Can reducing my salary in half be seen as constructive discharge

I currently work for a less than 8 employee privately held company based in GA. I am in sales, and they have just told me my salary is immediately cut in half from 40k to 20k due to the state of the business. I think they just want me to leave, as they are changing to a service only company, but they don't want me to get unemployment. They have paid me straight monies (no payroll, no taxes) during my 6 month tenure altho I am a company, full time employee. What are my chances for getting unemployment benefits if I resign?

1 answer  |  asked Nov 16, 2009 11:23 AM [EST]  |  applies to California

Answers (1)

Elisa Ungerman
Your chances getting Unemployment if you resign are nil. Each state is different but generally, constructive Discharge requires illegal working conditions that are "intolerable". A cut in salary is not illegal (in and of itself) - so resigning over such is a voluntary choice you make that does not entitle you to EDD benefits.

I do not know Georgia law, so you may want to speak to a GA labor and employment attorney regarding your specifics.

posted by Elisa Ungerman  |  Nov 16, 2009 1:03 PM [EST]

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