NYS Department of Labor unemployment benefits when minimum wage increases - does my weekly benefit amount change?
So NY just raised minimum wage again and I'm wondering how this affects my unemployment benefits. I've been collecting UI for about 6 weeks now and my weekly benefit amount is based on my previous job where I was making $16/hour. Now that minimum wage went up, does NYS Department of Labor automatically adjust my benefit amount or do I need to do something? I'm confused because my base period wages were calculated before the wage increase but I'm filing weekly claims now. Anyone know how this works?
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Samantha Howard
Your unemployment benefit amount won't change just because minimum wage increased. NYS Department of Labor calculates your weekly benefit based on wages you earned during your base period (usually the first 4 of the last 5 completed calendar quarters before you filed). The minimum wage increase doesn't retroactively change those historical wages, so your benefit calculation stays the same throughout your benefit year.
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Benjamin Kim
•That makes sense, thanks! So even though minimum wage is higher now, my benefits stay the same because they're based on old wages?
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Megan D'Acosta
wait but what if you get a part time job while on unemployment and that job pays the new minimum wage? does that affect anything with your weekly claims?
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Samantha Howard
•Good question! If you work part-time while collecting, you report those earnings on your weekly claim regardless of the wage rate. NYS Department of Labor will reduce your benefit by 25% of whatever you earn over $143 per week. The actual wage rate doesn't matter - it's just about total earnings.
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Sarah Ali
I had such a hard time getting through to NYS Department of Labor to ask about this exact thing last month. Kept getting disconnected after waiting forever. Finally used this service called Claimyr (claimyr.com) that actually got me connected to an agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Way easier than trying to call yourself.
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Benjamin Kim
•Really? I've been trying to call for days about some other questions. How does that service work exactly?
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Sarah Ali
•Basically they handle the calling and waiting for you, then connect you when they get an agent on the line. Saved me hours of frustration.
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Ryan Vasquez
This whole system is so confusing!! Why can't they just automatically update everything when wages go up? Seems like it would be fair to give people more money if minimum wage increases while they're unemployed.
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Avery Saint
•I get why you'd think that, but unemployment isn't based on current wages - it's insurance for wages you already earned and paid taxes on. If they changed it every time wages went up, the math would get really complicated.
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Taylor Chen
Yeah the benefit amount is locked in when you first file. I've been on unemployment twice and it never changed mid-claim even when there were minimum wage increases both times.
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Khalil Urso
Just to add another perspective - I was initially disappointed when I realized my benefits wouldn't increase with the new minimum wage, but honestly it makes sense from a legal standpoint. The unemployment insurance system is designed to replace a percentage of wages you actually earned and contributed to the system through payroll taxes. Those contributions were based on your historical wages, not future wage rates. If you start a new claim after working at the higher minimum wage, then your benefits would be calculated using those higher wages in your base period.
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Bruno Simmons
•That's a really good explanation @Khalil Urso! I was also bummed at first but you're right - it's basically insurance based on what you already paid into the system. Makes me wonder though, when this benefit year ends and if I need to file a new claim later, would they use wages from jobs I had during this higher minimum wage period? Or would it still be based on even older wages?
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