What happens if I owe NYS Department of Labor unemployment money - confused about repayment
I got a letter last week saying I owe unemployment money back to NYS Department of Labor and I'm honestly freaking out a bit. The letter says I received $2,800 more than I was supposed to get but doesn't really explain WHY this happened. I thought I reported everything correctly when I was filing my weekly claims. What actually happens now? Do they take it out of my paycheck? Will this affect my credit score? I'm working again but don't have $2,800 just sitting around to pay them back immediately.
13 comments
Join the conversation
Rachel Clark
First, don't panic - this is more common than you think. You have options for repayment. NYS Department of Labor typically allows payment plans if you can't pay the full amount right away. The important thing is to respond to the notice within the timeframe they give you (usually 30 days). If you disagree with the overpayment determination, you can request a hearing to appeal it. They won't garnish wages immediately - there's a process they have to follow first.
0 coins
Chris King
•Thank you, that makes me feel a bit better. Should I call them first or send something in writing? The phone number on the letter just goes to a busy signal.
0 coins
Zachary Hughes
same thing happened to my brother last year, they said he owed like $3400 or something. he set up a payment plan for like $150 a month and they were pretty reasonable about it. definitely don't ignore it though
0 coins
Chris King
•Did he have to pay any interest or penalties on top of the original amount they said he owed?
0 coins
Zachary Hughes
•i think there was some kind of fee but not too bad, like maybe 1% per month or something? he said the payment plan was way better than trying to come up with all the money at once
0 coins
Mia Alvarez
I had a similar overpayment issue and was getting nowhere with the regular NYS Department of Labor phone lines. I ended up using a service called Claimyr (claimyr.com) that helped me get through to an actual agent who could explain exactly why the overpayment happened and what my options were. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Made the whole process much less stressful once I could actually talk to someone who understood my specific situation.
0 coins
Carter Holmes
•How much does something like that cost? I'm already stressed about owing money and don't want to spend more if I don't have to.
0 coins
Mia Alvarez
•It was worth it for me because I was able to get clarity on my situation quickly instead of spending weeks trying to reach someone. The peace of mind was valuable, especially when dealing with a potential overpayment that could affect my finances.
0 coins
Sophia Long
The NYS Department of Labor overpayment system is SO frustrating! They send these scary letters but never explain clearly what happened. In my experience, sometimes it's just a computer error or they didn't process some paperwork correctly. Definitely appeal if you think you reported everything right - don't just assume they're correct.
0 coins
Chris King
•That's what I'm wondering - I was so careful about reporting my part-time work hours every week. Is there a way to see exactly what they think I did wrong?
0 coins
Angelica Smith
You should be able to request a detailed breakdown of the overpayment calculation. Sometimes these happen because of delays in processing employer wage reports, or if there was confusion about your job search activities during certain weeks. The key is to respond promptly and either set up repayment or file an appeal if you believe the determination is incorrect. They can't garnish wages or offset tax refunds until they go through proper legal procedures, which gives you time to work things out.
0 coins
Natasha Volkov
I went through this exact same situation about 6 months ago and understand how overwhelming it feels. Here's what worked for me: First, call the overpayment unit directly (not the general unemployment line) - the number should be on your notice. If you can't get through, try calling right when they open at 8am. Second, ask for a "waiver of recovery" form if the overpayment wasn't due to fraud on your part - sometimes they'll waive collection if it was their error or due to circumstances beyond your control. Third, if you do owe the money, they're usually very reasonable about payment plans. I set up a $100/month plan and they didn't charge interest. Don't let this stress consume you - there are definitely solutions available.
0 coins
Declan Ramirez
•This is really helpful advice! I didn't know there was a separate overpayment unit number - I'll definitely try calling them at 8am. The waiver of recovery option sounds promising too since I really don't think I did anything wrong on my end. Did you have to provide any specific documentation when you requested the waiver, or was it just a matter of filling out their form?
0 coins