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Delta-Lawyer
Delta-Lawyer, Lawyer
Category: Employment Law
Satisfied Customers: 3546
Experience:  In-House Counsel & Litigator
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My employer signed a contract with an outsourcing company.

Customer Question

My employer signed a contract with an outsourcing company. We have to sign up with this company, or we are considered giving our resignation. Legally if they offer at least within 20% of our salaries, we are obligated to sign up. If we do not we are unable to collect unemployement. I live in the state of Pennsylvania with a hire at will/fire at will policy. Is this correct?
JA: Because employment law varies from place to place, can you tell me what state this is in?
Customer: Pennsylvania
JA: Have you talked to a lawyer yet?
Customer: yes
JA: What advice did they give you?
Customer: To sign up with this new company. The company's job will be to reduce the work force. Once they state they no longer need you, then you can collect unemployment.
JA: Anything else you think the lawyer should know?
Customer: This was not done with employees' knowledge and we still do not know what wages will be, PTO time or benefits. They are coming in next Wednesday and Thursday and we have to sign at the time. Also, I have worked at the company for 16 years and I am being told that I will be starting as a new employee.
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Employment Lawyer about your situation and then connect you two.
Submitted: 5 months ago.
Category: Employment Law
Expert:  Delta-Lawyer replied 5 months ago.

I hope this message finds you well, present circumstances excluded. I am a licensed attorney with over a dozen years of employment experience. It is a pleasure to assist you today.

This is an unfortunate circumstance, any way you slice it. Even more unfortunate is that based on what you have shared with me, they are within their legal rights to do as they are doing as an employer. The legal obligation that they have here is to inform you of the change. If there will be a reduction in pay, then they have to inform you of that as well in writing prior to your pay actually changing.

The rest is legal and they can do it...including the points about drawing unemployment and amazingly, losing the 16 years of tenure that you have with the company. The way they get around the 20% is that they will claim you were essentially offered and job and choose not to take it and that the within 20% of your original pay is a reasonable offer. This, in their legal terms, means that you left on your own - and that this was not a layoff.

I wish I had better news for you, but I am legally obligated to convey the reality of the situation. I would suggest (because it is easier to get a new job while you are currently employed in my experience) that you take the offer and then start looking around for another landing spot with a business that actually values your skill set and work ethic.

Let me know if you have any other questions or comments. Please also rate my answer positively (THREE OR MORE STARS) on the ratings bar on your end so I can receive credit for my response.

Best wishes going forward and thank you!

Expert:  Delta-Lawyer replied 5 months ago.

Did you have any other questions or concerns?

Expert:  Delta-Lawyer replied 5 months ago.

Did you have any other questions or concerns? I want you to be as comfortable as possible moving forward.