What happens if you get caught lying on unemployment application - NYS Department of Labor consequences?
I'm really worried because I think I might have made some mistakes on my weekly claims that could look like I was being dishonest. I didn't report some cash work I did for a neighbor a few weeks ago (only like $150) and now I'm panicking about what NYS Department of Labor does if they find out. I keep hearing horror stories about people getting in huge trouble for unemployment fraud. Does anyone know what actually happens if they catch you lying or not reporting income? I'm scared they're going to make me pay everything back plus penalties.
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Ahooker-Equator
The consequences depend on whether NYS Department of Labor considers it intentional fraud or just an honest mistake. For unreported income, they'll typically create an overpayment and you'll have to pay back the benefits you shouldn't have received. If they determine it was intentional fraud, you could face penalties including disqualification from future benefits, civil penalties up to 15% of the overpayment amount, and in severe cases criminal charges. The key factor is intent - did you knowingly try to deceive them or was it genuinely an oversight?
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Abigail bergen
•It was honestly just forgetfulness - I didn't think $150 cash job was a big deal. Should I report it now on my next weekly claim or contact them directly?
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Anderson Prospero
You need to contact NYS Department of Labor immediately and report the unreported income voluntarily. This shows good faith and they're much more likely to treat it as an honest mistake rather than fraud. Call them or use the contact option in your my.ny.gov account. The longer you wait, the worse it looks if they discover it during an audit.
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Tyrone Hill
•Good luck getting through to anyone at NYS Department of Labor by phone though. I've been trying for weeks about my own overpayment issue and can never get past the busy signal.
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Anderson Prospero
•Try using Claimyr - it's a service that helps you get through to NYS Department of Labor agents. Check out claimyr.com and they have a demo video at https://youtu.be/qyftW-mnTNI showing how it works. I used it last month when I couldn't reach anyone about my adjudication issue.
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Toot-n-Mighty
just happened to my cousin last year... nys department of labor found out about unreported work and made him pay back like $2800 in benefits plus a penalty. took forever to resolve and he couldnt get unemployment for 6 months after that
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Abigail bergen
•Oh no that's exactly what I'm afraid of! Did he have to pay it all back at once or could he set up a payment plan?
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Toot-n-Mighty
•they let him do payment plan but it was still rough... think it was like $200 a month for over a year
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Lena Kowalski
The unemployment fraud penalties in NY are no joke. I work in HR and we've had employees get hit with serious consequences. Criminal prosecution is rare for small amounts but civil penalties and benefit disqualification are common. NYS Department of Labor has gotten really aggressive about cross-matching wage data and catching unreported income. Your best bet is voluntary disclosure before they find it themselves.
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DeShawn Washington
•This is so stressful! Why don't they make it clearer what counts as income that needs to be reported? I thought cash jobs under a certain amount didn't matter.
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Mei-Ling Chen
ALL income needs to be reported to NYS Department of Labor, even cash payments. There's no minimum threshold that exempts you from reporting. The system is designed to reduce your weekly benefit amount based on what you earned, not to disqualify you entirely unless you're working full-time. Many people don't realize this and get into trouble thinking small amounts don't count.
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Andre Dupont
•@Mei-Ling Chen This is exactly the kind of clear information that should be more prominently displayed! I wish NYS Department of Labor made it more obvious that ALL income counts - even small cash jobs. It would save so many people from accidentally getting into trouble like this. The reporting requirements are buried in the fine print and it s'easy to miss if you re'not looking carefully.
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GalaxyGazer
I went through something similar last year and can share what happened. I forgot to report about $200 in odd jobs over a few weeks. When I realized my mistake, I immediately called NYS Department of Labor (took forever to get through) and voluntarily reported it. They were actually pretty understanding since I came forward on my own. They calculated an overpayment of about $85 that I had to pay back, but no penalties since it was clearly an honest mistake and I self-reported. The key is being proactive - don't wait for them to find it during an audit. Document everything about the work you did (dates, amounts, who paid you) before you contact them. It shows you're being thorough and honest about the situation.
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Isabella Oliveira
•@GalaxyGazer Thank you for sharing your experience! That's really reassuring to hear that NYS Department of Labor was understanding when you self-reported. $85 overpayment is way more manageable than what I was imagining. Did you have to provide documentation about the work you did, or did they just take your word for it when you called? I'm going to start gathering all the details about that $150 job before I contact them - dates, who paid me, what the work was. Better to be over-prepared than caught off guard if they ask for specifics.
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