Why does minimum wage result in unemployment claims - NYS Department of Labor perspective
I've been thinking about this after my hours got cut at my retail job. My manager said they had to reduce staff because of wage costs, and now I'm filing for partial unemployment with NYS Department of Labor. It seems backwards - shouldn't higher wages mean people work more, not less? But I'm seeing friends lose jobs or get their hours slashed when companies can't afford the labor costs. Has anyone else dealt with this situation? I'm trying to understand if this is a common reason people end up needing unemployment benefits.
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Eve Freeman
This is actually a well-documented economic phenomenon. When wage floors increase faster than productivity, some businesses reduce their workforce to maintain profitability. For NYS Department of Labor purposes, if your hours were reduced due to economic reasons (including wage cost pressures), you should qualify for partial unemployment benefits. Make sure you're reporting your reduced earnings correctly on your weekly claims.
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Val Rossi
•Thanks for explaining that. I've been filing my weekly claims but wasn't sure if this counted as a valid reason. The adjudication process is taking forever though.
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Clarissa Flair
same thing happened at my restaurant job last year, they cut shifts for everyone instead of laying people off completely
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Caden Turner
I had a nightmare trying to get through to NYS Department of Labor about partial claims when this happened to me. Spent weeks on hold getting nowhere. Eventually found this service called Claimyr that actually got me connected to a real person at claimyr.com - they have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me so much frustration dealing with the phone system.
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Val Rossi
•Interesting, I might need to check that out if my adjudication doesn't move soon. The automated system is driving me crazy.
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McKenzie Shade
This is exactly why the unemployment system exists though! When economic pressures force businesses to make these decisions, UI benefits are supposed to bridge the gap. The real problem is how slow NYS Department of Labor is at processing these claims. Took me 3 weeks just to get through adjudication for a similar situation.
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Harmony Love
Yeah but it's not just about individual cases - this creates a whole cycle where businesses hesitate to hire because they know wage costs might force them to cut later. Then more people end up needing unemployment benefits which puts pressure on the whole system...
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Eve Freeman
•You're touching on labor market dynamics that go beyond just UI claims. The important thing for claimants is understanding their eligibility when these situations occur.
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Rudy Cenizo
THE WHOLE SYSTEM IS BROKEN!! I've been dealing with NYS Department of Labor for months over this exact issue and they act like reduced hours due to wage pressures isn't a real thing. These bureaucrats have no idea what actual businesses face!
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