United States: Times, They Are A-Changing: Employers No Longer Permitted To Delay Or Fail To Return NY Unemployment Insurance Requests – Penalties Now Imposed

Last Updated: November 25 2013
Article by Amy J. Traub

Last month, the New York State Department of Labor (DOL) rather quietly effected legislation that had previously been signed by Governor Andrew Cuomo on March 29, 2013, reforming New York unemployment insurance law effective October 1, 2013.  Many companies are just now beginning to receive a letter that looks this.

The reform was enacted to correct shortcomings in the previous legislation that were, at least in part, responsible for the deficiency of the state's Unemployment Insurance Trust Fund ("UITF") to handle the high number of unemployment insurance claims during the recession.  As of early 2013, the UTIF had borrowed $3.5 billion from the federal government to satisfy unemployment benefit claims.  Repayment of this loan, plus interest, accrues to New York employers through the Federal Unemployment Tax Act vis-à-vis the calculation of future contribution rates.  The new reform provisions purport to allow New York to repay the federal government by 2016, two years and $200 million in interest payments, ahead of schedule.

Among other key points, the legislation imposes a financial burden on employers whose actions result in the overpayment of unemployment benefits.  Under the previous regulation, employers who delayed or altogether failed to return the DOL's requests for information on employee separation could later appeal the payment of certain benefits and seek repayment of the contributions to their individual accounts.  This is no longer the case.

Now, an employer may not seek relief from overpayment of benefits where "the employer or its agent failed to submit information sufficient to render a correct determination [of a claim] or failed to provide a response to a request for information" unless the delay was caused by a "disaster emergency declared by the governor or president."  NYS 2607-2013, Part O, S. 18.  That is, where an employer is in possession of information that could lead to the rejection or decrease in value of a claim for benefits–which often is the case—and does not timely provide the information to the DOL, the employer is not eligible to later reclaim the payments, even if the payments should never have been made because, for example, the former employee should not have been entitled to unemployment benefits in the first place.  The DOL does provide an employer one free pass for relief from overpayment, but only if it is the first occurrence of the behavior and the employer can establish good cause for its delinquent response.

What Should New York Employers Do?

Respond in full and on time!  Gone are the days when DOL unemployment requests could be relegated to the bottom of an employer's to-do list.  Information requests from the DOL now impose financial consequences on employers.  Employers therefore need to ensure that the proper systems are in place so that requests from the DOL for information pertaining to unemployment benefits are properly and timely addressed.  The systems may come at an added cost to employers, i.e. hiring additional employees or training.  The DOL, however, is currently developing a new electronic system, the State Information Data Exchange System (SIDES), to allow employers to respond to their requests online.  SIDES will be available online later this year at www.labor.ny.gov.

Importantly, an employer is liable for overpayments which could have been prevented had they timely responded.  An employer may bring an appeal to stop the overpayments, but appeals can take two to three months to complete, and the overpayments may continue during the duration.

Moreover, failure to adequately respond to requests issued by the DOL may cost an employer more than just the cost of the overcompensation alone.  An employer's contribution rate is calculated using the amount of previous contribution minus the benefits charged to the employer's account.  Un-recompensable overpayments may be included in this calculation, and, therefore, result in long-term higher contribution payments.

Other Key Reform Points

  • Severance pay preclusion—starting in 2014, former employees who receive severance pay within 30 days of the dismissal will not be eligible for unemployment benefits if the severance pay is greater than the maximum weekly benefit.  If the severance pay is in a lump sum, it will be allocated on a weekly basis, and they will not be eligible until the severance pay is exhausted.
  • Job-seeking requirement—as mandated by federal law, benefits shall not be paid to any claimant not actively seeking employment, and the DOL plans to establish regulations to monitor claimants' work search efforts by December 2015.
  • Taxable wage limit increase—beginning on January 1, 2014, the FUTA taxable wage will increase to $10,300, with gradual increases annually up to $13,000 in 2026.
  • Maximum weekly benefit increase—in October 2014, the maximum weekly benefit will increase to $520, and then to $250 in October 2018, and then proportionally thereafter.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.