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Merely worrying about pay cut doesn’t justify quitting

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in Compensation and Benefits,Human Resources

Employees who quit because of substantially reduced pay may be able to collect unemployment. However, they can’t merely speculate that a new pay system will result in lower pay.

Recent case: James Keating sold health insurance on commission and also earned bonuses. When the company announced a different commission structure and reduced television advertising, he quit and applied for unemployment.

But the court said he wasn’t eligible. The company said it estimated sales­people would earn as much or more under the new commission plan as they had before. And it explained funding for TV commercials had merely been redirected for Internet advertising. Since Keating didn’t stick around to find out, he was ineligible. (Keating v. Assurant, No. A10-1494, Court of Appeals of Minnesota, 2011)

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