Seltzer v. Industrial Claim Appeals Office

107 P.3d 1158, 2005 Colo. App. LEXIS 20, 2005 WL 82139
CourtColorado Court of Appeals
DecidedJanuary 13, 2005
DocketNo. 04CA0385
StatusPublished

This text of 107 P.3d 1158 (Seltzer v. Industrial Claim Appeals Office) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seltzer v. Industrial Claim Appeals Office, 107 P.3d 1158, 2005 Colo. App. LEXIS 20, 2005 WL 82139 (Colo. Ct. App. 2005).

Opinions

ROTHENBERG, J.

Petitioner, Larry Seltzer (claimant), seeks review of a final order of the Industrial Claim Appeals Office (Panel) that affirmed a hearing officer’s decision disqualifying him from receiving Temporary Extended Unemployment Compensation (TEUC-A) benefits, which are available to certain airline-related workers pursuant to the Emergency Wartime Supplemental Appropriations Act (Act), Pub.L. No. 108-11, § 4002(a), 117 Stat. 559, 607 (2003). We set the Panel’s order aside and remand for further proceedings.

I.

Claimant was employed as a technical analyst and performed computer programming work for Galileo International (employer). He worked on and wrote computer programs, including programs for individual airlines, that enabled passengers to book airline flights on the Internet.

Employer laid claimant off in October 2001. The hearing officer initially determined that his separation was caused by a “lack of work result[ing] from a reduction in business for the employer because the public and corporate customers stopped flying as a result of [the events of September 11, 2001].” However, the hearing officer found that claimant was not entitled to receive TEUC-A benefits because his “layoff was not due to a reduction in services provided by the certified air carriers but was caused by a reduction in business when people stopped booking airline seats thereby not using the employer’s services.”

Claimant appealed the decision, contending he was not notified he would have to prove his employer’s loss of revenue was due to a decrease in air flights. The Panel agreed with claimant that “he was not provided with notice of the dispositive factual issue” and remanded for additional proceedings to allow “claimant the opportunity to present relevant evidence concerning whether his separation from employment was attributable to a reduction in services provided by an air carrier.”

On remand, claimant presented evidence that after September 11, 2001, his workload decreased because airlines scheduled fewer flights and because fewer people were flying.

The hearing officer issued a modified decision that again denied claimant benefits. The hearing officer found that (1) “claimant’s testimony establishes that it was the flying public’s reluctance to fly [after September 11, 2001] and the reduction in the purchase of airline tickets that caused the reduction in flights”; (2) “claimant’s lack of work was not due to a reduction in service by a certified air carrier, but was due to the public’s reluctance to fly”; (3) “[e]ven on reduced schedules, airlines were flying at only 40% of capacity, leaving 60% of the seats unsold”; and (4) these circumstances caused claimant’s job separation. On review, the Panel affirmed.

II.

Claimant contends the Panel erred in affirming the hearing officer’s determination that he was not entitled to TEUC-A benefits. We agree.

“[T]he TEUC Act of 2002 created federally funded unemployment compensation benefits for individuals who have exhausted their state and federal unemployment compensation benefits and who qualify to receive TEUC benefits.” Chiccitt v. Unemployment Comp. Bd. of Review, 842 A.2d 540, 542 (Pa.Commw.Ct.2004).

In 2003, the Act was amended, and special rules were created for determining eligibility for certain displaced airline-related workers who may qualify for additional benefits identified as TEUC-A benefits. See Workforce Security Programs: Unemployment Insurance Program Letter Interpreting Federal Law (UIPL No. 30-02, Changes 2 & 3), 68 Fed.Reg. 35429 (June 13, 2003). The Department of Labor(DOL) issued a letter with the stated purpose “to provide State Workforce Agencies (SWAs) instructions for implementing the changes to the TEUC program related to displaced airline and related [1160]*1160workers.” The instructions state that “SWA’s are required to continue to follow the [DOL’s] interpretation of the TEUC Act.” 68 Fed.Reg. at 35429.

The DOL instructions recognize that certain procedures “may differ from state law provisions.” For example, the instructions provide that late information received from the employer must be considered, and if it supports a denial of benefits, “a redetermination must be issued.” 68 Fed.Reg. at 35441. To the extent state law differs from the DOL instructions, the DOL instructions control in determining a claimant’s eligibility for TEUC-A benefits.

To be eligible to receive TEUC-A benefits here, claimant was required to demonstrate “qualifying employment” under the Act. That showing had two components. First, he had to establish that his employment was sufficiently tied to the airline industry. As pertinent here, he had to demonstrate that his employment was “with an upstream producer or supplier for an air carrier.” See Pub.L. No. 108-11, § 4002(a)(2)(A).

The hearing officer found that claimant established the first requirement by showing a sufficient nexus between his employment and the airline industry. As the Panel noted in its initial order, the hearing officer found, in effect, that employer provided contract services to an air carrier. Although this was an issue during the first hearing, by the time of the second hearing, it appears that employer’s status as an upstream producer or supplier for an air carrier was no longer in dispute.

The second requirement is that claimant establish he became separated from his employment based upon a qualifying reason. Specifically, he was required to show his separation was “due, in whole or in part, to ... reductions in service by an air carrier as a result of a terrorist action or security measure.” See Pub.L. No. 108-11, § 4002(a)(2)(B)(i) (emphasis added). The Act defines “terrorist action or security measure” as “a terrorist attack on the United States on September 11, 2001, or a security measure taken in response to such attack.” See Pub.L. No. 108-11, § 4002(a)(7).

The DOL instructions require that a form be sent to the employer requesting information regarding the claimant’s eligibility for TEUC-A benefits. The record in this case includes the form sent to claimant’s employer asking whether he was laid off from employment “due to a loss of business, in whole or in part, caused by [among other reasons]: [t]he reduction in airline services following the events of September 11, 2001, or related security measures.” Employer answered “Yes” to this question.

The DOL instructions also explain what occurs where, as here, the state disagrees with the employer’s conclusion regarding a claimant’s TEUC-A eligibility:

Question: Information provided by the employer indicates that the employment is “qualifying employment,” but the state has reason to doubt the accuracy of this information. Is the state required to accept the employer’s statement?
Answer: No. However, the state must have credible information to refute the employer’s assertion and to support a determination of TEUC-A ineligibility.

68 Fed.Reg. at 35443 (emphasis added).

Thus, once the employer asserts that a claimant is eligible for TEUC-A benefits, the state must present credible information to refute that assertion.

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107 P.3d 1158, 2005 Colo. App. LEXIS 20, 2005 WL 82139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seltzer-v-industrial-claim-appeals-office-coloctapp-2005.