Would I be eligible for unemployment?

It is unlikely. Walking away from a job making far more than your benefits would be will likely constitute a "voluntary quit" and disqualify you from benefits. If you wish to learn more about what is a voluntary quit, I suggest you look at the following EDD website pages. http://www.edd.ca.gov/UIBDG/Voluntary_Quit_VQ_5.htm http://www.edd.ca.gov/UIBDG/Voluntary_Quit_-_Table_of_Contents.htm Good luck to you.

The EDD does recognize that a wage reduction is not always reasonable and could be considered good cause to quit. 40% is a huge chunk so you probably have a good argument, but there are many factors to consider and its not a hard and fast rule. You do take the risk that the EDD won't see it your way. Check out the discussion regarding this topic on the EDD website. It addresses this issue under number 5. http://www.edd.ca.gov/uibdg/Voluntary_Quit_VQ_500.htm