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Thread: Question about unemployment

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    Senior Member AlysonRose's Avatar
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    Default Question about unemployment

    I know states vary but just wondering if anybody has expertise in this. I have a friend and she's working for a company that is downsizing (on a small scale) but she'll be one that loses her position. She makes about 40k a year.

    She isn't going to lose her job but if she stays she'll have to take a pay cut of about 15k. It's also a job she really doesn't want to do.

    The company is making changes that make sense but still a handful of people are getting the short end.

    I do live in a right to work state so that makes things tougher. I'm wondering what her options are as far as getting unemployment if she tells the company that she can't take that pay cut.

    Obviously she could get fired but would that mean she might be able to get on unemployment? Seems like while unmployment is only temporary she can at least take her time looking for a new job. Working the job she'd be working to stay in the company would pretty much fill the week days in terms of filling out applications and interviews.

    She has a good reputation with the company, people like her it's just an unfortunate situation. I told her maybe she needs to tell the people making these decisions that while she understands it's happening she can't take that lower pay. But obviously we don't want her to get fired if there is no chance at unemployment. But i'm far from the expert. I just know some states really favor employees in these situations. Especially for a pay cut that big.

    Also talked to her about bringing up to management about maybe taking the lower pay if she could be temporarily supplemented more to off set the huge loss.

    Any feed back?

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    God/dess rickdugan's Avatar
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    Default Re: Question about unemployment

    First off, she'd likely be getting less in unemployment benefits than she would get if she was earning the reduced salary, so she would be better off keeping her current job while she is looking for a new one. It is also easier getting another job when you are already employed.

    But if she is really just looking for an excuse to take some time off from full time work, I'll answer as best I can on the unemployment front. It really varies state by state, but in the states that I've lived in, unemployment was designed to be a holdover when an employer lays you off for reasons outside of your control. If you quit a job, you usually don't qualify. In theory you usually also don't qualify if you are fired for cause, but denial of benefits when an employer lets you go often requires the employer to object in a hearing and many employers don't bother, especially in states that are employee friendly.

    Again though, my experiences are in employee friendly states in the northeast. Things may work differently in other places.

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    Senior Member AlysonRose's Avatar
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    Default Re: Question about unemployment

    Quote Originally Posted by rickdugan View Post
    First off, she'd likely be getting less in unemployment benefits than she would get if she was earning the reduced salary, so she would be better off keeping her current job while she is looking for a new one. It is also easier getting another job when you are already employed.

    But if she is really just looking for an excuse to take some time off from full time work, I'll answer as best I can on the unemployment front. It really varies state by state, but in the states that I've lived in, unemployment was designed to be a holdover when an employer lays you off for reasons outside of your control. If you quit a job, you usually don't qualify. In theory you usually also don't qualify if you are fired for cause, but denial of benefits when an employer lets you go often requires the employer to object in a hearing and many employers don't bother, especially in states that are employee friendly.

    Again though, my experiences are in employee friendly states in the northeast. Things may work differently in other places.
    Thanks for the response. She's always been a worker since teenage part time jobs. And if she'd get a lot less in unemployment I'm sure she'd take the reduce salary. It's just a real bummer of a situation.

    I know companies make decisions in the best interest of the company but I told her she needs to make a decision in her best interest whatever that ends up being. I Just think that with her mortgage and bills she couldn't stay in that salary rank long at all anyway.

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    Default Re: Question about unemployment

    I got unemployment briefly (my position had been transferred out of state) and my benefit payout was about 50% of my previous take home pay. It was horrendous and thankfully my apartment lease ended in timing w/ the job loss and had I been stuck w/ the lease or otherwise unable to move back into my parents house temporarily I don't know what I would have done (started stripping earlier, ha).

    But yeah, I think she is better off staying at the reduced rate. Agree w/ Rick, it is much easier to get a job when you already have one. Getting out for interviews, just say it's a doctor's appointment or if you have to travel say it's a funeral or some other family emergency.
    "There are different kinds of darkness. There is darkness that frightens, the darkness that soothes, the darkness that is restful. There is the darkness of lovers, and the darkness of assassins. It becomes what the bearer wishes it to be, needs it to be. It is not wholly bad or good."
    - The Court of Mist and Fury

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    Senior Member AlysonRose's Avatar
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    Default Re: Question about unemployment

    Yea good idea although they could use that as an excuse and require a note to prove. But that is actually part of her problem too because she's worried if she can't get off she'll be facing a harder time to got a job interview. And they could almost make it hard for her to take time off in hopes she quits. I know she's a good employee but they will likely know that anybody taking a big pay cut probably will have a drop in productivity by nature.

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    Default Re: Question about unemployment

    There are so many variables but I got unemployment several years ago. My employer wanting me to quit so they kept trying to get me to do so. The reason was my boss was being laid off and they wanted to combine my department with another and have a political person run both (this was a government agency in Chicago and this is common). Anyway I stuck in there and they downsized me. I got a severance and unemployment up to a year (most unemployment is 6 months but this was a special case). If I had quit or had been fired for reason (they kept trying to get me to do something to get fired but I am smarter than all of them)I wouldn't have gotten unemployment or a severance.

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    Default Re: Question about unemployment

    Speaking from the People's Republic of Mass here, but the general rule is that the company must replace you. If they fight your claim[which they must do to stop you from collecting] they will be required to show that you were replaced. Other states vary of course

    The easy thing to do is call the unemployment people, they will know the answer. That and Rick is spot on, she will make more money working while looking. That and what are they going to do if she takes to many days off for interviews, fire her?

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    Default Re: Question about unemployment

    If she leaves voluntarily (quits) she won't qualify for unemployment, even if a pay cut was involved. She could have her name put on the short list for layoffs, then her chances of qualifying for unemployment benefits are better but not guaranteed.

    If I was consulting her as part of a career placement program, I'd tell her to stay in the job and start working on getting her resume out there. If she is in a skilled white collar career such as a Medical Field or Accounting she should be able to get her name on at a head hunting firm and find a new job pretty quickly. If she is doing something like sales or account representative, it may be harder for her to find an equivalently paying job as those jobs take time to work your way up.

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