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Can you get NY unemployment if you reject lower salary after company buyout?

My relative has worked at the same company for 25 years, and they just found out they're being bought out by another company. The rumor is that the new owners plan to offer everyone lower salaries. My family member is really worried because they've been there so long and don't want to take a pay cut at this stage in their career. If the new company officially offers them a position but at a significantly lower salary, and they refuse to accept it, would they qualify for NY unemployment benefits? Does anyone know if that counts as being laid off or if it's considered quitting? I don't know how the unemployment system views these company buyout situations.

Tami Morgan

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This is actually a really good question with some nuance to it. In NY, if someone rejects a job offer with substantially lower pay compared to their previous position, they may still qualify for unemployment benefits. The key word is "substantially" - generally the NYSDOL considers a wage decrease of 20% or more to be substantial enough to justify turning down the offer. Since your family member has been with the company for 25 years, they should document their current compensation package thoroughly before any changes happen. They should save pay stubs, benefits information, etc., to prove what they were making before the buyout.

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Maya Diaz

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Thank you so much for this information! I'll tell them to start gathering all that documentation. Do you happen to know if there's a specific form or process they need to follow if they do end up rejecting the lower offer? Or do they just apply for unemployment normally?

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Rami Samuels

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theyl probably try to make them take the lower salary its BS my brothers company did this last year offered everyone 15% less and said take it or leave..... some people took it cuz they had no choice but the ones who didnt had a HARD time getting unemployment approved took like 8 weeks

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Haley Bennett

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This happened at my workplace too!! The new management cut salaries by almost 18% and said it was "market adjustment" 🙄 Half the staff quit and most got unemployment eventually but they had to FIGHT for it. The system is rigged against workers!

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To add to what others have said, your family member should be aware of a few specific details regarding NY unemployment in this situation: 1. They must be very clear when applying that they didn't voluntarily quit but rather rejected a substantially inferior offer following a company acquisition 2. They should use language in their application that specifically states they were "constructively discharged" as this is the technical term that helps NYSDOL understand the situation 3. They need to document EXACTLY what their previous compensation was AND what the new offer includes (not just base salary but benefits, hours, etc.) 4. If possible, they should get the new offer in writing with all details 5. They should apply immediately after rejecting the offer, don't wait The standard process is that NYSDOL will likely contact both the employee and employer to verify the circumstances. Your family member should be prepared to explain specifically why the new position represents a substantial reduction in their working conditions or compensation.

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Maya Diaz

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This is incredibly helpful, thank you! I didn't know about using the term "constructively discharged" - that seems really important. I'll make sure they know all these steps if it comes to that. Hopefully, the new company won't cut salaries as much as the rumors suggest.

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Nina Chan

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I went through something similar in 2025 when my employer of 18 years was acquired. They offered me a 22% pay cut and I refused. I applied for unemployment and was DENIED initially! I was completely shocked and panicking because I had bills to pay. The system is NOT fair at all!! I tried for TWO WEEKS calling the NY unemployment office every single day but could never get through to a real person. Always got disconnected or stuck on hold forever. I was about to give up when someone recommended I try Claimyr.com to get through to an agent. They have this service that helps you actually reach a real unemployment agent (they showed a video of how it works: https://youtu.be/Rdqa1gKtxuE). Once I finally got through to an actual human agent, they reviewed my case and reversed the denial! The agent told me that the system automatically denies many claims that involve refusing job offers, but when a human reviews it with the proper context (pay cut after acquisition), they often approve it. I got all my benefits backdated too. Tell your family member not to accept a big pay cut and to fight for their benefits if needed!

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Ruby Knight

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how much does that Claimyr thing cost? seems sketchy to me

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Nina Chan

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It's not sketchy at all - they just help you get through to an actual agent instead of waiting on hold forever. They don't handle your claim or anything like that. I don't remember exactly what I paid but it was worth it considering I would have lost THOUSANDS in unemployment benefits if I hadn't been able to talk to a real person and appeal. Saved my butt when I was desperate!

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What everyone's ignoring is that a company buyout often means the TERMS OF EMPLOYMENT change!!! It's not as simple as "I rejected a salary cut so I get benefits." If the new company is technically a new employer, they're making a NEW JOB OFFER, not continuing old employment. This is a legal distinction that matters!!! I worked in HR for 12 years and saw this constantly. The NY unemployment system often sees this as you rejecting a job offer from a NEW employer, not being laid off from the old one. It depends on the legal structure of the acquisition!!! Your family member needs to find out if: 1) The same legal entity is employing them (just new owners) 2) They're being terminated from old company and hired by new one If it's #2, they might be eligible for severance from the old company, which is MUCH BETTER than unemployment!!!

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Maya Diaz

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Oh wow, I hadn't even thought about the possibility of severance! Thank you for bringing that up. I'll tell my family member to find out about the legal structure of the acquisition. Do you know how they would go about getting that information? Would HR have to disclose that?

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Yes, HR should definitely have this information! Tell your relative to specifically ask "Will we be terminated from [current company name] and rehired by [new company], or will our employment continue under new ownership?" They should get this IN WRITING if possible. If they're being terminated and rehired, they should immediately ask about the severance policy for the current company. Many companies have severance policies based on years of service - at 25 years, this could be SUBSTANTIAL (possibly 25+ weeks of pay depending on their policy).

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Rami Samuels

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my cousin went thru this excat thing!!! got offerd 30% less pay after 15 years at same job... he told them to F off and filed for benifits... took forever to get approved but he did. he had to appeal like 2 times tho. the hole system is messed up

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Maya Diaz

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That's good to know your cousin eventually got approved, even though it took a while. Did he have to provide any specific documentation during those appeals that helped his case?

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One important thing to note about NY unemployment in 2025 is that the NYSDOL now has specific guidelines for company acquisition scenarios. If the new position offers less than 80% of the previous total compensation (including benefits, not just salary), it's generally considered a "substantial change in employment conditions" that justifies rejection without disqualifying you from benefits. However, the burden of proof is on the claimant. Your family member should: 1. Get the current compensation package documented (salary, benefits, PTO, etc.) 2. Get the new offer in writing with ALL details 3. Calculate the total percentage reduction 4. If it's 20%+ reduction, apply for benefits citing "constructive discharge due to substantial reduction in compensation following company acquisition" The initial determination might still be a denial, but with proper documentation and those specific terms, appeals are often successful. Just be prepared for it to potentially take 8-12 weeks for final resolution if appeals are necessary.

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Maya Diaz

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This is exactly the kind of specific information I was hoping for, thank you! I'll make sure my family member follows these steps carefully. The 80% threshold is really helpful to know. I appreciate you explaining the process so clearly!

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Ruby Knight

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have they actually been offered a lower salary yet or is this just a rumor? might be getting worried over nothing

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Maya Diaz

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That's a fair point. It's just rumors right now, but several managers have hinted at it happening. I wanted to understand the options before anything becomes official so we can be prepared. Hopefully it won't happen at all!

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Tami Morgan

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One last piece of advice - if your family member does end up in this situation and needs to apply for unemployment benefits, documentation and timing are absolutely critical. Make sure they: 1. Don't formally resign - instead, they should clearly communicate in writing that they are not accepting the substantially reduced compensation offer 2. Apply for benefits immediately after the last day of work 3. Be prepared to appeal if necessary (many of these cases get denied initially but approved on appeal) 4. If they have trouble reaching a live person at the NYSDOL (which is unfortunately common), consider using a service that helps you get through the phone systems 5. Consider consulting with an employment attorney before making any final decisions, especially with 25 years of service involved Best of luck to your family member - company acquisitions are always stressful, but knowing your rights helps tremendously.

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Maya Diaz

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Thank you so much for all this guidance. I'll share all this information with my family member so they can be prepared if the rumors turn out to be true. Everyone's advice here has been incredibly helpful!

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