Entitlement to Unemployment Benefits
The Court of Appeals of the State of Mississippi delivered an interesting opinion last week in the case of Kathi L. Acy v. Mississippi Employment Security Commission, No. 2005-CC-02019-COA (7/17/2007). Acy worked as a greeter at Wal-Mart. She and a customer had an altercation when a DVD purchased by the customer set off the alarm as the customer was leaving the premises. It is undisputed that Acy cursed under her breath in the presence of the customer and the customer heard her (as did customer’s two daughters and their eight-year-old friend)and complained to management. Acy was terminated because she violated Wal-Mart’s policy prohibiting rude or abusive conduct toward customers.
The interesting twist is that an employee who admittedly violates company policy, rules or regulations may not have committed, by that behavior, disqualifying misconduct and thus may remain entitled to unemployment benefits.
Generally, employers believe that if an employee commits an act that results in termination for cause, the employee will not be entitled to unemployment benefits. Citing cases from other jurisdictions, the Court of Appeals found that while an employee’s conduct may harm the employer’s interests and justify the employee’s discharge, “it evokes the disqualification for unemployment insurance benefits only if it is wilful, wanton or equally culpable.” Jacobs. V. California Unemployment Appeals Bd., 25 Cal. App.3d 1035, 1037, 102 Cal. Rptr. 364 (1972).
The moral to the story for cities, counties, state agencies and other governmental employers is that termination for cause does not necessarily disqualify the employee from drawing unemployment benefits. Many employers who terminate an employee for cause do not even appear at an unemployment hearing, believing that this employee cannot negatively impact the unemployment ratio (thus raising the required investment from this employer into the unemployment benefit pool).
Take an active role in unemployment benefit hearings when an employee is terminated for cause. It takes only a few facts skillfully articulated to rise to the level of wilful and wanton conduct.