Demotion

[pb2211]

What is the name of your state (only U.S. law)? Florida

My employer for the last 38 years decided to consolidate our brand and offers me to be demoted, reducing my salary by 32%
If I refuse this offer, is my employer obliged to terminate my work relationship? And in this case, would I be eligible for a compensation package?
Thank you

 

[cbg]

I think that you do not understand the dynamics here. You do not have the option of remaining in your current position. You have the option of taking the demotion and remaining employed, or refusing the demotion which is tantamount to a quit. I'll let commentator discuss the unemployment situation in that case.

No, your employer would have no legal obligation to offer you anything but COBRA (if you are enrolled in a health plan) and any vested retirement monies you may have. In 47 states, including yours, there is never a requirement that severance ever be offered and in at least two of the remaining three it would not be required in this situation.

 

[pb2211]

I think that you do not understand the dynamics here. You do not have the option of remaining in your current position. You have the option of taking the demotion and remaining employed, or refusing the demotion which is tantamount to a quit. I'll let commentator discuss the unemployment situation in that case.

No, your employer would have no legal obligation to offer you anything but COBRA (if you are enrolled in a health plan) and any vested retirement monies you may have. In 47 states, including yours, there is never a requirement that severance ever be offered and in at least two of the remaining three it would not be required in this situation.

Thank you for your prompt reply and valuable advice.

 

[commentator]

If you refuse the demotion, and they say "Then you are discharged, quit, are fired, need to go home!"..whatever, you should file immediately after your last day of work for unemployment benefits. They aren't much, but they are there for you when you are out of work through no fault of your own. When you are offered a significantly less good job than you have had, and that is your only choice, then unemployment insurance is your only option if you do not want to accept the new job. As cbg noted, they are not obligated to provide you with anything except COBRA.

If you accept the new job and work at it, even for one minute, and then quit because of the demotion ("I can't live on what I'm making!") then you have just about a zero chance of being approved for unemployment. You've already accepted the new job, pay rate and all.

Since you live in Florida, where the maximum unemployment weekly benefit is very low ($275) regardless of how high your salary was on the job you were working at, and they've made unemployment a very difficult program to get signed up on anyway, I would advise you to think carefully about quitting. Even a fraction of your former wages might be more than you could draw in unemployment, and while you are still working there, you could search diligently for something else that pays better.

 

[Bali Hai]

If you refuse the demotion, and they say "Then you are discharged, quit, are fired, need to go home!"..whatever, you should file immediately after your last day of work for unemployment benefits. They aren't much, but they are there for you when you are out of work through no fault of your own. When you are offered a significantly less good job than you have had, and that is your only choice, then unemployment insurance is your only option if you do not want to accept the new job. As cbg noted, they are not obligated to provide you with anything except COBRA.

If you accept the new job and work at it, even for one minute, and then quit because of the demotion ("I can't live on what I'm making!") then you have just about a zero chance of being approved for unemployment. You've already accepted the new job, pay rate and all.

Since you live in Florida, where the maximum unemployment weekly benefit is very low ($275) regardless of how high your salary was on the job you were working at, and they've made unemployment a very difficult program to get signed up on anyway, I would advise you to think carefully about quitting. Even a fraction of your former wages might be more than you could draw in unemployment, and while you are still working there, you could search diligently for something else that pays better.

If OP is under court order to pay alimony, he may need to apply for three jobs if he quits. The court expects the alimony payment paramount no matter what.

 

[cbg]

The OP has made no mention of his marital status or of any financial obligation, Bali. Do keep your cynicism out of the employment law boards - it's bad enough listening to you on the family law boards. It has no place here.