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socrateaser, Lawyer
Category: Employment Law
Satisfied Customers: 39027
Experience:  Retired (mostly)
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Is a substantial reduction in salary constructive

Customer Question

Is a substantial reduction in salary constructive termination, in the sense that I could apply for unemployment benefits get COBRA insurance coverage?
Submitted: 1 year ago.
Category: Employment Law
Expert:  socrateaser replied 1 year ago.


The law on this issue varies by jurisdiction. In most states, the issue has never been determined with certainty by an appellate court.

However, as an example, in California, the Unemployment Insurance Appeals Board has determined that a 20% reduction in pay is sufficient to qualify an employee for unemployment benefits, under the theory that the originally agreed upon employment conditions differ substantially from the new employment conditions.

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