LAURA DENVIR STITH, Judge.
The Labor and Industrial Relations Commission denied the appellant, Carol Fendler, unemployment benefits after it found that she engaged in willful misconduct by repeatedly and deliberately disregarding her supervisor's instructions. Ms. Fendler appealed, arguing that the commission erred in finding that she engaged in misconduct because although she may have acted negligently she did not deliberately violate her supervisor's instructions. This Court affirms.
Section 288.030.1(23)
Hudson Services provides property management services, including commercial cleaning and security. Ms. Fendler was hired by Hudson in 1994, and by 2008 she had become an operations assistant in the housekeeping department. Hudson's janitorial employees use an automated telephone system to clock in and out of work. The resulting information is used to determine payroll.
One of Ms. Fendler's duties was to verify the hours of employees who failed to use the telephone system for a particular work shift. Hudson had no written policy as to how she was to undertake the verification. Until July 2008, her supervisor authorized her to do so by calling employees and entering the total hours the employees said they worked. Beginning in July 2008, Ms. Fendler was placed under a new supervisor, Pam Meister, who instructed her that entry of the total hours worked no longer would be sufficient. Ms. Fendler instead was directed to record the specific times that employees who failed to use the telephone system said they started and ended work. Ms. Meister also informed Ms. Fendler that if she wanted to enter only the total number of hours an employee worked, she needed to obtain approval from the general manager.
During 2009, Ms. Meister gave Ms. Fendler warnings on two occasions when Ms. Fendler failed to comply with the new procedure. On December 28, 2009, Ms. Meister gave Ms. Fendler a third warning when the latter again failed to comply with the required verification procedure. Nevertheless, during January 2010, Ms. Fendler failed to enter the exact time employees clocked in and out on 11 separate occasions. On January 25, 2010, Hudson fired Ms. Fendler.
Ms. Fendler filed a claim for unemployment benefits. On March 3, 2010, the division of employment security denied Ms. Fendler benefits because it found that she was discharged for misconduct.
Ms. Meister testified that she instructed Ms. Fendler to enter the exact times that employees began and ended their work shifts and to get approval from the general manager before simply entering the total
The appeals tribunal reversed the deputy's finding of misconduct. Hudson appealed to the commission, which found that Ms. Meister's testimony was more credible and concluded that Hudson had met its burden of showing that Ms. Fendler had engaged in misconduct, stating:
(emphasis added). Ms. Fendler appealed. Following a decision by the Missouri Court of Appeals, this Court granted transfer. Mo. Const. art. V, § 10.
Article V, section 18 of the Missouri Constitution provides for judicial review of the commission's decisions to determine whether they "are supported by competent and substantial evidence upon the whole record." Mo. Const. art. V, § 18. Under section 288.210:
§ 288.210. "Whether the award is supported by competent and substantial evidence is judged by examining the evidence in the context of the whole record." Hampton v. Big Boy Steel Erection, 121 S.W.3d 220, 223 (Mo. banc 2003). "This Court defers to the Commission on issues involving the credibility of witnesses and the weight given to testimony," Johnson v. Denton Const. Co., 911 S.W.2d 286, 288 (Mo. banc 1995), but in so doing it does not view "the evidence and all reasonable inferences drawn therefrom in the light most favorable to the award." Hampton, 121 S.W.3d at 223. This Court reviews questions
"In general, a claimant bears the burden of demonstrating that [she] is entitled to unemployment benefits; however, when the employer claims that the applicant was discharged for misconduct, the burden shifts to the employer to prove misconduct connected to work." Rush v. Kimco Corp., 338 S.W.3d 407, 411 (Mo. App.2011); accord Hoover v. Cmty. Blood Ctr., 153 S.W.3d 9, 13 (Mo.App.2005). As a result, Hudson had the burden of proving by a preponderance of the evidence that Ms. Fendler was fired for misconduct. Hoover, 153 S.W.3d at 13; Ahearn, 308 S.W.3d at 297.
The purpose of unemployment benefits is to provide financial assistance to people who are unemployed through no fault of their own. See § 288.020.1.
Ms. Fendler claims that the record supports only a finding that she acted negligently, not willfully. Therefore, she argues, the commission erred in finding that she engaged in misconduct because negligence cannot support a finding of misconduct. Her argument fails for two reasons.
First, even had the record not supported the commission's finding that Ms. Fendler's conduct was willful, that would not preclude a finding of misconduct. Although Ms. Fendler is right that simple negligence cannot support a finding of misconduct, Yellow Freight Sys. v. Thomas, 987 S.W.2d 1, 4 (Mo.App.1998), section 288.030 defines "misconduct" to include not just a willful violation of the employer's rules but also "negligence in such degree or recurrence as to manifest culpability, wrongful intent or evil design, or show an intentional and substantial disregard of the employer's interest or of the employee's duties and obligations to the employer." § 288.030. Therefore, an employee may engage in misconduct under the statute by repeatedly choosing to act
Second, the record as a whole supports the commission's conclusion that Ms. Fendler's "repeated failure to comply with explicit instructions takes her conduct outside the realm of mere mistakes or poor work performance and into the realm of insubordination." And, as the commission found, an employee's repeated violation of a known, understood and reasonable work rule, in and of itself, can provide competent and substantial evidence that the employee willfully or deliberately violated the rule.
Freeman v. Gary Glass & Mirror, LLC, 276 S.W.3d 388 (Mo.App.2009), provides a good example. After performing satisfactorily for three and one-half years, the employee's performance declined abruptly. Id. at 389. He was fired after he recommended a product to a customer after being told not to do so, improperly installed doors on two separate occasions, turned away a job the company could have performed and failed to double check the measurements of a mirror as instructed by his supervisor. Id. at 389-90. Freeman found that competent and substantial evidence supported the commission's conclusion that the employee deliberately violated his employer's instructions, stating "repeated failure to follow the Employer's specific instructions, without any explanation, after demonstrating his ability to do so over a long period of time, speaks just as loudly about the willfulness of Claimant's actions as [does a] ... verbal refusal [to follow instructions]." Id. at 393; accord Hurlbut v. Labor and Indus. Relations Comm'n, 761 S.W.2d 282, 285 (Mo. App.1988).
Similarly, in Moore v. Swisher Mower and Mach. Co., Inc., 49 S.W.3d 731 (Mo. App.2001), an employee who was arrested for assault and held in jail for three days failed to contact his employer to explain his absence. Id. at 734. He was fired not because of the arrest but because his failure to call his employer violated an absentee policy requiring employees to call in each day if they were going to be absent. Id. at 738. He claimed the commission erred in denying his claim for unemployment benefits in that his failure to call his employer was simply bad judgment. Id. at 738-40. The appeals court affirmed, holding that the fact that he knew about his employer's absentee policy and could have complied with it but chose not to do so on three consecutive days justified the finding of misconduct. Id.
Here, the facts supporting the judgment are stronger than those found sufficient to show willful disregard of an employer's instructions or rules in Freeman and Moore. Ms. Fendler violated her employer's instructions on at least 11 different
Ms. Fendler implies that she was entitled to a warning that she would be fired if she continued to disregard Ms. Meister's instructions, but the evidence shows that she was aware that the procedure was being used to verify hours so that accurate payroll records could be produced, and that is not a minor matter that she had no reason to think was important. In any event, she cites no precedent holding that an employee is entitled to a warning that she will be fired if she intentionally violates a reasonable work rule, and the cases cited above do not impose such a requirement.
The facts adduced in the proceedings provide competent and substantial evidence to support the commission's conclusion that Ms. Fendler engaged in misconduct by repeatedly and deliberately violating a reasonable, known and understood work rule.
For the foregoing reasons the commission's determination that Ms. Fendler was fired for misconduct is affirmed.
RUSSELL, BRECKENRIDGE, FISCHER and PRICE, JJ., and BYRN, Sp.J., concur.
TEITELMAN, C.J., dissents in separate opinion filed.
DRAPER, J., not participating.
RICHARD B. TEITELMAN, Chief Justice.
I respectfully dissent. The evidence in this case establishes that Ms. Fendler was warned three times that she needed to enter specific start and end times for each employee. The evidence also shows that Ms. Fendler failed repeatedly to follow her supervisor's instructions to verify payroll by entering specific start and end times for each employee. However, the evidence fails to show that Ms. Fendler's actions constituted a deliberate disregard of her employer's interests so as to qualify as "misconduct" disqualifying her from receiving unemployment benefits.
As the principal opinion notes, the determination of whether an employee engaged in misconduct is a question of law. Appellate courts are not bound by the commission's conclusions of law or its application of the law to the facts. Korkutovic v. Gamel Co., 284 S.W.3d 653, 656 (Mo.App. 2009). Moreover, this Court's review of whether the record establishes misconduct must be guided by the legislature's mandate that the unemployment security law "shall be liberally construed to accomplish its purpose to promote employment security... by providing compensation to individuals in respect to their unemployment." Section 288.020.2. This means that "[d]isqualifying provisions are construed strictly against the disallowance of benefits." St. John's Mercy Health System v. Div. of Employment Sec., 273 S.W.3d 510, 514 (Mo. banc 2009).
In this case, a strict construction of the term "misconduct" leads to the conclusion that the commission erred in denying Ms. Fendler unemployment compensation benefits. Although it is undisputed that Ms. Fendler failed to execute her employer's directive to verify payroll by entering specific start and end times for each employee,
Instead of drawing a disputed inference in favor of the employer, I would apply the rule of strict construction required by section 228.020.2 and hold that the facts of this case demonstrate that Ms. Fendler was negligent and that the commission erred in concluding that she engaged in willful misconduct that disqualified her from receiving unemployment compensation benefits.
The commission's decision should be reversed.