Brown v. Ohio Department of Job & Family Services

842 N.E.2d 108, 164 Ohio App. 3d 311, 2005 Ohio 5887
CourtOhio Court of Appeals
DecidedNovember 7, 2005
DocketNos. 4-05-07 and 4-05-08.
StatusPublished
Cited by5 cases

This text of 842 N.E.2d 108 (Brown v. Ohio Department of Job & Family Services) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Ohio Department of Job & Family Services, 842 N.E.2d 108, 164 Ohio App. 3d 311, 2005 Ohio 5887 (Ohio Ct. App. 2005).

Opinion

Shaw, Judge.

{¶ 1} Appellants, several thousand autoworkers who were laid off by General Motors (“GM”) in June 1998, appeal the judgment of the Court of Common Pleas, Defiance County, Ohio. That judgment affirmed the decision of the Ohio Unemployment Compensation Review Commission that denied appellants’ unemployment benefits for the week ending July 4, 1998. Upon review, we find no error in the trial court’s decision and therefore affirm the judgment from which this appeal was taken.

{¶ 2} The factual background of this case is undisputed between the parties. Appellants are members of the United Auto Workers (“UAW”) labor union, and were employed at GM plants in Defiance County in 1998. In June of that year, employees at two GM facilities in Flint, Michigan went on strike, resulting in parts shortages throughout the region. As a result, GM was forced to shut down several facilities throughout Ohio and place the employees on layoff status at those facilities. This mass layoff affected some 14,000 UAW members throughout Ohio; facilities in six Ohio counties were shut down, and appellants were laid off at various times from June 5, 1998, through August 3, 1998. Specifically with regard to this appeal, all appellants were on layoff during the week ending July 4, 1998.

{¶ 3} Appellants’ employment relationship with GM was governed by a National Collective Bargaining Agreement (“national agreement”) entered into between GM and UAW in November 1996. This agreement was still in effect during the layoff in 1998. The national agreement gave certain employees time off during a four-day period in 1998 from Monday, June 29 to Thursday, July 2 as “Independence Week shutdown period,” and on Friday, July 3 the company observed the Independence Day holiday. Pursuant to the national agreement, GM agreed to pay employees at their regular rate of pay for time off during the shutdown period if they met certain conditions. The parties agree that in 1998, due to the layoffs resulting from the strike in Flint, Michigan, it was impossible for *314 appellants to meet the requirements to receive shutdown pay, because they did not work the day before and the day after the Independence Day holiday.

{¶ 4} The strike ended in late July 1998, and the plants in Ohio began to reopen; appellants returned to work beginning in early August. As part of the strike settlement, GM and UAW entered into a memorandum of understanding dated July 28, 1998. In the memorandum, GM agreed to pay each of the UAW employees affected by the strike and the resulting layoff the holiday pay they would have received during the Independence Week shutdown:

As a result of these negotiations and without prejudice to the position taken by either party, and without setting any precedent in the disposition of any other case involving similar circumstances, the parties agree to the following:
Employees who were on strike or layoff status at General Motors locations due to the labor dispute at the Flint Metal Center and Delphi E. Flint East and who did not receive Independence Week Shutdown and Holiday Pay as a result of being on said layoff or strike and were otherwise entitled to these pay provisions as stipulated in the GM-UAW National Agreement, shall receive a one time special payment in the amount they would have been entitled to had they not been on strike or layoff.
This payment will be made in an expeditious manner and taxed as a regular wage payment in accordance with Document No. 81 of the GM-UAW National Agreement.
This payment shall initially be made by General Motors. Thereafter, payments otherwise required by Paragraph IIIA of the Memorandum of Understanding Joint Activities, 1996 GM-UAW National Agreement, shall be waived until General Motors is reimbursed for the total amount paid to employees as a result of this Memorandum.
Further, the parties recognize that these payments may result in employees being ineligible for unemployment compensation already received. Employees impacted by such overpayment of unemployment compensation will be responsible to repay the State that provided the unemployment compensation.

{¶ 5} This “one time special payment” was paid to appellants on August 13 or 14 with their regular pay. It was handled in the same manner as all regular holiday payments, including regular tax deductions and deductions for union dues. Additionally, all employees maintained seniority status and were credited with the Independence Week shutdown period for seniority purposes.

{¶ 6} Thereafter, appellants applied for unemployment compensation benefits for the entire layoff period. GM subsequently objected to the payment of unemployment benefits for the Independence Week shutdown period, arguing that the one-time special payment agreed to in the memorandum constituted *315 remuneration, which disqualified them from receiving unemployment benefits for that week. The Ohio Bureau of Employment Services agreed with GM and denied benefits for that week. On appeal, the Ohio Unemployment Compensation Review Commission affirmed, holding that “the Director properly disallowed all claims for the week in issue because Appellants received remuneration in the form of holiday pay or allowance in excess of their weekly benefit amount.” Appellants then appealed to the Defiance County Court of Common Pleas pursuant to R.C. 4141.282(A); and the court affirmed the review commission’s decision. Appellants now appeal to this court asserting four assignments of error:

The Trial Court erred in affirming the Decision of the Review Commission denying benefits to claimants because they were totally unemployed under Revised Code Section 4141.01(M).
The Trial Court erred in affirming the Decision of the Review Commission denying benefits to claimants because the one-time special payment was not holiday pay under Section 4141.31(A)(5) and could not be allocated to the week ending July 4,1998.
The Trial Court erred in affirming the Decision of the Review Commission denying benefits to claimants because the special payment was not remuneration under Revised Code Section 4141.01(H).
The Trial Court erred in affirming the Decision of the Review Commission denying benefits to claimants, where the special payment was a form of bonus that could not be used to reduce benefits under Section 4141.31(A)(5).

{¶ 7} All of appellants’ assignments of error are interrelated, and therefore we will address them together. In their assignments of error, appellants challenge the commission’s determination that the one-time special payment was remuneration in the form of vacation pay pursuant to R.C. 4141.31(A)(5).

{¶ 8} When reviewing a decision by the commission, courts in Ohio are governed by R.C. 4141.282(H). That section provides that the court of common pleas shall reverse the commission’s decision only if it finds “that the decision of the commission was unlawful, unreasonable, or against the manifest weight of the evidence.” Appellate courts are to apply the same standard of review as the trial court. Tzangas, Plakas & Mannos v. Ohio Bur. of Emp. Servs. (1995), 73 Ohio St.3d 694, 697, 653 N.E.2d 1207.

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Bluebook (online)
842 N.E.2d 108, 164 Ohio App. 3d 311, 2005 Ohio 5887, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-ohio-department-of-job-family-services-ohioctapp-2005.