Sawyer v. Dept of Workforce Services , 2015 UT 33 ( 2015 )


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  •               This opinion is subject to revision before final
    publication in the Pacific Reporter
    
    2015 UT 33
    IN THE
    S UPREME C OURT OF THE S TATE OF U TAH
    AMY SAWYER,
    Petitioner,
    v.
    DEPARTMENT OF WORKFORCE SERVICES
    and JORDAN SCHOOL DISTRICT,
    Respondents.
    No. 20120850
    Filed February 6, 2015
    Original Proceeding in this Court
    Attorneys:
    Troy L. Booher, Julie J. Nelson, Tracey M. Watson,
    Salt Lake City, for petitioner
    Amanda B. McPeck, Salt Lake City, for respondent
    JUSTICE DURHAM authored the opinion of the Court, in which
    CHIEF JUSTICE DURRANT, ASSOCIATE CHIEF JUSTICE NEHRING ,1
    JUSTICE PARRISH , and JUSTICE LEE joined.
    JUSTICE DURHAM , opinion of the Court:
    INTRODUCTION
    ¶1     The Department of Workforce Services (DWS) denied Amy
    Sawyer’s application for unemployment benefits based upon its
    finding that she quit her job without good cause. Ms. Sawyer
    appeals from the denial, arguing that (1) we should review DWS’s
    good cause determination de novo and (2) DWS’s good cause
    determination was in error. We conclude that good cause to quit is
    a fact-like mixed question of law and fact that we review
    deferentially. We also conclude, however, that the administrative
    law judge and appeals board applied an incorrect legal standard to
    this mixed question, and we therefore reverse and remand for
    further proceedings.
    1
    Justice Nehring sat on this case and voted prior to his retirement
    on January 31, 2015.
    SAWYER v. DEPARTMENT OF WORKFORCE SERVICES
    OPINION OF THE COURT
    BACKGROUND
    ¶2     Ms. Sawyer was a special education teacher for the Jordan
    School District. The principal of the school where Ms. Sawyer
    worked became concerned with her teaching skills and informed
    Ms. Sawyer that she would be formally evaluated under the Jordan
    Performance Appraisal System (JPAS), which consisted of classroom
    observation by the principal and an interview. Ms. Sawyer received
    an overall score of “ineffective” during her first JPAS evaluation.
    After the failed evaluation, the principal provided suggestions for
    improvement and administered another JPAS evaluation the
    following month. Ms. Sawyer also received a failing score for her
    second JPAS evaluation.
    ¶3     Following the second evaluation, the principal met with
    Ms. Sawyer and informed her that she would be required to
    complete a third JPAS evaluation. If Ms. Sawyer passed the third
    evaluation she would keep her job; but if she failed again, school
    policy dictated that she be terminated. The principal also told
    Ms. Sawyer that she could resign in order to avoid the third
    evaluation.
    ¶4     Because she had some special-needs students with
    behavioral challenges in her class, Ms. Sawyer had little confidence
    that she could perform at a level that would allow her to pass a third
    evaluation. Ms. Sawyer was also concerned that if she were
    terminated that she would not find future employment as a teacher
    because schools typically ask whether an applicant has ever been
    fired from a teaching position. Therefore, Ms. Sawyer elected to
    resign rather than submit to a third JPAS evaluation.
    ¶5     Ms. Sawyer began searching for new employment and
    applied for unemployment benefits. DWS denied unemployment
    benefits because it found that Ms. Sawyer quit her job without good
    cause. An administrative law judge upheld the department’s
    decision, reasoning that if Ms. Sawyer had chosen to submit to the
    third JPAS evaluation, “[s]he may not have lost her job.” The
    Workforce Appeals Board affirmed the denial of benefits. The
    appeals board concluded that “[q]uitting in order to avoid a
    discharge . . . does not establish good cause.” Ms. Sawyer appealed,
    and the court of appeals certified the case to this court.
    ANALYSIS
    ¶6    An individual is ineligible for unemployment benefits if he
    or she quits “without good cause.” UTAH CODE § 35A-4-405(1)(a).
    We have adopted a reasonable person standard for determining
    2
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                             Opinion of the Court
    whether good cause to quit exists: “Good cause is established where
    the unemployment is caused by pressures so compelling that a
    reasonably prudent person would be justified in quitting under
    similar circumstances.” Hurst v. Indus. Comm’n, 
    723 P.2d 416
    , 419
    (Utah 1986); accord Smith v. Indus. Comm’n, 
    714 P.2d 1154
    , 1155
    (Utah 1986). DWS has adopted rules in accord with the reasonable
    person standard, explaining that in order for an individual to qualify
    for benefits, “[t]he separation must have been motivated by
    circumstances that made the continuance of the employment a
    hardship or matter of concern, sufficiently adverse to a reasonable
    person so as to outweigh the benefits of remaining employed.”
    UTAH ADMIN . CODE R994-405-102(1)(a).
    ¶7    In reviewing DWS’s determination that Ms. Sawyer quit
    without good cause, we first establish the appropriate standard of
    review for this mixed question of law and fact.2 See 
    Smith, 714 P.2d at 1155
    (good-cause determination is a mixed question). We then
    determine whether DWS erred when it denied benefits.
    I. STANDARD OF REVIEW
    A. Mixed Questions of Law and Fact
    ¶8      Prior to the formation of the court of appeals, this court did
    not consistently articulate the precise standard of review it applied
    to the cases before it. State v. Thurman, 
    846 P.2d 1256
    , 1268, 1270 n.11
    (Utah 1993). The addition of an intermediate court of appeals,
    however, created a greater incentive to establish standards of review
    that could be uniformly applied by both appellate courts. 
    Id. Moreover, established
    standards of review allow attorneys to better
    advise clients on appellate matters and facilitate an appellant’s
    ability to select and properly frame arguments.
    ¶9      In line with our efforts to better define the standard of
    review applied by appellate courts, we created an analytical
    framework for choosing the standard of review for mixed questions
    of law and fact in State v. Pena, 
    869 P.2d 932
    (Utah 1994). In Pena, we
    held that the amount of discretion afforded in an appeal from a
    district court’s application of a rule of law to a given set of facts is an
    2
    Ms. Sawyer also argues on appeal that DWS improperly denied
    benefits because she did not voluntarily quit, and because
    considerations of equity and good conscience required DWS to grant
    benefits. See UTAH CODE § 35A-4-405(1)(a), (b). Because we find
    Ms. Sawyer’s good-cause argument to be dispositive, we do not
    address the alternative ground for reversal.
    3
    SAWYER v. DEPARTMENT OF WORKFORCE SERVICES
    OPINION OF THE COURT
    institutional policy determination made by the appellate court.3 
    Id. at 938–39.
    Depending on the nature of the legal question at issue, we
    determined that varying levels of deference should be afforded to a
    district court’s resolution of mixed questions. 
    Id. at 937–38.
    We
    envisioned multiple standards of review for various types of mixed
    questions, occupying a spectrum of deference falling between the
    nondeferential de novo standard of review and the highly
    deferential clearly erroneous standard of review:
    [The amount of deference] permitted a trial judge will
    vary depending on the legal issue, although the
    terminology we use to describe the operative standard
    of review does not begin to reflect the many shades of
    this variance. The best we can do is to recognize that
    such a spectrum of discretion exists and that the
    closeness of appellate review of the application of law
    to fact actually runs the entire length of this spectrum.
    
    Id. at 938.
       ¶10 Although a broad spectrum of standards of review affords
    appellate courts a great amount of flexibility, the principal drawback
    of this approach is that it leads to indefinite standards that are
    difficult to describe and even more difficult for litigants or appellate
    courts to predict and apply. In Pena, for example, we held that the
    mixed question at issue in that case “conveys a measure of discretion
    to the trial judge,” but “[p]recisely how much discretion we cannot
    say.” 
    Id. at 939.
    The Pena court went on to describe this standard of
    review as “something less than de novo” and acknowledged that
    “this ‘some discretion’ standard is less than precise.” 
    Id. at 940
    & n.6.
    Applying the principles announced in Pena, we have arrived at
    similarly indefinite standards of review, such as “some scrutiny,”
    “limited deference,” and “conditionally deferential.” Drake v. Indus.
    Comm’n, 
    939 P.2d 177
    , 182 (Utah 1997); State v. Virgin, 
    2006 UT 29
    ,
    ¶ 34, 
    137 P.3d 787
    ; Salt Lake City Corp. v. Labor Comm’n, 
    2007 UT 4
    ,
    ¶ 15, 
    153 P.3d 179
    .
    ¶11 While we have not rejected the broad spectrum approach
    espoused in Pena or the various standards of review adopted in
    subsequent cases, in our more recent cases we have applied a binary
    method for determining the appropriate standard of review for
    3
    Of course the court of appeals may also determine the
    appropriate standard of review for cases before it where this court
    has not established a standard of review for a particular mixed
    question.
    4
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                            Opinion of the Court
    mixed questions. In Manzanares v. Byington (In re Adoption of Baby
    B.), 
    2012 UT 35
    , ¶¶ 42, 44, 
    308 P.3d 382
    , we stated that mixed
    questions can either be law-like or fact-like. See also Jex v. Utah Labor
    Comm’n, 
    2013 UT 40
    , ¶ 15, 
    306 P.3d 799
    ; Union Pac. R.R. v. Utah Dep’t
    of Transp., 
    2013 UT 39
    , ¶ 15, 
    310 P.3d 1204
    ; Murray v. Utah Labor
    Comm’n, 
    2013 UT 38
    , ¶ 37, 
    308 P.3d 461
    ; Swallow v. Jessop (In re United
    Effort Plan Trust), 
    2013 UT 5
    , ¶ 19, 
    296 P.3d 742
    . Law-like mixed
    questions are reviewed de novo, while fact-like mixed questions are
    reviewed deferentially. Baby B., 
    2012 UT 35
    , ¶ 42. We took this
    approach in another case involving unemployment benefits, Carbon
    County v. Workforce Appeals Board., 
    2013 UT 41
    , ¶ 7, 
    308 P.3d 477
    , and
    similarly conclude that the standard of review for the mixed
    question at issue here turns on whether it is properly characterized
    as either law-like or fact-like.
    ¶12 In determining whether a mixed question should be
    deemed law-like or fact-like, we evaluate the “marginal costs and
    benefits” of conducting either a searching de novo review or a
    deferential review of a lower tribunal’s resolution of the mixed
    question. Baby B., 
    2012 UT 35
    , ¶ 42. This cost-benefit analysis is
    conducted through the three-factor Levin evaluation, in which we
    consider
    (1) the degree of variety and complexity in the facts to
    which the legal rule is to be applied; (2) the degree to
    which a trial court’s application of the legal rule relies
    on facts observed by the trial judge, such as a witness’s
    appearance and demeanor, relevant to the application
    of the law that cannot be adequately reflected in the
    record available to appellate courts; and (3) other policy
    reasons that weigh for or against granting discretion to
    trial courts.
    State v. Levin, 
    2006 UT 50
    , ¶ 25, 
    144 P.3d 1096
    (internal quotation
    marks omitted).
    ¶13 The first and second Levin factors assess whether a
    particular mixed question is best resolved by either a fact-finding
    tribunal or an appellate court based on the relative competencies of
    these two types of courts. District courts and fact-finding
    administrative bodies are in a superior position to weigh facts that
    depend upon credibility determinations, the direct observation of
    witness testimony, and other evidence not fully captured in a
    written appellate record. The degree to which a mixed question is
    based upon facts observed by a lower tribunal determines whether
    the second factor weighs for or against a deferential standard of
    5
    SAWYER v. DEPARTMENT OF WORKFORCE SERVICES
    OPINION OF THE COURT
    review. Appellate courts, on the other hand, have the capacity to
    create broad rules that can create a greater degree of consistency and
    predictability to future cases involving a particular mixed question.
    The degree to which a mixed question is based upon a complex
    variety of facts determines whether an appellate court can create
    useful precedent and, thus, whether the first factor weighs for or
    against de novo review.
    ¶14 The third Levin factor is a catchall category under which an
    appellate court may weigh other considerations. A prime example
    of these other policy reasons for reviewing mixed questions de novo
    can be found in our search and seizure jurisprudence. Despite the
    fact-intensive nature of determining whether police officers had
    reasonable suspicion to conduct a search or whether a warrant was
    supported by probable cause, we review these questions de novo in
    order to provide guidance to law enforcement officials:
    We have not retreated . . . from exercising de novo
    review of equally fact-intensive matters that arise in the
    realm of search and seizure. We have not ceded
    deference in these cases both because they concern
    constitutional rights and because irrespective of the
    difficulties inherent in extracting general rules from
    fact-intensive matters, we nevertheless believe it a
    worthy endeavor to offer some guidance to law
    enforcement officials charged with the duty of
    conducting their affairs within constitutional bounds.
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                            Opinion of the Court
    Salt Lake City Corp., 
    2007 UT 4
    , ¶ 15 n.1.4 The mixed question of
    whether a defamatory statement was made with actual malice and
    the issue of whether speech may be punished as obscene are likewise
    reviewed de novo. Jensen v. Sawyers, 
    2005 UT 81
    , ¶¶ 91–92, 
    130 P.3d 325
    ; City of St. George v. Turner, 
    860 P.2d 929
    , 932–33 (Utah 1993).
    Other mixed questions with constitutional dimensions that we have
    reviewed de novo for policy reasons include whether a police
    interrogation was custodial, Levin, 
    2006 UT 50
    , ¶¶ 41–42, and
    whether a confession was voluntary, 
    Thurman, 846 P.2d at 1271
    .
    B. Good-Cause-to-Quit Determinations Are Fact-Like
    ¶15 In determining whether a lower tribunal’s good-cause-to-
    quit determination is either law-like or fact-like, we first look to
    prior cases in which we have articulated a standard of review for
    this question. Because unemployment benefit cases are typically
    handled by the court of appeals, we have not decided a good-cause-
    to-quit case since developing a framework and terminology for
    determining the standard of review for mixed questions in Pena,
    Levin, and Baby B. Cases that predate Pena, however, are still
    relevant. Pena and its progeny “are not fundamental departures
    from earlier standard-of-review law. Rather, they clarify and further
    define basic positions that have long served as the foundation for
    standard-of-review law both nationally and within Utah.” State v.
    Vincent, 
    883 P.2d 278
    , 281 (Utah 1994).
    4
    See also Levin, 
    2006 UT 50
    , ¶ 23 (“[W]ith regard to certain mixed
    questions where uniform application is of high importance, as in the
    context of Fourth Amendment protections, we have held that policy
    considerations dictate that the application of the legal concept
    should be strictly controlled by the appellate courts. Thus, if we
    determine that society’s interest in establishing consistent statewide
    standards outweighs other considerations, we grant no discretion to
    the trial court, and we review the mixed question for correctness.”
    (emphasis added) (footnote omitted)); cf. Ornelas v. United States, 
    517 U.S. 690
    , 697–98 (1996) (although fact-intensive reasonable suspicion
    or probable cause determinations “will seldom be a useful precedent
    for another [case],” the Supreme Court reviews these mixed
    questions for correctness because “de novo review tends to unify
    precedent and will come closer to providing law enforcement
    officers with a defined set of rules which, in most instances, makes
    it possible to reach a correct determination beforehand as to whether
    an invasion of privacy is justified in the interest of law enforcement”
    (internal quotation marks omitted)).
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    SAWYER v. DEPARTMENT OF WORKFORCE SERVICES
    OPINION OF THE COURT
    ¶16 Although we have not used uniform terminology to
    describe the standard of review for a good-cause-to-quit
    determination, we have consistently stated that we cede a great deal
    of deference to DWS’s resolution of this mixed question. Hurst v.
    Indus. Comm’n, 
    723 P.2d 416
    , 419 (Utah 1986) (“In reviewing . . . what
    constitutes good cause [to quit] . . ., we are bound to defer to [DWS]
    so long as its decision falls within the limits of reasonableness and
    rationality.”); Smith v. Indus. Comm’n, 
    714 P.2d 1154
    , 1155 (Utah
    1986) (same); Gibson v. Indus. Comm’n, 
    707 P.2d 675
    , 676 (Utah 1985)
    (“The definition of good cause requires the application of a legal
    question to the fact situation at issue. On questions of mixed law and
    fact, we will not substitute our judgment for that of [DWS] so long
    as its interpretation has warrant in the record and a reasonable basis
    in the law.”); Box Elder Cnty. v. Indus. Comm’n, 
    632 P.2d 839
    , 841
    (Utah 1981) (“[Good-cause-to-quit determinations], once found to be
    supported by the evidence, are binding and will not be disturbed.”).
    In addition, we have recently decided that a similar mixed question,
    whether an employer terminated an employee for “just cause,” is
    fact-like in nature. Carbon Cnty., 
    2013 UT 41
    , ¶¶ 5, 7.
    ¶17 An application of the Levin factors also points toward a
    deferential standard of review. Under the first factor, the variety and
    complexity of factual scenarios that might cause a worker to quit
    “does not lend itself to consistent resolution by a uniform body of
    appellate precedent.” Baby B., 
    2012 UT 35
    , ¶ 42. Under the second
    factor, DWS’s decision to grant or deny benefits will often rely on
    facts observed by an administrative law judge. Workers will
    inevitably be required to explain the reasonableness of their decision
    to quit based upon job conditions or other external considerations,
    and administrative judges must assess the credibility of the worker
    or other witnesses to determine the degree to which this testimony
    is accurate or exaggerated. Thus, administrative law judges will
    have a more nuanced view of the facts than an appellate court
    would, and administrative judges will be in a better position to
    apply the good-cause-to-quit legal standard to these facts. Finally,
    under the third Levin factor, we do not find any other considerations
    that weigh in favor of de novo review.
    ¶18 Citing Murray and Baby B., Ms. Sawyer contends, however,
    that good-cause-to-quit determinations should be reviewed de novo
    in a manner similar to probable cause or reasonable suspicion
    determinations under our search and seizure jurisprudence.
    Ms. Sawyer argues that because both search and seizure cases and
    good-cause-to-quit cases turn upon the general reasonableness of the
    action taken by the police officer in conducting a search or a worker
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                            Opinion of the Court
    in deciding to quit, both types of mixed questions are law-like. In
    support of her argument, she cites Baby B., where we state:
    [T]he downside [of reviewing probable cause and
    reasonable suspicion cases de novo] is minimal in a case
    involving common, recurring practices, where the
    decision will turn on the general reasonableness of
    those practices and not so much on the demeanor or
    credibility of a particular witness. This is why a mixed
    finding of reasonableness is typically subject to a non-
    deferential standard of review.
    
    2012 UT 35
    , ¶ 44 (footnote omitted); accord Murray, 
    2013 UT 38
    , ¶ 39
    (a search and seizure determination “is not ‘fact-like’ because the
    ultimate determination will often rest on the ‘general
    reasonableness’ of the facts”).
    ¶19 Ms. Sawyer’s interpretation of these cases is incorrect. Baby
    B.’s reasoning did not depend on a simple rule that all
    determinations of reasonableness are law-like. Rather, Baby B. used
    the Levin factors to analyze the costs and benefits of de novo review
    for each of the mixed questions it had to address. 
    2012 UT 35
    ,
    ¶¶ 42–46.
    ¶20 This analysis led the Baby B. court to conclude that some
    determinations of reasonableness should be reviewed de novo and
    others should not. On the one hand, a finding that a search or
    seizure was reasonable is subject to de novo review in part because
    search and seizure cases involve “common, recurring practices” that
    allow appellate courts to establish “a consistent rule . . . as to the
    reasonableness of certain law enforcement procedures.” 
    Id. ¶ 44.
    Thus, “a mixed finding of reasonableness is typically subject to a
    non-deferential standard of review” in search and seizure cases. 
    Id. ¶21 In
    other contexts, mixed findings of reasonableness are
    more often not subject to non-deferential review, and Baby B.
    mentioned two of these. In negligence suits, the reasonableness of a
    defendant’s conduct is determined by the fact-finder and subject
    only to deferential review. See 
    id. ¶ 43.
    And in Baby B. itself, we gave
    “some deference” to a district court’s determination that a biological
    father could have known, through “the exercise of reasonable
    diligence,” that his child might be born in Utah. 
    Id. ¶ 46.
       ¶22 In both of these contexts, appellate courts’ ability to lay
    down clear rules is minimal because of the “complex and varying”
    circumstances to which the rules would have to apply. 
    Id. (internal quotation
    marks omitted). It would be impossible for appellate
    9
    SAWYER v. DEPARTMENT OF WORKFORCE SERVICES
    OPINION OF THE COURT
    courts to “spell[] out,” in advance, how each potentially relevant fact
    should affect the legal outcome, and we have therefore entrusted
    these determinations of reasonableness to district judges’ superior
    knowledge of the evidence of the case and to trial juries’ superior
    knowledge of the community standards that govern the behavior of
    reasonable people. 
    Id. (internal quotation
    marks omitted).
    ¶23 Ms. Sawyer also argues that this court should review the
    administrative decision below de novo because the facts are not in
    dispute. But this argument also misconstrues our precedent. In
    Murray, 
    2013 UT 38
    , ¶ 40, we indicated that the second Levin factor
    may weigh in favor of de novo review where the facts are not at
    issue because the lower tribunal is not required to evaluate witness
    credibility or demeanor. But the other two Levin factors may weigh
    more heavily in favor of deferential review of a given mixed
    question. For example, if a plaintiff and a defendant agreed to the
    essential facts of a negligence claim, leaving only the mixed question
    of whether the defendant acted negligently given those facts, we
    would still not review a jury’s resolution of this mixed question de
    novo, for the reasons explained above. See supra ¶¶ 21–22.
    ¶24 But even if our precedents did support the notion that de
    novo review is appropriate wherever the facts are not in dispute,
    that would not help Ms. Sawyer here. In this case, contrary to her
    assertions, important facts were in dispute. Ms. Sawyer’s central
    contention is that she quit for good cause because, despite her
    reasonable efforts, the principal of her school would have given her
    a failing mark if she had participated in a third performance
    evaluation, leading to her termination. The school district did not
    concede that Ms. Sawyer’s prediction that her termination was
    inevitable was accurate. Instead, the principal of her school testified
    that if Ms. Sawyer’s performance had improved in the third
    evaluation, she would not have been terminated. Because the
    likelihood that Ms. Sawyer would have passed the third evaluation
    was disputed and involves a credibility determination of testimony
    produced by the school district, the second Levin factor supports
    deferential review.
    ¶25 Considering the relevant precedent and the Levin factors,
    we conclude that a good-cause-to-quit determination is a fact-like
    mixed question, and we apply a deferential standard of review to a
    lower tribunal’s resolution of this issue. However, “we must be
    vigilant in our review of . . . mixed findings to ensure that they are
    based on correct legal principles.” Baby B., 
    2012 UT 35
    , ¶ 47. We
    review the legal standard applied to a particular mixed question for
    10
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                           Opinion of the Court
    correctness. 
    Id. II. GOOD
    CAUSE TO QUIT
    ¶26 In evaluating Ms. Sawyer’s contention that DWS erred by
    finding that she quit without good cause, we first evaluate whether
    it applied the correct legal standard. If a lower court or
    administrative body does not apply the correct legal standard to a
    mixed question, we must reverse. See Price River Coal Co. v. Indus.
    Comm’n, 
    731 P.2d 1079
    , 1083 (Utah 1986).
    ¶27 Ms. Sawyer consistently asserted in the proceedings below
    why she quit her job. She believed that, despite her reasonable
    efforts, she would not pass the third teaching evaluation and her
    resulting termination would prevent her from finding another
    teaching job.5 The administrative law judge that evaluated her claim
    found that “[t]aking the third JPAS evaluation was a reasonable
    alternative to quitting and [Ms. Sawyer] did not take it. She may not
    have lost her job if she had.” In other words, the administrative
    judge concluded that the possibility that Ms. Sawyer could have
    passed the third evaluation dictated that good cause to quit was not
    established. The Workforce Appeals Board affirmed the legal
    conclusion drawn by the administrative judge, stating unequivocally
    that “[q]uiting in order to avoid a discharge . . . does not establish
    good cause.”
    ¶28 Utah courts have not considered whether quitting in order
    to avoid a potential discharge may ever constitute good cause. The
    Oregon Supreme Court, however, has considered this question in
    McDowell v. Employment Department, 
    236 P.3d 722
    (Or. 2010). In that
    case, a school district informed a high school teacher that it would
    recommend the teacher’s termination at an upcoming school board
    meeting for showing a film clip containing profane language to his
    students. 
    Id. at 724.
    The teacher’s union attorney advised him to quit
    because there was no chance that the school board would overrule
    the school district’s recommendation. 
    Id. Fearing he
    would be unable
    to find another teaching job if he were terminated, the teacher
    5
    Ms. Sawyer also asserted below that she had some particularly
    challenging special needs students that year with behavioral issues.
    The principal assigned a teaching aide to help with one student, but
    the teaching aide had to spend time assisting in other classrooms.
    Ms. Sawyer, therefore, claimed that absent any additional help with
    the behavioral issues exhibited by some of her students, there was
    no reason to believe she would obtain a different result in the third
    JPAS evaluation.
    11
    SAWYER v. DEPARTMENT OF WORKFORCE SERVICES
    OPINION OF THE COURT
    resigned. 
    Id. at 724,
    727–28. Oregon’s employment department
    denied unemployment benefits, and an administrative law judge
    and an appeals board affirmed the denial. 
    Id. at 724–25.
    The appeals
    board concluded that because the teacher faced “a mere possibility
    of discharge,” and because his termination “was not a foregone
    conclusion,” he did not have good cause to quit. 
    Id. at 728
    (internal
    quotation marks omitted).
    ¶29     The Oregon Supreme Court reversed, reasoning that
    [t]o the extent that the board has suggested . . . that a
    future discharge must be “certain” before a resignation
    to avoid the discharge can qualify as good cause, such
    a conclusion would be inconsistent with the “reasonable
    and prudent person” standard in place. . . . [T]he fact
    that a threatened discharge is less than certain to occur
    . . . [is not] dispositive . . . .
    
    Id. at 730
    n.9. Instead, the court concluded that good cause to quit
    depends “on whether a reasonable person facing that prospect of
    discharge would consider the prospect so grave a circumstance that
    resigning was the only reasonable option.” 
    Id. at 730
    ; see also
    Madisonville Consol. Indep. Sch. Dist. v. Tex. Emp’t Comm’n, 
    821 S.W.2d 310
    , 313 (Tex. Ct. App. 1991) (a teacher may quit with good cause if
    the teacher has “good reason to believe that he will imminently be
    discharged . . . unless he chooses to resign”). This “objective inquiry
    depends on what [the] claimant in fact knew and reasonably should
    have known when he made his decision, not on an assessment of
    how events in fact would have played out.” 
    McDowell, 236 P.3d at 730
    .
    ¶30 We similarly hold that the administrative judge and
    appeals board erred by concluding that the possibility that
    Ms. Sawyer could have retained her job was sufficient to defeat her
    employment benefits claim. Good cause to quit is measured by the
    objective standard of whether “a reasonably prudent person would
    be justified in quitting under similar circumstances.” Hurst v. Indus.
    Comm’n, 
    723 P.2d 416
    , 419 (Utah 1986). This assessment should be
    based on the information that the worker knew or should have
    known at the time of the resignation. 
    McDowell, 236 P.3d at 730
    .
    Reasonably prudent persons, of course, must often make decisions
    based upon an assessment of potential consequences rather than in
    the context of certain outcomes. Little in life is guaranteed. In
    evaluating whether a reasonably prudent employee would quit in
    order to avoid a potential termination, administrative law judges
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    Cite as: 
    2015 UT 33
                           Opinion of the Court
    and courts should consider (1) the likelihood of termination, in spite
    of the employee’s reasonable efforts to remain employed, and (2) the
    degree to which termination will negatively affect future
    employment.
    CONCLUSION
    ¶31 Because the administrative law judge and appeals board
    did not assess whether a reasonable person in Ms. Sawyer’s shoes
    would have quit, but rather whether there was some possibility that
    she could have retained her job, we conclude that an incorrect legal
    standard was applied to the facts of this case. We therefore reverse
    and remand Ms. Sawyer’s unemployment benefits claim to the
    administrative law judge for further proceedings consistent with this
    opinion.
    13