Employment Security Commission v. Children's Hospital

362 N.W.2d 819, 139 Mich. App. 525
CourtMichigan Court of Appeals
DecidedDecember 17, 1984
DocketDocket 66478
StatusPublished
Cited by5 cases

This text of 362 N.W.2d 819 (Employment Security Commission v. Children's Hospital) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Employment Security Commission v. Children's Hospital, 362 N.W.2d 819, 139 Mich. App. 525 (Mich. Ct. App. 1984).

Opinions

Mackenzie, J.

This is an unemployment compensation case in which we must decide whether [527]*527an employee who is terminated for failure to meet state licensing requirements is entitled to receive benefits.

Appellant, the Michigan Employment Security Commission, appeals as of right from an order of the Wayne County Circuit Court reversing the decision of the Michigan Employment Security Board of Review. The board of review had affirmed a MESC referee’s determination that Patricia A. Ponder was eligible for unemployment benefits.

After her graduation from a registered nursing program, claimant obtained a temporary license pursuant to MCL 333.16181; MSA 14.15(16181) and began working for appellee Children’s Hospital of Michigan as a graduate nurse on July 17, 1978. Thereafter claimant twice took the state licensing examination which, if passed, would qualify her as a registered nurse. She failed both times. As a result, claimant necessarily lost both her temporary license and, on May 24, 1979, her employment with the hospital.

The claimant thereafter applied for unemployment benefits, which were approved on June 13, 1979. Redeterminations upholding the award of benefits to claimant were subsequently issued by the MESC, and the hospital timely requested a referee hearing. In an opinion dated May 2, 1980, the referee affirmed the MESC; this ruling was in turn affirmed by the board of review on January 21, 1982. The Wayne County Circuit Court reversed the board’s decision on appeal, holding that, under MCL 421.29(l)(a); MSA 17.531(l)(a), the claimant’s failure to "maintain a prerequisite for hire and for continued employment * * * must be deemed to be a 'voluntary leaving without good cause attributable to the employer’ ”.

On appeal from decisions of the board of review, this Court may review questions of law or fact. [528]*528Const 1963, art 6, § 28; MCL 421.38; MSA 17.540; Chrysler Corp v Sellers, 105 Mich App 715, 720; 307 NW2d 708 (1981). However, the decision of the board of review may be reversed only if it is contrary to law or is unsupported by competent, material, and substantial evidence on the record. Sellers, p 720.

The sole issue presented here is whether a claimant whose failure to pass a licensing examination necessitates the termination of her job can be said to have "voluntarily” left her employment under MCL 421.29(l)(a); MSA 17.531(l)(a), which provides:

"(1) Grounds. An individual shall be disqualified for benefits in all cases in which he:
"(a) Has left work voluntarily without good cause attributable to the employer or employing unit.”1

Our inquiry begins with a brief review of the public policy behind the passage of the Michigan Employment Security Act, for its provisions "must be read in the light of the purpose of the Legislature in enacting it”. I M Dach Underwear Co v Employment Security Comm, 347 Mich 465, 471; 80 NW2d 193 (1956). The "Declaration of Policy” as found in § 2 of the act, MCL 421.2; MSA 17.502, says:

"Economic insecurity due to unemployment is a serious menace to the health, morals, and welfare of the people of this state. Involuntary unemployment is a subject of general interest and concern which requires action by the legislature to prevent its spread and to lighten its burden which so often falls with crushing [529]*529force upon the unemployed worker and his family, to the detriment of the welfare of the people of this state. Social security requires protection against this hazard of our economic life. Employers should be encouraged to provide stable employment. The systematic accumulation of funds during periods of employment to provide benefits for periods of unemployment by the setting aside of unemployment reserves to be used for the benefit of persons unemployed through no fault of their own, thus maintaining purchasing power and limiting the serious social consequences of relief assistance, is for the public good, and the general welfare of the people of this state.” (Emphasis added.)

The act, therefore, was intended primarily for the benefit of those who are involuntarily unemployed, i.e., those who "are unemployed because of conditions [in the labor market] over which they have no control”. Dwyer v Unemployment Compensation Comm, 321 Mich 178, 188; 32 NW2d 434 (1948). (Emphasis added.)

Appellant MESC relies primarily on Thomas v Employment Security Comm, 356 Mich 665; 97 NW2d 784 (1959), for its position that in order to be disqualified under § 29(1)(a) an employee must intend to leave his job, or otherwise deliberately or negligently set in motion conditions which inevitably lead to his dismissal. In Thomas, an employee was arrested en route to work for driving his automobile without an operator’s license. Because of his subsequent conviction and incarceration, he was unable to report for work and his employment was terminated by his employer shortly thereafter. Addressing whether this sequence of events constituted leaving work voluntarily, the Court stated:

"The voluntary assumption of a risk which an employee knows may, but he trusts and assumes will not, keep him from work is not the voluntary leaving of his work. Doing an act, even though voluntarily, which [530]*530results, contrary to the doer’s hopes, wishes and intent, in his being kept forcibly from his work is not the same as voluntarily leaving his work. The statute mentions the latter, but not the former, as an act disqualifying for benefits.” Thomas, supra, p 669.

Numerous other Michigan cases have since followed the Thomas rationale in holding that a voluntary act by an employee which results in his or her termination is not necessarily a voluntary leaving. See, e.g., Sullivan v Employment Security Comm, 358 Mich 338; 100 NW2d 713 (1960);2 Wickey v Unemployment Security Comm, 369 Mich 487; 120 NW2d 181 (1963); Larson v Employment Security Comm, 2 Mich App 540; 140 NW2d 777 (1966), and Laya v Cebar Construction Co, 101 Mich App 26; 300 NW2d 439 (1980).

Appellee hospital cites Echols v Employment Security Comm, 380 Mich 87; 155 NW2d 824 (1968), in support of its position that an employee who fails to maintain his statutorily required license has voluntarily left his employment. Echols involved a taxicab driver whose operator’s license was suspended for 90 days because of an accumulation of traffic violations. As a valid license was a prerequisite for employment, claimant no longer reported for work, but instead filed an application for unemployment benefits. The Michigan Supreme Court upheld the decision of the board of review by ruling that claimant had voluntarily left his job and was therefore disqualified from receiving unemployment benefits. In so holding, the majority rejected Justice Souris’ argument that such an interpretation would require the application of the doctrine of "constructive voluntary [531]*531leaving”, a doctrine the use of which has been repeatedly rejected by the Michigan Supreme Court. See, e.g., Copper Range Co v Unemployment Compensation Comm, 320 Mich 460, 469; 31 NW2d 692 (1948); Thomas, supra, p 669, and Jenkins v Employment Security Comm, 364 Mich 379, 384; 110 NW2d 899 (1961).

Similarly, the Court in

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Employment Security Commission v. Children's Hospital
362 N.W.2d 819 (Michigan Court of Appeals, 1984)

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Bluebook (online)
362 N.W.2d 819, 139 Mich. App. 525, Counsel Stack Legal Research, https://law.counselstack.com/opinion/employment-security-commission-v-childrens-hospital-michctapp-1984.