Can you collect unemployment if you refuse a pay cut - NYS Department of Labor rules?

In New York, you may be eligible for unemployment benefits if you quit for good cause. A substantial reduction in pay can qualify as good cause, but NYS Department of Labor will evaluate each case individually. Generally, a reduction of 20% or more is considered substantial. Since your cut is 30%, you'd likely have a strong case. You'll need to document everything - the notice from your employer, your current pay rate, the proposed new rate, and any communications about the change.

I went through something similar last year when my company cut salaries by 25%. I quit and filed for UI benefits. The key is documenting everything properly. NYS Department of Labor approved my claim but it took about 3 weeks because they had to investigate whether I had good cause. Make sure you keep copies of all communications about the pay cut and be prepared to explain why the reduction makes the job unsuitable.

WAIT hold on everyone... are you sure about this?? I thought if you quit you automatically can't get unemployment no matter what the reason is. This is confusing because I've always heard you have to be fired or laid off to qualify for benefits.

If you're having trouble getting through to NYS Department of Labor to discuss your specific situation, you might want to check out claimyr.com. They help people connect directly with unemployment agents when the regular phone lines are jammed. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. I used them when I needed to clarify some rules about my own claim and actually got through to a real person instead of sitting on hold forever.

Just wanted to add that you should also document any changes to your job responsibilities or working conditions that came along with the pay cut announcement. Sometimes employers try to claim that the reduced pay comes with reduced responsibilities to justify it. NYS Department of Labor will want to see the full picture of how your employment situation changed.

good luck!! this whole situation sucks but at least you have options. definitely document everything like everyone said.

One thing to consider is whether your employer is offering any kind of severance package if you choose not to accept the pay cut. Sometimes companies will offer a small severance to employees who refuse the new terms, which could buy you some time while your unemployment claim is being processed. Also, make sure you understand exactly when the pay cut takes effect - if they're giving you advance notice, you might want to use that time to start looking for other positions just in case. Even if you qualify for unemployment benefits, they typically only replace a portion of your lost wages, so having backup options is always smart.

I'm in a similar situation where my company is cutting salaries across the board. From what I've researched, NYS Department of Labor considers a pay reduction of 20% or more as "constructive dismissal" which can qualify you for benefits. The important thing is to file your claim as soon as possible after you quit - don't wait because there can be delays in processing. Also, when you file, make sure to clearly explain that you quit due to a substantial reduction in wages and provide the exact percentages and dollar amounts. They'll likely ask for documentation from your employer too, so keep copies of everything. The weekly benefit amount will be based on your original salary, not the reduced amount, which is good news for you.

I actually just went through this exact situation about 6 months ago! My employer cut salaries by 28% and I was terrified about quitting and losing benefits. But I ended up qualifying for unemployment after documenting everything properly. One tip that really helped me was to send an email to HR/management asking them to confirm the pay cut details in writing - this created a paper trail that NYS Department of Labor found very helpful during my claim review. Also, don't feel pressured to make an immediate decision if they're giving you time to consider. Use that time to gather all your documentation, maybe consult with a lawyer if you can, and prepare your case. The stress is awful but you do have legitimate options here. My benefits were approved after about 4 weeks of review, and looking back I'm so glad I didn't just accept the pay cut out of fear.

I'm dealing with a similar situation at my company right now - they just announced a 25% pay cut for everyone in our department. Reading through everyone's experiences here has been incredibly helpful, especially knowing that NYS Department of Labor does recognize substantial pay cuts as good cause for quitting. I've been with my company for 3 years and this would drop my salary from $48,000 to $36,000, which would make it impossible for me to cover my rent and basic expenses. I'm planning to start documenting everything immediately like you all suggested - the original announcement, my current pay stubs, and any follow-up communications. It's scary to think about quitting, but it sounds like there's a real path forward with unemployment benefits if I handle it properly. Thanks for sharing all your experiences and advice - it's making me feel less alone in this difficult situation.

I'm a labor law attorney and wanted to add some legal perspective to this discussion. You're all on the right track - New York does recognize "constructive discharge" when employers make substantial unilateral changes to employment terms. A 30% pay cut definitely qualifies as substantial under NYS case law. However, there are some important timing considerations: 1) Don't accept even one paycheck at the reduced rate if possible, as this could be seen as accepting the new terms, 2) File your unemployment claim within the same week you quit, and 3) Be prepared for the employer to contest your claim - they often do in these situations. Also keep in mind that unemployment benefits in NY are typically 50% of your average weekly wage (up to the maximum), so plan your finances accordingly. Document everything, including any verbal communications, and consider sending a formal resignation letter clearly stating you're resigning due to the substantial reduction in compensation. This creates a clear record of your reasoning.