‘Worse Than I’ve Ever Seen’: New York Among Slowest States to Pay Unemployment Benefits

New York paid 64 percent of eligible people within that time frame in the first half of this year — far below the 87 percent benchmark that the federal government considers “acceptable.”

The delays have gotten worse in recent months. In April, the state Department of Labor, which administers the unemployment system, paid 58 percent of claimants in the timely window; by May, the number had fallen to 55 percent, and in June, it was 58 percent.

Several unemployed New Yorkers who spoke to New York Focus described having to rely on savings or family members to pay bills while they waited weeks or months for their benefit.

“Workers have bills to pay,” said Amy Traub, a senior researcher with the National Employment Law Project who focuses on unemployment insurance. “Their landlord isn’t interested in a story about how their unemployment check is late.”

She said the federal government is supposed to help states meet the 87 percent performance benchmark, but that it rarely imposes consequences when states fail to do so.

“The New York State Department of Labor remains committed to delivering benefits as efficiently as possible while also protecting this essential safety net for New Yorkers,” an agency spokesperson said in a statement.

The state’s processing times slowed down drastically at the start of the Covid-19 pandemic, when unemployment spiked and the state system was overwhelmed. In the years leading up to the pandemic, New York consistently hit or exceeded the federal benchmark. Then, its payment speed sharply declined.

While the unemployment rate has returned to pre-pandemic levels, the state’s payment speed has not.

“The delay is worse than I’ve ever seen, and I’ve been doing this for 35 years,” said Jon Bloom, executive director of the Workers Defense League, a nonprofit that helps people navigate unemployment benefits. “It used to be … a much shorter process.”

The New York Department of Labor did not directly answer a question about why payments are delayed.

A spokesperson noted that the agency’s ability to process claims on time is impacted by staffing levels, and there are fewer people processing unemployment claims in the department than before the pandemic, according to staffing data. Those roles are entirely funded by the federal government, and funding levels are determined by the volume of unemployment claims.

The agency said its processing speed also depends on other factors, like how quickly applicants and their employers respond to requests for additional information or complete an anti-fraud identity verification process. But the agency doesn’t make it easy for applicants to speed up those parts of the process, according to legislators, advocates, and several people who’ve applied for unemployment.

The online application portal prompts some people to call the state hotline to complete their claim, but New York Focus reported earlier this month that people often can’t reach a human agent. One week last month, only a third of callers reached a human, the department said.

Brooklyn resident Paige Johnson said she got locked out of the portal while trying to apply last November and had to call the hotline every day when it opened at 8 am. It took her nine days to get someone on the phone to fix the issue with her account.

People also said that documents they upload to the portal or fax to the state upon request seem to disappear. Another Brooklyn resident, who asked to remain anonymous to protect his privacy, told New York Focus that he gave up on applying earlier this year because he never got a response after mailing requested documents to the state Labor Department. On top of that, the department’s anti-fraud tool is difficult to navigate.

“It seems like the entire system is designed to make you not want to go through the process of applying,” said Johnson.

Applicants experience payment delays even when they don’t have issues with the application or their employer doesn’t contest their claim, according to advocates who help people access the benefit.

“Most of the calls we get are people saying, ‘I applied months ago, and I haven’t gotten payments, and I haven’t gotten a denial,’” said Bloom from the Workers Defense League. “Some of these are straightforward cases where the person was laid off” and there’s no dispute over their eligibility, he said. “The delays are just built in.”

Several state lawmakers told New York Focus that constituents frequently call their offices because they need help with their claim or to complain about delays.

“These wait times of months and months are egregious,” said state Assemblymember Grace Lee of Manhattan. “My office has been happy to help our constituents, but if we can address the systemic issues driving the delays, it would be incredibly beneficial to New Yorkers.”

Others, including Assemblymembers Claire Valdez and Phara Souffrant Forrest, have echoed Lee’s concerns. But legislators and advocates who work on unemployment could not pinpoint exactly what issues are driving the delays or how to address them.

The state legislature could pressure the Labor Department to fix the issues with unemployment, or put in a funding request, said Assemblymember Jessica González-Rojas. But first, she said, “We need to get to the bottom of the problem and what’s happening with staffing.”

State Senator Jessica Ramos, who chairs her chamber’s labor committee, said the legislature can press the Labor Department for information about staffing during the budget hearing process, which takes place each winter, “but they’re never straightforward about numbers.”

The Labor Department provided New York Focus with staffing numbers upon request. They show that the department has 75 fewer employees processing claims than it did eight years ago.