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Freya Andersen

NYS Department of Labor claim denied - they said I have 'classical unemployment' but what does that even mean?

Got a letter from NYS Department of Labor yesterday saying my UI claim was denied because I have 'classical unemployment' instead of qualifying unemployment. I've never heard this term before and the letter doesn't explain what it means. I lost my job at a restaurant in Buffalo when they downsized last month - how is that not regular unemployment? Has anyone else gotten this type of denial? I thought if you get laid off through no fault of your own you automatically qualify. Really confused and don't know if I should appeal or what my next steps are.

That's really strange terminology - I've never seen NYS Department of Labor use 'classical unemployment' in any of their standard denial reasons. Are you sure that's exactly what the letter says? Usually they cite specific disqualification reasons like insufficient work history, voluntary quit, misconduct, or not meeting the able and available requirements. Can you double-check the exact wording?

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Let me look at the letter again... actually it says 'cyclical unemployment' not classical. Sorry, the handwriting on the form was hard to read. Does that make more sense?

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Cyclical unemployment usually refers to job losses due to economic downturns, which should still qualify you for regular UI benefits. If you were laid off due to downsizing, that's exactly the type of situation unemployment insurance is designed for. The denial might be for a different reason - check if there are any issues with your work history, wage requirements, or if they need additional documentation about your separation.

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That's what I thought too! I worked at the restaurant for 8 months full-time before the layoff. Maybe there's an issue with how they reported my wages to NYS Department of Labor?

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I had a similar issue where NYS Department of Labor initially denied my claim because my employer didn't report my wages correctly. Took forever to get through to someone on the phone to sort it out. You might want to try calling them but good luck getting through - I was on hold for literally 3 hours.

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If you're having trouble reaching NYS Department of Labor by phone, I used a service called Claimyr (claimyr.com) that helped me get connected to an agent. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me hours of trying to call myself and I was able to get my wage issue resolved quickly.

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honestly the whole unemployment system is so confusing with all these different terms they throw around... i got denied once for some random reason that made no sense and just kept reapplying until it went through lol

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That's not really good advice - if there's a legitimate issue with your claim, repeatedly filing won't fix it and could create more problems. Better to understand the actual reason for denial and address it properly.

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OMG this is giving me anxiety because I just filed my claim last week and now I'm worried they're going to deny me for some made-up reason too. Did you do anything wrong during the application process? Were all your answers accurate? What if they deny me for 'classical unemployment' too even though I've never heard of it?!

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Don't worry - it sounds like the OP just misread the letter initially. Focus on answering all the questions accurately when you file your weekly claims and you should be fine.

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You definitely need to appeal this denial. Even if it was 'cyclical unemployment' that's still a valid reason for UI benefits. The appeal process gives you a chance to present your case and clarify any wage reporting issues. You only have 30 days from the denial date to file the appeal, so don't wait too long.

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