An employer may demote an employee and decrease his or her pay for poor work performance. For example, a manager may be demoted to cashier and see his or her wages decreased to standard cashier wages. Often, such a demotion is offered inlieu of firing the employee. However, an employee is not obligated to accept the demotion. Most states will treat the demotion as a firing in terms of
. receiving unemployment compensation. Contact your state's employment bureau for details that fit your unique situation.