Yes, provided that 1) your are not being demoted due to willful misconduct; 2) your pay reduction is sufficiently dramatic (see explanation, below).
What is willful misconduct? John's video explains:
Are Pennsylvania Employees Eligible for Partial Unemployment Compensation Benefits When Their Pay is Substantially Lowered or Reduced or They Have Been Demoted, Reduced to Part-Time or Fired?
Not unless your hours of work are reduced as well.
Oddly enough, partial unemployment benefits are available only to those who experience a reduction in hours and a reduction of pay; a mere reduction in hourly pay or salary unaccompanied by a reduction in hours does not qualify one for partial unemployment.
In other words, if you are making $50,000 per year, and your employer suddenly reduces your pay rate to $35,000 per year (but does not reduce your hours), and you do not quit your job, you will be ineligible for partial unemployment.
Can I Quit My Job and Get Unemployment in Pennsylvania if My Pay or Salary Has Been Cut or Reduced?
|If Pay Cut >25%, You Will Likely be Eligible for PA Unemployment if You Quit Promptly|
What are Necessitous and Compelling Reasons to Quit Job Under Section 402(e) of Pennsylvania's Unemployment Law? John's video explains:
How Much of a Pay Cut Do I Need to be Eligible for Partial Unemployment in Pennsylvania? Salary or Hourly Rate of Pay Cut Significantly? Philadelphia Unemployment Lawyer
To figure this out, you must first understand what your weekly benefit rate would be if you had been fired from your job as opposed to having your hours and pay reduced Click Here to calculate your weekly benefit rate under Pennsylvania unemployment law.
If My Pennsylvania Employer Cuts My Pay Significantly, Should I Quit or Apply for Partial Unemployment?
It may depend in part upon the amount of the reduction in pay, your current financial position and the likelihood of you securing a comparable job in the coming months.
If your pay cut is 40% of your prior rate of pay, you can, as discussed above, almost certainly be eligible for full unemployment compensation if you quit your job.
By the same token, such a dramatic pay cut will also enable you to collect partial unemployment compensation and, if the reduction is temporary and you can afford to hold on with the help of such benefits, that may be the right approach.
Here is the Pennsylvania Department of Labor's calculation for partial unemployment compensation benefits:
Where a claimant works less than his full-time hours through no fault of his own, the claimant may be potentially eligible to receive full or partial benefits, depending on his gross earnings and Partial Benefit Credit (PBC). A claimant's PBC is the amount equal to 30 percent of his Weekly Benefit Rate (WBR). Where a claimant is working less than his full-time hours and his gross earnings for a week are equal to or less than the PBC, the claimant's full WBR is payable for the week. When the claimant's gross earnings for a week exceed the PBC, the gross earnings are deducted from the sum of the WBR plus PBC to determine the amount of any partial benefits for which the claimant may be eligible.
The following examples illustrate how the amount of any partial benefits payable to a claimant who worked less than his full time, is calculated. In each example, the claimant was determined financially eligible for a WBR of $100. The PBC for each example is therefore $30 (30 percent of $100).
Example 1: The claimant's earnings for the week are $29. As $29 is less than the PBC, the claimant is eligible for the full WBR ($100) for the week.
Example 2: The claimant's earnings for the week are $30. As $30 is equal to the PBC, the claimant is eligible for the full WBR ($100) for the week.
Example 3: The claimant's earnings for the week are $31. As $31 exceeds the PBC by $1, the claimant is eligible for partial benefits of $99 ($130 - $31 = $99).
Example 4: The claimant's earnings for the week are $31.01. The $31.01 is rounded up to $32.00. As $32 exceeds the PBC by $2, the claimant is eligible for partial benefits of $98 ($130 - $32 = $98).
Example 5: The claimant's earnings for the week are $132. As the claimant's weekly earnings exceed the combined rate sum of the WBR and PBC, the claimant is ineligible for UC benefits for that week.
Can I Get Pennsylvania Unemployment Benefits if I Take a Part-time Job While I Am on Unemployment?
Yes, Click Here for our comprehensive analysis and calculations on this issue.
Pennsylvania Employment Attorney
|John A. Gallagher, Esquire|
Helping Individuals Since 1991
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Philadelphia Area Employment Attorney Representing Employees
John A. Gallagher is an employment lawyer who represents employees in Pennsylvania.
John typically represents employees who need an employment lawyer in Philadelphia County, Chester County, Delaware County, Bucks County, Berks County, Lancaster County and Montgomery County.
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