Can I quit and recieve unemployment due to recurring pay cuts in a sales position?

by Matthew N
(Port Jefferson, NY)

I was hired by a brokerage company in NY as a financial advisor trainee. I was hired at a pay rate of 36,000. However, after my training I was placed on a descending salary designed to allow me to slowly transition to a commission basis. However, the economy dived as this transition was taking place.

January first was my first day of production, the day I took a 25% pay cut and the day I changed from a qualified employee to an nonqualified. My entire "class" of trainees went from 100 to 30 due to the market conditions. It is nearly impossible to make any sales. Now 6 months in to the nonqualified pay scale I am about to be cut to 50% or 18,000 per year. I can no longer afford to live!

To top it all off I am losing my cheap rent place of residence. This may very well mean I will have to move home with mom and dad or take a place paying at least 1000 a month (9,000 over the next 6 months means I'm already going to starve to death). Can I quit and collect unemployment?

To add, it is illegal in NY State for an employer to demand you work over time and refuse to pay you for it. Since I was a qualified employee when this began then they were in violation of the law. I still work tons of hours for no money (10 - 12 per day and weekends). I am being driven into the ground and I need to move on... but with no job or unemployment I will surely starve. What to do?


Hi Matthew,

I don't really know for sure .. but I'm willing to do some looking into it.

I'm going to start with the NY Interpretation Index.

I suggest you look there also since you have intimate knowledge of your situation.

One thing I want to point out, that is or could be a problem. You were well aware of of how the pay was structured from the beginning. I understand it is the current economy, but is there anything the employer is failing to do that would have a direct effect on your commissions? Such as the amount of leads they guarantee .. or something they are suppose to do that is designed to help you toward a goal?

I don't think the overtime is an issue for you .. you are salaried .. no?