withheld unemployment benefits

I worked for my former employer for two years, December 98 -December 00'. I was terminated supposedly because of an arguement I had with someone in the corporate office about 30 days prior to my termination date, at least this is what the senior manager told me. When I returned from holiday vacation, a replacement was already hired, and I was terminated. When I applied for unemployment, the Labor Department wrote me and said I hadn't earned any wages in two years. When I called the corporate office, a manager mumbled something about forgeting to mail a quarterly report. I might have believed him, except the Labor Department claimed I hadn't worked in two years, not one quarter. I have found out that my former employer does not report wages earned by his employees to the New York Department of Labor. I had to make copies of all my pay stubs and mail them in. My former employer has since written to NY Department of Labor to report my earnings, but still, for two years he didn't do it and it caused my benefits to be withheld and some unnecessary financial hardship. What legal options do I have to be compensated for my difficulty, and was I fired legally?

If you are at-will, they can fire you for anything or nothing. Your unemployment, however, should have been paid once you proved that you had been working. Call the unemployment and see if they are going to pay you from the time you filed your claim. Usually they do, then they go after the employer.

UNEMPLOYMENT BENEFITS

Thanks. I kind of figured that a private company can fire
you for anything or nothing. I'll find out by New Years if
my benefits will be paid; I have already written the Labor
Department and made a complaint of fraud on the part of my
former employer. Do I wait and see what they say in regard to my complaint before I pursue legal action, or is their any legal option available to me?

Unless you are independently wealthy and can hire an attorney at this time, unfortunately, you will have to wait out the administrative process. The other unfortunate part of this is that the employees of the administrative agency have a job and get their paychecks each week. Also this is a holiday season. You know what that means? Time -- it will take time, so don't count on a quick resolution.