This opinion will be unpublished and may not be cited except as provided by Minn. Stat. § 480A.08, subd. 3 (2014).
STATE OF MINNESOTA IN COURT OF APPEALS A14-1786
Jolene Van Wyhe, Relator,
vs.
Thermospas Hot Tub Products, Inc., Respondent,
Department of Employment and Economic Development, Respondent.
Filed May 11, 2015 Reversed Chutich, Judge
Department of Employment and Economic Development File No. 32619513-3
John T. Sullivan, Ashleigh M. Leitch, Best & Flanagan LLP, Minneapolis, Minnesota (for relator)
Thermospas Hot Tub Products, Inc., Wallingford, Connecticut (respondent employer)
Lee B. Nelson, Munazza Humayun, Department of Employment and Economic Development, St. Paul, Minnesota (for respondent Department)
Considered and decided by Smith, Presiding Judge; Chutich, Judge; and Minge,
Judge.
Retired judge of the Minnesota Court of Appeals, serving by appointment pursuant to Minn. Const. art. VI, § 10. UNPUBLISHED OPINION
CHUTICH, Judge
Relater Jolene Van Wyhe brings a certiorari appeal of a determination that she is
ineligible for unemployment benefits, arguing that the unemployment-law judge erred by
concluding that she performed services 32 hours per week. Van Wyhe also asserts that
the unemployment-law judge’s 2012 decision, which found Van Wyhe eligible for
benefits under identical circumstances, collaterally estops him from now finding her
ineligible. Van Wyhe further urges this court to reverse a fraud determination. Because
an employee who is on call away from the worksite for 32 hours per week but not
working is not “performing services” under the statute, we reverse.
FACTS
Jolene Van Wyhe began working for Thermospas Hot Tub Products, Inc. in 2008.
She was laid off in December 2011 and then rehired by Thermospas in June 2012. A
sales representative compensated by commission, Van Wyhe did not receive a salary or
an hourly wage. Her position required her to go to appointments for potential customers;
if no appointments were scheduled, Van Wyhe had to remain on standby, which she did
mainly at home.
Thermospas required Van Wyhe to be available 30 hours per week; to participate
in Thermospas’s benefits program, she had to be available 32 hours per week.1 Leads for
possible customers were frequently scarce, and Van Wyhe often went two weeks without
1 In her brief, Van Wyhe asserts that the benefits package only provided the opportunity to participate in Thermospas’s health plan.
2 a lead. Because she was required to be on standby, she could not work another job.
When she had no appointments, Van Wyhe did paperwork, followed-up with customers,
and searched for more secure employment. She did ultimately find full-time work with
another company. During the relevant time period at issue, Van Wyhe reported working
an average of about 13 hours per week; the most she reported working in a week was 25
hours, and several weeks she reported fewer than 10 hours of work. Based on the
numbers of hours and income Van Wyhe reported, she received unemployment benefits.
Van Wyhe did not seek benefits for the time she spent working but instead for the periods
when she was at home merely waiting to work.
In June 2014, the Minnesota Department of Employment and Economic
Development (the department) asked Thermospas for Van Wyhe’s wage and hour
information from February 23, 2014, through May 31, 2014; Thermospas reported that
Van Wyhe worked 40 hours a week each week.
On July 1, 2014, the department sent Van Wyhe a determination of ineligibility for
this period, concluding that she worked more than 32 hours per week. On July 2, 2013, it
sent her a fraud determination. On July 16, 2014, Van Wyhe timely appealed, and an
evidentiary hearing on the ineligibility determination was conducted via telephone on
July 30, 2014.
The unemployment-law judge issued a decision on August 1, 2014. The judge
determined that Van Wyhe was ineligible for benefits from February 23 through May 31.
He found that Van Wyhe reserved 32 hours a week to be on call and that while she was
on call, she received compensation in the form of benefits and commissions.
3 Van Wyhe requested reconsideration. In her request, Van Wyhe informed the
unemployment-law judge that he had previously conducted a hearing between Van Wyhe
and Thermospas in 2012 on the same issue. Under identical circumstances, the same
unemployment-law judge found that although she was on call for 66 hours per week, she
did not work 32 hours or more per week. He therefore concluded that Van Wyhe was
eligible for unemployment benefits in 2012. Despite this previous ruling, the
unemployment-law judge nevertheless affirmed the August 2014 decision. Van Wyhe
brought this certiorari appeal.
DECISION
The purpose of the Minnesota Unemployment Insurance Program is to assist those
who become unemployed through no fault of their own. Minn. Stat. § 268.03, subd. 1
(2014). Chapter 268 is remedial in nature and must be applied in favor of awarding
unemployment benefits. Minn. Stat. § 268.031, subd. 2 (2014). Any provision
precluding an applicant from benefits must be narrowly construed. Id.
This court may affirm the decision of an unemployment-law judge or remand the
case for further proceedings; it may also reverse or modify the decision if the substantial
rights of the petitioner may have been prejudiced because the findings, inferences,
conclusion, or decision is affected by an error of law or unsupported by substantial
evidence in view of the record as a whole. Minn. Stat. § 268.105, subd. 7(d) (2014).
An unemployment-law judge’s factual findings are viewed in a light most
favorable to the decision, and they will not be disturbed if the evidence substantially
sustains them. Skarhus v. Davanni’s Inc., 721 N.W.2d 340, 344 (Minn. App. 2006). But
4 whether an employee is ineligible to receive unemployment benefits is a question of law
and reviewed de novo. Bergen v. Sonnie of St. Paul, Inc., 799 N.W.2d 234, 236 (Minn.
App. 2011).
I. Performing Services
Van Wyhe first argues that the unemployment-law judge erred as a matter of law
by determining that she was “performing services” when she was on call and available 32
hours per week. The department counters that being available was the service that Van
Wyhe performed.
An applicant is ineligible to receive unemployment benefits for any week if “the
applicant is performing services 32 hours or more, in employment, covered employment,
noncovered employment, volunteer work, or self-employment regardless of the amount
of any earnings.” Minn. Stat. § 268.085, subd. 2(6) (2014). Similarly, an applicant is
considered “unemployed” in any week that the applicant “performs less than 32 hours of
service in employment” and any earnings that week are less than the applicant’s weekly
unemployment benefit amount. Minn. Stat. § 268.035, subd. 26 (2014).
In his decision, the unemployment-law judge concluded that Van Wyhe worked 32
hours per week because she was “reserving 32 hours or more per week for employment
with Thermospas,” and that she was “working in this on-call capacity, and she was being
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This opinion will be unpublished and may not be cited except as provided by Minn. Stat. § 480A.08, subd. 3 (2014).
STATE OF MINNESOTA IN COURT OF APPEALS A14-1786
Jolene Van Wyhe, Relator,
vs.
Thermospas Hot Tub Products, Inc., Respondent,
Department of Employment and Economic Development, Respondent.
Filed May 11, 2015 Reversed Chutich, Judge
Department of Employment and Economic Development File No. 32619513-3
John T. Sullivan, Ashleigh M. Leitch, Best & Flanagan LLP, Minneapolis, Minnesota (for relator)
Thermospas Hot Tub Products, Inc., Wallingford, Connecticut (respondent employer)
Lee B. Nelson, Munazza Humayun, Department of Employment and Economic Development, St. Paul, Minnesota (for respondent Department)
Considered and decided by Smith, Presiding Judge; Chutich, Judge; and Minge,
Judge.
Retired judge of the Minnesota Court of Appeals, serving by appointment pursuant to Minn. Const. art. VI, § 10. UNPUBLISHED OPINION
CHUTICH, Judge
Relater Jolene Van Wyhe brings a certiorari appeal of a determination that she is
ineligible for unemployment benefits, arguing that the unemployment-law judge erred by
concluding that she performed services 32 hours per week. Van Wyhe also asserts that
the unemployment-law judge’s 2012 decision, which found Van Wyhe eligible for
benefits under identical circumstances, collaterally estops him from now finding her
ineligible. Van Wyhe further urges this court to reverse a fraud determination. Because
an employee who is on call away from the worksite for 32 hours per week but not
working is not “performing services” under the statute, we reverse.
FACTS
Jolene Van Wyhe began working for Thermospas Hot Tub Products, Inc. in 2008.
She was laid off in December 2011 and then rehired by Thermospas in June 2012. A
sales representative compensated by commission, Van Wyhe did not receive a salary or
an hourly wage. Her position required her to go to appointments for potential customers;
if no appointments were scheduled, Van Wyhe had to remain on standby, which she did
mainly at home.
Thermospas required Van Wyhe to be available 30 hours per week; to participate
in Thermospas’s benefits program, she had to be available 32 hours per week.1 Leads for
possible customers were frequently scarce, and Van Wyhe often went two weeks without
1 In her brief, Van Wyhe asserts that the benefits package only provided the opportunity to participate in Thermospas’s health plan.
2 a lead. Because she was required to be on standby, she could not work another job.
When she had no appointments, Van Wyhe did paperwork, followed-up with customers,
and searched for more secure employment. She did ultimately find full-time work with
another company. During the relevant time period at issue, Van Wyhe reported working
an average of about 13 hours per week; the most she reported working in a week was 25
hours, and several weeks she reported fewer than 10 hours of work. Based on the
numbers of hours and income Van Wyhe reported, she received unemployment benefits.
Van Wyhe did not seek benefits for the time she spent working but instead for the periods
when she was at home merely waiting to work.
In June 2014, the Minnesota Department of Employment and Economic
Development (the department) asked Thermospas for Van Wyhe’s wage and hour
information from February 23, 2014, through May 31, 2014; Thermospas reported that
Van Wyhe worked 40 hours a week each week.
On July 1, 2014, the department sent Van Wyhe a determination of ineligibility for
this period, concluding that she worked more than 32 hours per week. On July 2, 2013, it
sent her a fraud determination. On July 16, 2014, Van Wyhe timely appealed, and an
evidentiary hearing on the ineligibility determination was conducted via telephone on
July 30, 2014.
The unemployment-law judge issued a decision on August 1, 2014. The judge
determined that Van Wyhe was ineligible for benefits from February 23 through May 31.
He found that Van Wyhe reserved 32 hours a week to be on call and that while she was
on call, she received compensation in the form of benefits and commissions.
3 Van Wyhe requested reconsideration. In her request, Van Wyhe informed the
unemployment-law judge that he had previously conducted a hearing between Van Wyhe
and Thermospas in 2012 on the same issue. Under identical circumstances, the same
unemployment-law judge found that although she was on call for 66 hours per week, she
did not work 32 hours or more per week. He therefore concluded that Van Wyhe was
eligible for unemployment benefits in 2012. Despite this previous ruling, the
unemployment-law judge nevertheless affirmed the August 2014 decision. Van Wyhe
brought this certiorari appeal.
DECISION
The purpose of the Minnesota Unemployment Insurance Program is to assist those
who become unemployed through no fault of their own. Minn. Stat. § 268.03, subd. 1
(2014). Chapter 268 is remedial in nature and must be applied in favor of awarding
unemployment benefits. Minn. Stat. § 268.031, subd. 2 (2014). Any provision
precluding an applicant from benefits must be narrowly construed. Id.
This court may affirm the decision of an unemployment-law judge or remand the
case for further proceedings; it may also reverse or modify the decision if the substantial
rights of the petitioner may have been prejudiced because the findings, inferences,
conclusion, or decision is affected by an error of law or unsupported by substantial
evidence in view of the record as a whole. Minn. Stat. § 268.105, subd. 7(d) (2014).
An unemployment-law judge’s factual findings are viewed in a light most
favorable to the decision, and they will not be disturbed if the evidence substantially
sustains them. Skarhus v. Davanni’s Inc., 721 N.W.2d 340, 344 (Minn. App. 2006). But
4 whether an employee is ineligible to receive unemployment benefits is a question of law
and reviewed de novo. Bergen v. Sonnie of St. Paul, Inc., 799 N.W.2d 234, 236 (Minn.
App. 2011).
I. Performing Services
Van Wyhe first argues that the unemployment-law judge erred as a matter of law
by determining that she was “performing services” when she was on call and available 32
hours per week. The department counters that being available was the service that Van
Wyhe performed.
An applicant is ineligible to receive unemployment benefits for any week if “the
applicant is performing services 32 hours or more, in employment, covered employment,
noncovered employment, volunteer work, or self-employment regardless of the amount
of any earnings.” Minn. Stat. § 268.085, subd. 2(6) (2014). Similarly, an applicant is
considered “unemployed” in any week that the applicant “performs less than 32 hours of
service in employment” and any earnings that week are less than the applicant’s weekly
unemployment benefit amount. Minn. Stat. § 268.035, subd. 26 (2014).
In his decision, the unemployment-law judge concluded that Van Wyhe worked 32
hours per week because she was “reserving 32 hours or more per week for employment
with Thermospas,” and that she was “working in this on-call capacity, and she was being
compensated for this work in the form of benefits and commissions.”
The outcome here turns on the meaning of “performing services.” Section
268.035, the definition section of chapter 268, defines neither the phrase nor the words
“perform” or “services” individually. We therefore must interpret the statute to decide
5 whether Van Wyhe is eligible for benefits. When we interpret statutes, nontechnical
words and phrases not defined in a chapter are construed according to their common and
approved usage. Minn. Stat. § 645.08(1) (2014).
“Perform,” as a verb, is defined as “[t]o begin and carry through to completion;
do,” and “[t]o take action in accordance with the requirements of; fulfill.” The American
Heritage Dictionary 1305 (4th ed. 2000). “Service,” as a noun, is defined as
“performance of work or duties for a superior,” and “[w]ork done for others as an
occupation or business.” Id. at 1591.
Based on these definitions, we conclude that the unemployment-law judge erred
by determining that Van Wyhe was “performing services” for 32 hours per week. The
definition of “perform” implies that some action was taken. Here, however, Van Wyhe
was—for many hours a week—not performing any action on behalf of or for
Thermospas; she was merely at home waiting to work. Although she testified that she
spent some hours doing paperwork and following up with clients, these hours are
reflected in the time she reported to the department. And no evidence shows that Van
Wyhe was “performing” any “services” during the remaining hours of each week.
Because Van Wyhe did not perform services for 32 or more hours per week, the
unemployment-law judge erred by determining that she was ineligible for benefits.
Although no caselaw addresses this specific language at issue, we are persuaded
by the reasoning in Minneapolis Park & Recreation Bd. v. LeCuyer, 457 N.W.2d 760
(Minn. App. 1990), review denied (Minn. Sept. 20, 1990). The issue in LeCuyer was
whether an employee was “unemployed” under the statute when he was on call and not
6 working but received previously accumulated wages.2 Id. at 762. The respondent-
employee in LeCuyer was a full-time worker who was “‘on call’ to do work when it was
available.” Id. at 761. He filed for unemployment benefits for the periods when he was
not actually at his work site. Id. at 761-62. This court stated, “It is undisputed that
LeCuyer was not performing services for the Park Board during the periods for which [he
was on call but not working].” Id. at 762.
This reasoning supports the conclusion that an employee who is on call away from
the worksite and waiting to work is not “performing services,” and, therefore, is eligible
for unemployment benefits so long as she is not engaging in other work-related duties for
32 or more hours per week. Much like the employee in LeCuyer, Van Wyhe did not seek
benefits for the time she spent at a work site, doing paperwork, or following up with
clients, but instead for the periods when she was at home merely waiting to work. Based
on this analysis, the hours Van Wyhe spent waiting to receive sales leads that she could
pursue were not spent “performing services,” and the unemployment-law judge erred by
concluding otherwise.
Because Van Wyhe did not “perform services” for 32 hours per week, the
unemployment-law judge erred by determining that she was ineligible for benefits.
2 LeCuyer dealt with an earlier version of chapter 268, which contained a different definition of “unemployment.” Compare Minn. Stat. § 268.04, subd. 23 (1988) (defining “unemployment” as “performs no service and with respect to which no wages are payable to the individual”), with Minn. Stat. § 268.35, subd. 26 (2014) (defining “unemployed” as “performs less than 32 hours of service in employment . . . [and] any earnings with respect to that week are less than the applicant’s weekly unemployment benefit amount”).
7 Based on this conclusion, we do not address Van Wyhe’s argument regarding collateral
estoppel.
II. Fraud
Van Wyhe next argues that the department’s fraud determination requires reversal.
The department concedes that it erred by failing to schedule an evidentiary hearing on
this issue but claims that the finding of fraud is not properly before us.
Minnesota Statutes section 268.105, subdivision 7(a) (2014), states that we will
review an unemployment-law judge’s decision on reconsideration provided that a petition
for a writ of certiorari is filed with the court. Because no hearing was held on the fraud
issue, and therefore no decision on reconsideration was rendered, the department is
correct that this issue is not properly before us. But we note that based on our decision
above, this issue is now likely moot.
Reversed.