ESD benefits for quitting after 50% income cut - commission-only pay change?
My employer just dropped a bombshell - they're switching me from salary+commission to commission-only starting January 2025. This would cut my income by MORE THAN HALF based on my current sales numbers. I've been with them for 3 years and this feels like they're trying to force me out without firing me. Can I quit and still qualify for unemployment benefits with ESD? Has anyone successfully claimed benefits after quitting due to a major pay structure change like this? I have a mortgage and can't survive on what I'd make commission-only in our current market.
20 comments


Aisha Mahmood
YES you can likely qualify! This is considered a 'substantial change in working conditions' which is one of the good cause reasons to quit. I went through almost the exact same thing last year when my company cut my base salary completely. ESD approved my claim because it was more than a 25% reduction in pay. Make sure you document everything - get the new comp plan in writing, calculate your expected income loss with actual numbers, and save any communications about the change.
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Mateo Sanchez
•Thank you!! That's such a relief to hear someone else got approved in a similar situation. Did they make you wait or put you through adjudication? I'm worried they'll deny me initially since technically I'd be quitting.
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Ethan Moore
be careful abt this. my friend quit when they changes her pay and got DENIED. ESD is super picky bout this stuff.
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Yuki Kobayashi
•Your friend's situation was probably different. The key here is that ESD considers a substantial reduction in pay (typically 25% or more) as good cause to quit. The original poster mentioned a 50%+ reduction which should qualify. However, documentation is critical - they need to prove both the change and the impact.
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Carmen Vega
This happened to me but with healthcare benefits being cut completely. I quit and applied for benefits, and yes - I did get approved BUT it took forever. They put me in adjudication for almost 8 weeks and I had to provide tons of documentation. Make sure you have everything in writing from your employer about the change. Also they'll definitely contact your employer so be prepared for that conversation too. In the end I got all my benefits including back pay for the waiting period.
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Mateo Sanchez
•8 weeks?! That's scary long to wait without income. Did you find any way to speed up the process? I'm already thinking I might need to start applying for other jobs immediately, but the market is terrible right now.
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QuantumQuester
I work in sales and this is happening EVERYWHERE right now. Companies are cutting base pay to push out underperformers. Question - are they changing your commission structure too or just removing the base? If they're INCREASING your commission rate you might not have a case. Also how long have you been there? That matters too.
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Mateo Sanchez
•They're keeping the same commission rate, just removing the base salary completely. And I've been there 3 years. Even our top performers would take at least a 30% hit with this change. My personal numbers show I'd lose about 55% of my income based on my last year's sales.
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Andre Moreau
When dealing with ESD for situations like this, you need to prepare specific documentation: 1. Written notification of the compensation change (email, letter, new contract) 2. Previous pay stubs showing your prior income structure 3. Calculations demonstrating the percentage reduction in pay 4. Any communications where you expressed concern about the change A 50% reduction should qualify as good cause to voluntarily quit, but expect your claim to go to adjudication where an investigator will review everything and likely contact your employer. They'll want to verify that you brought your concerns to your employer before quitting and gave them a reasonable opportunity to address the issue.
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Mateo Sanchez
•This is incredibly helpful - thank you! I haven't formally discussed my concerns with HR or my manager yet. Should I do that in writing before I quit to strengthen my case? And should I specifically mention the financial hardship this would cause?
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Zoe Stavros
Try reaching ESD directly to ask about your specific situation *before* you quit. I tried calling them for weeks about a similar issue and could never get through - hundreds of calls that just disconnected! I finally used a service called Claimyr (claimyr.com) that got me connected to an ESD agent within about 30 minutes. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. The agent I spoke with was actually super helpful and told me exactly what documentation I'd need for my situation. Totally worth checking before making any big decisions.
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Ethan Moore
•does that service really work? i thought those were all scams lol
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Yuki Kobayashi
ESD's official website states: "You may be eligible for unemployment benefits if you quit your job for good cause. Good cause means you had no reasonable alternative but to leave your job. Examples of good cause include... a substantial deterioration in your working conditions, which includes a substantial reduction in your pay." The substantial reduction is typically interpreted as 25% or more. With your 50% reduction, you should qualify, but you need to follow the proper steps: 1. Document the change formally 2. Express your concerns to your employer formally and give them a chance to address it 3. If they don't resolve it, quit with clear reference to the pay reduction as your reason 4. When filing, use the exact terminology "substantial reduction in pay" on your application 5. Be prepared for adjudication, which is standard for all voluntary quits You can request a determination letter ahead of time, but in practice, you'll likely need to go through the full adjudication process regardless.
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Mateo Sanchez
•Thank you for the specific language to use - that's super helpful. When you say "give them a chance to address it" - how long should I wait after bringing up my concerns? Is a week reasonable?
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Carmen Vega
ANOTHER IMPORTANT THING: when you file your claim, make absolutely sure you report the exact date they notified you of the change and keep copies of that notification. My adjudicator was very focused on the timeline between when I was notified of my benefit cuts and when I actually quit. They want to see you didn't quit impulsively without trying to resolve it first.
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Aisha Mahmood
•YES! This is so important. They denied my coworker initially because he quit the same day he was told about a similar change. I waited two weeks after formal notice, had a meeting with my manager (which I documented), and that helped prove I tried to resolve it before quitting.
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Ethan Moore
wat about just staying and looking for a new job while still getting the salary? thats wat id do tbh
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Mateo Sanchez
•I wish I could, but the change goes into effect January 1st. I'm definitely job hunting starting now, but the market is terrible and I'm worried I won't find something by then. I need to know my options if I can't line something up before the cut happens.
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Andre Moreau
One more important point: If you're going to quit, make sure you include your specific reason in your resignation letter. Say explicitly that you are resigning due to the substantial reduction in compensation (cite the exact percentage if possible). This document will be important evidence during adjudication. Also, once you file your claim, you'll still need to meet all other eligibility requirements including: 1. Being able and available for work 2. Actively seeking work (3 job search activities per week) 3. Registering with WorkSource Even with a valid good cause quit, these requirements must still be met every week you claim benefits.
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QuantumQuester
•LISTEN TO THIS PERSON. My cousin got approved for a similar situation but then got denied benefits because she didn't do her 3 job search activities every week. They're super strict about this part even if your initial claim is valid.
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