Can I get ESD unemployment if I refuse to sign new contract after company buyout?
So my situation is pretty complicated and I'm hoping someone here has dealt with something similar. I've been with my current employer for 4 years, but they just got bought out by another company. The new owners want all employees to sign a completely new contract with different terms (longer hours, reduced PTO, and a non-compete clause that wasn't there before). I really don't want to work under these new conditions, but I'm wondering about my unemployment eligibility if I refuse to sign and essentially get let go. Would ESD consider this a voluntary quit or would I qualify for benefits since the working conditions are significantly changing? Has anyone dealt with unemployment after a company buyout/acquisition? Any insights would be super helpful as I need to make a decision by next week!
19 comments
Keisha Thompson
This actually happened at my workplace last year. From my experience, you CAN qualify for unemployment in this situation because it's considered a \
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TechNinja
Thanks for sharing your experience! Do you know if I should wait until they officially let me go for not signing, or should I quit once the deadline passes? I'm worried about how to handle the actual separation.
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Paolo Bianchi
idk but my cousin went thru something kinda similar and ESD denied him at first but then he appealed and won. good luck!
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Yara Assad
I've been through this EXACT situation and let me tell you, ESD is TERRIBLE about these cases!!! They initially denied my claim saying I \
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TechNinja
That sounds super stressful! Did you eventually get approved? What kind of documentation helped your case the most?
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Yara Assad
Yes, finally got approved after requesting a hearing. The most helpful things were: 1) original offer letter/contract 2) the new contract showing changes 3) emails discussing my concerns about the changes 4) witness statement from a coworker who also left. Document EVERYTHING!!!
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Olivia Clark
This is a situation that falls under \
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TechNinja
This is incredibly helpful, thank you! I've already attempted to negotiate and have that in writing, so that's good. One more question - should I mention the non-compete clause specifically? It would prevent me from working in my field within 50 miles for a year, which seems excessive.
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Olivia Clark
Absolutely mention the non-compete! That's a significant change to your employment terms, especially if it wasn't in your original agreement. A new restrictive covenant that limits your future employment options is exactly the kind of substantial change that ESD should consider when evaluating good cause. Make sure to explain how it specifically impacts your profession and employability.
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Javier Morales
When I called ESD about a similar situation last year, I was on hold for HOURS and never got through to anyone. Super frustrating when you need answers for time-sensitive decisions like this. I finally got through by using Claimyr (claimyr.com) - they basically hold your place in line and call you when an ESD agent is available. Saved me so much time and stress. They have a video demo at https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 that shows how it works. I'd recommend talking to an actual ESD agent about your specific situation since every case is different with these buyout scenarios.
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TechNinja
Thanks for the tip! I was dreading the phone wait. I'll check out that service - definitely worth it to get a clear answer before I make my decision.
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Natasha Petrov
my brother just went through this last month actually. he refused to sign new contract and they let him go. he got unemployment no problem cuz the adjudicator said the new contract had \
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Keisha Thompson
One more important thing to consider - if your new contract has substantially lower pay or benefits (sounds like it does with the reduced PTO), you need to calculate and document the percentage decrease. According to WAC 192-150-120, a reduction of 25% or more in your compensation is automatically considered good cause to quit. Even if it's less than 25%, you can still qualify if you can show the changes would cause a reasonable person to leave the job.
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Connor O'Brien
Wait, that's not quite accurate. The 25% rule is for pay reductions only, not benefits changes. And it's only automatic if it's a permanent change, not temporary. I had to deal with this when my own employer cut hours. The ESD handbook is really specific about it, so be careful with that advice.
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Keisha Thompson
You're right about the 25% rule being specifically about pay - I should have been clearer. But benefit reductions are still considered under the general
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Paolo Bianchi
update us what happens! i might be in same boat soon 😬
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TechNinja
UPDATE: Thanks everyone for the advice! I spoke with an ESD agent (that Claimyr service actually worked great) and they confirmed that this would likely qualify as good cause due to substantial changes in working conditions. I'm going to document all the differences between contracts, especially the reduced PTO and non-compete clause. I'll also wait for them to terminate me rather than quitting. The agent did warn me that my employer might contest it, so I should be prepared for possible adjudication. Will update again after everything plays out!
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Olivia Clark
Glad you got some clarity! Just a heads up - during adjudication, they may ask if you brought up your concerns about the new contract to your employer and attempted to resolve the issue before refusing to sign. Make sure you have documentation of any conversations about trying to negotiate or express concerns about the new terms. This demonstrates you took reasonable steps to preserve the employment relationship before it ended.
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TechNinja
That's great advice - I have emails showing I tried to negotiate the PTO and non-compete issues. I'll make sure to keep those organized and ready. Thanks again for all the help!
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