What happens if unemployment overpays you - NYS Department of Labor recovery process?
So I just realized I might have been overpaid on my unemployment benefits over the past few months. I was working part-time while collecting and I think I may have made an error reporting my earnings on a couple weekly claims. Now I'm worried about what NYS Department of Labor will do if they find out. Do they automatically catch these things? Will I get in trouble or just have to pay it back? Has anyone dealt with an overpayment situation before?
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Ava Harris
NYS Department of Labor will eventually catch overpayments through wage crossmatching with employers. When they do, you'll receive an overpayment notice detailing the amount and how it occurred. You have appeal rights if you disagree, but if it's legitimate you'll need to repay either in full or through a payment plan. The good news is if it was an honest mistake and not fraud, you typically won't face penalties beyond repayment.
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Chloe Delgado
•That's somewhat reassuring. Do you know how long it usually takes for them to catch these errors? I'm trying to figure out if I should proactively contact them or wait.
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Jacob Lee
happened to me last year, they sent a notice about 8 months after the overpayment occurred. owed them $1,200 but they let me set up a monthly payment plan of $100. wasn't as bad as i thought it would be
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Chloe Delgado
•Did they charge any interest or fees on the payment plan?
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Jacob Lee
•no interest but if you default on the payment plan they can take it from future tax refunds or other benefits
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Emily Thompson
I've been trying to reach NYS Department of Labor for weeks about my own overpayment notice and can't get through to anyone! The phone lines are always busy and the online messaging system never gets responses. Has anyone found a way to actually talk to someone there?
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Sophie Hernandez
•I had the same problem until I found this service called Claimyr that helped me get through to an actual NYS Department of Labor agent. You can check it out at claimyr.com - they have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Made all the difference for resolving my overpayment appeal.
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Daniela Rossi
The whole system is such a mess! They make it so confusing to report earnings correctly and then penalize you when you make mistakes. I got hit with a $2,800 overpayment last month and I'm still fighting it. The worst part is they reduce any future benefits until it's paid back.
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Ava Harris
•That offset from future benefits is standard procedure, but you can request a waiver if the overpayment would cause financial hardship. There's a form you can submit through your online account.
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Ryan Kim
just pay it back quick if you know you messed up, fighting it costs more time and stress than its worth
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Zoe Walker
Wait, I'm confused about something similar. If I worked one day but forgot to report it on my weekly claim, is that considered an overpayment? I only made like $80 that day but now I'm worried I'll owe money back.
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Ava Harris
•Yes, any unreported earnings can result in an overpayment, even small amounts. The key is to report it as soon as you realize the mistake by calling NYS Department of Labor or updating your claim information online if possible.
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LunarEclipse
I was in a similar situation a few months ago and decided to proactively contact NYS Department of Labor when I realized I had underreported my part-time earnings. It was definitely nerve-wracking, but the representative I spoke with was actually helpful and appreciative that I came forward voluntarily. They had me submit corrected information and calculated the overpayment amount - ended up being around $900. Since I reported it myself, they waived any potential penalties and just required repayment through monthly deductions from my remaining benefits. My advice would be to contact them sooner rather than later if you're confident you made an error. The longer you wait, the more it might look like you were trying to hide something.
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PaulineW
•That's really good to know that being proactive can help avoid penalties! I've been going back and forth on whether to contact them first or wait to see if they catch it. Your experience makes me think I should probably call them this week. Do you remember roughly how long the whole process took from when you first contacted them to when they had everything sorted out with the payment plan?
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