Nakagaki v. ICAO

Colorado Court of Appeals·Decided April 16, 2026·No. 25CA2272·Unpublished

Opinion

25CA2272 Nakagaki v ICAO 04-16-2026 COLORADO COURT OF APPEALS

Court of Appeals No. 25CA2272 Industrial Claim Appeals Office of the State of Colorado DD No. 16035-2025

Brittany Nakagaki, Petitioner, v.

Industrial Claim Appeals Office of the State of Colorado and Eastern Rio Blanco County Health Services District, d/b/a Pioneers Medical Center,

Respondents.

ORDER AFFIRMED

Division V

Opinion by JUDGE TOW

Welling and Lipinsky, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e)

Announced April 16, 2026

Brittany Nakagaki, Pro Se No Appearance for Respondent Industrial Claim Appeals Office

Bechtel & Santo, Michael C. Santo, Keely McCabe, Grand Junction, Colorado, for Respondent Eastern Rio Blanco County Health Services District

¶1 Brittany Nakagaki appeals an order denying her claim for unemployment benefits. We affirm.

I. Background

¶2 Nakagaki worked as a hospital sterilization technician until her employer, East Rio Blanco County Health Services District (Employer), discharged her. Shortly thereafter, a deputy for the Division of Unemployment Insurance (Division) granted Nakagaki’s claim for unemployment benefits. Employer appealed that decision, and the Division conducted an evidentiary hearing regarding the reasons for Nakagaki’s job separation.

¶3 After the hearing, the hearing officer found that Employer discharged Nakagaki “for not following instructions given to her, not following sterilization procedures, and refusing to do work she was asked to do.” He further found that Nakagaki “was reasonably aware of the standards of her position and failed to meet them on multiple occasions.” The hearing officer concluded that Nakagaki was disqualified from receiving unemployment benefits for failing to meet “established job performance or other defined standards” under section 8-73-108(5)(e)(XX), C.R.S. 2025.

¶4 Nakagaki appealed to the Industrial Claim Appeals Office (Panel). The Panel affirmed, holding that the hearing officer’s factual findings “support the conclusion that [Nakagaki] is at fault for the separation from employment, and the disqualification is therefore warranted pursuant to [section] 8-73-108(5)(e)(XX).”

II. Standard of Review and Legal Principles

¶5 We may not disturb factual findings “supported by substantial evidence” and may only set aside the Panel’s decision if (1) the Panel acted without or in excess of its powers; (2) the decision was procured by fraud; (3) the factual findings do not support its decision; or (4) the decision is erroneous as a matter of law. § 8-74-107, C.R.S. 2025. Evidence is substantial if it is “probative, credible, and competent, of a character which would warrant a reasonable belief in the existence of facts supporting a particular finding, without regard to the existence of contradictory testimony or contrary inferences.” Rathburn v. Indus. Comm’n, 566 P.2d 372, 373 (Colo. App. 1977).

¶6 Section 8-73-108(5)(e)(XX) disqualifies a claimant from receiving benefits if their “failure to meet established job performance or other defined standards” caused their job

separation. To evaluate cause, the hearing officer considers the totality of the evidence and determines the motivating factors in the employee’s separation. Eckart v. Indus. Claim Appeals Off., 775 P.2d 97, 99 (Colo. App. 1989). “All that is required to establish a disqualification pursuant to [section] 8-73-108(5)(e)(XX) is that claimant did not do the job for which [they were] hired and which [they] knew was expected of [them].” Pabst v. Indus. Claim Appeals Off., 833 P.2d 64, 64-65 (Colo. App. 1992).

¶7 The disqualifying provisions of section 8-73-108(5)(e)(XX) “must be read in light of the express legislative intent . . . to provide benefits to those who become unemployed through ‘no fault’ of their own.” Cole v. Indus. Claim Appeals Off., 964 P.2d 617, 618 (Colo. App. 1998) (quoting § 8-73-108(1)(a)). Thus, even if the hearing officer’s findings may support a disqualification under that subsection, a claimant may still be entitled to benefits if the totality of the circumstances establishes that their job separation occurred through no fault of their own. Id. In this context, “fault” requires a volitional act or “the exercise of some control or choice by the claimant in the circumstances resulting in the separation such that the claimant can be said to be responsible for the separation.” Id.

III. Discussion

A. Established Job Performance Standards

¶8 Nakagaki does not challenge the hearing officer’s finding that she was terminated for failing to perform tasks as instructed. However, we discern that she argues that the hearing officer (and subsequently, the Panel) erred by finding that her nonperformance disqualified her because, according to Nakagaki, Employer often instructed her to perform tasks incorrectly, and “[r]efusing to perform an unsafe act does not constitute misconduct or insubordination.” We are not persuaded by this argument because the hearing officer did not find that she was disqualified for misconduct or insubordination. Rather, he found that she was disqualified for failing to meet established job performance or other defined standards. We perceive no error in the hearing officer’s findings or analysis.

¶9 The hearing officer found that Employer set forth explicit standards for sterilizing tools and that Nakagaki violated those standards. Specifically, the hearing officer found that, “[o]n June 13, 2024, [Nakagaki] was told ahead of time which cycle she needed to put instruments on to sterilize them[,] [but she] put the

instruments on the wrong cycle and they had to be rewashed.” The hearing officer also found that, “[o]n June 18, 2024, [Nakagaki] used the wrong cycle and wrong washer and instruments had to be rewashed.” And “on June 19, 2024, [Nakagaki] was told that Thompson retractors needed to be washed in washer #3[,] [but she] did not follow this instruction and the instruments had to be rewashed.” Finally, the hearing officer found that, on June 12 and June 17, 2024, Nakagaki failed to wash trays as instructed. Substantial evidence in the record supports these findings.

¶ 10 At the hearing, Employer presented testimony from Jill Adcock, Employer’s Director of Compliance. Adcock testified regarding each of the foregoing incidents, noting that Nakagaki had received direct communication regarding Employer’s sterilization standards and failed to meet them on those occasions. Though Nakagaki’s testimony largely contradicted Adcock’s on these points, we do not reweigh the evidence or second-guess the hearing officer’s credibility determinations. Sanchez v. Indus. Claim Appeals Off., 2017 COA 71, ¶ 57. Substantial evidence supports the hearing officer’s findings, and those findings, in turn, support the hearing officer’s and Panel’s ultimate conclusions that Nakagaki was

disqualified from receiving benefits under section 8-73-108(5)(e)(XX) and was at fault for her employment separation.

¶ 11 Though the hearing officer’s evidentiary factual findings arguably could have supported a disqualification under section 8-73-108(5)(e)(VI), which disqualifies claimants for “[i]nsubordination such as: [d]eliberate disobedience of a reasonable instruction of an employer or an employer’s duly authorized representative,” neither the hearing officer nor the Panel invoked that subsection. The hearing officer has broad discretion in determining which of multiple potentially applicable disqualification subsections it will apply, and disqualification is appropriate when employment separation occurs for any of the reasons articulated in subsection (5)(e). § 8-73-108(5)(e); see Mountain States Tel. & Tel. Co. v. Indus. Comm’n, 697 P.2d 418, 420 (Colo. App. 1985) (the hearing officer has broad discretion in applying statutory subsections). Because Nakagaki was not disqualified for insubordination, whether she actually was insubordinate makes no difference to our disposition.

B. Public Policy Exception

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