EDD eligibility after refusing demotion with $5 pay cut - choosing severance package instead

dude take the severance!! when they offer a demotion like that its basically them trying to get u to quit so they dont have to pay unemployment. u should qualify 4 benefits since they changed ur job description and pay substantially. i went thru similar bs last year

This is considered a "constructive discharge" situation where the change in employment terms is substantial enough that refusing it shouldn't disqualify you from benefits. The key factors working in your favor are: 1. The significant pay reduction ($5/hour is substantial) 2. They're offering severance, which indicates they recognize this as a layoff 3. You're being offered a demotion, not just a pay cut in the same position When you file your claim, be very specific about these details. If they question your eligibility, explain that you were given an ultimatum that included significant reduction in both pay and position. Document everything - get the offer in writing if possible.

I had almost the same situation last year!!! My company wanted me to take a $4 cut AND relocate to their office 50 miles away. I took the layoff and got approved for unemployment no problem. Just be honest when filing and explain you were given two bad options. Make sure you emphasize the substantial pay decrease. EDD usually sides with employees in these scenarios from my experience.

You need to be aware that severance can impact when your EDD benefits begin. They won't necessarily deny your claim, but you may need to wait until the severance payment period is over before benefits start. For example, if you get 4 weeks of severance, your EDD benefits might not start until after that 4-week period. You should still apply immediately after your last day, as the claim will be backdated appropriately. Make sure to report the severance when you file your initial claim - don't try to hide it as that could cause issues later. Regarding the demotion vs. layoff choice, EDD typically looks at whether your choice to refuse reduced work was reasonable. A $5/hour cut is substantial (likely over 20% for most positions), which usually meets their threshold for reasonable refusal.

EDD typically allocates severance based on how it would have been paid as regular wages. So if you receive a lump sum equivalent to 6 weeks of pay, EDD will likely treat it as covering 6 weeks after your termination date, even though you received it all at once. This means your UI benefits would likely be delayed until after that 6-week period. When you certify for those weeks covered by severance, you'll need to report the severance amount as income, which will reduce or eliminate your UI payment for those weeks. After your severance period is considered exhausted, your regular UI payments should begin if you're still unemployed and looking for work.

I DON'T CARE WHAT ANYONE SAYS THE EDD SYSTEM IS RIGGED!!! They will find ANY reason to deny your claim! My friend took a layoff instead of a paycut and they called it "voluntary" even tho it WASN'T!!! Had to appeal and fight for MONTHS to get benefits!!!! The system is BROKEN!!!!

u should also no that when u file ur claim u don't have to say u chose to be laid off... just say u were laid off due to lack of work or business necessity. that's technically true bc they didn't have work 4 u at ur current position/pay. don't overthink it man

Thanks everyone for all the advice! I've decided to take the layoff with severance since it seems like I should qualify for benefits - the pay cut is definitely substantial enough. I'll make sure to get everything in writing, be completely honest on my application, and properly report the severance payment. I'm feeling a lot better about the decision now. I'll update after I apply to let you know how it goes in case anyone else runs into this situation in the future.