My husbands employer recently took him from a full time salaried position to a part time hourly position. The pay cut is $20,000 a year. My husband went down to ask if he could get some type of unemployment benefit or if he could quit his job under these circumstances and still collect unemployment while looking for another position.
He was told that normally he would be eligible for partial unemployment, however his employer has not been reporting his income therefore it looks like he has not been working. He took in our W2s and they are auditing the employer currently. During this process, my husband was upfront with his employer about what was happening and they were fully aware that he was filing for unemployment.
Today he recieved a call from one of the partners in the company who told him that he needed to either withdraw his unemployment claim or they would increase him back to full time hours but cut his pay to minimum wage so that he can't collect unemployment.
Is this legal? It sounds like blackmail to me and I don't understand how they can get away with this!
Need advise please!!!