NYS Department of Labor - why do companies not want to pay unemployment benefits?
I just got laid off from my warehouse job last month and when I filed my unemployment claim, my former employer is disputing it! They're saying I quit voluntarily which is completely false. I was part of a reduction in force due to slow business. Why would a company lie to the NYS Department of Labor about this? Do they have to pay extra money when someone gets approved for unemployment? I'm so confused about how this all works. My claim has been in adjudication for two weeks now and I'm getting really stressed about my bills.
10 comments


Malik Jackson
Yes, employers do pay into the unemployment system through payroll taxes. When their former employees file claims that get approved, it can affect their unemployment tax rate going forward. Companies with higher claim rates typically pay higher unemployment taxes to NYS Department of Labor. That's why some employers will dispute legitimate claims - they're trying to keep their costs down.
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Emma Thompson
•That's so messed up! So they're basically screwing over their former employees to save a few bucks on taxes?
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Isabella Costa
Your employer's unemployment insurance tax rate is based on their 'experience rating' - basically how many former employees have successfully collected unemployment benefits. More claims = higher tax rates for them. But if you were truly laid off as part of a reduction in force, you should win the adjudication. Make sure you have any documentation about the layoff - emails, letters, anything that proves it wasn't voluntary.
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StarSurfer
•This is exactly what happened to me! Had to wait almost a month for NYS Department of Labor to sort it out but I eventually got approved and back pay.
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Ravi Malhotra
omg this is so frustrating!! why dont they just tell people this stuff upfront. i had no idea companies paid extra when we get unemployment. no wonder my last boss was being such a jerk about it
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Freya Christensen
If you're having trouble reaching someone at NYS Department of Labor about your adjudication, I used a service called Claimyr that helped me get through to an actual agent. You can check it out at claimyr.com - they have a video demo at https://youtu.be/qyftW-mnTNI that explains how it works. I was able to get my claim status sorted out in like 20 minutes after weeks of trying to call myself.
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Emma Thompson
•Really? That actually worked for you? I've been calling the NYS Department of Labor number every morning and either get busy signals or get disconnected after waiting forever.
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Freya Christensen
•Yeah it was a lifesaver honestly. Way better than sitting on hold for hours just to get hung up on.
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Omar Hassan
The whole system is rigged against workers. Companies will lie, cheat, and steal to avoid paying what they owe. I've seen employers claim people were fired for cause when they know damn well it was just downsizing. NYS Department of Labor needs to start penalizing companies that file false disputes.
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Chloe Robinson
•totally agree with this! happened to my brother too and it took months to get resolved
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