EDD benefits if I refuse work with drastic schedule change and 40% pay cut
Hey everyone, I'm in a tough situation with my job and trying to figure out my EDD options. My company is 'restructuring' and my position is being eliminated, but they're offering me an alternative role with pretty major changes. I'd go from M-F 6am-3pm to a completely variable schedule (potentially including weekends) AND they want to cut my pay by about 40%! With daycare costs, I'd basically be working to pay for childcare or barely breaking even. I'm wondering if I can refuse this offer without losing unemployment eligibility? Also, if I start applying to positions at other companies that are closer to my previous salary and would work with daycare hours, would that satisfy the work search requirements while I'm on unemployment? Has anyone dealt with something similar? Thanks for any advice!
23 comments
Jean Claude
You're definitely in a situation where you might be able to claim "good cause" for refusing work. California EDD typically considers a substantial reduction in pay (usually 20%+ is considered substantial) and a significant change in working conditions as potential good cause. The fact that you'd essentially be working just to cover childcare is also relevant. Make sure to document EVERYTHING. When they offered the new position, what the terms were, the pay reduction percentage, the schedule change, etc. If you refuse the job, you'll need to explain to EDD why it wasn't "suitable work" during your eligibility interview.
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Chris Elmeda
•Thank you so much! This is really helpful. Do you know how I should approach this with my employer? Should I formally decline the offer in writing and explain my reasons, or would that somehow hurt my case with EDD?
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Charity Cohan
omg i had almost the same thing happen!!! they wanted me to go from regular hrs to like crazy split shifts and i couldnt do it bc of my kids school. EDD did approve me but i had to do this interview thing where i explained everything. they asked a lot about why i couldnt take the new schedule. make sure u have dates and stuff written down
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Chris Elmeda
•That's reassuring to hear! Did you have to wait a long time for the eligibility interview? I'm nervous about how we'll manage financially while waiting for benefits to start.
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Josef Tearle
This happened to me but the pay cut was only 15% and I still got denied. The EDD rep said I should have taken the new position even though it would have meant completely changing my childcare situation. I appealed and WON though!! The judge at the appeal hearing was way more understanding about the childcare issues than the initial EDD interviewer. But yours is a 40% cut which is HUGE. That alone should be good cause. Add the schedule change affecting childcare and I think you have a strong case.
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Shelby Bauman
•Not necessarily true. My friend took a 35% pay cut and still got denied because EDD said the job market was tight in her field and she should've taken what she could get. These decisions are super inconsistent!!!
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Josef Tearle
•That's why I mentioned appealing! The initial EDD determinations can be really hit or miss, but the administrative law judges at the appeal level tend to be more consistent in applying the actual rules. A 40% pay cut combined with schedule changes that make childcare impossible should absolutely qualify as good cause.
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Quinn Herbert
I work with unemployment cases professionally, and here's my advice: formally decline the offer IN WRITING, clearly stating: 1. The original terms (schedule, pay) vs. new terms 2. The exact percentage of the pay reduction (40%) 3. SPECIFICALLY mention that the new pay would not cover or barely cover childcare costs 4. Explain that the variable schedule makes arranging childcare impossible Keep a copy of this letter and any response. When you file for unemployment, answer truthfully that you refused work but had good cause. You'll likely get an eligibility interview where you'll need to explain all this again. Regarding your job search question - yes, applying for positions at other companies that are similar to your original position in terms of pay and schedule would satisfy work search requirements.
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Chris Elmeda
•This is exactly what I needed to know! I'll definitely document everything in writing. Do you know if there's any specific language I should use in my letter declining the position that would help my EDD case?
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Quinn Herbert
•Just be factual and unemotional. State the original terms of employment, the new offered terms, and why they're not viable for you (specifically the financial calculations showing childcare costs vs. new reduced pay, and the scheduling conflicts with available childcare). Avoid saying anything that could be interpreted as you simply not wanting the position - focus only on the economic and practical impossibility of accepting it under these terms.
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Salim Nasir
getting thru to EDD to explain ur situation is the HARDEST part tbh. i was in a similar spot last year and spent WEEKS trying to get someone on the phone. kept getting the "max callers" message or waiting 3+ hours only to get disconnected. FINALLY i found this service called Claimyr that got me through to an EDD rep in under 20 mins. worth every penny for me! check out their video demo: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km or their website claimyr.com
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Shelby Bauman
•these services are a scam honestly. just keep calling EDD yourself
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Salim Nasir
•not a scam, i literally got through when i hadnt been able to for WEEKS. but ya do whatever works for u 🤷♀️
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Chris Elmeda
•Thanks for the tip! I'll check it out if I start having trouble reaching someone. I'm hoping it won't come to that but good to have options.
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Hazel Garcia
I think everyone's missing a key point here. If your employer is eliminating your position but offering another one, technically you're not being laid off - you're refusing a job offer. This could complicate things with EDD. When I went through something similar, I had to really fight to prove I had "good cause" to refuse the new position. The 40% pay cut should definitely qualify as good cause, but be prepared to PROVE how this impacts your ability to pay for necessities. Calculate exactly how much you'd make after taxes with the new job, minus childcare costs. Show that it's financially unsustainable. The more documentation you have, the better. And yes, applying to jobs closer to your previous pay level absolutely counts for work search requirements.
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Jean Claude
•This is an important clarification. It's true that the situation is technically a job refusal rather than a straightforward layoff. However, California EDD does recognize that refusing work can be with "good cause" when the work offered is not "suitable employment." A 40% pay reduction combined with a schedule change that creates childcare issues should meet that threshold, but you're absolutely right that documentation is key.
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Hazel Garcia
•Exactly. The burden of proof is on the claimant to show good cause. I'd recommend getting childcare quotes in writing showing the cost difference between regular M-F care versus variable schedule care (which typically costs significantly more). Having those hard numbers will strengthen the case tremendously.
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Laila Fury
The EDD system is such BS!!! They always side with employers and make it impossible for regular people to get benefits we PAID INTO. I went through something similar and had to appeal THREE TIMES before getting approved. The whole system is rigged against workers!!!
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Josef Tearle
•While I understand your frustration, I don't think this kind of response is helpful to the OP's specific situation. They're asking for practical advice on navigating the system as it exists, not commentary on its fairness.
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Laila Fury
•OK fine whatever. @OP just be ready for a fight. Document EVERYTHING. Record your eligibility interview if they let you. Don't trust anything they say verbally without getting it in writing.
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Chris Elmeda
Thanks everyone for the helpful advice! I'm going to draft a formal letter declining the position and clearly outlining the reasons (40% pay cut, variable schedule incompatible with childcare, etc.). I'll gather documentation about my childcare costs to show how the new position would be financially impossible. Just to clarify one more thing - a few of you mentioned an eligibility interview. How long does it typically take to get scheduled for one after filing my claim? I'm trying to budget for how long we might be waiting for benefits to start coming in.
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Quinn Herbert
•Currently, eligibility interviews are taking about 2-3 weeks to schedule after your initial claim is filed, but it can vary depending on case volume. Make sure you still certify for benefits every two weeks even while waiting for the interview. If you're ultimately found eligible, you'll receive back payments for all weeks you certified for.
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Chris Elmeda
•Great, that's really helpful to know. I'll make sure to keep certifying while waiting for the interview. Hopefully the process goes smoothly!
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