Teresa L. Sladek v. Employment Appeal Board and Kelly Services USA LLC

Supreme Court of Iowa·Decided February 21, 2020·No. 18-0981·Published

Opinion

IN THE SUPREME COURT OF IOWA No. 18–0981

Filed February 21, 2020

TERESA L. SLADEK, Appellant, vs.

EMPLOYMENT APPEAL BOARD and KELLY SERVICES USA LLC,

Appellees.

On review from the Iowa Court of Appeals.

Appeal from the Iowa District Court for Johnson County, Chad A.

Kepros, Judge.

A temporary employee appeals from an order denying her petition to review a ruling of the employment appeal board that she voluntarily quit

her position with a temporary employment firm and was not entitled to unemployment insurance benefits. AFFIRMED.

John S. Allen, Clinical Law Professor, University of Iowa College of Law, Iowa City, and Majed Alzben, Law Student, for appellant.

Rick Autry, Des Moines, for appellee Employment Appeal Board.

MANSFIELD, Justice.

I. Introduction.

This is an administrative appeal challenging a final agency action of the Employment Appeal Board (EAB) denying unemployment benefits. The EAB determined the claimant, a temporary employee, voluntarily quit her employment with a temporary employment agency without good cause attributable to the employer. The district court upheld the EAB’s action, and the court of appeals affirmed. This case now comes to us on further review.

Here, the temporary agency informed the temporary employee by phone that the workplace where she had been assigned was dissatisfied with her work performance and was ending her assignment. The employee hung up the phone. The employee did not attempt to resume contact with the temporary agency for almost five weeks—after she had already applied for unemployment benefits and the temporary agency had contested them. Under these circumstances, the EAB denied benefits.

We conclude substantial evidence supports the EAB’s determination that the employee voluntarily quit. We also hold that substantial evidence supports the EAB’s finding that the employee does not meet the safe harbor in Iowa Code section 96.5(1)(j)(1), which relates specifically to temporary employees of temporary employment firms. Under that provision, an individual is not disqualified from benefits if “[t]he individual is a temporary employee of a temporary employment firm who notifies the temporary employment firm of completion of an employment assignment and who seeks reassignment.” Iowa Code § 96.5(1)(j)(1) (2018). The employee did not seek reassignment in a timely fashion; instead, she hung up the phone. Accordingly, we affirm the judgment of the district court and the decision of the court of appeals.

II. Facts and Procedural Background.

Teresa Sladek, the petitioner, applied to work at Kelly Services USA, LLC, a temporary employment firm, on December 15, 2015. As a part of the application process, Sladek signed an agreement that included an “Assignment Information and Employment Termination Policy,” which stated,

Within 48 hours of completion of each assignment, I will notify Kelly of my availability for work. I understand I am responsible for maintaining weekly contact with Kelly; failure to contact Kelly may affect my eligibility for unemployment benefits. I understand that once 14 days have passed after my last day worked, my employment with Kelly will be terminated—unless I have been placed on another assignment or qualified leave of absence, or if I am on certain customerspecific assignments. I understand that this does not alter the at-will nature of my employment, my employment may still be terminated at any time, and the terms and conditions of my employment may be changed without notice. I also understand that I may be eligible for reemployment.

Kelly may offer me assignments for varying lengths of time—I retain the right to reject any offer of assignment.

When an assignment ends, Kelly will attempt to place me on another assignment, however there will typically be periods during which no offer of assignment of employment is made.

On December 22, Sladek signed an additional document entitled, “NOTIFICATION OF POSITION END: IOWA,” which stated,

To qualify for unemployment benefits, you must be unemployed through no fault of your own and be actively seeking work. “Actively seeking work” is defined as taking reasonable efforts to return to the workforce.

Iowa Code Section 96.5-1-j requires that upon completion of an assignment with a temporary employment firm, the temporary employee must contact the firm within three business days to seek reassignment or face disqualification for benefits pursuant to the section listed above. Failure to contact Kelly Services (“Kelly”) will indicate that you have either:

• Voluntarily quit; and/or • Are not actively seeking work

This may affect your eligibility for unemployment benefits.

I have read the above information and understand that failure to contact Kelly within three business days of completing an assignment may affect my eligibility for unemployment benefits. I also acknowledge receiving a copy of this document.

Later, Sladek acknowledged receipt of these policies in her hearing testimony.

Sladek began employment with Kelly as a temporary employee on January 5, 2016. She was assigned to R. R. Donnelley for her first of three jobs. This assignment lasted for approximately three weeks before R. R. Donnelley determined that Sladek was not a good fit for the post. Sladek received the news through her supervisor at Kelly. At that time, Sladek did not explicitly ask Kelly for reassignment. When her first assignment ended, Sladek applied for and received unemployment benefits.

Sladek’s second assignment began March 2 with ACT, the testing organization. She worked as a document processor until May 22 when her assignment ended because there was no more work to be done. Again, Sladek did not explicitly ask for reassignment. When this second assignment ended, Sladek once more applied for and received unemployment benefits.

Sladek’s third and final assignment through Kelly was also at ACT but as a customer service representative rather than a document processor. She began this assignment on July 11 and continued in this role until June 28, 2017.

While working as a customer service representative at ACT, Sladek struggled to keep her “handle time” down. Handle time is the amount of time a service representative remains on a phone call with a customer. ACT’s goal was to keep the phone call to between five and six minutes in

duration, and this was measured by an average at the end of the month. Sladek’s averages were often at least twice the target length, and she was aware that this was problematic. She expressed to her contact person at Kelly, Staci Payne, concerns that she might lose the assignment due to her inadequate handle times.

Payne was a Kelly senior account talent manager who worked exclusively on the ACT account out of the ACT campus. Payne had multiple conversations with Sladek about Sladek’s problems in processing calls efficiently. She testified that ACT even moved Sladek’s desk next to that of a supervisor to better help her and that supervisors reviewed Sladek’s calls. These efforts were to no avail, and Sladek’s handle times failed to improve.

On June 28, Payne called Sladek on the telephone and informed her that due to ACT not seeing the improvement it was hoping for and expecting in Sladek’s average handle times, ACT was releasing Sladek from the assignment. Accordingly, Payne instructed Sladek not to return to ACT. Sladek became upset and began to cry. She told Payne that the termination of the assignment was not fair. When it became clear to Sladek that her pleas to keep her ACT job would be unsuccessful, Sladek hung up on Payne. She did not ask for another assignment while on the call, nor did Payne offer another assignment. Payne did not subsequently reach out to Sladek. Later, Payne testified, “After she hung up on me I did not contact her because that, you know, she made a pretty bold statement there by hanging up on me so that I did not contact her. I waited to hear back from her.”

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