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I quit my job and now I can't get unemployment benefits. I quit because my original contract was for $16,000 with benefits and for the new contract they wanted to pay me only $9,000 with no benefits. They say that is no good cause for resignation, I think there is. The texas labor code does not offer an explanation of what good cause for resignation is? What is a good cause if I am loosing 43% of my wages and no benefits?

Submitted: 450 days and 11 hours ago.
Category: Employment Law
Value: $15
Status: AWAITING CUSTOMER ACTION
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Optional Information

Huntsville, Texas

Already Tried:
I have appealed to the Texas workforce commission and have a hearing Sept 11.

Accepted Answer

I was a hearing officer for TWC and I understand your frustration. First you need to show that the reduction in wages gave you good cause to quit. The TWC has precedents that hearing officers must follow. You should site the one below in your case to the hearing officer. If there is a more than 20% decrease in pay you have good cause connected with the work to quit and are eligible for benefits.


Appeal No. 84-05367-10-051485. The employer and the claimants' union entered into a new collective bargaining agreement which provided for a reduction in wages of approximately 46%, with other benefits being frozen. Following the agreement's ratification by the union membership but prior to its effective date, the claimants, all of whom were union members, disagreed with the reduction in wages and exercised their option of resigning and accepting a lump sum special resignation payment. HELD: As a general rule, a wage re-duction of 20% or more is substantial and will provide a claimant with good cause connected with the work for voluntarily resigning rather than submit to such reduction in wages. In the present case, the claimants were justified in refusing to continue to work under the newly-ratified collective bargaining agreement because of the substantial reduction in pay. (Cross-referenced under MC 255.302.) (page 96 from the link below)

http://www.twc.state.tx.us/ui/appl/vl.pdf starting at page 90.

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Expert: Shelley
Pos. Feedback: 98.6 %
Accepts: 
Answered: 8/30/2008

Lawyer

Unemployment Compensation Attorney

Posted by Shelley 449 days and 21 hours ago.

Answer

This precedent also gives you the law on your side that the total compensation package is looked at as a whole so the loss of benefits can be used to determine that your pay is being reduced by 20% or more.

Appeal No. 97-003975-10-041697. The claimant, a maintenance worker assigned to the Lubbock territory, left voluntarily when his $150 per month car allowance was discontinued effectively
reducing his pay 11%. Car allowances were not authorized in any other territory, and the employer made the change to keep its pay structure uniform. HELD: The Commission will examine the entire compensation package to determine whether a salary reduction is 20% or more; if so, good cause will be found. Here, elimination of claimant’s car allowance does not provide him with good cause to quit because it reduced his pay only 11%.

438 days and 23 hours ago.

Reply

Where in the Texas code can I find the general rule that cite the 20% reduction in pay? the example you give in your answer is for union members, I am not a union member. Another question that would make the 43% reduction even more steep would be how to calculate the monetary value of health and dental insurance + retirement package, how do I add that amount into the packet. Another thing is that my boss is lying she told the investigator that I was offered originally 3500 per class and she offered 3000 per class, that is not true, I was offered 4000 per class and my contracts for two years show that I was making 16000 per semester for four classes. The new contract was for 9000 with no benefits.

Another thing is that I was hired trough another department, and we were incorporated to a new department all my colleagues and me, but all the other instructors did not have to endure this reduction in pay, just me, and the reason given is that I was a glitch in the system and considered a new hire instead of being hired one year before the new boss. Also the institution belongs to the state I was working at Sam Houston State University and sometimes those institutions have different rules. Do you know of such rules or similar cases? My appeal hearing is tomorrow and they will show up with a lawyer.

Posted by Shelley 438 days and 14 hours ago.

Answer

The precedent is good for union or non-union. But here is an example where the person did not work for an union.

Appeal No. 87-2916-10-022488. The claimant voluntarily quit his job due to a decrease in salary. The claimant originally worked for the company in New York, earning $10.00 per hour. After he was transferred to Texas, the claimant's wage was reduced to $6.50 per hour. He worked on the job for two weeks, then realized he was not making enough money. HELD: The 35% decrease in the claimant's pay constituted a substantial change in the hiring agree-ment. As the claimant was not informed of the change until he ar-rived in Texas, it was reasonable for him to not quit immediately upon learning of the decrease in salary but, rather, to attempt to make the situation work prior to quitting. No disqualification under Section 207.045. (Cross-referenced under VL 385.00.)

All I can suggest is make sure to have copies of your previous contract with your pay and the new one as evidence of the reduction in pay. Benefits would be what the employer paid for your insurance and how much was contributed to your retirement, that is their value.

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