Assume that yesterday you earned $50,000/year and today you were told that you will have your pay reduced to $25,000/year (extreme I know…just an example).
Can you quit and claim unemployment benefits in this instance? Technically you still have a job and were not fired but just the same the two salaries are hardly comparable. I seem to remember that a significant enough pay cut would allow you to quit and be eligible fro benefits but it is a dim memory.
Anyone know for sure?
…unemployment programs are run by the states and they each have different rules for eligability, benefits, etc. I’m not going to give a blanket “no” to your query, but I’ve never heard of a state that had such a rule.
I would think that if the top unemployment benefit you are eligible for is less than your current gross salary, you’d be required to keep your job. Considering the fact that your employment probably offers hidden benefits (vacation, sick days, holidays, medical, dental and life insurance), your effective “salary” may be a lot higher than it seems. I’d keep the job.
Wack-A-mole in New Jersey if your pay is reduced but your hours are not, you are not eligable to collect unemployment based on that. If they reduce your hours then you are able to file a claim for partial benefits. If you just quit your job without good cause and I don’t know whta % of pay reduction but no hours reductions constitutes good cause then they you would be ineligable for unemployment, at least thats how it is in New Jersey
The example is a bad one, since unemployment is usually half your salary at the time you were laid off. There’s be no reason to go on unemployment if your salary is cut in halt – go to work and spend your time hunting for another job.
Source: http://workforcesecurity.doleta.gov/unemploy/uifactsheet.asp
Notwithstanding a state’s particular UI laws, quitting your job to claim unemployment benefits because your boss cut your salary in half doesn’t work.
OTOH, if your employer has a federal government contract to provide services to the federal government, you must be paid prevailing wage rates and fringe benefits, meaning the boss cannot cut your salary.
See http://www.dol.gov/dol/topic/wages/index.htm
Someday I’ll read an entire web site just to offer my respone in one post …
No. In NY you can’t collect unemployment if you have a job. Even if you could, it would be a fraction of what you earn.