Company was bought out. Received an offer to work for this new company but might not want to take it

There is no way to provide you a complete answer here on this web site. The MEL board is not set up to handle the kind of detailed analysis that is needed to offer helpful guidance. MEL works best for short, specific questions that allow for short, specific answers. Perhaps more importantly, anyone can read the discussions on MEL so they are not confidential. The employer or whomever is involved in the dispute can read everything written here. You may want to consult with one or more experienced employment law attorneys with whom you can discuss the details of your situation.

I cannot address your question about signing the form; it might depend on what the form says, and I haven't seen it.

Regarding unemployment benefits, generally: Employees who voluntarily quit their jobs due to a decrease in pay are eligible for unemployment benefits if the pay cut was large enough. In Bunny’s Waffle Shop v. California Employment Commission (1944), 24 C. 2d 735, 151 P. 2d 224, the court found an employee who suffered a 25 per cent pay cut was eligible for benefits. According to the Unemployment Insurance Appeals Board (UIAB), an employee who quits due to pay reduction of 20.96 per cent is eligible (UIAB Precedent Benefit Decision No. P-B-124). However, a pay decrease of approximately 11.2 per cent is not sufficient BY ITSELF to merit unemployment benefits (P-B-88).

According to the UIAB, a 15.4 per cent and a 17.5 per cent wage reduction MIGHT BE good cause to quit (and therefore allow unemployment benefits) if there are other factors (P-B-127). If the pay cut is due to a transfer, the UIAB will consider: (1) The comparative skills of the two jobs; (2) Whether the employee had ever worked in the department to which he was being transferred; (3) The length of time he had worked in the job from which he was being transferred; and (4) Whether the employee had a reasonable belief that he would be recalled to the job from which he was being transferred in a reasonably short period of time (P-B-127).

In UIAB P-B-88, the UIAB stated “A review of our decisions makes it apparent that no justification exists for any presumed rule of thumb that a reduction in wages of ten percent is not good cause for leaving work but anything over ten percent is good cause without reference to the other factors presented in the particular case." In that decision, the UIAB listed some of the factors other than wage reduction which bear upon decisions under various circumstances:
1. The claimant’s prospects for securing other work at a wage commensurate with his prior earnings;
2. Whether the claimant was aware of the labor market as it affected him;
3. The comparative skills required;
4. Substantial prospects of other employment based upon objective facts known at the time of election;
5. The distance and cost of commuting;
6. Loss of seniority and recall rights;
7. Opportunities for advancement in the lower classification.

You can find much more information about resigning due to a pay decrease on the Employment Development Department web site here:http://www.edd.ca.gov/uibdg/Voluntary_Quit_VQ_500.htm.

posted by Marilynn Mika Spencer  |  Nov 20, 2015 11:12 AM [EST]