In Rootes v. Wal-Mart Associates, Inc., (September 30, 2003), the Minnesota Court of Appeals determined that a combination of wage reduction and significant change in hours to include nights and weekends (whereas prior the position had been Monday through Friday, 7 a.m. to 4 p.m.) was a good reason to quit under Minnesota Statute § 268.095, therefore not disqualifying the employee from unemployment benefits, even though the employee didn''t confirm the details of the demotion prior to quitting.

From Nov. 2000 through May 6, 2002, Jennifer Rootes was employed as a grocery department manager for Wal-Mart. In Feb. 2002, Rootes was warned she wasn''t adequately performing her duties. Rootes later was given the choice as to whether she wanted to retain her current position, she decided she did, and she submitted a detailed plan outlining how she would improve performance. Wal-Mart approved the plan. A few months later, she was told that she was not adequately performing her job and that she needed to decide by the end of her shift whether she wanted to be demoted or to resign. Rootes left work without telling anyone, called in sick the next day, and ultimately decided to quit. Although Rootes never asked for details concerning the demotion, she was confident that her pay would decrease and the hours would change considerably. Wal-Mart conceded that her position would likely have resulted in a reduction in wages by $1.75 an hour and that her new shift would include weekends.

After quitting, Rootes sought unemployment benefits. Ultimately, after multiple appeals, the Minnesota Court of Appeals found Rootes eligible to receive unemployment benefits, because her knowledge that her demotion would result in reduced wages, changed hours, and weekend shift was sufficient and justified her quitting.

Questions regarding this decision? Contact Hanft Fride attorney Emily John, 218.529.2424 or ekj@hanftlaw.com .