Brown v. National American University

686 N.W.2d 329, 2004 Minn. App. LEXIS 1057, 2004 WL 2049968
CourtCourt of Appeals of Minnesota
DecidedSeptember 14, 2004
DocketA04-62
StatusPublished
Cited by4 cases

This text of 686 N.W.2d 329 (Brown v. National American University) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. National American University, 686 N.W.2d 329, 2004 Minn. App. LEXIS 1057, 2004 WL 2049968 (Mich. Ct. App. 2004).

Opinion

OPINION

GORDON W. SHUMAKER, Judge.

Relator challenges the decision by the commissioner’s representative that she is disqualified from receiving unemployment benefits because she was discharged for employment misconduct. Relator, who was discharged for borrowing money from respondent university’s adult students, argues that under the 2002 statutory definition she did not commit employment misconduct. Because we look to the date an employee was discharged rather than the day or days on which the employment misconduct occurred to determine which statutory definition applies, we apply the 2003 statutory definition of misconduct. Under that definition, relator committed employment misconduct, and we therefore affirm the decision by the commissioner’s representative.

FACTS

Relator Clara Brown worked as a receptionist and administrative assistant for respondent National American University (NAU) from May 15, 2000, until August 4, 2003. Her immediate supervisor was Mary Ellen Schmidt, the campus director of NAU.

In the fall of 2001, Schmidt learned that Brown had borrowed money from a stu *331 dent. Schmidt told Brown that this was inappropriate. Brown both acknowledged the inappropriateness of borrowing money from students and said she would not do so again. Schmidt made no formal reprimand nor did she tell Brown that further similar conduct could jeopardize her employment.

In October 2002, Schmidt discovered that Brown had again borrowed money from a student. Schmidt reiterated to Brown that such conduct was inappropriate and said that it could result in the loss of her job. Schmidt learned in early July 2003 that Brown had borrowed money from another student. On July 2, 2003, Schmidt told Brown that this conduct could not continue and that “it was grounds for termination.” On July 28, 2003, a student complained to NAU’s director of admissions that she had loaned money to Brown but that the loan had not been repaid. The record is not clear as to when this loan was made.

NAU discharged Brown on August 4, 2003, for “borrowing money from students.” After being denied unemployment-compensation benefits by a representative of the commissioner of the department of employment and economic development, Brown brought the matter before this court through certio-rari.

ISSUES

1. Does this court look to the date of discharge or the dates on which the employment misconduct occurred to determine which statutory definition of employment misconduct applies?

2. Under the applicable statutory definition, did relator commit employment misconduct when she continued to engage in conduct that her employer had warned her was inappropriate and would result in discharge?

ANALYSIS

Applicable Law

Although Brown argues that the record does not support a finding of employment misconduct, we first address the issue of which statutory definition of employment misconduct applies. When Brown borrowed money from NAU students, the statutory definition for employment misconduct provided:

(a) Employment misconduct means:
(1) any intentional conduct, on the job or off the job, that disregards the standards of behavior that an employer has the right to expect of the employee or disregards the employees duties and obligations to the employer; or
(2) negligent or indifferent conduct, on the job or off the job, that demonstrates a substantial lack of concern for the employment.
(b) Inefficiency, inadvertence, simple unsatisfactory conduct, poor performance because of inability or incapacity, or absence because of illness or injury with proper notice to the employer, are not employment misconduct.

Minn.Stat. 268.095, subd. 6(a)(b) (2002).

Effective August 1, 2003, the statutory definition was amended to provide:

Employment misconduct means any intentional, negligent, or indifferent conduct, on the job or off the job (1) that evinces a serious violation of the standards of behavior the employer has the right to reasonably expect of the employee, or (2) that demonstrates a substantial lack of concern for the employment.
Inefficiency, inadvertence, simple unsatisfactory conduct, a single incident that does not have a significant adverse impact on the employer, conduct an av *332 erage reasonable employee would have engaged in under the circumstances, poor performance because of inability or incapacity, good faith errors in judgment if judgment was required, or absence because of illness or injury with proper notice to the employer, are not employment misconduct.

Minn.Stat. 268.095, subd. 6(a) (Supp.2003).

The latter was the definition in effect when NAU discharged Brown and was the definition on which the commissioner’s representative relied in upholding Brown’s disqualification from benefits.

In Bray v. Dogs & Cats Ltd. (1997), 679 N.W.2d 182 (Minn.App.2004), this court held that the law in effect at the time of discharge is to be applied in determining an employee’s eligibility for unemployment compensation benefits: “An employee’s conduct should be judged against the law in effect at the time of the termination; that is the date that the employer terminated the employee for committing conduct that the employer felt both deprived the employee of the job and the right to unemployment benefits.” Id. at 186. But this court also referred to the date of the misconduct as determinative of the law to be applied. Id. Despite this reference, the Bray court several times indicated that the controlling date is the date of discharge. Id.

We hold that the intent of Bray and the most meaningful application of the law is to treat the statutory definition of misconduct in effect at the date of discharge as controlling. This holding reflects two important facts. First, the operative event that determines qualification for unemployment compensation benefits in these circumstances is discharge from employment. Minn.Stat. § 268.095, subd. 4 (2002). We are not concerned with whether or not the employee should have been discharged but only with the employee’s eligibility for benefits after termination of employment. Auger v. Gillette Co., 303 N.W.2d 255, 257 (Minn.1981).

Second, although misconduct that leads to discharge might occur on a single date, it is more likely, as here and in Bray, that the discharge will result from a series of acts or omissions extending over days, weeks, months, or perhaps years. In such cases, if the definition of misconduct changes, the commissioner and the courts would be perplexed as to which conduct to apply the legal focus. The discharge date provides a clear and definitive time for the application of the law.

Misconduct

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686 N.W.2d 329, 2004 Minn. App. LEXIS 1057, 2004 WL 2049968, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-national-american-university-minnctapp-2004.