Why do employers fight unemployment claims with NYS Department of Labor?
My former employer is contesting my unemployment claim and I'm confused about why they would even bother. I was laid off due to budget cuts at my restaurant job in Albany, nothing I did wrong. Now my claim is stuck in adjudication for over 2 weeks and I can't get through to anyone at NYS Department of Labor to find out what's happening. Why would my old boss fight this when they clearly told me it was just financial reasons? Does this hurt their business somehow? I'm getting really stressed because my savings are almost gone.
12 comments


Malia Ponder
Employers contest claims because it affects their unemployment insurance tax rate. When former employees successfully collect benefits, it can increase the employer's UI tax rate for future years. Even if the layoff was legitimate, some employers automatically contest everything to try to keep their rates low. The NYS Department of Labor will review the case and make a determination based on the facts.
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Holly Lascelles
•That makes sense but seems really unfair. I didn't do anything wrong and they're making it harder for me to get help when I need it most.
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Kyle Wallace
Your employer probably has their payroll company or HR department automatically contest every claim. It's become standard practice unfortunately. Since you were laid off for budget reasons, you should win the adjudication easily. Make sure you have any documentation like your termination letter or emails about the layoffs. The NYS Department of Labor adjudicator will likely rule in your favor.
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Ryder Ross
•Yeah this happened to me too. My old job contested even though they laid off half the staff. Took 3 weeks but I eventually got approved and got all my back pay.
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Gianni Serpent
I've been trying to reach NYS Department of Labor for weeks about my own contested claim. The phone system is completely useless - either busy signal or they hang up after an hour on hold. Someone told me about a service called Claimyr that helps you get through to actual agents. Check out claimyr.com and their video demo at https://youtu.be/qyftW-mnTNI. I'm thinking about trying it because I need answers about my adjudication status.
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Henry Delgado
•Never heard of that before but honestly anything is better than sitting on hold forever. Let us know if it actually works!
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Olivia Kay
Employers fight unemployment because they're GREEDY! They don't want to pay higher taxes so they screw over their former employees. The whole system is rigged to help businesses and hurt workers. I've had THREE employers contest my claims over the years for absolutely no reason.
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Kyle Wallace
•I understand the frustration but it's really just about the tax rates. Most employers aren't trying to be malicious, they're just protecting their bottom line.
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Joshua Hellan
wait so every time someone gets unemployment the employer has to pay more?? i thought it was just government money
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Malia Ponder
•Employers pay unemployment insurance taxes to fund the system. When their former employees collect benefits, it can impact their future tax rates. It's similar to how workplace injuries affect workers' comp premiums.
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Keisha Williams
I'm dealing with a similar situation right now - my employer is contesting my claim even though they told me the layoff was due to "restructuring." It's so frustrating because I'm running low on money and can't get anyone at NYS DOL on the phone. From what I've learned, employers contest claims to keep their unemployment insurance rates low, but it feels like they're just making life harder for people who are already struggling. Has anyone had luck getting through to an actual person at the Department of Labor recently?
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Giovanni Rossi
•I feel your pain @Keisha Williams - the phone situation with NYS DOL is absolutely terrible right now. I ve'been trying for days and can never get through. Maybe try calling first thing in the morning when they open at 8am? That s'when I ve'heard you have the best shot. Also document everything about your layoff - emails, texts, anything that shows it was restructuring and not performance related. The system is definitely stacked against us but hang in there, most people do eventually get approved for legitimate layoffs like ours.
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