August 17, 2026

Book Law Secures Complete Victory in New York Unemployment Insurance Audit Appeal

Book Law attorney Andrew Heighington recently secured a significant victory on behalf of a client challenging New York’s classification of its workers as employees.

New York’s Department of Labor (DOL) had assessed more than $45,000 in unemployment insurance contributions based on its determination that our client misclassified its workers as independent contractors.  We established that the workers in fact operated as independent contractors under New York law and, therefore, the business was not required to provide unemployment insurance coverage.

At a hearing, we presented evidence showing that the business did not have the degree of control necessary to create an employer-employee relationship with its workers.  Among other things, we showed that the workers:

• established their own schedules directly with customers;
  
  
• negotiated their own compensation;
  
  
• designed their own work methods and materials;
  
  
• were not trained, supervised, or evaluated by the company; and
  
  
• maintained substantial autonomy over how they performed their services.

Based on this evidentiary record, the Administrative Law Judge overruled the Department of Labor’s determination in full, sustained our client’s objection, and held that our client was not liable for the assessed unemployment insurance contributions.

This result highlights the importance of developing a thorough factual record and presenting a comprehensive legal analysis in worker-classification disputes. It also demonstrates the importance of properly structuring independent contractor relationships from the start, to help protect and defend your business against agency assessments.

Book Law regularly represents employers in unemployment insurance audits, worker-classification disputes, wage and hour investigations, and proceedings before state and federal labor agencies. This victory reflects our ongoing commitment to helping employers navigate complex employment law issues while protecting their businesses from unwarranted liability.

If you have questions about the classification of workers or are facing an agency investigation, audit, or assessment, please contact any Book Law attorney or Andrew Heighington at AHeighington@booklawllp.com.