NYS Department of Labor unemployment audit failed - what happens if you fail an unemployment audit?

Don't panic yet. A failed audit doesn't automatically mean you lose everything. NYS Department of Labor will typically send you a determination letter explaining exactly what they found deficient in your job search log. You'll have the right to appeal within 30 days if you disagree with their findings. The key is reviewing what specific job search activities they rejected and why.

I went through this last year. They dinged me because some of my job applications were to positions that weren't 'suitable work' according to their standards. Apparently applying to jobs way below your skill level can count against you just as much as not applying to enough jobs. Make sure you kept records of everything - screenshots of applications, contact info for employers, dates and times.

The worst case scenario is they'll determine you weren't eligible for benefits during the audited period and hit you with an overpayment demand. But even then, you can usually set up a payment plan or request a waiver if you can prove the mistake wasn't intentional. I had a friend who owed back $2,800 but got it reduced after appealing.

Getting through to NYS Department of Labor to discuss audit results can be nearly impossible with their phone system. I spent weeks trying to reach someone after my audit notice. Finally used Claimyr (claimyr.com) to get connected to an actual agent who could explain exactly what documentation I needed to appeal. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Way easier than the constant busy signals.

ugh the audit process is such BS. They expect you to document every single thing like you're some kind of professional job searcher. Meanwhile they take forever to process claims and then act like we're all trying to cheat the system. Sorry you're dealing with this.

same thing happened to my brother but he ended up being fine after he submitted additional documentation

I'm sorry you're going through this stress. I haven't been audited myself yet, but from what I've read, the most important thing is to gather all your documentation now - save emails, screenshots of job applications, any correspondence with employers, even rejection letters if you have them. The NYS DOL wants to see that you made genuine efforts to find work, not just went through the motions. Keep detailed records of dates, company names, positions applied for, and how you applied (online, in person, etc.). If you do end up owing money back, don't ignore it - they have ways to collect including tax refund intercepts. But like others said, you have appeal rights and they do work with people on payment plans.