He has the right to quit and file for unemployment benefits. Collecting them may be more of a job. Working "too long" at the new rate is quite likely be defined as working one second at the new rate after it has been explained to him. And unemployment benefits (even if approved, after a significant amount of time to make such a decisions) are always going to be less than what he was making while working, probably even at the new reduced rate. He may want to keep working there, put out feelers and begin seeking something else instead of quitting before he has a new job to go to.

