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


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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.