Collecting Unemployment - how does it work? Salary Cut.

In 26 years of me working I have never ventured into this territory. But recent chain of events made me think about things. After paying alot of money in taxes over the years I no longer feel all that guilty collecting back.

Today I got an official call and paperwork regarding my 15% salary reduction, effective end of month. Indefinite in length. I am on the fence to consider myself lucky, or be pissed cause my department (marketing) is busy as shit despite the current situation. I have been less and less happy at my work over the last few years (6+ with the company in total)

What if I refuse to accept the salary cut. Am I then fired, or laid off, or technically i quit on my own? Would I be eligible for unemployment. Can you negotiate a compensation package as part of the exit strategy if I was to offer that I walk away? Any thoughts?

 

I'm pretty sure you're only eligible to collect if you're unemployed because you were terminated, or laid off...aka involuntary.

Others will chime in, I'm sure. That's about all I know...and that may not be completely accurate.

 

Yeah, that part I agree with. But where will refusing a salary cut put you?

 

Unless you make peanuts for a salary I'd eat the 15% and look for another job if you're that unhappy. The extra stimulus money technically runs out at the end of next month and unemployment only lasts 6 months. Count your blessings you're not one of the millions out there hunting.

 

At your desk, if they can't afford to lose you. At that the unemployment office if they can.

 

You could try contacting your local unemployment office. They're probably slow like most all g'ment services. Also, I don't see anything wrong with talking to your boss or HR and telling them you not happy with a salary reduction...see what the action they would take would be.

 

Under those circumstances, you’d likely be ineligible to receive unemployment since you made the choice to turn down the work being offered. There’s always loopholes, but they aren’t on your side, at this point in time.

 

That's the real kicker.

 

This is what I figure is the correct answer.

One of my sons friends just got a 10% reduction, first year out of college and he is just happy he still has a job.

Tyler said he thinks there is a chance they won’t get their bonus, even though they knocked it out of the park for three of the quarters before Covid.

Bummer is kids in his position work crazy hours. They get one protected weekend off a month, otherwise like a doctor in residency, they are expected to work when needed. This past weekend was his protected weekend and he still worked because he is staffed on a deal that is closing.

Anyway, I think half his yearly pay is a bonus so that’s gonna hurt after all those 70-90 hour weeks.

 

What do you do in marketing?

 

That's what happened to me in the airlines that year after 9/11. I didn't like it but I was glad I had a job. And I liked my job.

 

I am a Creative Director at a technology company. But I do alot of hands on stuff stuff, from video filming/editing to logos/branding to web stuff. Lots of things will come to a screeching halt if I leave.

Lately I was thinking about going back to big agency life. I used to work on some big Fortune 500/100 brands.

 

I used to really like working here, but now it has become simply bearable.

 

Is the reduction actually an option? They notified you of the adjustment, it's not like they put check boxes for "Yes" or "No" on the letter. It's happening.

I don't think walking into anyone's office and refusing it is a valid action. The person you talk to is probably also taking a hit as well.

Look at a couple things and maybe there's a silver lining to this somehow.

Check how making 15 percent less impacts your taxes, MAYBE it puts you into a lower bracket and your take home after state/federal are taken out isn't as much, so you're just paying less in income taxes.

Can you pay some things off and then no longer need that income as part of your day to day in order to not impact your lifestyle and plans?

Look at the local job opportunities available in your area or maybe someplace you want to live. Maybe there's a fit out there for you that pays the same as you have now, or better. Maybe you find an opportunity
someplace else and move there and live happily ever after.

I'm guessing/hoping they're not doing it to be jerks....they're in survival mode.

 

I have had this negotiation over the last decade. In my case it was the opposite when looking for more pay from the same company. If they can't do that they may be able to allow for other things. In light of additional pay I negotiated more time off and work from home. If I am not spending money driving to and from the office then that is less money out of pocket and works in my favor monetarily. You might be able to do the same in light of the pay cuts. Ultimately however if it bothers the shit out of you perhaps it's best to start working on finding your next place of employment.

 

See, I already did that when things were good. Refused a salary increase in favor of more vacation days. I think its time to freshen up the portfolio and hit the market.

 

I am sure its survival mode, but then when they walk away from the survival mode will they be in a hurry to bump everyone up?

 

Understand....and sorry...got no crystal ball here to predict that one.

 

I took a big hit last fall and another one a month ago. In my experience the money always comes back slower than it went away unless activity comes back fast and they are starving for people. I have asked to be laid off but so far nothing so have adopted the "pay minimum wage, get minimum effort" strategy. I still do my job but there used to be alot of over and above effort done that has fallen to the wayside.

 

Yep, that is where I am heading.

I wonder if it is ever a good idea to tell upper management that you are looking elsewhere. Just so a 2 week notice wont fuck them up too bad. In my case it will stop ALOT of initiatives.