City of Frederick v. Schlosser

2003 SD 145, 673 N.W.2d 283, 2003 S.D. LEXIS 173
CourtSouth Dakota Supreme Court
DecidedDecember 17, 2003
DocketNone
StatusPublished
Cited by5 cases

This text of 2003 SD 145 (City of Frederick v. Schlosser) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Frederick v. Schlosser, 2003 SD 145, 673 N.W.2d 283, 2003 S.D. LEXIS 173 (S.D. 2003).

Opinion

KONENKAMP, Justice.

[¶ 1.] In this appeal, we must determine whether any portion of unemployment benefits are chargeable to a concurrent employer whose employee works both part-time and “on call” for additional work. Because we conclude that the Department of Labor (DOL) misconstrued ARSD 47:06:04:05 and that the employer was chargeable for some benefits but not the amount determined by the Department, we reverse and remand.

Background

[¶ 2.] Gary Schlosser began working for the City of Frederick in 1996. The city is classified as a reimbursing employer. Schlosser performs two distinct sets of duties. First, he works part-time on a routine basis. As consideration for performance of these duties, he is guaranteed wages of $1500 per year.

[¶ 3.] Second, he performs additional duties for the city. As consideration for these duties he is paid $7.50 per hour. There is no dispute that Schlosser’s agreement with the city remains in place. The amount of additional duties that Schlosser performs fluctuates with the seasons. He flushes the city fire hydrants every spring and fall. Dependent on the weather, he may flush the hydrants later or earlier. Nevertheless, the duties must be performed bi-annually, and he collects relatively the same amount of income whenever those duties are performed. The city also employs Schlosser to mow during the summer. He mows the baseball field, the city parks, ditches, and lagoons. Naturally, those activities are dependent on the weather, but must be performed seasonally. The performance of these additional duties generally causes a spike in the number of additional hours Schlosser spends working in the summer months.

[¶ 4.] Third, Schlosser provides additional services when the need arises. These duties include: clearing city sewer lines when they become blocked, fixing broken water mains and sewer lines, replacing damaged meters, road repairs, curb and gutter repairs, and other general maintenance functions. Although weather conditions can affect the performance of these duties, many other factors may also contribute to the necessity of these duties. Thus, these responsibilities may or may not arise annually and are not scheduled. They are simply performed when necessary.

[¶ 5.] In 1999, while continuing his employment with the city, Schlosser also began working for an asphalt company. He was employed by that company until November 2001, at which time he was laid off. As a result of losing his job at the asphalt company, he filed a claim for unemployment insurance benefits. In response to a DOL Determination Notice stating that Schlosser’s benefits were fully chargeable to the City of Frederick, the city requested a hearing. The City claimed it should not be charged for any of Schlosser’s benefits because it was a concurrent employer. As a result of that hearing, the administrative law judge (ALJ) concluded that the city was a concurrent employer in regard to those duties for which Schlosser was paid the guaranteed amount of $1500. The ALJ also concluded that all other additional duties for which Schlosser was paid $7.50 an hour were on-call duties, and therefore, the city was chargeable for those amounts. Without elaboration, the circuit court affirmed.

[¶ 6.] The City of Frederick appeals on four separate issues. We consolidate *285 those issues into a single question: Whether the ALJ erred in concluding that only $1,500 per year of Schlosser’s income from the city should be treated as coming from concurrent employment?

Analysis and Decision

[¶ 7.] Our review of administrative appeals is governed by SDCL 1-26-36, which provides:

The court shall give great weight to the findings made and inferences drawn by an agency on questions of fact. The court may affirm the decision of the agency or remand the case for further proceedings. The court may reverse or modify the decision if substantial rights of the appellant have been prejudiced because the administrative findings, inferences, conclusions, or decisions are:
1. In violation of constitutional or statutory provisions;
2. In excess of the statutory authority of the agency;
3. Made upon unlawful procedure;
4. Affected by other error of law;
5. Clearly erroneous in light of the entire evidence in the record; or
6. Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.
A court shall enter its own findings of fact and conclusions of law or may affirm the findings and conclusions entered by the agency as part of its judgment. The circuit court may award costs in the amount and manner specified in chapter 15-17.

Under our standard of review, we give no deference to the legal conclusions rendered by either the ALJ or the circuit court. Kurtz v. SCI, 1998 SD 37, ¶ 9, 576 N.W.2d 878, 882 (citation omitted). Interpretation of statutes and administrative rules present a question of law, and thus they are fully renewable. Esling v. Krambeck, 2003 SD 59, ¶ 6, 663 N.W.2d 671, 675.

[¶ 8.] ARSD 47:06:04:05 provides:

If a claimant is currently working for a base period employer at the time a new claim for benefits is filed, the claimant’s weekly benefit amount and minimum base period wages, as required by SDCL 61-6-7, shall be computed using total base period wages from all base period employers. The claimant’s maximum benefit amoimt does not include, and the current employer is not chargeable for, benefits based on wages from the cmrent employer if the employer continues to provide employment to the same extent as ivas provided during the base period and the employment provided is not “on-call” employment for which no work schedule is established. Employment which provides generally the same ivork schedule on a continuing basis but offers employees the option of accepting available work is not “on-call” employment.
If the claimant later separates from the current employer or the employer fails to provide employment to the same extent as provided during the base period, benefits based on such employment shall be included in the maximum benefit amount and employer charges shall be determined under SDCL 61-5-29 or 61-5-29.1.

(Emphasis added.) * See generally SDCL 61-6-6 to 61-6-8.

*286 [¶ 9.] We begin our analysis by noting that the administrative rules do not prohibit a finding that an employer may be classified as both concurrent and non-concurrent. The rules do not suggest that an employer must be either chargeable for all benefits or not chargeable for any benefits.

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Cite This Page — Counsel Stack

Bluebook (online)
2003 SD 145, 673 N.W.2d 283, 2003 S.D. LEXIS 173, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-frederick-v-schlosser-sd-2003.