If my employer reduced my salary so I quit, do they have grounds to fight my unemployment compensation?

UPDATED: Sep 29, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 29, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If my employer reduced my salary so I quit, do they have grounds to fight my unemployment compensation?

Recently my employer said my work was “not up to company standards” and the third party client wanted a change. My company offered me another position at far less than what I was making before. I was only making $14/hr. They offered me $9.50/hr and I turned it down.

Asked on October 27, 2015 under Employment Labor Law, Pennsylvania


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Normally, if you leave employment voluntarily, you can't collect unemployment. And normally, your employer has free rein to set--or reduce--compensation at will. Sometimes, however, if your compensation is reduced by a sufficiently dramatic amount, that may be considered "constructive termination": being forced to quit because the job became unreasonable or untenable. The reduction your describe was $4.50 per hour on an initial base of $14, which represents a more-than one-third reduction. That may be enough to qualify as constructive discharge or termination. If denied unemployment, it would be worthwhile for you to appeal the denial on that basis; while it is not guaranteed that you'd win, you have a plausible case.

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 AttorneyPages.com 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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption