Timing of new offer of employment can determine whether acceptance would be required to mitigate damages
For most employees, the elimination of their position by their employer results in the termination of their employment and a severing of the employment relationship. But in some instances, employees are presented with two options — termination of employment or a new offer of employment in a different position. Sometimes the terms of the new offer of employment are similar to their current terms; other times the new offer is a demotion to a lesser position with reduced compensation. In such a scenario, what is the obligation of the employee? Is the employee obligated to accept the lesser terms and does the refusal to accept those new terms equivalent to the employee failing to mitigate her damages?