Hard times...

[mlindsey104]

My employer has changed my pay scale from a salaried position to an hourly position with no benefits. I don't think I can aford this reduction of pay. The change was made due to "dificult economic times" and not to job performance. I cannot claim unemployment if I resign but I can't sustain this income reduction.
What rights do I have for unemployment compensation? Can they legally just keep reducing my pay for any reason until I have to resign, thereby avoiding having to pay unemployment? Is there such a thing as a "forced resignation" that allows for someone to claim unemployment while I look for another job?
I have looked at NC dept. of labor law, but I can't find any stipulations on this.

Thanks,
Mark

 

[jacksgal]

Yes he can legally reduce your pay and/or hours. If you have suffered an income lost its "possible" you can file for UI benefits while still working although I am certain about criteria. It may be hours reduction only but again I am unsure

 

[cbg]

While not all employees can legally be made salaried exempt, all employees can legally be made hourly non-exempt. Microsoft could make Bill Gates hourly non-exempt if they wanted to and were willing to pay the overtime. So it is definitely legal to change your status.

Barring a bona fide contract or CBA that specifically says otherwise, your employer may legally reduce your pay all the way down to the higher of state or Federal minimum wage. However, how much notice, if any, is required is a function of state law. In most (not quite all) states, you must be made aware of the reduction before you work any hours at the lower rate, and in a VERY few states you must be given x amount of notice before the reduction goes into effect, with x depending on the state. To the best of my knowledge, NC requires notice before any hours are worked at the lower rate, but not any particular length of notice.

In most if not all states, if your wages are reduced by a certain percent (and again, the percent varies by state) you can earn a partial unemployment benefit while working at the lower rate. Few if any states will pay you if you quit, thus ensuring that you have no income instead of some income. I do not know what the percent is for NC; you'll have to apply and see. The worst they can say is no.