The answer is probably no, but has anyone heard of this: I was paid unemployment benefits and my wife owned a small business (which I told the DOL about when applying for benefits). 5 years later NYSDOL came after me and demanded I repay them all the benefits since I was not totally unemployed. After 4 hearings and appeals I finally won the case and do not have to pay them back. However I am out $2300 in legal expenses.

I told the DOL I told them up front about the business and the final appeal board determined I did not make any wilful misrepresentation to get benefits. I can see me paying for the first hearing, but NYS should be responsible to pay for the other hearings. NYS even lost the transcripts of my second hearing and I had to pay a lawyer to repeat the second hearing! Why am I responsible for that expense??

I did nothing wrong, NYS made bad decisions at every pass, I won the case and NYS should pay for my legal defense. (They should have made the right decision at the first hearing. The statutes of limitations ran out for them to correct their error!)

Is there a way to sue the NYS DOL for these expenses/damages?

I have never heard of someone suing them, have you googled that? I would ask your lawyer, if you had one, if any of this can be compensated or paid back?

The answer is no.

Thanks; that's what I assumed. It's just a very frustrating situation of how the State can waste your money and waste more tax payer money with their own costs by creating these frivolous cases!

Thanks; that's what I assumed. It's just a very frustrating situation of how the State can waste your money and waste more tax payer money with their own costs by creating these frivolous cases!

I wish the answer were different, I do sympathize with your situation!!