Unemployment Compensation Benefits

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WI Supreme Court

Case Name: Wisconsin Department of Workforce Development v. Wisconsin Labor and Industry Review Commission

Case No.: 2018 WI 77

Focus: Unemployment Compensation Benefits

Valerie Beres was denied unemployment compensation benefits on the ground that she was terminated for engaging in “misconduct” as an employee, namely absenteeism, as defined by Wis. Stat. § 108.04(5)(e) (2015-16). The statute sets forth the circumstances in which absenteeism will constitute “misconduct” barring unemployment compensation benefits.

The Ozaukee County Circuit Court, Sandy A. Williams, Judge, adopted the position of the Department of Workforce Development that the plain language of Wis. Stat. § 108.04(5)(e) allows an employer to adopt its own rules regarding employee absenteeism; that the employer’s absenteeism rules need not be consistent with the statute’s definition of “misconduct” based on absenteeism; and that an employee’s violation of the employer’s absenteeism rules constitutes “misconduct” under § 108.04(5)(e) barring unemployment compensation benefits.

In contrast, the court of appeals concluded that an employee who is terminated for violating an employer’s absenteeism rules is not barred from obtaining unemployment compensation benefits unless the employee’s conduct violates the statutory definition of “misconduct” based on absenteeism.3 The court of appeals also concluded that an employee cannot be denied unemployment compensation benefits for violating an employer’s absenteeism policy that is “stricter” than the absenteeism policy set forth in the statute.

The single issue presented to the court is as follows: Does Wis. Stat. § 108.04(5)(e) allow an employer to adopt an attendance or absenteeism policy that differs from that set forth in § 108.04(5)(e) such that termination of an employee for violating the employer’s policy results in disqualification for unemployment compensation benefits even if the employer’s policy is more restrictive on the employee?

We conclude that the plain language of Wis. Stat. § 108.04(5)(e) allows an employer to adopt its own absenteeism policy that differs from the policy set forth in § 108.04(5)(e), and that termination for the violation of the employer’s absenteeism policy will result in disqualification from receiving unemployment compensation benefits even if the employer’s policy is more restrictive than the absenteeism policy set forth in the statute. Beres was terminated for not complying with her employer’s absenteeism policy. Accordingly, we conclude that Beres was properly denied benefits.

Reversed

Concur:

Dissent:

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.