NYS Department of Labor claim denied - employer says minimum wage caused job loss
Filed for unemployment after getting laid off from my retail job last month. My boss straight up told me they had to cut positions because of the minimum wage increases. Now NYS Department of Labor denied my claim saying I was terminated for 'economic reasons not qualifying for benefits.' This doesn't make sense - I thought layoffs due to business conditions qualified for UI? Has anyone dealt with this kind of denial before? The letter mentions something about 'lack of work' vs 'business closure' but I'm confused about the difference.
9 comments


Kingston Bellamy
This sounds like a mistake in how they coded your separation reason. Layoffs due to economic conditions absolutely qualify for unemployment benefits in NY. You need to appeal this decision immediately - you have 30 days from the denial letter date. The distinction they're making doesn't apply to your situation if you were laid off due to wage costs.
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Morita Montoya
•Thank you! Should I mention what my boss said about minimum wage in the appeal or just focus on it being a layoff?
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Joy Olmedo
same thing happened to me but mine got approved after I appealed, the first decision was wrong
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Isaiah Cross
You definitely qualify for benefits if you were laid off. The reason for the layoff (minimum wage costs, rent increases, whatever) doesn't matter - what matters is that you didn't quit and weren't fired for misconduct. File your appeal online through your ny.gov account and include any documentation you have about the layoff. If you're having trouble reaching NYS Department of Labor to clarify this, I used claimyr.com to get through to an actual agent when I had adjudication issues. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works.
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Kiara Greene
•Never heard of that service but might be worth trying since calling NYS Department of Labor directly is impossible these days
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Evelyn Kelly
THE WHOLE SYSTEM IS RIGGED!!! They deny everyone first hoping people won't appeal. Minimum wage arguments are just employers trying to avoid paying into the unemployment fund. Fight this all the way - you earned those benefits!!
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Paloma Clark
•While I understand the frustration, it's more likely a clerical error in coding the separation reason than a deliberate denial. The appeal process exists specifically for these situations.
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Heather Tyson
wait so if ur boss says they cant afford workers because of wages that disqualifies you? that seems backwards
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Raul Neal
Had something similar happen at my restaurant job. Turned out the employer reported it wrong to NYS Department of Labor - said I quit when I was actually laid off. Once I got that corrected through the appeal everything went through fine.
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