What does New York law say about obtaining unemployment insurance, and why should employers comply with the same?
Obtaining Unemployment Insurance (UI) under New York Law
To start with, unemployment insurance (UI) is a program under which both the federal and state governments join hands to ensure that eligible workers are provided with cash benefits. Generally speaking, this program is funded partially by the federal government and through employer and employee deductions and payroll taxes. However, although similar guidelines, as provided under federal law, are followed by all states, every state manages and regulates its own separate UI program.
Pursuant to N.Y. Lab. Law § 560, employers in New York are required to obtain unemployment insurance, through which eligible employees would be provided with cash benefits as mentioned above. However, what does it mean by “eligibility,” and who can be considered to be an “eligible worker?” In a past blog post titled “5 Key Issues For Unemployment Benefits Eligibility,” we mentioned that New York law is very clear that any individual who is (1) unemployed through no fault of their own (meaning that the employer might have created a new situation/condition that didn’t exist before and, thus, leading to their termination), (2) physically able to work, (3) available for work, (4) ready and willing to accept work immediately, and (5) actively seeking employment currently is eligible and entitled to unemployment benefits.
Another key issue we noted in the aforementioned blog post is that, however, as provided for under Section 511 of the New York Labor Law, some individuals, including self-employed workers (i.e., independent contractors) and students who work for schools and under work-study programs, are not eligible for unemployment benefits. Additionally, while it is governed under Section 593 of the New York labor law, unemployment benefits disqualification applies to an individual who (1) leaves their job voluntarily but with no good cause, (2) has been discharged or terminated due to employment-related misconduct, (3) is convicted for a felony offense, (4) refuses suitable employment without good reason, and (5) simply is not “able,” “ready,” and “willing” to work.
Moving on, employers are required, on the one hand, to meet several requirements to obtain UI. For instance, they should reach out to the Internal Revenue Service (IRS) to obtain a Federal Employer Identification Number that is required to register for this insurance policy. In addition, they must use the NYS 45 form to submit mandatory UI returns to the state every 3 months (quarterly). Notably, as part of compliance with posting and notice requirements, employers must also post the UI Notice to Employees (IA 133) in designated places accessible to all employees to see.
On the other hand, eligible employees should also understand what the law says about UI benefits, as well as meet certain requirements. For instance, an eligible employee should provide a government-issued identification document (ID) card and a valid Social Security Number to access unemployment benefits. Additionally, they should also understand that the sum of unemployment benefits obtained is taxable under their state and federal returns. Furthermore, depending on past wages, weekly UI benefits typically range from $100 to $500. Lastly, UI benefits can be obtained for up to 26 weeks while one is not employed.
This blog marks the end of this short series in which we have hammered on “Employment-Related Insurance” as a key issue of consideration for growing companies and start-up businesses, particularly those operating within New York and, thus, covered under the state’s employment and labor laws.
In our upcoming blog post, we will shift gears and, via a new and interesting series on “Remedies under Major New York Labor and Employment Laws,” introduce the concept and doctrine of “Remedies,” which is a very significant issue under New York’s Employment and Labor Laws. Be on the lookout, and as usual, stay tuned for more legal guidance, training, and education. In the meantime, if you have any questions or comments, please let us know on the Contact Us page!
Always Rising Above the Bar,
Isaac T.,
Legal Writer, Author, & Publisher.