Stark v. ASSISTED LIVING CONCEPTS, INC.

272 P.3d 478, 152 Idaho 506, 2012 Ida. LEXIS 56
CourtIdaho Supreme Court
DecidedMarch 1, 2012
Docket38715
StatusPublished
Cited by4 cases

This text of 272 P.3d 478 (Stark v. ASSISTED LIVING CONCEPTS, INC.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stark v. ASSISTED LIVING CONCEPTS, INC., 272 P.3d 478, 152 Idaho 506, 2012 Ida. LEXIS 56 (Idaho 2012).

Opinion

EISMANN, Justice.

This is an appeal from a decision of the Industrial Commission holding that an employee’s refusal to obey a direct order from a supervisor to answer a question related to the employer’s business did not constitute misconduct under the Employment Security Law. We reverse the decision of the Commission.

I.

Factual Background.

The material facts in this case are undisputed. From April 21, 2008, through October 29, 2010, Brooke Stark (Claimant) was employed by Assisted Living Concepts, Inc., (Employer) as the residence director of Sylvan House, one of Employer’s assisted living facilities. On October 29, 2010, Claimant was called during work by Employer’s Regional Director of Sales to discuss different topics related to the facility where Claimant worked. During that conversation, Claimant asked if he had heard a rumor that Teton House, another assisted living facility operated by Employer, was closing. He responded that he had not.

Later that evening at about 6:30 p.m., Employer’s Divisional Director of Human Resources telephoned Claimant at her home. He asked her where she had heard that Teton House was closing. Claimant refused to disclose her source.

About five minutes later, Employer’s Chief Executive Officer telephoned Claimant, with the Divisional Director of Human Resources also being on the line. The CEO asked Claimant where she had heard the rumor that Teton House was closing. Claimant stated that she had talked to a number of people. The CEO responded that this was important information and she did not need to know all of the sources. She again asked Claimant who told her that Teton House was closing, and Claimant answered that she did not want to share that information. The CEO again emphasized the importance of that information and stated that they needed to let the people who talked to Claimant know that the facility was not going to close. The CEO then said that she would ask Claimant again and direct her to tell who provided the information that Teton House was closing. Claimant again stated that she would not reveal the information and added *508 that she will “take one for the team.” The CEO then suspended her immediately pending an investigation. The Divisional Director later contacted Claimant, and she still refused to disclose the source of her information. Employer’s Vice President of Human Resources then investigated the matter and concluded that Claimant had violated the employee handbook by refusing to follow a direct order from a supervisor. On November 2, 2010, Employer then terminated Claimant effective October 29, 2010.

Claimant applied for unemployment benefits, and she was initially determined to be eligible. Employer appealed, and the Appeals Examiner reversed the eligibility determination, finding that Claimant was discharged for misconduct. Claimant the appealed to the Industrial Commission, which conducted a de novo review of the record. It ruled that Claimant’s insubordination did not constitute misconduct in connection with employment. It therefore reversed the decision of the Appeals Examiner and held that Claimant was entitled to unemployment benefits. Employer timely appealed to this Court.

II.

Standard of Review.

Our review of decisions of the Industrial Commission is limited to questions of law. Idaho Const. Art. V, § 9. Whether the Commission’s factual findings are supported by substantial and competent evidence is a question of law, Fife v. Home Depot, Inc., 151 Idaho 509, 260 P.3d 1180, 1184 (2011), as is the application of the facts to the law, Sprague v. Caldwell Trans., Inc., 116 Idaho 720, 722, 779 P.2d 395, 397 (1989).

III.

Analysis.

A claimant under the Employment Security Law is not eligible for benefits if the claimant was “discharged for misconduct in connection with his [or her] employment.” I.C. § 72-1366(5). The employer has the burden of proving that the employee was discharged for employment-related misconduct. IDAPA 09.01.30.275.01.

The Commission held that Claimant’s alleged misconduct was not in connection with her employment because “Claimant’s job duties revolved around Sylvan house. Providing the source of the information is not directly related to Claimant’s job duties nor did it have any direct effect on those duties.” The Commission’s conclusion in this regard is clearly erroneous. The statute does not require that the misconduct be “directly related to” or “directly effect” the claimant’s duties. It requires that the misconduct be “in connection with” the claimant’s employment. In this case, Claimant had learned of information that she volunteered to the regional sales director while they were discussing Employer’s business. The information also concerned Employer’s business. Later that day, the Divisional Director of Human Resources and the CEO telephoned Claimant seeking the source of that information because they believed it was important to Employer’s business. Claimant’s refusal to answer the question regarding the source of the information was clearly connected with her employment. In fact, she testified that her reason for refusing to reveal the information was that she did not want anyone else in the company to get in trouble. Under the Commission’s analysis, it would not constitute misconduct for an employee to refuse to answer questions about the misconduct, including embezzlement, of a co-employee because the questioning did not concern the employee’s own specific duties.

Because the relevant behavior was in connection with Claimant’s employment, the next issue is whether it constituted misconduct. It must be either a disregard of the employer’s interest, a violation of the employer’s reasonable rules, or a disregard of a standard of behavior that the employer has the right to expect. IDAPA 09.01.30.275.02. “The Commission must consider all three grounds when determining whether an employee’s termination was a result of employment-related misconduct.” Adams v. Aspen Water, Inc., 150 Idaho 408, 413, 247 P.3d 635, 640 (2011).

*509 In this case, the Commission did not consider all types of conduct that can constitute misconduct. It only considered whether Claimant’s conduct constituted a disregard of a standard of behavior that the employer had the right to expect.

“If the alleged misconduct involves a disregard of a standard of behavior which the employer has a right to expect of his employees, there is no requirement that the claimant’s conduct be willful, intentional, or deliberate.” IDAPA 09.01.30.275.02.C. “The test for misconduct in ‘standard of behavior cases’ is as follows: [a] Whether the claimant’s conduct fell below the standard of behavior expected by the employer; and [b] Whether the employer’s expectation was objectively reasonable in the particular case.” Id. In this case, it is undisputed that Claimant’s refusal to answer the CEO’s questions fell below the standard of behavior expected by Employer.

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Cite This Page — Counsel Stack

Bluebook (online)
272 P.3d 478, 152 Idaho 506, 2012 Ida. LEXIS 56, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stark-v-assisted-living-concepts-inc-idaho-2012.