenting your job search efforts at the current wage levels in your area.
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Nick Kravitz
•Thanks, that makes sense. I am willing to work at current rates - that was never the issue. Should I mention the minimum wage situation in my appeal or just focus on the fact that I was laid off through no fault of my own?
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Michael Green
wait this is confusing... if minimum wage went up wouldn't that be GOOD for getting unemployment? like you'd get more money? or does it work differently
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Hannah White
•Unemployment benefits are based on your previous earnings, not current minimum wage. The issue here seems to be that NYS Department of Labor incorrectly denied the claim, possibly thinking the person wasn't available for work at current wage rates.
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Mateo Silva
I had a similar situation two years ago when my restaurant couldn't afford the wage increases and had to cut staff. My unemployment claim was approved without issues though. The key is proving you were laid off due to lack of work, not because of performance or misconduct. Your employer should have properly documented this as an economic layoff. Did they provide you with any paperwork when they let you go?
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Nick Kravitz
•They gave me a termination letter that mentioned 'economic reasons' and 'increased operational costs' but didn't specifically say minimum wage. Should I ask them for something more specific for my appeal?
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Victoria Jones
This is exactly why minimum wage increases hurt workers!!! Companies can't afford to pay more so they fire people and then those people get denied unemployment too. The whole system is broken. I've been fighting NYS Department of Labor for months over different issues and they just don't care about regular people trying to survive.
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Cameron Black
•While that's a broader economic debate, the immediate issue is getting this wrongful denial overturned. Focus on the appeal process first - you have rights as an unemployed worker regardless of the economic factors that led to your layoff.
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Cameron Black
I've been helping people with unemployment appeals for years and this denial doesn't make sense based on what you've described. When you file your appeal, emphasize these points: 1) You were laid off due to lack of work/economic reasons 2) You are able, available and actively seeking work 3) You're willing to accept suitable employment at prevailing wage rates. The minimum wage increase is irrelevant to your eligibility. If you're having trouble reaching NYS Department of Labor by phone to discuss this, I recently discovered this service called Claimyr (claimyr.com) that helps people get through to unemployment agents. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Might be worth checking out if you need to speak with someone directly about your appeal.
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Nick Kravitz
•Thank you so much for the detailed advice! I'll definitely check out that service if I can't get through on my own. The phone lines have been impossible lately.
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Mateo Silva
•Claimyr actually worked for me last month when I needed to update my job search requirements. Got connected within like 20 minutes instead of calling all day.
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Jessica Nguyen
same thing happened to my brother last year, he appealed and won but it took forever. just keep trying to call them every day until someone explains what happened with your claim
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