If I was recently demoted and my income is going to be reduced by a minimum of $200 per week gross, do I qualify for underemployment?

After 5 years of employment, I was recently demoted from being a food server to a service assistant. My gross pay from tips claimed and the $2.65/income is going to be reduced by a minimum of $200/week gross and even more net. I was told by a co-worker that I should qualify for underemployment. Is this true, and how would I go about filing.

Asked on July 13, 2012 under Employment Labor Law, Michigan

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

There is no such thing as "under employment" benefits in this country. So long as you are employed at a basic mininum wage or salary based upon HUD guidelines, you are not entitled to receive unemployment benefits.

Then again, there is nothing stopping you from going down to your nearest unemployment office to make a claim for unemployment benefits since your salary has been reduced.


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