Lawyer's Unemployment Benefits Yanked Over $1 A Day From Blog

An unemployed lawyer stopped receiving unemployment benefits after the New York State Labor Department found her food blog, which brings in $1 a day in ad revenue.

(/ABC News)

Does writing a blog constitute work? That appears to be the position of the New York State Department of Labor, which recently declared a laid-off attorney ineligible for unemployment benefits because she was bringing in $1.30 a day from blog ads.

Earlier this year Karin--a 2008 graduate from the University of Virginia School of Law who asked that her last name not be published--was laid off by a New York City law firm six months into her job.

Karin applied for state unemployment benefits and began receiving $405 a week. Unable to afford her rent in New York, she moved to St. Louis, Mo., and began searching for paralegal jobs while preparing to take the Missouri bar exam (it is common, and legal, for the unemployed to receive jobless benefits from the state where they last worked, even after moving elsewhere.)

In April, Karin started a blog, called STL Meal Deals, where she wrote about local restaurant promotions. Since she received no payments from the businesses she mentioned, Karin decided to try generating some income by signing up for AdSense, a service run by the Web search giant that pays bloggers to host ads on their sites. Google sends bloggers checks when their earnings hit $100--a level that took Karin three months to achieve.

When the check came in, Karin realized she had a legal obligation to disclose the income to New York State, even though doing so might reduce the weekly unemployment benefits she received. According to state regulations, anyone receiving unemployment benefits who works one day and earns less than $405 will have his check for the week reduced by 25%. Someone who earns more than $405 in a single week becomes ineligible for any payments for that week.

It was after Karin notified the Department of Labor of her AdSense income that the confusion started. New York cut her weekly benefits to $300 and sent her a form to fill out and send to her employer. Unsure whether Google was considered her employer, Karin called the DOL to get an answer. She says a state official told her she shouldn't have claimed the AdSense payment as income because it was "residual," meaning a payment made for services previously rendered. New York does not regard residual income as employment pay that could make someone ineligible for unemployment benefits.