Unemployment - Employer offered job/lower wage - Pennsylvania

[mike_1979]

My wage history with my previous employer was:
Hired at: $12/hr (3 month probationary period)
Raised to: $16/hr (salary)
Just after my layoff I had a raise coming that would have put me at $20/hr (salary).

I was laid off and want to collect unemployment, however my old employer just offered me an entry level job (my old job was team leader/manager) at $10/hr. Is that legal? Also, that sounds like it will disqualify me for unemployment compensation, correct?

Also, they offered me a contract work pay basis (no rate discussed) if the $10/hr wouldn't work for me. Again, that is for a different job. Essentially, they're not offering me back my old job but instead are offering me an entry level position at a much lower wage.

[Pattymd]

Agree that is unlikely that you would qualify for unemployment benefits if you quit instead of accepting a lower paid position. The state would rather you have some income than none at all.

[mike_1979]

I did not quit, I was laid off on Dec. 27th. Only now have i become eligible due to the way paid quarters worked out and now my old employer is offering an entry level position.

[cbg]

What Patty means is, if you turned down the job (and yes, it is legal for them to offer you an entry level position at a lower wage) you would likely be disqualified from unemployment benefits.

[mike_1979]

Interesting. Thanks for the fast replies guys. If I were to accept the contract job then would I possibly be eligible for partial benefits if the work was slow? ...or still disqualified due to the side-offer of the entry level position.

The only reason I ask is because $10/hr does not pay my mortgage. If I can take in more money with partial UE compensation while I look for other work I would have an easier time paying my bills.

EDIT: btw, I haven't turned anything down yet. Told them I needed to mull it over.

[cbg]

It's possible. But you'd have to ask the UI office that one. We can't make any guarantees one way or the other.

[Pattymd]

Have you been laid off yet? Or are you still working?

The issue with the "contract" job is that, if it is not set for a certain number of hours, generally 40 per week, you can't get partial unemployment benefits in PA if it's less than 40. For example, if it's 20 hours per week, and that's what you work, partial benefits would not be payable. But it it's intended as 40 hours per week and you only get 20 hours, then you would be eligible.

This is generically speaking. Only the state can make a binding decision.

[mike_1979]

Oh I see, didn't know that about the 40 hours for contract work. Yes I have been laid off, I worked there from June 2010 until they laid me off on December 27th 2010. It's a wonder that more businesses don't just lay off employees then call them back at low wages knowing that a)they won't take the job so no UE for them or b)they'll get the person back to work at cheap rates.

That just seems like such a loophole that businesses can exploit - without something to protect employees against that tactic, wouldn't everyone be making minimum wage by now?

Not to mention that I'm not being called back to my original position (Manager), I'm being offered a new position (Entry Level). That seems more like a token job offer than a call back to work. Thanks for all the insight folks. Sorry, just very frustrated here. After being laid off all this time and finally being eligible for UC my old job is pulling, what seems to me to be, another fast one.

[Pattymd]

I don't disagree. Just saying, this is pretty much how it works. Now, having said that, whether the state would consider this an "unreasonable" offer for which you would not be held responsible for refusing and still be eligible for benefits, we would have no way to say.

[mike_1979]

Understandable. Thanks for all the responses guys, I'll have to make a decision on this shortly. All of the input is most helpful in moving me towards an appropriate decision. Have a great day.