Under Florida law, if an employee voluntarily quits his/her job, that employee would generally not be entitled to collect unemployment compensation benefits unless he/she can show that quitting was for a reason attributable to the employer. Yet, where the employer significantly reduces an employee's work hours, that may be sufficient good cause to voluntarily quit and still collect unemployment compensation benefits. That's what the Fifth District Court of Appeals held last month in the case of Diaz v. Unemployment Appeals Commission, Case No. 5D09-1011 (Fla. App. 3/26/2010).
In that case, a prep cook voluntarily left his employment and then filed a claim for unemployment compensation benefits. His claim was denied by the claims adjuster, but the employee appealed claiming that his hours were cut so severely that he spent more money getting to work than he actually earned. At the telephonic hearing, the Appeals Referee determined that the employee was not eligible for benefits because he voluntarily left work and the reason for leaving (his work hours) was not attributable to the employer. The Unemployment Appeals Commission affirmed the Appeals Referee's decision and the employee appealed to the Fifth District Court of Appeals.
On appeal the Fifth District Court of Appeals first noted that an employee who voluntarily leaves his employment without good cause attributable to the employer is not eligible for unemployment compensation benefits. The Court then noted that "good cause" for voluntarily quitting are those circumstances which would impel the average, able bodied, qualified worker to give up his employment. Then the Court reasoned that a significant reduction in hours or salary may constitute good cause attributable to the employer, which would allow an employee to voluntarily terminate his employment and still remain eligible for unemployment benefits. The Court then noted that employer did not dispute the employee's testimony that his hours had been cut and he was only working one to two days per week, sometimes for only one hour at a time. Based on that evidence, the Court reversed the Appeals Commission's decision and remanded the case for consideration of whether the reduction in the employee's hours was substantial enough to constitute "good cause" attributable to the employer.
If you have questions regarding unemployment compensation benefits or employment law, contact the Law Offices of Santiago J. Padilla, P.A. as soon as possible. Based in Miami, Florida, we represent employers and employees throughout South Florida in employment cases. To set up a free initial consultation, you can contact us through the Internet or call us at (305) 358-1949.