Relocation and Back Pay Issues

My question involves unemployment benefits for the state of: NY

My company moved in mid july from NY to NJ (roughly 25-30 miles away) and would take about an hour and a half commute, (2 hours in heavy traffic).

They only gave us about a week formal notice (exact date of move and new address etc..)

I decided not to move with them and filed for Unemployment Benefits and was approved. Just this week I got a letter from the DOL (after 10 weeks) that my employer petitioned that I quit and I have 7 days to respond.

Do I have a case? and if im unlikely to prevail, do I have to worry about NYS collecting backpay?

Also, management made it pretty clear that after they finish transitioning the move, they would start firing existing employees and hiring locals for cheaper.

Let me know- Thanks

It is possible for an out-of-state relocation of your employer to constitute a good cause basis to quit, but you cannot voluntarily quit employment merely because your place of employment has been transferred to another state; the key questions are whether or not the new commute distance is reasonable and, if appropriate, whether the employer has made a suitable provision for additional travel expenses. See, e.g., unemployment decision A-750-1714. More guidance on voluntary separation is here.