Is It Legal to Reduce Work Hours to Keep From Paying Unemployment in Indiana?
- Apply for partial unemployment benefits using the same form you would use to apply for total unemployment. Report the total income you make each week and note that you are applying for partial benefits because of a reduction in work hours. The unemployment representative will discuss the situation with you and with your employer and determine whether you qualify for partial unemployment benefits. You must report how much you earn each week when you recertify your unemployment.
- In Indiana, the unemployment office calculates your unemployment based on how much you earn each week. If you are partially unemployed, Indiana reduces your weekly benefit by one dollar for each dollar you earn from your main employer. For example, if you earn $150 for the week from your employer, Indiana reduces your weekly benefit by $150. If you take a new part-time job after filing for unemployment, you do not lose any of your unemployment benefits until you earn more than 20 percent of your weekly benefit amount.
- If you work full time, in most cases you are disqualified from receiving any unemployment in Indiana. However, if your employer cuts your pay so that you earn less than your weekly benefit amount, you are still entitled to unemployment for that week. Thus, while it may be legal for your employer to cut your pay to save money, it will not stop him frm hacing to pay unemployment for you.
- Most workers in Indiana who receive unemployment must search for a new full-time job each week. Workers on partial unemployment may or may not be excluded from this requirement since they already have a job. Ask your unemployment representative about work search requirements when you apply for partial benefits to make sure you meet all requirements and continue to qualify for partial unemployment benefits.
Applying for Partial Benefits
Calculation of Benefits
Exclusions
Work Search
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