New York Unemployment Fraud Penalties

REMEMBER:

IT IS NOT ILLEGAL TO WORK WHILE YOU ARE COLLECTING UNEMPLOYMENT BENEFITS.

You are able to work at a job and make a certain amount of money while still collecting unemployment benefits. When you apply for unemployment, this amount will be determined, and how this works will be explained to you by your unemployment counselor.

ALSO REMEMBER:

IT IS A CRIME TO COLLECT UNEMPLOYMENT BENEFITS WHEN YOU ARE NOT ELIGIBLE FOR THEM

If you willingly collect unemployment benefits when you are not eligible for them, and when you don't meet all the requirements - this is considered unemployment fraud and there are stiff penalties for committing unemployment fraud.

Unemployment Fraud Penalties include some or all of the following:

1. Fine. You may have to pay back the unemployment money you collected (this is called restitution) and pay a large criminal fine.
2. Jail. You may be sent to jail if you are found guilty and convicted of unemployment fraud.
3. Probation.

Still Have Questions?

To go back to the New York Unemployment FAQ Page, click here: New York Unemployment FAQ

To go the main New York Unemployment page, click here: New York Unemployment

Maybe We Can Help: 

If you can't find the answer to your question, you can fill out the comment form below and I will answer your question ASAP, or you can ask the The Unemployment Expert or you can post your question in the Unemployment Forum

Comments  

 
# derrick 2011-01-02 02:29
What happen after you paid restiution to your claim.
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# elvia 2011-03-17 18:05
What about if someone is abroad working in a dental office and at the same time receiving the unemployment benefits? Is that a crime? Should be that reported?
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# jimmy 2011-03-30 11:24
what is the penality for collecting unemployment while out of the country for 10 weeks do to family emergency
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# Dawn 2012-02-22 09:24
unemployment says my friend unlawfully claimed since 2009 for 9,000 i know this cant be. What will happen? he has no proof of this from unemployment
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# Jenny 2012-03-28 15:12
As an employer, what can we do if our former employee who is collecting benefits has been working another job? Thanks
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# marie 2012-06-14 20:29
i have been working 2days every week for the past 10 weeks and did not report it as income while collecting unemployment until just today..im waiting unpatiently to hear back from them..im wondering how much trouble i will be in...anyone know??
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# Matt T. 2012-08-01 11:41
I am in the military and stationed in San Diego, CA. My wife is was collecting New York unemployment based on relocating due to my military orders. She had been looking for work for 9 months and just landed a job last month. Since we live paycheck to paycheck and she would have to wait 3 weeks to get her first check, she continued to claim benefits for those weeks so we could cover our regualr bills even though she worked a few days during those weeks as a probationary period. We just received a letter stating that it was reported that she had worked those weeks and continued to claim benefits. She is now nervous about the represcussions, it was only to cover our bills and we expected if anything for the money to be taken out of our tax return come the end of the year, but now I'm reading that if found guilty at all it's considered fraud and could face jail time. We are honest hard working people and we don't try to get over on the system nor do we want to become dependant on it, but bills are bills and they need to be paid. Could someone give me some insight as to what will happen? I figured at most we would have to pay the benefits back in full and maybe incur a fine of some sort, interest on the payments and lose eligibility of benefits in the future. I just want to put her mind at ease because she is a nervous wreck about this....Please if you know anything about it, let me know I'd appreciate it...
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# frank 2012-11-23 13:27
i went to brazil for 4 weeks and claimed unemployment (not knowing) since i am a veteran in school full time. when i cane back i was assigned an agent to work on my case . i sent her my itinarary and all what had happened. they fined me 6 months with no unemployment. question one : can i fight this in court ? question two : if i get a job now will i have to pay the fine out of pocket ?
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# JR 2012-12-03 23:50
I was unemployment almost 3 yrs ago, collected for awhile then received a letter stating iowed them almost $9,000. Said i refused a job but anyways, I have recently filed a new clain in NY. I recieved a letter stating if i was accepted that I would recieve so n so. Now I know I will be accepted I do meet all requirements, so will they garnish my unemployment money or take a percentage? Im willing to pay some but I cant afford to have them take it all, I have kids n a family to support!
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# Tiff 2012-12-17 13:04
I claimed unemployment but was working but was making under the 405 standard, now they are taking all my unemployment, can they just take a percentage? I have a son, a family idk what to do!
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# Dawson 2013-02-16 16:13
I took a trip and I logged on from another country. I had an emergency it wasn't a vacation. Now they have asked me for my passport... What are the penalties for 4 weeks and what advice can I get from you.
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# Mary 2013-04-18 13:15
, i flew out of country 4 weeks ago where i got engaged so was gone for a week, couldn't get back on time as flights were full, so another person claimed for me for that week i was away, as i didnt know anything about the procedure, i never read the hand book. It is now 3 weeks passed by and I still have not received any payments and they are still reviewing this. I have not received any phone calls, nor any letters yet from Unemployment office. I am just continue submitting my weekly benefits each sunday. Please tell me what to do?
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# Paul 2013-05-19 08:21
Did they ever call you back, if so what happened? I'm currently going through the same situation. I first called denying that I was out of e country (big mistake) now I need to fax them pics of my passport and bank statements. So I have to either fax my info, ignore the whole thing or call . I've deciding to call and fess up as my conscious is getting to me and hoping for a chance to reinstate my benefits.
My advice is if they haven't called keep calling someone will call back and when they ask don't deny it. If you got paid for the week you will have to pay that back as far as what happens after that I'm not sure. I would love to hear your out come.
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# Jack 2013-10-11 04:56
Paul, what happened? I'm in the same boat.
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# Audrey 2013-05-07 19:40
is unemployment fraud always a federal crime when you work for the U S P S? My son worked part time as a postal carrier and received probation and restitution for a misdemeanor plea.
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# William 2013-05-09 08:47
i had somebody collecting for me while i was out of the country, what are the penalties for this issue?
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# ss 2013-08-28 18:53
I had an appeal. The employer was caught in misrepresenting and lying about a contract that never existed. Additionally they without notice cut my salary 80% and made me per diem- they also changed my title to a position i am not trained in. Additionally I was threatened to not speak of administration or I would not get a job I was told "it would be dangerous"- i informed the judge of this and records indicating such dialogues. So i had quit.

My question is now that the employer has been caught in fraud and unethical behavior what happens to them?
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