CanIstill collect unemployment if i refusea position offered in a demotion?

UPDATED: Feb 20, 2012

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CanIstill collect unemployment if i refusea position offered in a demotion?

Is it legal for the director of operations at my company to demote me as supervisor but offer me the position I had previously been promoted from years ago (with less pay than when I was hired for the same position originally)? Also, if I don’t accept the offer for the lower position, can I still qualify for unemployment?

Asked on February 20, 2012 under Employment Labor Law, Colorado


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

1) It is legal to demote you and/or reduce your pay--even to below what you had earned when you started with the company--unless you had an employment contract guarantying or specifying your position or salary. Otherwise, without an employment contract, a company is free to set titles, positions, responsibilities, and compensation for its staff.

2) It is likely that if you refuse the position, you will be considered to have quit or resigned and therefore be ineligible for unemployment commpensation. For example, if the company simply says, "this is your new position and pay"--something which they clearly have the right to do--then if you say "I won't take that job" or "I won't work for that pay" or anything like that, that is effectively a resignation.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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