What happens if you collect unemployment while working - NYS Department of Labor consequences?
I'm really worried because I think I made a huge mistake. I've been collecting unemployment benefits for the past 6 weeks, but last month I picked up some part-time work at a friend's restaurant - just weekend shifts, maybe 15-20 hours total. I didn't report it on my weekly claims because I wasn't sure if I needed to since it was so few hours and under the table. Now I'm reading online that this could be considered fraud? What exactly happens if NYS Department of Labor finds out you collected benefits while working? I'm scared they're going to make me pay everything back and maybe even prosecute me. Has anyone been through this before?
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Angelina Farar
You need to stop filing immediately and report the work to NYS Department of Labor right away. Working while collecting unemployment isn't automatically fraud - it depends on whether you reported it properly and stayed under the earnings limit. In NY, you can earn up to $504 per week (in 2025) and still collect partial benefits, but you MUST report all work and earnings on your weekly claim. The fact that it was under the table doesn't matter - you still needed to report it. Call NYS Department of Labor immediately to correct your claims.
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Jessica Nolan
•Thank you for the info about the $504 limit - I had no idea there was an earnings allowance! Should I try calling them or is there a way to report this online through my.ny.gov?
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Sebastián Stevens
this happened to my brother last year and it was a nightmare. they made him pay back like $3000 and he got hit with penalties too. but he had been working full time for months without reporting anything so your situation might not be as bad since it was just part time
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Jessica Nolan
•Oh no, that's exactly what I'm afraid of! Did they find out on their own or did he report it himself?
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Sebastián Stevens
•they caught him through some kind of database cross-check with employers. he said he wished he had just reported it from the beginning because the penalties made it so much worse
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Bethany Groves
NYS Department of Labor can detect unreported work through several methods - wage records from employers, tax filings, and database matching with other agencies. If they determine you committed fraud, consequences can include: repayment of all benefits received, penalties of up to 50% of the overpayment amount, disqualification from future benefits for up to one year, and in severe cases criminal prosecution. However, if this was an honest mistake and you self-report quickly, they may be more lenient. You should contact NYS Department of Labor immediately at 1-888-209-8124 and explain the situation. Be prepared to provide documentation of your work dates and earnings.
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KingKongZilla
•I've been trying to call that number for weeks about my own claim issues and can never get through! The phone system just hangs up on you after being on hold forever. Has anyone found a better way to actually reach a real person at NYS Department of Labor?
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Rebecca Johnston
•I had the same problem until someone told me about Claimyr (claimyr.com). It's a service that helps you get through to unemployment agents. I was skeptical at first but watched their demo video (https://youtu.be/qyftW-mnTNI) and decided to try it. They got me connected to NYS Department of Labor within an hour when I had been trying for weeks on my own. Might be worth checking out if you really need to speak to someone urgently about reporting work.
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Nathan Dell
The WORST part about this whole system is how they don't make it clear what you're supposed to do! Like seriously, they should have better information about partial work and reporting requirements right there when you file your weekly claim. Instead we're all just guessing and then getting in trouble for doing it wrong.
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Maya Jackson
•totally agree, the whole NYS Department of Labor website is confusing
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Angelina Farar
To clarify the process: when you report work on your weekly claim, NYS Department of Labor will reduce your benefits but not eliminate them entirely if you're under the earnings threshold. For every $1 you earn over $504, your benefits are reduced by $1. If you earn less than $504, you can still receive partial unemployment benefits. The key is ALWAYS reporting the work, regardless of how little you earned or whether it was cash/under the table. Unreported work is what gets you in trouble, not the work itself.
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Jessica Nolan
•This is really helpful - I wish I had known this before. So if I report it now, even though it's after the fact, that might help show it wasn't intentional fraud?
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Klaus Schmidt
•Yes, absolutely! Self-reporting shows good faith and that it was an honest mistake rather than intentional fraud. When you call NYS Department of Labor, be upfront about the dates you worked, how much you earned, and that you realize now you should have reported it. They typically view voluntary disclosure much more favorably than discoveries made through their own investigations. Keep records of when you report it and who you speak with - this documentation could be important if there are any follow-up questions later.
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