If I was terminated due to company buy out, am I eligible for unemployment benefits?

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If I was terminated due to company buy out, am I eligible for unemployment benefits?

I was told today with absolutely no notice that my employment with my current company was terminated as of me clocking out that day. Thi8s is due to my employer, a hotel, being purchased by another company. I was then told to show up for my shift anyway tonight and work my shifts until the new owner comes to tell me what my pay will be or if I can even keep working for him. Do I have to show up and keep working? Or can I claim unemployment at this point?

Asked on February 10, 2011 under Employment Labor Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If you've been offered a new job with the new owner, then you can't claim unemployment. First, depending on exactly how the transaction and the change over was done, it may be the case that while you're "under new management," that you never actually lost your job--just the name on the paycheck changes. If you were technically fired and immediately offered the same job again by the new ownership, you can't collect unemployment compensation if you have an comparable job offer you could accept--and the same job, just for a new owner, is by definition comparable. So while your frustration is natural, it is premature to consider yourself fired and file for unemployment compensation; wait to see what happens and changes.


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