Davis-Lynch, Inc. v. Texas Emp't Comm'n
In Davis-Lynch, Inc. v. Texas Emp't Comm'n, No 03-90-00170-CV (Tex. App.--Austin July 3, 1991, no writ), the Texas Employment Commission (now known as the Texas Workforce Commission), awarded unemployment benefits to a former employee of Davis-Lynch, Inc., after the former employee resigned because his hours were cut from his "usual" schedule of forty hours per week to a schedule of thirty hours per week, effectively decreasing his pay by more than 20%. Id.
Based on the facts that "Davis-Lynch unilaterally reduced the hours of all its employees by 25% per week," which "translated into a weekly pay decrease for the former employee of more than 20%," and that "the hours/pay cut came during a time when rumors of an impending layoff were circulating," the Court concluded the Commission's determination that the former employee had good cause for resigning was not arbitrary and capricious. Id.