Unemployment Insurance: Matter of Heller v. Paragon Motors of Woodside Inc.

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Appellate Division, Third Department

Unemployment Insurance

Voluntary Quit — Reduction in Commission Rate

Matter of Heller v. Paragon Motors of Woodside Inc.
510031
Appealed from the Unemployment Insurance Appeal Board

Background: The claimant, a finance manager for an automobile dealership, worked for the employer from February to November 2008, at which time he resigned because his commission rate was reduced from 20 percent to 7.5 percent. Thereafter, he applied for and received unemployment insurance benefits. The employer challenged the claimant’s entitlement to benefits on the ground that he left his employment without good cause. Ultimately, the Unemployment Insurance Appeal Board ruled that claimant was eligible to receive benefits and the employer now appeals.

Ruling: The court affirms the ruling finding that substantial evidence supports the board’s determination that a nearly two-thirds reduction in the claimant’s rate of pay constituted a substantial change in the terms and conditions of his employment, and represented good cause for him to leave his employment. The employer’s contention that claimant’s commission rate was reduced only to 17.5 percent presented a credibility question to be resolved by the board.

John A. Raimondo of Bonnist & Cutro LLP for the appellant; and Cynthia Feathers for respondent Heller