Downey v. Kentucky Unemployment Insurance Commission

479 S.W.3d 85, 2015 Ky. App. LEXIS 41, 2015 WL 1395905
CourtCourt of Appeals of Kentucky
DecidedMarch 27, 2015
DocketNO. 2013-CA-002110-MR
StatusPublished
Cited by4 cases

This text of 479 S.W.3d 85 (Downey v. Kentucky Unemployment Insurance Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Downey v. Kentucky Unemployment Insurance Commission, 479 S.W.3d 85, 2015 Ky. App. LEXIS 41, 2015 WL 1395905 (Ky. Ct. App. 2015).

Opinion

OPINION

VANMETER, JUDGE:

By statute, an employee who makes false statements in an application for unemployment benefits is disqualified from eligibility to receive those benefits. The issue presented in this case is whether an employee who made false statements to establish her right to benefits is disqualified even if the false statements were ultimately immaterial to the determination of entitlement to benefits. We hold that because the statute is clear and unambiguous and the decision of the Kentucky Unemployment Insurance Commission is sup[87]*87ported by substantial evidence, the Warren Circuit Court did not err in affirming the employee’s benefit denial.

. I. Facts and Procedure

Taffy Downey is a registered nurse who worked full-time at Kindred Nursing Center (“Kindred”). Kindred terminated Downey when she refused a work assignment to cover two halls instead of her usual one hall. A nurse had quit without providing notice leaving Kindred understaffed. This circumstance created a need for the available nurses to cover more patients than usual. Because she did not believe she could safely provide care to all the patients, Downey refused the work assignment. Downey’s reasoning for her refusal was that if she covered the extra hallway and provided less than adequate care for the patients, her .nursing license could have been put in jeopardy. KRS 1 314.021(2) states, “[ajll individuals licensed or privileged under provisions of this chapter shall be responsible and accountable for making decisions that are based upon the individuals’ educational preparation and experience in nursing and shall practice nursing with reasonable skill and safety.” Thus, Downey’s decision was based on her determination of whether she was capable of covering all the patients sufficiently. However, because other nurses covered multiple hallways as Downey had on previous occasions, Kindred saw her refusal as abandonment of the job. As a result, Kindred terminated her employment.

Upon termination, Downey immediately applied for unemployment -benefits from the Kentucky Unemployment Insurance Commission. Downey ■ stated her reason for separation as being “laid off’ due to “lack of work.” These statements provided Downey with benefits immediately. Kindred • subsequently refuted Downey’s statement in its explanation of separation and upon receiving Kindred’s statements, the Commission disqualified Downey from receiving benefits. Downey’s appeal resulted in a Referee decision holding she was not entitled to benefits for two separate reasons.

First, the Referee found Downey had been terminated for misconduct because Kindred’s- request to work multiple halls, which Downey refused, was a reasonable instruction. Downey’s .refusal was in direct violation of KRS 34Í.370(6).2 Second, the Referee decided Downey knowingly provided false information in order to obtain benefits by stating that she was “laid off due to lack of work.” These statements, made knowingly by Downey, directly violated KRS 341.370(2).3 After receiving the Referee’s decision, Downey appealed to the Commission.

The Commission affirmed the Referee’s decision in part and reversed in part. First, the Commission found Kindred’s inr struction to cover two hallways to be unreasonable in light of the undue hardship it would cause Downey. If Downey had accepted the assignment of covering both hallways and failed to provide all of the patients with adequate care, she ran the [88]*88risk of losing her. nursing license. Furthermore,:-Kindred’s responsibility was to ensure enough nurses staffed its facility. By placing the burden on Downey to-cover extra-patients when Kindred failed to have enough nurses for its patients, the instruction became unreasonable. In other words, Downey-was improperly discharged for failure to- obey - instruction since the instruction was unreasonable.

'Second, the Commission affirmed the Referee with respect to Downey’s false statement and the resulting disqualification to receive benefits. The Commission held that providing a knowingly false Statement disqualifies Downey from receiving benefit's. KRS 341.370(2). The Commission1 pointed out that the statute uses 'mandatory' language: “[a]’ worker shall be disqualified from receiving benefits for any week with respect to which he knowingly made a false statement' to establish his right to or thé amount of his benefits[.]” Id, (emphasis added).' Thus, once Downey violated the statute, she must be disqualified.' In addition, the Commission held, pursuant to regulation, that because of her fraudulent misrepresentation, Downey was further disqualified from receiving benefits for an additional twenty-six week period.4 787 KAR51:240 § 2. Downey appealed the Commission’s decision to the Warren Circuit Court, which affirmed the Commission’s decision. This appeal follows.6 ■ - -

II. Standard of Review

The standard of review of an unemployment benefit decision is.whether the Commission’s findings of fact were supported by substantial evidence and whether the agency correctly applied the law to the facts. Thompson v. Kentucky Unemployment Ins. Comm’n, 85 S.W.3d 621, 624 (Ky.App.2002). Substantial evidence is evidence that has enough probative value to make reasonable people agree as to a conclusion. Id. When substantial evidence supports the Commission’s decision, a reviewing court must defer to the finding even when the record contains evidence to the contrary. Urella v. Kentucky Bd. of Med. Licensure, 939 S.W.2d 869, 873 (Ky.1997); Kentucky Comm’n on Human Rights v. Fraser, 625 S.W.2d 852, 856 (Ky.1981). While the court must defer to findings of fact, it reviews issues of law de novo. Wilson v. Kentucky Unemployment Ins. Comm’n, 270 S.W.3d 915, 917 (Ky.App.2008).

III. . Analysis.

• The facts in this case are not disputed. The issue presented" is solely whether KRS 341.370(2) mandates Dow-ney be disqualified from receiving benefits due to her misrepresentation, even though [89]*89the misstatement ultimately was immaterial to her entitlement to benefits.

KRS 341.370(2) states:

A worker shall be disqualified from receiving benefits for any week with respect to which he knounngly made a false statement to establish his right to or the amount of his benefits,

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Bluebook (online)
479 S.W.3d 85, 2015 Ky. App. LEXIS 41, 2015 WL 1395905, Counsel Stack Legal Research, https://law.counselstack.com/opinion/downey-v-kentucky-unemployment-insurance-commission-kyctapp-2015.