Reserve Mining Co. v. Anderson

377 N.W.2d 494, 1985 Minn. App. LEXIS 4904
CourtCourt of Appeals of Minnesota
DecidedNovember 26, 1985
DocketC2-85-1198
StatusPublished
Cited by11 cases

This text of 377 N.W.2d 494 (Reserve Mining Co. v. Anderson) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reserve Mining Co. v. Anderson, 377 N.W.2d 494, 1985 Minn. App. LEXIS 4904 (Mich. Ct. App. 1985).

Opinion

OPINION

SEDGWICK, Judge.

Reserve Mining Co. (“Reserve”) appeals from a determination by the Commissioner of Economic Security that respondent Anderson was involuntarily discharged from employment and is therefore entitled to unemployment compensation benefits. We affirm.

FACTS

On November 16, 1984, Anderson was notified by Reserve that she would be laid off November 30, 1984. On November 19, Reserve offered Anderson the opportunity to retire early under Reserve’s 70/80 retirement plan. That plan is available to employees who are at least 55 years old and have worked at Reserve for 15 or more years, or whose age and years of service add up to 80. Anderson was then 55 years old and had worked at Reserve for 17 years.

Early retirement under the plan is allowed under the following conditions:

• An employee’s continuous service ends because of a permanent plant, department or subdivision shutdown, layoff, or physical disability,
• An employee is absent from work due to layoff or physical disability and the company determines that return to work is unlikely, or
• The employee and the company agree to 70/80 retirement under mutually satisfactory conditions.

Reserve’s employees are given incentives to retire early under the plan which include a $330 monthly payment of supplemental benefits until age 62, full life insurance, health insurance and surviving spouse benefits. Those incentives are available regardless of the reason for early retirement.

Although Anderson had expressed an interest in the 70/80 plan, she decided to accept early retirement only after notification of the layoff.

Following the layoff, Anderson applied for unemployment compensation benefits. A claims deputy awarded benefits, and Reserve appealed. A department referee affirmed, concluding that Anderson’s separation was involuntary. The referee also noted that a claimant may not be disqualified from receiving benefits as a result of actions which occur after a separation from employment. Although Anderson’s actual *496 date of separation occurred after she decided to retire, the referee found her decision was made only after notification of the layoff.

Reserve appealed, and a Commissioner’s representative affirmed the referee’s decision, noting:

Simply put, the claimant is not unemployed because of retirement, but because the employer had no further work for the claimant to perform. * * * The claimant took the retirement because of unemployment, not the other way around.
******
The employer here caused the unemployment by notifying the claimant of lay off. There is absolutely no showing in this case that the claimant would be unemployed but for the notification of lay off. * * * * * *
The fundamental question to be asked is “Why is the claimant really unemployed?” The claimant is unemployed because of the notification of lay off.

Reserve has appealed from the Commissioner’s decision.

ISSUES

1. Did the Commissioner’s representative base his decision upon a statute which refers to actions occurring after a claimant’s separation from employment?

2. Was Anderson’s election to retire voluntary, thereby disqualifying her from the receipt of unemployment compensation benefits?

3. Does the charge of benefits to Reserve’s employer’s experience rating account violate equal protection?

ANALYSIS

I.

The respondent Commissioner claims that Anderson must be allowed benefits because her retirement occurred after her layoff. The Commissioner cites Minn.Stat. § 268.09, subd. 1(5) (1984), which provides:

An individual who was employed by an employer shall not be disqualified for benefits under this subdivision for any acts or omissions occurring after his separation from employment' with the employer.

Indeed, this court in Reserve Mining Co. v. Cooke, 372 N.W.2d 796 (Minn.Ct.App.1985), recently held that this provision allows a person to receive benefits if he or she retires after a layoff.

This case is distinguishable from Cooke because although Anderson was not to be laid off until November 30, she elected on November 28 to accept early retirement. In Clark v. K-Mart, 372 N.W.2d 847 (Minn.Ct.App.1985), this court held that the actual date of termination, not the notice of resignation, was determinative. Here the actual date of termination was two days after Anderson elected to accept early retirement. Therefore, application of Minn.Stat. § 268.09, subd. 1(5), in this instance is questionable.

Although the referee relied on Minn.Stat. § 268.09, subd. 1(5), the Commissioner’s representative did not. The Commissioner’s representative determined that Anderson’s decision to retire was not voluntary. The Commissioner’s representative is not limited to reviewing the referee’s legal conclusions, but may apply the law which he or she feels is correct under the circumstances. Nelson v. Bemidji Regional Interdistrict Council, 359 N.W.2d 38, 40 (Minn.Ct.App.1984), citing Lumpkin v. North Central Airlines, Inc., 296 Minn. 456, 462, 209 N.W.2d 397, 401 (1973); Ramirez v. Metro Waste Control Commission, 340 N.W.2d 355, 357 (Minn.Ct.App.1983). We believe the Commissioner’s decision to rely upon the voluntary-involuntary distinction in this instance was correct.

II.

The Minnesota legislature has declared that unemployment compensation reserves are intended to be used “for the benefit of persons unemployed through no fault of their own.” Minn.Stat. § 268.03 (1984). Consistent with this policy, Minn. *497 Stat. § 268.09, subd. 1 (1984), provides that an individual is disqualified from receiving benefits if he or she “voluntarily and without good cause attributable to the employer discontinued his employment with such employer.”

“Voluntary quitting” has been defined as “the discontinuing of employment because the employee no longer desires to remain in the relationship of an employee with the employer from whom he has separated.” Bergseth v. Zinsmaster Baking Co., 252 Minn. 63, 65-66, 89 N.W.2d 172, 174 (1958).

The legislature has specifically determined that a separation from employment should not be considered “voluntary” when “(t)he individual left employment because

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Bluebook (online)
377 N.W.2d 494, 1985 Minn. App. LEXIS 4904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reserve-mining-co-v-anderson-minnctapp-1985.