Will I be denied unemployment if refusing to accept a job demotion?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Will I be denied unemployment if refusing to accept a job demotion?

If my employer demotes me by offering a lower position in the office at a lower pay rate, would I be denied unemployment if I refuse the lower position?

Asked on May 7, 2019 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

It depends on how much lower, especially how much lower the pay is. As a rough rule of thumb (every case is judged on its own facts and circumstances, so we can't articulate some "bright line" rule), if your pay is being cut by 1/3 or more, it is likely that you could quit and get unemployment on the grounds that you were "constructively"--or effectively--terminated by the job being changed in a way no reasonable person would accept. Less of a decrease than that, however, and if you quit or resigned, it would most likely be considered a voluntary separation from employment and you would not be eligible for UI.
If you refuse the demotion but not quit and then are fired, you would be eligible for UI; being fired because you will not accept a demotion is not a "for cause" (for doing something demonstrably wrongful, like violating company policy, open insubordination, absenteeism, false time sheets, etc.) firing, and when you are terminated not for cause, you can get UI. So you can refuse and take the chance of being fired, if you are willing to lose your job and be on UI instead of taking the demotion.


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