In Pennsylvania, how much can an employee’s compensation be cut with
out giving the employee the option to be laidoff? For example, for
exempt (salaried) workers can an employer require a 10% pay cut
without the option to be laidoff? Or more specifically to my case, can
an employer eliminate health care from the compensation package
without the layoff option? I would rather collect unemployment and go
on cobra, using my full time to find another job with heath care
coverage. If they reduce my compensation to the point I need to find a
new job I would rather focus on that, rather than deal with a rather
stressful job while looking for new work.

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Clarification of Question by john18049-ga on 18 Jun 2003 14:39 PDT

Just following up on the comment. I believe you are correct that you
can’t leave voluntarily and still collect unemployment. But I don’t
know if I understand if an employer can substantially change your
compensation without effectively changing the job. Why would they ever
lay people off? They could just cut salaries in half and people would
leave and the company doesn’t have to supplement the unemployment,
which they do in PA. It is actually expensive to lay people off. I
could call the office, but I was hoping for an answer from an HR
person. This is the first question I have asked, so maybe I have
unrealistic expectations. Wanted to see how useful these services are.

I am fairly certain that you cannot leave a job voluntarily (despite a
cut in compensation) and be elligible for unemployment compensation. 
Why don't you just call the unemployment office in your area (for a
free answer)? It is part of the PA Department of Labor & Industry.

I worked in an unemployment compensation office in another state for
many years. In my state, at least, a person who quit a job because of
a pay cut was not eligible to receive unemployment benefits unless the
pay cut either violated a contract or brought the employee's income
below minimum wage level (which, of course, would violate other laws,
both state and federal.)

Employers often reduce pay in hopes that employees will quit, since
laying people off raises the unemployment tax paid by the employer. It
may not seem fair, but that's the way it is in most states.
Unemployment law is, in the view of many, biased toward the employer.
Perhaps this is because state legislators are more influenced by
businessmen than by people who are out of work.

I'm not sure about Pensylvania law, but I know that underfederal law
that company cut your pay until it hits the federal minimum wage,
unless you have a contract stating otherwise.  A company doesn't have
to give you the option to be layed off - under federal law.  I would
doubt that Penn's law does, but I do not know.