Employment Security Commission v. Kosic

471 P.2d 757, 12 Ariz. App. 455
CourtCourt of Appeals of Arizona
DecidedSeptember 29, 1970
Docket2 CA-CIV 790
StatusPublished
Cited by4 cases

This text of 471 P.2d 757 (Employment Security Commission v. Kosic) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona 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. Kosic, 471 P.2d 757, 12 Ariz. App. 455 (Ark. Ct. App. 1970).

Opinion

HOWARD, Chief Judge.

The Employment Security Commission of Arizona, respondent below, appeals from the judgment of the Superior Court wherein said court held that the appellee, Charlotte Ann Kosic, was entitled to unemployment benefits in the sum of $239.00.

Charlotte Ann Kosic, appellee, instituted the action below by timely filing a petition for judicial review pursuant to § 23-681, A.R.S., alleging that the decision of the Commission which affirmed the decision of the Appeal Tribunal was arbitrary and capricious.

There were two separate periods of alleged eligibility involved and both the Commission and the Appeal Tribunal held that the appellee was temporarily unavailable for work and therefore, ineligible for unemployment benefits.

The claimant for unemployment benefits, Charlotte Ann Kosic, age 29, housewife with three children ages nine, eight and six, worked for approximately six months in Tucson, Arizona, from January of 1967 until June of 1967, as a salesclerk in a department store. She had no previous employment in Arizona. Her job at the Tucson department store was only part-time work; her total earnings for the six-month period of work was $716.80. In August of 1967, the Kosic family moved from Tucson to Sells, Arizona, on an Indian reservation 61 miles from the City of Tucson. The move to Sells was required by the federal government because of her husband’s employment for the Bureau of Indian Affairs as a schoolteacher on the Indian reservation in Sells. On March 25, 1968, Mrs. Kosic filed her first claim for weekly unemployment benefits.

The ruling of both the Employment Security Commission and the Appeal Tribunal was based upon the fact that Mrs. Kosic had no reasonable expectancy of obtaining employment as a salesclerk in Sells, Arizona and therefore was not available for work.

A.R.S. § 23-771 provides in part:

“An unemployed individual shall be eligible to receive benefits with respect to any week only if the commission finds that:
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* * * he is * * * available for work.”

The requirement that a claimant be “available for work” is a feature of all state unemployment compensation laws. Cramer v. Employment Security Commission of Arizona, 90 Ariz. 350, 367 P.2d 956 (1962). A split of authority has developed, however, among those state courts which have considered the question of availability in the case of a claimant who has moved to an area where employment opportunities do not exist or are severely restricted.

Some state courts have held that when a worker leaves an economically active area and moves to an area where little or no opportunity exists for work, he has made himself unavailable within the meaning of the law. See collection of cases at 13 A.L.R.2d 874, 883, including Huiet v. Schwob Manufacturing Company, 196 Ga. 855, 27 S.E.2d 743 (1943), and Wiley v. Carroll, 201 S.W.2d 320 (Mo.1947); Claim of Sapp, 75 Idaho 65, 266 P.2d 1027 (1954). We, however, believe that a better view is expressed by other courts who feel that in such situations it is the work, rather than the worker, that is unavailable. The cases holding that a worker can be “available” even though employment may be precluded by lack of job opportunities in the area to which he has moved are collected at 13 A.L.R.2d 874, 880. These include Reger v. Administrator, 132 Conn. 647, 46 A.2d 844 (1946) and Leonard v. Unemployment Compensation Board, 148 Ohio St. 419, 75 N.E.2d 567 *458 (1947). See, also, the more recent cases of Ashmore v. Unemployment Compensation Commission, 7 Terry 565, 46 Del. 565, 86 A.2d 751 (1952), and Parsons v. Employment Security Commission, 71 N.M. 405, 379 P.2d 57 (1963).

We note that the Commission and the Appeal Tribunal dwelt at length upon whether or not the appellee was actively seeking work in Tucson. What the labor market was in Tucson and the availability ■of the appellee for work in Tucson was entirely irrelevant. There is no requirement that a claimant must be available for work in the locality in which he last worked or resided. The fact that a claimant has moved from one place to another does not form a basis for holding him unavailable for work even if it appears that his chances for employment would have been better if he had remained in his former locality. Ashmore v. Unemployment Compensation Commission, supra. Appellee’s labor market area was not Tucson but rather Sells. Authoritative assistance on this subject can be derived from Mr. Ralph Altman and his book on the subject which has been cited by the Ariz'ona Supreme Court in the Cramer case, supra, Availability for Work, Altman, Harvard University Press, 1950. This book contains an entire chapter on “the labor market” and in that chapter the following statement is made:

“The hiring or job-finding area is primarily local. It is this area that the United States Employment Service has in mind when it refers to a ‘labor-market area’. Unlike the wage-setting area, the hiring area can be described quite specifically in terms of the space it covers. The United States Employment Service defines roughly and for working purposes as an area within which workers can and do commute regularly from their homé to jobs without having to change their residence. When we think of the job-finding area for a particular' point we may think of the surrounding territory within a radius that seldom exceeds 50 miles.” (Emphasis added.)

Arizona is committed to a liberal and not a strict interpretation of the Unemployment Compensation Act, especially regarding availability for work. In the Cramer case; the Supreme Court of Arizona stated that:

“The Employment Security Act is remedial and should be liberally construed in keeping with its beneficent purposes.”

The purpose of the “availability” rule is set forth in Cramer:

“The purpose of the requirement that a claimant be ‘available for work’ is to test the claimant’s attachment to the labor market. It is to determine if he is unemployed because of lack of suitable job opportunities or for some other reason such as physical incapacity or unwillingness to work.” (Emphasis added.)

We believe that the “reasonable expectancy” test is not the test in Arizona and are fortified in that belief by the case of Beaman v. Safeway Stores, 78 Ariz. 195, 277 P.2d 1010

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Employment Security Commission v. Kosic
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471 P.2d 757, 12 Ariz. App. 455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/employment-security-commission-v-kosic-arizctapp-1970.