NYS Department of Labor denied my claim saying 'lack of work' - what does this mean exactly?
I got laid off from my warehouse job last month and filed for unemployment benefits. Today I got a determination letter from NYS Department of Labor saying my claim was denied due to 'lack of work' but I'm totally confused because I thought being laid off for lack of work was exactly why unemployment exists? The letter doesn't really explain what this means or why it's a disqualification. I worked there for 2 years full time and never had any issues. Can someone explain what 'lack of work' means in unemployment terms and why this would be a reason to deny my claim? I need to know if I should appeal this decision.
21 comments


Ella Knight
This is really confusing terminology from NYS Department of Labor. 'Lack of work' is actually a QUALIFYING reason for unemployment, not a disqualifying one. If you were laid off due to lack of work (meaning your employer didn't have enough work to keep you employed), that should make you eligible for benefits. There might be a misunderstanding in how your separation was coded. You should definitely appeal this determination and request clarification on why lack of work is being treated as a disqualification.
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Julian Paolo
•That's what I thought too! My supervisor even told me it was a layoff due to reduced business. How do I appeal this? The letter mentions something about requesting a hearing but I don't understand the process.
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William Schwarz
I had something similar happen to me. Sometimes NYS Department of Labor gets the separation reason wrong in their system. When I called to clarify, they told me my employer reported it differently than what actually happened. You need to contact them ASAP to get this corrected. If calling doesn't work because of their crazy phone volume, I used a service called Claimyr (claimyr.com) that helped me get through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Really saved me weeks of trying to get through on my own.
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Lauren Johnson
•How long did it take for them to fix the error once you got through to someone? I'm worried about missing payments while this gets sorted out.
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Jade Santiago
wait this doesn't make sense... lack of work should qualify you for unemployment not disqualify you?? unless there's something else going on like maybe your employer said you quit instead of being laid off?
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Julian Paolo
•No I definitely didn't quit. I have the layoff notice from my supervisor in writing. Maybe the employer reported it wrong to NYS Department of Labor?
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Caleb Stone
The NYS Department of Labor system is so messed up with their determinations. I've seen people get denied for the weirdest reasons that don't even make legal sense. You absolutely need to appeal this ASAP - you only have 30 days from the determination date. Don't let them screw you over with their bureaucratic nonsense. Document everything and fight this decision because lack of work due to layoff is textbook unemployment eligibility.
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Daniel Price
•Totally agree. The system seems designed to deny first and ask questions later. At least appeals usually get reviewed by actual humans instead of whatever automated system they use for initial determinations.
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Olivia Evans
I think there might be confusion between 'lack of work' and 'lack of suitable work' or something like that. When I was dealing with my unemployment claim, the terminology was really confusing and different phrases meant completely different things for eligibility. You should definitely get clarification on exactly what they mean by this denial reason.
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Mateo Gonzalez
This is definitely a mistake on their part. "Lack of work" is literally one of the main qualifying reasons for unemployment benefits - it means your employer didn't have enough work to keep you employed, which is exactly what a layoff is. I've seen this happen before where the Department of Labor's system gets the coding wrong or there's a miscommunication with your employer about the separation reason. You need to appeal this immediately - don't wait. When you appeal, make sure to include any documentation you have about the layoff (emails, notices, anything in writing from your supervisor). The appeals process usually takes a few weeks, but they should backdate your benefits once it's corrected. This is a clear error that should be overturned.
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Liam McConnell
•@Mateo Gonzalez This is really helpful, thank you! I do have the layoff notice in writing from my supervisor. When you say appeal immediately, is there a specific form I need to fill out or do I just call them? The determination letter mentions a hearing but doesn t'give clear instructions on the next steps. Also, do you know if I can continue to certify for benefits while the appeal is pending or do I have to wait until it s'resolved?
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Ethan Clark
I'm going through something similar right now! Got denied for "lack of work" even though I was clearly laid off due to company downsizing. It makes absolutely no sense since that's literally what unemployment insurance is for. I called the appeals line and they told me I need to file Form IA 007.2 within 30 days of the determination date. You can find it on the NYS DOL website under "Appeals" section. The rep also said I can continue certifying weekly while the appeal is pending - they'll hold the payments until it's resolved but if you win the appeal, you get all the back pay. Definitely appeal this because it sounds like a system error or your employer reported the separation wrong to them.
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Lorenzo McCormick
•@Ethan Clark Thanks for the specific form number! That s'exactly what I was looking for. It s'really frustrating that they make this process so confusing when it should be straightforward. I m'glad to hear I can keep certifying while waiting - I was worried about losing weeks of potential benefits. Did you have to provide any additional documentation beyond the appeal form, or was the layoff notice from your supervisor enough? Also, how long did they tell you the appeals process typically takes?
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Jamal Brown
I work as a customer service rep for a third-party unemployment assistance company and see this exact issue ALL the time. The NYS DOL system has a serious coding problem where "lack of work" sometimes gets flagged as a disqualification instead of a qualification - it's honestly one of the most common errors in their system. What likely happened is either: 1) Your employer incorrectly reported the separation reason to DOL, or 2) There was a data entry error when your claim was processed. The good news is this type of error is usually easy to overturn on appeal because the documentation is clear. Make sure when you appeal (using Form IA 007.2 as others mentioned) that you include your layoff notice and emphasize that you were "involuntarily separated due to lack of work/business downsizing." I'd also recommend calling your former employer's HR department to confirm what separation reason they reported to DOL - sometimes they accidentally code layoffs as "voluntary quit" or something else. This should definitely be overturned, so don't get discouraged by this obvious mistake on their part.
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Amara Chukwu
•@Jamal Brown This is incredibly helpful! I never thought about calling my former employer s'HR to check what they reported. That s'such a good point - there could be a disconnect between what my supervisor told me layoff (due to lack of work and) what HR actually submitted to the state. I m'definitely going to call them first thing tomorrow before I submit my appeal. It would be so much easier to get this fixed at the source if they just reported it wrong. Thanks for the insider perspective on how common this error is - it makes me feel a lot more confident that the appeal will work out in my favor.
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Dmitry Ivanov
I had the exact same thing happen to me last year - got denied for "lack of work" when I was clearly laid off due to company restructuring. It's absolutely maddening because that's literally what unemployment benefits are designed for! After reading through all the comments here, I can confirm that calling your former employer's HR is definitely worth doing first. In my case, HR had accidentally reported my separation as "resigned" instead of "laid off due to lack of work" - once they corrected it with the state, my benefits were approved within a week. If that doesn't work, the appeal process with Form IA 007.2 is your next step. The whole thing took about 3 weeks to resolve, but I got all my back pay once it was straightened out. Don't let the state's bureaucratic mess discourage you - you're clearly entitled to these benefits and this is just a paperwork error that needs fixing.
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Malik Jackson
•@Dmitry Ivanov That s'such a relief to hear that calling HR worked for you! It s'crazy how a simple reporting error can cause so much stress and delay benefits that people desperately need. I m'definitely going to try that approach first since it sounds like it could save weeks of waiting for an appeal to go through. Did you have any trouble getting HR to admit they made the mistake, or were they pretty cooperative about fixing it once you explained the situation? I m'a bit nervous about that conversation but your success story gives me hope that this whole mess can be resolved quickly.
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Amara Nnamani
This is absolutely a system error - I've been helping people with unemployment claims for years and "lack of work" layoffs are one of the most common qualifying reasons for benefits. What you're experiencing is unfortunately typical of NYS DOL's flawed initial determination process. Before you go through the formal appeal route, I'd strongly suggest calling your former employer's HR department first to verify exactly what separation reason they reported. Many times these denials happen because HR accidentally codes layoffs as "voluntary separation" or uses the wrong termination code when reporting to the state. If they did report it incorrectly, they can usually fix it directly with DOL much faster than going through appeals. If that doesn't work, then definitely file the appeal using Form IA 007.2 within your 30-day window. Keep certifying weekly during the process - you'll get backpay once this obvious error is corrected. Don't let their bureaucratic incompetence discourage you from getting the benefits you're clearly entitled to.
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Chloe Boulanger
•@Amara Nnamani This is exactly the kind of practical advice I needed to hear! As someone new to all this unemployment stuff, it s'really reassuring to know that this is a common error and not something unique to my situation. I had no idea that calling HR first could potentially save so much time compared to going straight to appeals. It makes total sense that fixing it at the reporting source would be faster than waiting for the state to process an appeal. I m'definitely going to call my former employer s'HR tomorrow morning before doing anything else. Thank you for breaking down the process so clearly - it helps a lot to have someone with experience explain what s'actually happening behind the scenes with these determinations.
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Keisha Jackson
This is incredibly frustrating but unfortunately very common with NYS DOL - their system has serious issues with properly coding separation reasons. "Lack of work" is literally THE textbook reason for unemployment eligibility, so this is clearly an error on their end. Based on everyone's advice here, I'd definitely start by calling your former employer's HR department to verify what separation reason they actually reported to the state. There's a good chance they accidentally coded it wrong (like "voluntary quit" instead of "layoff due to lack of work"). If HR can't fix it directly, then you'll need to file an appeal using Form IA 007.2 within 30 days. Make sure to include your written layoff notice as evidence. Keep certifying weekly during the appeal process - you'll get backpay once this obvious mistake gets corrected. Don't let their bureaucratic incompetence discourage you from fighting for benefits you're clearly entitled to!
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Christian Burns
•@Keisha Jackson This whole situation is so maddening! I can t'believe how broken the NYS DOL system is that they re'denying people for literally the most basic qualifying reason for unemployment. It s'like they re'actively trying to prevent people from getting benefits they ve'paid into. I m'definitely going to call my former employer s'HR first thing Monday morning - based on all the responses here, it sounds like there s'a really good chance they just reported the separation reason incorrectly. It s'wild that such a simple coding error can cause so much stress and potentially leave people without income for weeks while it gets sorted out. Thanks to everyone who shared their experiences - it s'really helpful to know this is a common problem and not something I did wrong in my application.
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