If I quit due to reduced pay can I collect unemployment?

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Latest post 01-12-2010 9:45 PM by Drew. 5 replies.
  • 01-12-2010 6:41 PM

    • Walter M
      Consumer
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    • CT
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    If I quit due to reduced pay can I collect unemployment?

    State of Connecticut

    For about a year I've been working for a small company earning $23.00 per hour.  Last week there was a notice attached to my paystub informing me that due to the economy my pay would be reduced to $13.00 per hour, effective the beginning of their fiscal year (June 30 2009).  The notice went on to say that I "owed" the company $10320 (in overpayment) and that that would be paid back through a $150/ week payroll deduction.  There was a form asking for my signature to authorize the deductions from my pay with instructions to return it to Human Resources ASAP. 

    Is something like that even legal?  If I quit can I still collect unemployment benefits?

  • 01-12-2010 6:59 PM In reply to

    Re: If I quit due to reduced pay can I collect unemployment?

    Do not sign anything. They can reduce your pay but they can't make it retroactive. My guess is they want you to quit so they can avoid paying you unemployment.

    Contact unemployment. You may be eligible for partial payments if your income is reduced.

  • 01-12-2010 9:09 PM In reply to

    Re: If I quit due to reduced pay can I collect unemployment?

    There's two issues.

    1 - Backdating a reduction in pay is illegal. Deducting the arrears from your pay without your consent is illegal. So, obviously, it would be a bad idea to sign the consent. Just make sure you talk to somebody at your state's wage and hour regulatory agency to confirm what I've written.

    2 - Is the reduction in pay considered constructive termination for UI benefits or does it give you good cause to quit and collect benefits. I don't think so. I think that, as long as you are being paid minimum wage you would not be eligible for UI if you quit due to the reduction.

    Here's the UI website:

    http://www.ctdol.state...

    And here's the UI statutes:

    http://law.justia.com/...

     

     

     

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  • 01-12-2010 9:28 PM In reply to

    • Drew
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    • Joined on 03-30-2000
    • PA
    • Posts 49,508

    Re: If I quit due to reduced pay can I collect unemployment?

    Laymans take:

    1. I agree with   "Do not sign anything. They can reduce your pay but they can't make it retroactive. My guess is they want you to quit so they can avoid paying you unemployment."

    1.1 If they do charge back retroactive --file a complaint with wage/hr div.

    2. I'm not so sure that a massive pay cut is not a constructive discharge--but state rules vary and you need to dig deeper.

        If you "quit" and were not effectively discharged first you just killed your odds at UC.

     



  • 01-12-2010 9:32 PM In reply to

    • cbg
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    • Joined on 12-21-2000
    • MA
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    Re: If I quit due to reduced pay can I collect unemployment?

    Also keep in mind that UC generally a fraction of what you were earning, and there is no guarantee that it will be more than you are earning even with the pay cut. It would not do you any good to quit over a pay cut only to find that your UC benefit, assuming you get it in the first place, is even less.

  • 01-12-2010 9:45 PM In reply to

    • Drew
      Consumer
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    • Joined on 03-30-2000
    • PA
    • Posts 49,508

    Re: If I quit due to reduced pay can I collect unemployment?

    I'd simply not sign the authorization--and sort of hope they take it out w/o my authorization--here is why

    Penalty. (Sec. 31-71g). Any employer or any officer or agent of an employer or any other person authorized by an employer to pay wages who violates any provision of this part may be: (1) Fined not less than two thousand nor more than five thousand dollars or imprisoned not more than five years or both for each offense if the total amount of all unpaid wages owed to an employee is more than two thousand dollars; (2) fined not less than one thousand nor more than two thousand dollars or imprisoned not more than one year or both for each offense if the total amount of all unpaid wages owed to an employee is more than one thousand dollars but not more than two thousand dollars; (3) fined not less than five hundred nor more than one thousand dollars or imprisoned not more than six months or both for each offense if the total amount of all unpaid wages owed to an employee is more than five hundred but not more than one thousand dollars; or (4) fined not less than two hundred nor more than five hundred dollars or imprisoned not more than three months or both for each offense if the total amount of all unpaid wages owed to an employee is five hundred dollars or less.

    PLUS I'd probably let it go on long enough to lock in the total $$ abuse to be at least $2000 then file a formal action!



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