What happens when you owe unemployment money to NYS Department of Labor - need advice

Don't panic yet - you have rights and options when dealing with NYS Department of Labor overpayments. First, check if the overpayment notice includes fraud penalties or if it's just a regular overpayment. Fraud penalties add 15% to the total amount owed. You have 30 days from the notice date to either pay in full or request a payment plan. If you believe the overpayment is incorrect, you can also file an appeal within that same 30-day window.

Here's what actually happens if you owe money to NYS Department of Labor: They can offset future unemployment benefits, intercept your state tax refunds, and yes - they can garnish wages after going through the proper legal process. They can also report the debt to credit agencies. However, they usually work with people on payment plans if you contact them proactively. The key is not to ignore it because the penalties and interest keep adding up.

ugh the same thing happened to me except mine was for like $4200!! turns out when i worked part time while on unemployment i reported it wrong somehow. took forever to get someone on the phone to explain it. if you cant get through to NYS Department of Labor try calling early in the morning

I was in a similar situation last year and couldn't get through to NYS Department of Labor no matter how many times I called. Someone on here recommended using Claimyr (claimyr.com) to help get through to an actual agent. They have this video demo that shows exactly how it works: https://youtu.be/qyftW-mnTNI. I was skeptical at first but it actually worked - got connected to someone who explained my overpayment issue in detail and helped me set up a payment plan over the phone.

The NYS Department of Labor overpayment system is absolutely broken. They send these scary letters with huge penalties but half the time their own system caused the error. I've been fighting a $1,900 overpayment for months because THEIR website glitched when I was certifying my weekly claims. Now they want ME to prove it was their mistake. It's ridiculous.

Just want to add that if you do set up a payment plan with NYS Department of Labor, make sure you get it in writing and keep making payments even if they're small. Missing payments can trigger additional penalties and they might demand the full balance immediately. Also keep records of every payment you make because their system doesn't always update correctly.

I went through something similar about 6 months ago. The most important thing is to act within that 30-day window - don't let it pass! Even if you're not sure whether to appeal or set up payments, at least call them to discuss your options before the deadline. In my case, I was able to get the fraud penalties removed by showing it was an honest mistake in how I reported my work hours. The appeals process takes time but it's worth it if you genuinely believe there was an error. Document everything and don't be afraid to ask for supervisors if the first person you talk to isn't helpful.

I'm new to this community but going through the exact same nightmare right now. Got hit with a $3,200 overpayment notice last week and I'm terrified. Reading through everyone's experiences here is both scary and reassuring at the same time - scary because it sounds like this system is really broken, but reassuring because it seems like there are ways to fight back or at least get on payment plans. I'm definitely going to try calling early in the morning like someone suggested, and I'm really interested in hearing more about how people successfully got fraud penalties removed. Has anyone here actually beaten one of these overpayment cases completely, or does everyone end up having to pay something back in the end?

I went through this exact situation about 18 months ago and want to share what I learned. First, don't ignore that 30-day window - it's crucial. I initially panicked and almost let the deadline pass, which would have been a huge mistake. The "fraud penalties" designation is often applied automatically by their system when there's any discrepancy in reporting, even if it was genuinely unintentional. I was able to get mine reduced from $3,400 to $1,800 by appealing and providing documentation that showed I had misunderstood the reporting requirements for part-time work while collecting benefits. The appeals process took about 4 months, but it was worth it. Even if you end up owing something, getting those fraud penalties removed can save you a significant amount. My advice: call them immediately to discuss your options, gather any documentation you have from that time period (pay stubs, work schedules, emails with employers), and don't be afraid to appeal if you genuinely believe it was an error. The system is definitely flawed, but there are ways to fight back if you're persistent.

I'm going through this exact situation right now and it's so overwhelming! Reading through everyone's experiences here has been both terrifying and helpful. I received my overpayment notice about 10 days ago for $2,100 with fraud penalties, and I've been losing sleep over it. Like many of you, I honestly thought I was following the rules correctly when reporting my part-time work while collecting benefits. The worst part is trying to get someone on the phone - I've called probably 15 times and either get disconnected or stuck on hold for hours. I'm definitely going to try the early morning calling strategy that several people mentioned. Has anyone had success with requesting detailed documentation from NYS DOL about exactly how they calculated the overpayment? I feel like I need to understand their math before I can decide whether to appeal or just set up payments. This whole system seems designed to intimidate people into just paying without questioning anything.