Pierre v. ADM'R, LA. OFFICE OF EMP. SEC.

553 So. 2d 442
CourtSupreme Court of Louisiana
DecidedDecember 11, 1989
Docket89-CA-2122, 89-CA-2123
StatusPublished
Cited by1 cases

This text of 553 So. 2d 442 (Pierre v. ADM'R, LA. OFFICE OF EMP. SEC.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pierre v. ADM'R, LA. OFFICE OF EMP. SEC., 553 So. 2d 442 (La. 1989).

Opinion

553 So.2d 442 (1989)

Charles PIERRE
v.
ADMINISTRATOR, LOUISIANA OFFICE OF EMPLOYMENT SECURITY, and William J. Guste, Jr., Attorney General for the State of Louisiana, and Eat More Snacks, Inc.
consolidated with
Lisa RICHARDS
v.
ADMINISTRATOR, LOUISIANA OFFICE OF EMPLOYMENT SECURITY, and William J. Guste, Jr., Attorney General for the State of Louisiana.

No. 89-CA-2122, 89-CA-2123.

Supreme Court of Louisiana.

December 11, 1989.

*443 William J. Guste, Jr., Atty. Gen., David S. Dalia, Jesse James Marks, Asst. Attys. Gen., Sandra A. Broussard, James A. McGraw, Denise A. Nagel, Office of Employment Security, Baton Rouge, for appellant.

David H. Williams, New Orleans Legal Assistance, New Orleans, for appellee.

COLE, Justice.

This is a direct appeal from trial court judgments, declaring the prior-claim requirement of LSA-R.S. 23:1601(2) unconstitutional on equal protection grounds. The two cases have been consolidated for review.

At issue in both cases is the constitutionality of the portion of LSA-R.S. 23:1601(2) necessitating the filing of a claim for unemployment benefits at a time when the applicant is ineligible in order that he may subsequently receive benefits after fulfilling other statutory requirements for eligibility. Plaintiffs argue the requirement is violative of the equal protection and due process clauses of the Louisiana and U.S. Constitutions in that it mandates a useless, futile action by a claimant, and serves no legitimate purpose. LSA Const. Art. I, § 3; U.S.C.A. Const. Amend. 14. Because we find the prior-claim requirement violative of the equal protection provisions of both the Louisiana and U.S. Constitutions,[1] we *444 affirm, without ruling on the merits of plaintiffs' due process claims.

FACTS

Charles Pierre was fired from his job as a route salesman for Eat More Snacks, Inc. due to misconduct. Pierre did not apply for unemployment benefits at this time. He subsequently worked at another job for four or five months, and thereafter, at Aratex Services, Inc. for over six months. He was discharged from Aratex under non-disqualifying circumstances, and subsequently filed a claim for unemployment benefits. His claim was denied.

Lisa Richards was discharged from Jefferson Health Care A.R.A. on July 21, 1987, under disqualifying circumstances. She did not file a claim for unemployment benefits at this time. She then worked for Maison Orleans and subsequently was discharged under non-disqualifying circumstances. She filed a claim for unemployment benefits, and her claim was denied.

If Pierre and Richards had each filed a claim immediately following discharge from their initial employers, their later claims, filed after being discharged from a subsequent employer under non-disqualifying circumstances would not have been denied. Neither of them would have been eligible to receive benefits immediately following the initial discharge, because both had been discharged for reasons that disqualified them as claimants. Nonetheless, LSA-R.S. 23:1601(2) requires a claimant to file a claim for benefits at a time when he is ineligible so he may qualify to receive benefits the next time he files a claim. In essence, claimants must file one claim that will be denied before a claim will be granted.

LAW

LSA-R.S. 23:1601 of the Louisiana Employment Security Law sets forth the grounds upon which an individual will be disqualified for benefits. This section also provides the means by which a claimant can overcome the disqualification, and thereby requalify for benefits. LSA-R.S. 23:1601(2), the subsection of the statute at issue, states:

An individual shall be disqualified for benefits:
(2)(a) If the administrator finds that he has been discharged by a base period or subsequent employer for misconduct connected with his employment. Such disqualification shall continue until such time as the claimant:
(i) Can demonstrate that he has been paid wages for work subject to the Louisiana Employment Security Law or to the unemployment insurance laws of any other state or of the United States equivalent to at least ten times his weekly benefit amount subsequent to a claim for a compensable week for unemployment benefits under this Paragraph and
(ii) Has not left his last work under disqualifying circumstances.
(emphasis added.)

After being discharged the first time, plaintiffs were disqualified from eligibility for unemployment compensation because both were discharged for misconduct. Each subsequently earned wages of ten times his weekly benefit amount, but because these wages were not earned "subsequent to a claim for a compensable week for unemployment benefits," their claims were denied.

LEGISLATIVE HISTORY

The prior claim requirement was added to LSA-R.S. 23:1601 by Act 131 of 1981. Act 131 additionally provided, under LSA-R.S. 23:1601(1), that benefits paid after requalification not be charged against an employer but rather be recouped as a social charge to all employers under the computation provisions of LSA-R.S. 23:1553(D), which was also amended. Prior to the 1981 amendment, an individual could requalify for unemployment benefits under LSA-R.S. 23:1601(2) if he earned the requisite *445 amount of wages "following the week in which the disqualifying act occurred." LSA-R.S. 23:1601(2), as amended by Acts 1978, Nos. 285, 517 and 538.[2]

The legislative history of the Bill indicates its purpose was to reduce the unemployment tax burden on Employer A, the first in a series of employers, also known as the base period employer. The minutes of the June, 19, 1981 meeting of the House Committee on Labor and Industrial Relations reveal the following:

Senate Bill No. 302 by Senator Nelson

Representative O'Neal presented this measure for Senator Nelson and offered co-author and technical amendments. There was no objection to the amendments.
Representative O'Neal stated that this bill deals with the "Employer A" status under unemployment compensation. He explained that when an employee works for a period of time sufficient enough to qualify for unemployment benefits, then leaves this job, is employed elsewhere and later his employment is terminated, the burden of the unemployment goes back to the first employer. Representative O'Neal stated that this bill solves the problem by creating a special fund called a social charge account and the burden is spread among everyone.

The minutes of the meeting of the Senate Labor and Industrial Relations Committee at which the same bill was discussed indicate, likewise, that fairness to Employer A was the purpose of the amendment. This purpose, however, was effectuated by LSA-R.S. 23:1553(D), which was amended pursuant to the same Act. LSA-R.S. 23:1553 provides for a social charge account, funded by a surcharge on all of the state's private employers. The amendment to LSA-R.S. 23:1553 changed one of the factors in the equation used to calculate the social charge rate, thereby reducing the tax burden on Employer A.

JURISDICTION

Defendants challenged this court's jurisdiction over the constitutional issues in these consolidated cases. The Attorney General contests jurisdiction in both cases, and the Office of Employment Security contests jurisdiction only in the Pierre case.

The administrative records and findings reflect the only issue in the Richards

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Related

Grider v. Adm'r, Dept. of Employment SEC.
564 So. 2d 751 (Louisiana Court of Appeal, 1990)

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