Biltmore Enterprises, Inc. v. Iowa Department of Job Service

334 N.W.2d 284, 1983 Iowa Sup. LEXIS 1524
CourtSupreme Court of Iowa
DecidedMay 18, 1983
DocketNo. 68373
StatusPublished

This text of 334 N.W.2d 284 (Biltmore Enterprises, Inc. v. Iowa Department of Job Service) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Biltmore Enterprises, Inc. v. Iowa Department of Job Service, 334 N.W.2d 284, 1983 Iowa Sup. LEXIS 1524 (iowa 1983).

Opinions

CARTER, Justice.

This is an appeal by an employer from a district court decision affirming final agency action involving an award of unemployment benefits. The issues presented are (1) whether the agency erroneously calculated the claimant’s base period wage and length of his unemployment period, (2) whether the agency failed to consider the special circumstances of claimant’s dual employment situation and (3) whether the agency erred by refusing to consider claimant’s alleged unavailability for work. We consider these issues separately and affirm the decision of the district court.

Clarence J. Suntken was employed by petitioner Biltmore Enterprises, Inc. (Bilt-more), as a part-time employee during the third and fourth quarters of 1979, earning $3.25 per hour. This employment was a “second” job, and Suntken was simultaneously employed with another employer, A.B. Dick Products Co., working forty hours a week at $4.25 per hour. Suntken was laid off by Biltmore in January of 1980 and continued with his full-time, regular employment with A.B. Dick Products Co. until April 25,1980, when he was laid off by that company.

After being laid off by A.B. Dick Products Co., Suntken applied for and received unemployment benefits of approximately $131 per week. At or about this time, he resumed working occasionally as a bartender for Biltmore on an on-call basis. On or about May 20, 1980, Biltmore was notified by Iowa Department of Job Service that Suntken’s unemployment benefits would produce a potential charge on its account in the amount of $987. Shortly thereafter, Biltmore offered Suntken a job as a dishwasher and weekend bartender for $3.25 an hour for 33-36 hours a week. Suntken refused this job, and Biltmore protested to Iowa Department of Job Service seeking to disqualify Suntken from unemployment benefits on the ground that he had refused an offer of suitable employment. Biltmore simultaneously terminated Suntken’s occasional employment as a bartender.

The Iowa Department of Job Service determined that Suntken’s refusal to accept the job offered by Biltmore did not disqualify him from receiving further unemployment benefits. That finding was based upon the determination that Biltmore’s offer was unsuitable because it did not equal 100 percent of Suntken’s gross average weekly wage as required by Iowa Code section 96.5(3)(a) (1981). This determination was upheld by an agency hearing officer and by the district court on judicial review.

I. Calculation of Average Weekly Wage and Length of Unemployment.

A. Average weekly wage. Bilt-more contends on this appeal that the agency erred in calculating Suntken’s average weekly wage for purposes of evaluating the suitability of the job offer he received from Biltmore. In order to be deemed suitable employment, Iowa Code section 96.5(3)(a) (1981) requires that during the first five [286]*286weeks of unemployment a job offer must provide for 100 percent “of the [unemployed] individual’s average weekly wage for insured work paid to the individual during that quarter of the individual’s base period in which the individual’s wages were highest.” The agency’s calculations established Suntken’s average weekly wage to be $213.60, an amount which was not equaled by Biltmore’s job offer of 33-36 hours per week at $3.25 per hour.

Biltmore urges that the agency calculations improperly combined the earnings received by Suntken during the period that he was holding two jobs, thus distorting his earning potential. We need not consider whether it would be error to total the wages from concurrently held jobs in making the base period calculations required by section 96.5(3)(a). The record clearly reflects that this was not done in the present case.

Under the provisions of Iowa Code section 96.19(15) — (17) (1981), Suntken’s base period includes the five calendar quarters prior to his April 28, 1980, application for benefits. During the first calendar quarter of 1979, he was employed by Wilson Trailer Company and earned gross wages of $2776.62. That was the quarter during the base period when Suntken’s gross wages were the highest. The agency used the wages from that quarter in making its computation of average weekly wage. It divided the gross wages received in the quarter by thirteen to produce a figure of $213.60. This amount accurately reflects Suntken’s average weekly wage for insured work during that quarter of the base period in which his wages were highest. Payment of that wage or a higher wage was required during the first five weeks of his unemployment to satisfy the statutory test of “suitable employment.” The agency’s determination on this question was correct.

B. Length of unemployment Under the provisions of section 96.5(3)(a), the wage requirements for “suitable employment” decrease as the length of unemployment increases. Biltmore challenges the agency determination of the length of Suntken’s unemployment for purposes of applying the statutory definition of “suitable employment.” The agency determined that Suntken had been unemployed only four weeks when Biltmore offered him the job which led to the present controversy. Biltmore argues that at that time Suntken had been unemployed for over twenty weeks. This argument assumes that unemployment commenced when Suntken was laid off by Biltmore.

Benefits cannot be taken until an employee is “unemployed.” Section 96.19(9) defines total and partial unemployment.

a. An individual shall be deemed “totally unemployed” in any week with respect to which no wages are payable to him or her and during which he or she performs no services.
b. An individual shall be deemed partially unemployed in any week in which, while employed at his or her then regular job, he or she works less than the regular full-time week and in which he or she earns less than his or her weekly benefit amount plus fifteen dollars.
An individual shall be deemed partially unemployed in any week in which he or she, having been separated from his or her regular job, earns at odd jobs less than his or her weekly benefit amount plus fifteen dollars.

The fact that Suntken was laid off from a part-time bartending job does not mean that he was either totally or partially unemployed while he was still working forty hours per week. In McCarthy v. Iowa Employment Security Commission, 247 Iowa 760, 761, 764, 76 N.W.2d 201, 205 (1956), we said:

We realize that when we get into the field of dual or possibly multiple concurrent jobs with two or more employers, vexing questions may arise as to what constitutes employment or unemployment under this law ... But at what point “unemployment” arises may sometimes be difficult of determination.

In McCarthy, we were presented with the problem of determining whether a claimant was disqualified from receiving benefits [287]*287where he had quit a part-time job, but continued working at his full-time job until he was laid off. In that case, the claimant was not considered to be “unemployed” until he was laid off from the full-time job, and was therefore not disqualified from receiving unemployment benefits because he had voluntarily quit his part-time job. In the present case, the agency correctly determined that Suntken was not “unemployed” while continuing to work at A.B. Dick Products Co.

C.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re Pfeiffer's Estate
76 N.W.2d 193 (Supreme Court of Iowa, 1956)
McCarthy v. Iowa Employment Security Commission
76 N.W.2d 201 (Supreme Court of Iowa, 1956)
Iowa Beef Processors, Inc. v. Miller
312 N.W.2d 530 (Supreme Court of Iowa, 1981)
Steinbeck v. Iowa District Court Ex Rel. Linn County
224 N.W.2d 469 (Supreme Court of Iowa, 1974)
Hamilton v. City of Urbandale
291 N.W.2d 15 (Supreme Court of Iowa, 1980)
Farmers Elevator Co., Kingsley v. Manning
286 N.W.2d 174 (Supreme Court of Iowa, 1979)
Ida County Courier & the Reminder v. Attorney General
316 N.W.2d 846 (Supreme Court of Iowa, 1982)

Cite This Page — Counsel Stack

Bluebook (online)
334 N.W.2d 284, 1983 Iowa Sup. LEXIS 1524, Counsel Stack Legal Research, https://law.counselstack.com/opinion/biltmore-enterprises-inc-v-iowa-department-of-job-service-iowa-1983.