What are rights if company deletes your position?

I’m a manager who orders medical supply disposition an am paid $55,000 a year; I have been doing this type of work with 20 years me. However, my company is now terminating my position and can offer me an new position but for $20,000 less a year. Do I have to accept it? Can I make them terminate me and then file for unemployment?

Asked on July 6, 2016 under Employment Labor Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If you refuse an almost-40% pay cut, it is very likely--but not definite--that you would receive unemployment if terminated. That is because you are eligible for unemployment not only if you are actually terminated, but also if you are "constructively terminated." "Constructive termination" is when the job is changed is such a drastic way that no reasonable person would consider it the same job--as a practical matter, this generally involves dramatic pay cuts, being forced to add over an hour to the daily commute due to relocation, or having a day shift changed to a night shift job, or vice versa. The pay cut you describe is large enough that most labor/unemployment dept. personnel or most judges would view being asked to swallow such a cut as constructive termination; however, because it is ultimately a subjective standard, not a hard and fast one, it is possible that if the employer contests unemployment, that the agency or a court could find against you. Therefore, you would be likely to get unemployment, but it is not certain.


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