My salary is being cut by 40%...can I get unemployment?

[Qbert]

I've been working at this health care company for over 2 years. They're making drastic salary cuts because a potential client fell through, so they won't be getting the business they'd expected, and their investors pulled out a lot of money. My new salary will be not much higher than what I could from unemployment (less than $100 per week higher).

My question is: how can I get unemployment if they haven't fired me? I'd have to quit, but then it would be voluntary and I don't think I'd be eligible. My other option is to simply ask my boss to lay me off, but they might not want to because it might cause their insurance rates to go up.

Do I have any more options? Please help.

[mom2lucas]

My husband's job offered a voluntary layoff option this winter. It allowed them to give short-term layoffs with the option to work enough hours a pay period to pay our insurance premiums. For us, it was $66.25 a pay period, and DH could earn up to $69 before his unemployment decreased. Maybe you could work something like that out with your boss: a layoff with the option to work enough to cover your insurance premiums.

[CW&M Mom]

Honestly...I don't know how you would collect unemployment. My suggestion is to start looking for a new job. Places would rather hire you if your already hired, then unemployed folk anyways.

[loulou3133]

Some states have underemployment benefits as well as unemployment benefits. It is my understanding to qualify for underemployments hours usually have to be cut... You might want to check that out

[Qbert]

My husband's job offered a voluntary layoff option this winter. It allowed them to give short-term layoffs with the option to work enough hours a pay period to pay our insurance premiums. For us, it was $66.25 a pay period, and DH could earn up to $69 before his unemployment decreased. Maybe you could work something like that out with your boss: a layoff with the option to work enough to cover your insurance premiums.

Interesting, but I don't think my employer would do this. Either they want me and other employees out or they want us to keep working for peanuts.

[Qbert]

Honestly...I don't know how you would collect unemployment. My suggestion is to start looking for a new job. Places would rather hire you if your already hired, then unemployed folk anyways.

I'm looking, mainly using recruiters. I'm on LinkedIn too, but not really sure how to use that site for a job search.

[Qbert]

Some states have underemployment benefits as well as unemployment benefits. It is my understanding to qualify for underemployments hours usually have to be cut... You might want to check that out

Well, they need me and others to do the work, so I don't think they'd want me to become a part-time worker. Besides, I don't think they'd want me to get unemployment because they'd have to partially pay it and their rates would go up.

[vickib50]

The last time I checked, some years ago, here in Tennesse, you could apply for unemployment if your pay decreased by 25%. I have not kept up with the newest laws, but, that is the information I can give. When you get cut by 40%, I would think that there is a provision for you to obtain benefits. Your new salary rate would probably be less than the base rate in your state. Let me know if I am wrong or perhaps mistaken.

[Qbert]

The last time I checked, some years ago, here in Tennesse, you could apply for unemployment if your pay decreased by 25%. I have not kept up with the newest laws, but, that is the information I can give. When you get cut by 40%, I would think that there is a provision for you to obtain benefits. Your new salary rate would probably be less than the base rate in your state. Let me know if I am wrong or perhaps mistaken.

The Dep't of Labor person didn't mention that. I'm in New York.

Anyway, I guess I'll just ask my boss to lay me off so that I can collect unemployment.

[FunnyFace]

Is there a reason other than a 40% pay decrease that you don't want to work? What I mean is do you work so many hours you have an extremely hard time investing hours to find new employment to better situation?

I, personally, would not quit my job just because pay is almost equal to unemployment for several reasons:

One is I would rather earn my living than tax the system anymore especially with so many unable to find employment.

Unemployment benefits don't last forever and the possibility of not finding employment is not comforting.

If my skills are in high demand and I know I could find another employer then I would find that employer first and just go from current job to future job, skipping unemployment.

I just wouldn't feel entitled to unemployment benefits for the reason you have given.