N.Y. Labor Law § 594: Reduction and recovery of benefits and penalties for wilful false statement

§ 594. Reduction and recovery of benefits and penalties for wilful

false statement. (1) A claimant who has wilfully made a false statement

or representation to obtain any benefit under the provisions of this

article shall forfeit benefits for at least the first one but not more

than the first twenty effective weeks following discovery of such

offense for which he or she otherwise would have been entitled to

receive benefits. Such penalty shall apply only once with respect to

each such offense.

(2) For the purpose of subdivision four of section five hundred ninety

of this article, the claimant shall be deemed to have received benefits

for such forfeited effective weeks.

(3) The penalty provided in this section shall not be confined to a

single benefit year but shall no longer apply in whole or in part after

the expiration of two years from the date of the final determination.

Such two-year period shall be tolled during the time period a claimant

has an appeal pending.

(4) A claimant shall refund all moneys received because of such false

statement or representation and pay a civil penalty in an amount equal

to the greater of one hundred dollars or fifteen percent of the total

overpaid benefits determined pursuant to this section. The penalties

collected hereunder shall be deposited in the fund. The penalties

assessed under this subdivision shall apply and be assessed for any

benefits paid under federal unemployment and extended unemployment

programs administered by the department in the same manner as provided

in this article. The penalties in this section shall be in addition to

any penalties imposed under this chapter or any state or federal

criminal statute. No penalties or interest assessed pursuant to this

section may be deducted or withheld from benefits.

(5) (a) Upon a determination based upon a willful false statement or

representation becoming final through exhaustion of appeal rights or

failure to exhaust hearing rights, the commissioner may recover the

amount found to be due by commencing a civil action, or by filing with

the county clerk of the county where the claimant resides the final

determination of the commissioner or the final decision by an

administrative law judge, the appeal board, or a court containing the

amount found to be due including interest and civil penalty. The

commissioner may only make such a filing with the county clerk when:

(i) The claimant has responded to requests for information prior to a

determination and such requests for information notified the claimant of

his or her rights to a fair hearing as well as the potential

consequences of an investigation and final determination under this

section including the notice required by subparagraph (iii) of paragraph

(b) of this subdivision. Additionally if the claimant requested a fair

hearing or appeal subsequent to a determination, that the claimant was

present either in person or through electronic means at such hearing, or

subsequent appeal from which a final determination was rendered;

(ii) The commissioner has made efforts to collect on such final

determination; and

(iii) The commissioner has sent a notice, in accordance with paragraph

(b) of this subdivision, of intent to docket such final determination by

first class or certified mail, return receipt requested, ten days prior

to the docketing of such determination.

(b) The notice required in subparagraph (iii) of paragraph (a) of this

subdivision shall include the following:

(i) That the commissioner intends to docket a final determination

against such claimant as a judgment;

(ii) The total amount to be docketed; and

(iii) Conspicuous language that reads as follows: "Once entered, a

judgment is good and can be used against you for twenty years, and your

money, including a portion of your paycheck and/or bank account, may be

taken. Also, a judgment will hurt your credit score and can affect your

ability to rent a home, find a job, or take out a loan."