Legal Question in Employment Law in New York

Denied unemployment insurance

Hello, After working for a company for over 10 years I was laid off a month ago. I applied for unemployment benefits but was denied because in March 2009 I formed an LLC for the purpose of stock trading. The LLC never had any profit ( in fact I lost 30% of investment), I never paid myself salary. i am now without income. What should I do? Would closing the LLC render me eligible for the unemployment benefits?


Asked on 7/09/09, 12:12 pm

1 Answer from Attorneys

Randall Brett Law Office of Randall P. Brett

Re: Denied unemployment insurance

In order to be eligible for unemployment compensation, you must be available for work and actively looking for work. Did you certify that you are available and looking when you applied for UC? Did you appeal the denial? If not, you should do so immediately as your rights to appeal are time sensitive. At the appeal (which is often just a telephone conference call, not an in-person hearing), you should emphasize - if this is true - that your LLC is just a side-line, you do not receive any income from it at this time, will report all income received if/when that occurs, and are actively looking for a full time job. You should be prepared to demonstrate that you are conducting a job campaign in good faith by identifying the companies you have contacted, the jobs you have applied for (including the dates you applied), and the status of your candidacy. If you are still denied UC benefits after the appeal hearing, you can consider retaining an attorney to appeal your case through the appellate system in New York.

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Answered on 7/09/09, 12:22 pm


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