State Street Bank & Trust Co. v. Deputy Director of the Division of Employment & Training

**What Happened** State Street Bank offered voluntary separation packages to employees during what appeared to be impending layoffs. Two employees accepted these packages, believing they would likely be fired anyway if they didn't take the voluntary offer. When they applied for unemployment benefits, the state initially denied their claims, arguing that since they voluntarily left their jobs, they weren't eligible. State Street Bank supported this denial. **What the Court Decided** The court ruled in favor of the employees, overturning the lower court's decision. The judge found that both workers had reasonable grounds to believe they would be involuntarily terminated if they didn't accept the separation packages. Because of this reasonable belief, their departures should be treated as involuntary terminations rather than voluntary quits, making them eligible for unemployment compensation. **Why This Matters for Workers** This ruling protects employees who face "take it or leave it" situations during company downsizing. If you have good reason to believe you'll be laid off anyway, accepting a voluntary separation package won't automatically disqualify you from unemployment benefits. The key is demonstrating that you had reasonable grounds to expect involuntary termination was coming.