East Amherst, NY asked in Employment Law for New York

Q: With unemployment if i lost my job but my employer wants to pay me even though I’m making more with unemployment

Do i have to take the pay from my employer?

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1 Lawyer Answer
V. Jonas Urba
V. Jonas Urba
Answered
  • New York, NY
  • Licensed in New York

A: If you are forced to take a pay cut; for example 50%, employees do not have to keep working in those situations. It's called constructive discharge and in those circumstances not the employee's fault. There is case law to support benefits for drastic pay cuts or not paying overtime or other unlawful pay practices.

If you have no choice but to quit describe those circumstances to DOL when you apply for benefits. Let's say your pay cut was 50% or more and you cant survive on that you should receive unemployment because in that case it is not you but your employer who is limiting your income.

Those types of pay cuts as opposed to maybe a 10 or 20 percent cut are usually good reasons to quit but be honest with DOL and tell them you were forced to quit because of an extreme pay cut and the costs and other circumstances which forced you to quit. And always always report all earnings to DOL because they eventually will figure it out and reach out to you if they overpaid you.

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