"Qutting" Job soon: Some questions (unemployment, health insurance)

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Lynx310650
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"Qutting" Job soon: Some questions (unemployment, health insurance)

Post by Lynx310650 » Sun Feb 10, 2019 1:50 pm

My entire department is basically being subsumed by another department. We were always small (4 people: me, my boss, and 2 direct reports of mine). My boss is being reassigned to another department, one of my reports is being laid off, and they haven't decided on my other report.

As for me, they offered me an opportunity to stay on with the department that is taking us over. It would essentially be a demotion. I'd have "lower level" job duties, lower salary, no more direct reports. Plus I am not a fan of the manager I'd have to report to. I told them I'd honestly rather be laid off, they said that's not an option, so I tendered my resignation. I have a feeling this is what they really wanted so they could avoid calling it a lay off and paying me severance, but I can't really prove it. I agreed to give them to the end of March to transition everything, but I have been looking for other jobs and gotten some interviews but no offers yet. A couple of questions, both under assumption April arrives and I havent' found a new job:

(1) Unemployment: I'm in CA, fwiw. Do I have any case for getting it? It is technically a voluntary quit but I have a feeling they basically wanted me to quit rather than lay me off. If not, nbd, but I do want to get it if I have a chance of qualifying.

(2) Health insurance: This is the bigger one. My spouse (also works for same company) and I currently have HDHP with individual HSAs. When I quit, I'd go under her plan. Would this qualify us for the family HSA and the bigger contribution? If I do find a job in a couple of months and go back on my own plan, how would contributions for her HSA work at that time? Would we have to do some complex calculations to "prorate" things? If it gets too complicated we might just keep contributions at 3500 just to keep things simple.

sport
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Re: "Qutting" Job soon: Some questions (unemployment, health insurance)

Post by sport » Sun Feb 10, 2019 2:02 pm

My suggestion, if it is not already too late, is to find another job before you resign from your current employer. It may take longer than you expect to find another job, and this would eliminate the concerns you mention. It should not be too difficult to tolerate the new situation because you know it will only be temporary until you find a better opportunity.

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cockersx3
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Re: "Qutting" Job soon: Some questions (unemployment, health insurance)

Post by cockersx3 » Sun Feb 10, 2019 6:07 pm

sport wrote:
Sun Feb 10, 2019 2:02 pm
My suggestion, if it is not already too late, is to find another job before you resign from your current employer. It may take longer than you expect to find another job, and this would eliminate the concerns you mention. It should not be too difficult to tolerate the new situation because you know it will only be temporary until you find a better opportunity.
+1. Another alternative would be to continue to show up to work, but just do the minimum while you are there as you work on finding another job during the day. May take some getting used to if you're not the type of person to "phone it in," but they may simply decide to pay you severance and hire someone rather than go through the hassle of firing you.

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Lynx310650
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Re: "Qutting" Job soon: Some questions (unemployment, health insurance)

Post by Lynx310650 » Sun Feb 10, 2019 6:14 pm

sport wrote:
Sun Feb 10, 2019 2:02 pm
My suggestion, if it is not already too late, is to find another job before you resign from your current employer. It may take longer than you expect to find another job, and this would eliminate the concerns you mention. It should not be too difficult to tolerate the new situation because you know it will only be temporary until you find a better opportunity.
Thanks for your suggestion, but it's probably too late plus not an option I'd entertain. I'm frankly not willing to take a demotion and cut in pay and literally wipe out the last 4 years of career progression AND have to report to someone I dislike. I could probably do one or the other, but both is a bit much to swallow :)

I am looking for the right opportunity and very well may line something up before April, but wanted to ask these specific questions now in case I don't.

FWIW my spouse and I are fortunate that we've already hit a lean "FIRE" number, have decent emergency savings, spouse makes enough income to cover our expenses with some left over. I definitely want to keep working, but am willing to take a bit of time if necessary to find the right opportunity or even retrain into another career if need be. But I think our diligent work and savings over the years has earned me the right to be a bit picky and patient about getting the right job.

Iridium
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Re: "Qutting" Job soon: Some questions (unemployment, health insurance)

Post by Iridium » Sun Feb 10, 2019 7:10 pm

Lynx310650 wrote:
Sun Feb 10, 2019 1:50 pm
(1) Unemployment: I'm in CA, fwiw. Do I have any case for getting it? It is technically a voluntary quit but I have a feeling they basically wanted me to quit rather than lay me off. If not, nbd, but I do want to get it if I have a chance of qualifying.
The fact that they are decreasing your pay is potentially a reason you would be able to collect unemployment.

https://www.edd.ca.gov/uibdg/Voluntary_Quit_VQ_500.htm
"...a pay decrease of 20% or more, taken alone, is a substantial reduction in pay to establish good cause for leaving work where the employee is notified of a transfer or demotion to another position with the employer."

Pay cuts under 20% are complicated.

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Peter Foley
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Re: "Qutting" Job soon: Some questions (unemployment, health insurance)

Post by Peter Foley » Sun Feb 10, 2019 8:42 pm

I agree with Iridium. You MAY qualify for unemployment benefits. I worked in the UI Program for a number of years. "Separation" laws vary a bit from state to state and even with the state statutes controlling there is room for judgement in many states. If the adjudicator feels this was a substantial change in employment condition you would be eligible for benefits. (The employer could appeal the ruling, or conversely if you were found not eligible, you could appeal.)

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