Can you collect unemployment if you refuse a pay cut - Washington ESD eligibility question

This is actually a gray area with Washington ESD. Generally quitting disqualifies you from UI benefits, but there are exceptions for "good cause" including substantial changes to your job conditions. A 30% pay cut could potentially qualify as good cause, but you'd need to document everything and be prepared for an adjudication process.

My friend went through something similar last year. She quit after a 25% pay cut and initially got denied for UI benefits. Had to appeal and it took forever to get through adjudication. Eventually won the appeal but it was stressful.

You might want to try reaching Washington ESD directly before making any decisions. I know their phone lines are brutal but getting official guidance on your specific situation could save you headaches later. I used claimyr.com recently to get through to an actual agent - they have this system that calls back when an agent is available so you don't have to sit on hold forever. There's a demo video at https://youtu.be/7DieNd3C7zQ showing how it works.

DONT QUIT! Take the pay cut and look for another job while employed. Quitting for any reason makes getting unemployment benefits way harder even if you think you have good cause. The burden of proof is on you to show it was constructive dismissal.

what constitutes "substantial" change anyway? 30% seems huge but is there like an official percentage or something?

I had a similar situation in 2023. Company cut my hours from full-time to part-time and reduced my hourly rate. I quit and filed for unemployment. Had to go through adjudication but eventually got approved. The key was showing that the changes made my job basically a different position than what I was hired for.

My understanding is Washington state is pretty employee-friendly with constructive dismissal cases compared to other states. Still not a guarantee though. Document everything and maybe consult with an employment lawyer for a quick consultation?

Just remembered - my friend also had to show she couldn't afford to live on the reduced salary. She brought bank statements and budget info to her appeal hearing to prove the pay cut would cause financial hardship.

Another option to consider - if you do decide to quit, make sure you understand Washington ESD's job search requirements before filing. You'll need to be actively looking for work and document your search activities. The requirements are pretty specific about what counts as valid job search activities.

have you considered asking for a layoff instead of quitting? sometimes companies are willing to lay people off instead of cutting pay, especially if they're trying to reduce costs anyway

The system is so messed up. Companies can basically do whatever they want to employees and then we have to jump through hoops to get basic unemployment benefits when we're forced out. 30% pay cut should automatically qualify as constructive dismissal IMO.

If you do end up needing to contact Washington ESD about this, I'd suggest using that claimyr service I mentioned earlier. When I had questions about my claim status, it was impossible to get through using the regular phone number. Claimyr got me connected to an agent who could actually look at my specific case and give me real answers instead of generic information from the website.

One more thing - if you do quit and file for unemployment, be completely honest on your application about why you left. Don't try to make it sound like anything other than what it is. Washington ESD will verify with your employer anyway and any inconsistencies will hurt your case.

Also keep in mind that even if you qualify for unemployment benefits, the amount you receive is based on your previous earnings. So you'll likely get less than your current reduced salary anyway. Might be worth staying and job hunting while employed if the reduced pay is still livable short-term.

Whatever you decide, start documenting everything NOW. Even if you don't end up quitting, having a paper trail could be useful if the situation gets worse or if other employees are dealing with the same thing.

Update us on what you decide! This kind of situation is becoming more common and it would be helpful to know how Washington ESD handles these cases in practice.

good luck either way. this whole situation sucks and you shouldn't have to choose between a massive pay cut and potentially losing unemployment benefits

Just want to emphasize again - talking to an actual Washington ESD agent about your specific situation is really the best way to get accurate information. The general guidelines are helpful but your particular circumstances might have nuances that affect eligibility. That claimyr service at claimyr.com really does work for getting through their phone system.

might also be worth checking if your company has an HR department or employee handbook that addresses wage changes. some companies have policies about advance notice or limits on how much they can reduce pay

Keep us posted OP. Really hoping this works out for you. The fact that you're thinking it through carefully and getting advice shows you're handling this right.

I went through something similar about 6 months ago when my employer tried to cut my pay by 20%. I ended up negotiating with them first - asked if they could reduce my hours instead of my hourly rate, or if the pay cut was temporary with a timeline to restore wages. Sometimes companies are more flexible than they initially seem, especially if you've been there a while like you have. It's worth having that conversation before you decide to quit, and it also shows Washington ESD that you tried to work with your employer if you do end up filing for unemployment later.