Monday, October 19, 2015

Ohio Appeals Courts Rule in Favor of Unemployment Claims and Affirm Hearing Officers

Two unemployment decisions from September 30 illustrate the importance of convincing hearing officers in order to prevail or contest unemployment claims.  In one case, the hearing officer found that the employer’s witnesses and video evidence were not credible and awarded unemployment compensation where it appeared that the true reason that the claimant had been fired was because of his union activity instead of violating safety rules. Gen. Die Casters, Inc. v. Ohio Dept. of Jobs & Family Servs., 2015-Ohio-4033.   In the other case, a trucker was awarded unemployment compensation even though he resigned without advance notice and gave a completely different reason for his resignation in the uncontested hearing than he had in his questionnaire. Friedel v. Quota, 2015-Ohio-4060.  The trucker initially claimed that he quit because his employer left him stranded in the cold for several hours, but at the hearing produced evidence that he quit because his employer ordered him to violate federal hours of service regulations in order to make a delivery and the employer had not appeared at the hearing to dispute the new explanation.  The appeals court noted that the trial court erred in finding that the claimant had waived his right to assert at the hearing a different reason for his resignation by not raising it in his initial application for benefits.  Also, the court was required to affirm the hearing officer if there was any credible evidence in the record to support his decision.

In the first case, the claimant – who had worked there since 1979 --  was terminated for violating the employer’s safety rules by removing stuck objects from a machine without first locking it out. (Initially, I was impressed that the employer was enforcing its safety rules without first waiting for an injury – a practice upon which OSHA frowns).  The employer had no less than three witnesses to the safety violation.  However, the hearing officer did not find them credible.  First, the hearing officer found one witness to be inconsistent regarding his physical location and the series of events when he supposedly witnessed the claimant violate the lock-out procedures.  Second, he also found the shift manager to lack credibility because he asked a trainee about the lock-out procedures instead of the claimant and could not explain why he decided to inform management of the violation instead of confronting the claimant and stopping him from working in an allegedly unsafe manner.  Third, he found it more likely that management was motivated by the claimant’s prior NLRB complaints, history of union organizing at the plant and the recent decertification of the union.  Fourth, the hearing officer refused to give weight to the employer’s video evidence because the picture quality was so poor that he could not definitely identify the claimant and had doubts whether it captured the claimant on the day and machine in question.  Fifth, the claimant credibly testified that he had properly locked-out the machine before clearing it.  Finally, the claimant’s testimony was supported by another employee who worked on the machine immediately after him.  Once the hearing officer rules on credibility, that determination may not be reversed on appeal if there is any evidence in the record to support it.  The claimant and his co-worker provided credible testimony to support the hearing officer’s determination, so the employer’s appeal was rejected despite having video evidence.

In the second case, the claimant’s initial application for benefits was denied and he appealed, explaining that his employer refused to assist him when his truck broke down and left him sitting in freezing night-time temperatures for hours until his son-in-law came to help him.  In response, the employer contended that the claimant was responsible for minor repairs and had been given a debit card with a $500 limit in order to do so.   Again, unemployment compensation was denied. On appeal, the claimant testified to a new reason for his resignation at the unemployment hearing (in which the employer did not participate).  He contended that he had been driving since 9 a.m. when his truck broke down at 10:30 a.m. and he didn’t return home until 7 a.m.  Federal Motor Carrier Safety Administration regulations required that he not drive again for 34 hours, or that he at least get a 10 hour break.  49 C.F.R. § 395.3.  When he was called about a noon pick-up in Detroit, he explained that he was unavailable.  His employer arrived at his home and an argument ensured, during which he resigned.  He also produced his driver logs to support his position. Without contrary evidence in the record, benefits were awarded.  The UCBR denied the employer’s request for review and so the employer appealed to the common pleas court, which reversed the decision.

The trial court did not address the claimant’s hours of service explanation for his resignation, relying instead on his initial and unjustified explanation for his resignation.  ODJFS successfully argued that the trial court had improperly substituted his judgment for that of the hearing officer, which was in a better position to evaluate the claimant’s credibility.  By ignoring the claimant’s testimony about the federal hours of service rules, the court had also implicitly determined that this argument had been waived when it was no included in the claimant’s initial application for unemployment benefits and his initial administrative appeal.  However, there is no provision for waiver in the unemployment statute: “The unemployment compensation statutes do not provide that arguments not made prior to an administrative hearing are waived and, in fact, the court must consider the record transmitted by the UCRC.”    Moreover, prior court decisions have found employees to have just cause to resign when they are directed to violate the FMCSA hours of service rules.  

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can be changed or amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.