KBI, Inc. v. Review Board of the Indiana Department of Workforce Development

656 N.E.2d 842, 1995 Ind. App. LEXIS 1340, 1995 WL 619026
CourtIndiana Court of Appeals
DecidedOctober 24, 1995
Docket93A02-9501-EX-41
StatusPublished
Cited by30 cases

This text of 656 N.E.2d 842 (KBI, Inc. v. Review Board of the Indiana Department of Workforce Development) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
KBI, Inc. v. Review Board of the Indiana Department of Workforce Development, 656 N.E.2d 842, 1995 Ind. App. LEXIS 1340, 1995 WL 619026 (Ind. Ct. App. 1995).

Opinion

OPINION

FRIEDLANDER, Judge.

KBI, Inc. appeals the decision of the Review Board of the Indiana Department of Workforee Development (Review Board) which determined that Kyle Cox, a former KBI employee, had not been discharged for "just cause" and was eligible for unemployment benefits following termination from the company.

We affirm.

The facts most favorable to the judgment are that Cox was employed by KBI as a "break and lunch" person for approximately two years. KBI bakes and sells soft bread, and Cox typically worked from 12:00 a.m. to 8:80 a.m.. KBI permitted its employees to take damaged buns at no charge, and they were entitled to purchase non-damaged goods through a KBI supervisor or office manager.

During Cox's shift on July 31, 1994, KBI had a run of damaged rolls which were going to be discarded. Cox picked up a rack of the damaged rolls and loaded them into his truck at the end of his shift. The office manager observed Cox take the rolls, and it was determined that he had not paid for them. Cox did not seek permission from the company before taking the rolls. Cox was aware of KBI's policy regarding employee purchases of bread, and he had bought some rolls on prior occasions. While KBI required its employees to complete a purchase form before buying any rolls, it did not have a similar policy regarding damaged goods. On past occasions, Cox had always requested permission from his supervisor before taking any damaged product.

Following this incident, KBI suspended Cox pending further investigation. The following day, KBI discharged Cox for violating the following company rule:

"Violations of the following rules shall result in disciplinary action which could include written reprimand, days off without pay or discharge.
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A. Rules of Conduct
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4. Any theft of money or property is forbidden."

Record at 22, 56.

Cox filed for unemployment benefits on August 2, 1994, and an initial determination was made that Cox was not discharged for just cause and was entitled to benefits. On October 18, a hearing was conducted before an Administrative Law Judge (ALJ). Cox's entitlement to benefits was affirmed, and the ALJ issued a decision which provided in relevant part as follows:

"FINDINGS OF FACT: It is the finding of this Administrative Law Judge (ALJ) that the facts in the matter are as follows:
-that the claimant was employed by the employer, a bakery of soft rolls, for approximately two years as a break and Iunch person.
-that the employer discharged the claimant because the claimant allegedly committed theft.
-that the employer presented a copy of work rules which were posted in the employees break room as well as reviewed with employees at orientation when they were hired.
-that the claimant admitted that he was aware of the rules.
-that the specific rule is noted. below:
Violations of the following rules shall result in disciplinary action which could include written reprimand, days off without pay, or discharge.
A. RULES OF CONDUCT
4. Any theft of money or property is forbidden.
-that, on July 31, 1994, the claimant, had just completed his 12:00 p.m. to 8:00 a.m. shift.
-that the shift had many damaged goods.
*845 -that the claimant found a tray of buns headed for the trash which were 'damaged goods.
-that the claimant took the tray and placed it in his blue truck.
-that such was observed by the employer representative, present at the hearing, Ms. Treng Carlton, Office Manager.
-that the total value was $5.00: $2.50 for the tray and $2.50 for the approximate value of the damaged goods.
-that the employer does have a policy that requires that employees may purchase products from the employer, but that the transaction must be recorded on a three-part memorandum.
-that, previously, on July 8, 1994, the claimant had purchased some of the employer's products, which was recorded on a three-part memorandum.
-that these were not damaged goods.
-that the claimant took the tray because on past occasions when other supervisors were requested if damaged goods could be taken, the claimant, along with other employees were told that such could occur and that it was unnecessary to ask for authorization.
-that no other statement or documentation was presented by the employer indicating that such could not occur.
-that no policy regarding purchases was introduced into the record.
-that Ms. Carlton reported her observations to the Production Manager, Mr. Robert Greenwalt.
-that Mr. Greenwalt immediately informed the Plant Manager, Mr. Edward Piasecki.
-that the claimant was informed by Mr. Greenwalt, over the telephone, that he was suspended until further investigation of this matter.
-that, in this conversation, the claimant indicated that he 'had the buns' but did not steal them.
-that the claimant offered to return the tray of buns and pay for them.
-that Mr. Greenwalt denied the request.
-that, on the following day, a letter was sent to the claimant indicating that he was terminated.
. -that the purpose of the policy was to insure honesty between the employer and the employee. °
-that the policy was uniformly enforced.
-that no conviction of a felony or Class A Misdemeanor has resulted from this matter.
-that the claimant's only statement to Mr. Greenwalt was that he 'had the buns.
CONCLUSIONS OF LAW: Chapter 15 6.1 of the Act provides the following:
See. 6.1 Notwithstanding any other provisions of this article, all of the individual's wage credits established prior to the day upon which the individual was discharged for gross misconduct in connection with work are cancelled. 'Gross misconduct' includes a felony or a Class A misdemeanor committed in connection with work but only if the felony or misdemeanor is admitted by the individual or has resulted in a conviction....
The term 'admitted as used in Chapter 15-6.1 contemplates an unequivocal written or verbal acknowledgment by the employee that he or she perpetrated the act or acts alleged to constitute gross misconduct. Skirvin v. Review Board, (1976) 171 Ind.App.

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656 N.E.2d 842, 1995 Ind. App. LEXIS 1340, 1995 WL 619026, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kbi-inc-v-review-board-of-the-indiana-department-of-workforce-indctapp-1995.