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Matter of Knights (Commissioner of Labor)

Docket CV-25-0502

Court of record · Indexed in NoticeRegistry archive · AI-enriched for research

AdministrativeAffirmed
Filed
Jurisdiction
New York
Court
Appellate Division of the Supreme Court of the State of New York
Type
Opinion
Disposition
Affirmed
Citation
2026 NY Slip Op 02491
Docket
CV-25-0502

Appeal from a decision of the Unemployment Insurance Appeal Board affirming determinations that claimant was ineligible for benefits and subject to overpayment and forfeiture penalties for willful misrepresentations.

Summary

The Appellate Division, Third Department affirmed the Unemployment Insurance Appeal Board's decision that Warren Knights was ineligible for unemployment benefits for multiple periods because he falsely certified he was totally unemployed while earning money delivering for Instacart. The Department of Labor issued revised determinations finding overpayments and imposing forfeiture penalties based on willful misrepresentations. The Board credited evidence and testimony showing Knights failed to report his paid work despite having received a handbook explaining reporting obligations, and the court found substantial evidence supported the Board's finding of willfulness and the monetary penalties.

Issues Decided

  • Whether the claimant's false certifications that he was totally unemployed were willful misrepresentations that justify overpayment recovery and forfeiture penalties.
  • Whether the Unemployment Insurance Appeal Board's credibility findings and penalty determinations were supported by substantial evidence.

Court's Reasoning

The court noted the claimant received an unemployment handbook explaining the duty to report any work and that partial benefits rules applied. The Board, as factfinder, was entitled to reject the claimant's assertion that the failures to report were inadvertent. Precedent holds claimants are responsible for accurate reporting and innocent mistake defenses are insufficient to avoid penalties. Because substantial evidence supported the finding of willful misrepresentation, the monetary penalties and forfeiture were upheld.

Authorities Cited

  • Labor Law §§ 522, 591 (former (1)), 594
  • Matter of Dai Kwang Lim (Supreme Home Care Agency of N.Y. Inc.-Commissioner of Labor)246 AD3d 1177 (3d Dept 2026)
  • Matter of Carmody (Commissioner of Labor)2025 NY Slip Op 06963

Parties

Appellant
Warren Knights
Respondent
Commissioner of Labor
Attorney
Letitia James, Attorney General (Gary Leibowitz of counsel)
Judge
Garry, P.J.
Judge
Pritzker, J.
Judge
Fisher, J.
Judge
Mackey, J.
Judge
Corcoran, J.

Key Dates

Decision entered
2026-04-23
Calendar date
2026-03-20
Unemployment Insurance Appeal Board decision filed
2024-08-28
Revised initial determinations issued
2023-09-01

What You Should Do Next

  1. 1

    Consult an attorney

    Speak with an attorney experienced in unemployment insurance appeals to review whether any further appellate remedies or motions for rehearing are available and timely.

  2. 2

    Review payment obligations

    Verify the amount of overpayment and penalty assessed and arrange repayment or seek information about payment plans or relief options from the Department of Labor.

  3. 3

    Ensure accurate future certifications

    Immediately and accurately report all work, earnings, and self-employment when certifying for benefits to avoid additional penalties.

Frequently Asked Questions

What did the court decide?
The court affirmed that Knights was ineligible for benefits for certain periods and that overpayments and forfeiture penalties were proper because he willfully failed to report paid work.
Who is affected by this decision?
Warren Knights is affected directly; other unemployment claimants are affected in that the decision reinforces that claimants must accurately report any work when certifying for benefits.
What happens next for the claimant?
The Board's determinations stand, so Knights remains subject to repayment of overpaid benefits and the forfeiture of future benefit days unless he pursues any further available review or relief.
Why did the court uphold the penalties?
Because Knights received guidance about reporting, repeatedly failed to report paid work, and the Board credited evidence that his misstatements were willful rather than accidental.
Can this decision be appealed further?
A further appeal to a higher court may be possible but would depend on statutory appellate avenues and timely filing; the decision does not describe any pending further appeal.

The above suggestions and answers are AI-generated for informational purposes only. They may contain errors. NoticeRegistry assumes no responsibility for their accuracy. Consult a qualified attorney before relying on them.

Full Filing Text
Matter of Knights (Commissioner of Labor) - 2026 NY Slip Op 02491

Matter of Knights (Commissioner of Labor)

2026 NY Slip Op 02491

April 23, 2026

Appellate Division, Third Department

In the Matter of the Claim of Warren Knights, Appellant. Commissioner of Labor, Respondent.

Decided and Entered:April 23, 2026

CV-25-0502

Calendar Date: March 20, 2026

Before: Garry, P.J., Pritzker, Fisher, Mackey And Corcoran, JJ.

Warren Knights, Newark, New Jersey, appellant pro se.

Letitia James, Attorney General, New York City (Gary Leibowitz of counsel), for respondent.

Appeal from a decision of the Unemployment Insurance Appeal Board, filed August 28, 2024, which ruled, among other things, that claimant was ineligible to receive unemployment insurance benefits because he was not totally unemployed.

Claimant filed an original claim for unemployment insurance benefits that became effective in April 2022, as well as another that became effective in April 2023. He received an unemployment insurance handbook shortly after the first claim was approved that advised him that he was required to report all work, including part-time work, self-employment and freelance work. The handbook also advised that he would receive partial benefits if he worked 30 hours or fewer and earned $504 or less in a given week. Claimant went on to perform grocery shopping and delivery services for Maplebear Inc., Doing Business as Instacart (hereinafter Instacart), for significant periods in 2022 and 2023, but failed to report that information when he was certifying for benefits until a Department of Labor representative advised him to do so in July 2023.

After learning of his work for Instacart, the Department issued revised initial determinations in September 2023 that found claimant ineligible to receive benefits for periods between April 2022 and October 2022, as well as periods between April 2023 and July 2023, and charged him with recoverable overpayments and forfeiture penalties based upon his willful misrepresentations to obtain benefits. Following further proceedings, those determinations were sustained by an Administrative Law Judge. Upon administrative appeal, the Unemployment Insurance Appeal Board, in relevant part, agreed that claimant had made willful misrepresentations to obtain benefits and upheld the penalties. Claimant appeals.
FN1

We affirm. There is no dispute that claimant inaccurately represented that he was totally unemployed when certifying for benefits during the periods at issue, leaving the question of whether those misrepresentations were willful and warranted the imposition of penalties (
see
Labor Law §§ 522 [1]; 591 [former (1)]; 594). Claimant suggests that he failed to report his paid work for Instacart because he simply misunderstood his obligation to do so, but "it is well settled that a claimant is responsible for accurate reporting and must disclose any employment activity when certifying for unemployment insurance benefits, and there is no acceptable defense to making a false statement and a claim that the misrepresentation was unintentional is not sufficient" (
Matter of Dai Kwang Lim [Supreme Home Care Agency of N.Y. Inc.-Commissioner of Labor]
, 246 AD3d 1177, 1178 [3d Dept 2026] [internal quotation marks and citations omitted];
see

Matter of Carmody [Commissioner of Labor]
, ___ NY3d ___, ___, 2025 NY Slip Op 06963, *1 [2025];
Matter of Schneider [Commissioner of Labor]
, 158 AD3d 882, 883 [3d Dept 2018]). "The Board, as the sole arbiter of credibility, was . . . entitled to reject claimant's exculpatory
testimony, including his claims that his inaccurate certifications were made as a result of an inadvertent error and/or an honest mistake" (
Matter of Dai Kwang Lim [Supreme Home Care Agency of N.Y. Inc.-Commissioner of Labor]
, 246 AD3d at 1180 [citations omitted];
see

Matter of Knehnetsky [Commissioner of Labor]
, 239 AD3d 1218, 1219-1220 [3d Dept 2025];
compare

Matter of Valvo [Ross]
, 57 NY2d 116, 127 [1982] [nothing in record to suggest the claimant would recognize that occasional unpaid work fell within legal definition of "employment disqualifying her from all benefits throughout the entire period"]). Thus, substantial evidence supports the Board's finding that claimant made a willful misrepresentation to obtain benefits, and we perceive "no basis to disturb the Board's imposition of a monetary penalty and forfeiture of future benefit days" (
Matter of Dai Kwang Lim [Supreme Home Care Agency of N.Y. Inc.-Commissioner of Labor]
, 246 AD3d at 1180;
see Matter of Cruz [Commissioner of Labor]
, 215 AD3d 1203, 1205 [3d Dept 2023]). To the extent that they are not addressed above, claimant's contentions have been examined and found to be lacking in merit.

Garry, P.J., Pritzker, Fisher, Mackey and Corcoran, JJ., concur.

ORDERED that the decision is affirmed, without costs.

Footnotes

Footnote 1

We note that, in his brief, claimant relies upon several "cases" that do not exist. The "submission of fabricated legal authorities is completely without merit in law and therefore constitutes frivolous conduct" within the meaning of 22 NYCRR part 130 (
Deutsche Bank Natl. Trust Co. v LeTennier
, ___ AD3d ___, ___, 250 NYS3d 260, 267 [3d Dept 2026];
see
22 NYCRR 130-1.1 [c] [1]; 130-1.1a [b] [1]). Although we are authorized to impose sanctions (
see
22 NYCRR 130-1.1 [d]), we instead sternly warn petitioner not to engage in this conduct again.