What happens if your employer doesn't pay into NYS Department of Labor unemployment system?
I just found out my previous employer might not have been paying into the unemployment system properly. I worked there for 8 months as a contractor but they treated me like an employee (set my schedule, gave me company equipment, etc). Now I'm trying to file for unemployment and NYS Department of Labor can't find any wage records for that job. The employer is claiming I was an independent contractor but I'm pretty sure I should have been classified as an employee. What are my options here? Can I still get benefits if they didn't pay their unemployment taxes?
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Ellie Lopez
This is actually more common than people think. If your employer misclassified you or failed to pay unemployment taxes, you can still potentially get benefits. NYS Department of Labor will investigate your work relationship to determine if you were actually an employee. You'll need to provide evidence like: work schedules they set, company equipment you used, how they controlled your work methods, whether you worked for other clients, etc. The key factors are behavioral control, financial control, and the relationship type.
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Lauren Wood
•Thank you! I definitely have emails showing they set my schedule and I only worked for them during that period. Should I file the claim anyway even though they can't find the wage records?
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Chad Winthrope
Yes file the claim immediately! Don't wait. When you file, there should be an option to report missing wages or disputed employment classification. NYS Department of Labor has a whole process for this called wage record reconstruction. They'll contact your employer and may reclassify you as an employee retroactively. If they determine you were misclassified, the employer will owe back taxes plus penalties.
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Paige Cantoni
•How long does that investigation usually take? I'm in a similar situation and really need the benefits soon.
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Chad Winthrope
•The investigation can take 4-8 weeks depending on how cooperative your employer is. But if NYS Department of Labor rules in your favor, you'll get backpay for any weeks you were eligible.
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Kylo Ren
I had this exact problem last year!! My employer tried to claim I was a contractor but I worked in their office every day with their equipment. It was super frustrating trying to reach anyone at NYS Department of Labor to explain the situation. I ended up using this service called Claimyr (claimyr.com) that helped me get through to an actual agent who could walk me through the wage dispute process. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Made such a difference being able to talk to someone who understood these misclassification cases.
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Lauren Wood
•Did NYS Department of Labor end up ruling in your favor? And how did you prove you were really an employee?
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Kylo Ren
•Yes they did! I gathered all my emails showing they controlled my work schedule, photos of me using their equipment, and proof I didn't work for anyone else. The agent I reached through Claimyr helped me understand exactly what documentation I needed.
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Nina Fitzgerald
This employer classification stuff is so confusing. How are regular people supposed to know the difference between contractor and employee? Seems like companies just pick whatever saves them money.
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Ellie Lopez
•You're right that it's confusing. The basic test is who has control - if they control when, where, and how you work, you're likely an employee even if they call you a contractor.
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Jason Brewer
UGH this happened to my friend too. These companies think they can just avoid paying unemployment taxes by calling everyone contractors. At least NYS Department of Labor investigates these cases but it shouldn't be on the worker to prove they were misclassified. The whole system is backwards.
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Kiara Fisherman
•Totally agree. It's infuriating that workers have to fight for benefits they should have been entitled to all along.
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Ethan Brown
I went through something similar a few years back. The key thing to know is that NYS Department of Labor takes worker misclassification seriously and they have specific procedures for these situations. When you file your claim, make sure to select the option for "disputed wages" or "missing wage records" - this will trigger their investigation process. Document everything you can: emails about schedules, company handbook references treating you as staff, any benefits they offered, tax documents they gave you (1099 vs W2), etc. The investigation might take time but if they rule the employer misclassified you, you'll not only get your unemployment benefits but the employer will face penalties for not paying their share of unemployment taxes. Don't let them intimidate you - this is exactly what the system is designed to handle.
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Ryan Young
•This is really helpful advice! I'm dealing with a similar situation right now where my previous employer is claiming I was a contractor but I had zero control over my work schedule or methods. Quick question - when you mention selecting "disputed wages" during filing, is that option clearly labeled or do you have to look for it? I want to make sure I don't miss it when I submit my application.
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