Arwood v. Dir.

Cite as 2015 Ark. App. 285
ARKANSAS COURT OF APPEALS
DIVISION I
No. E-14-865
Opinion Delivered: April 29, 2015
GARY DON ARWOOD
APPELLANT APPEAL FROM THE ARKANSAS
BOARD OF REVIEW
V. [NO. 2014-BR-01962]
DIRECTOR, DEPARTMENT OF
WORKFORCE SERVICES, and JCR
MANAGEMENT, INC. REVERSED AND REMANDED
APPELLEES
WAYMOND M. BROWN, Judge
Gary Don Arwood appeals from the Board of Review’s denial of his
unemployment benefits. Arwood worked for the employer as a customer-service
representative and delivery driver from September 22, 2012, to May 16, 2014, at which
time he was discharged for violating a policy prohibiting employees from discussing salary
and wages with other employees. The employer’s general manager was initially tasked
with reprimanding Arwood, but instead, terminated his employment after finding a piece
of paper she believed he was using to account for money he had taken from the
company’s cash drawer.1
1
The Board of Review found that the employer was not credible and provided
insufficient evidence to substantiate allegations surrounding the piece of paper and the cash
drawer, and therefore, it is not important for purposes of our appeal.
Cite as 2015 Ark. App. 285
The Department of Workforce Services allowed benefits, and the Appeal Tribunal
affirmed, concluding that Arwood was discharged for reasons other than misconduct in
connection with his work. The Board of Review reversed the Appeal Tribunal’s decision,
finding that he was discharged for misconduct due to his oral statements. Hence, the issue
before us is whether Arwood’s actions constituted work-related misconduct sufficient to
bar him from receiving unemployment compensation. We do not believe his actions rise
to such a level and reverse and remand the Board of Review’s decision with instructions
to award benefits.
A person shall be disqualified from receiving unemployment benefits if it is
determined that the person was discharged from his or her last work on the basis of
misconduct in connection with the work.2 The employer has the burden of proving by a
preponderance of the evidence that an employee engaged in misconduct.3 For the
purposes of unemployment compensation, misconduct is defined as (1) disregard of the
employer’s interest, (2) violation of the employer’s rules, (3) disregard of the standards of
behavior which the employer has a right to expect, and (4) disregard of the employee’s
duties and obligations to the employer.4 However, the definition of misconduct requires
more than mere inefficiency, unsatisfactory conduct, failure in good performance as a
result of inability or incapacity, inadvertencies, ordinary negligence in isolated incidents,
2
Ark. Code Ann. § 11-10-514(a)(1) (Repl. 2012).
3
Grigsby v. Everett, 8 Ark. App. 188, 649 S.W.2d 404 (1983).
4
Clark v. Dir., Employment Sec. Dep’t, 83 Ark. App. 308, 126 S.W.3d 728 (2003).
2
Cite as 2015 Ark. App. 285
or good-faith errors in judgment or discretion.5 Conduct that may well provide a
sufficient basis for the discharge of an employee may not be sufficient to deny that
employee unemployment benefits.6 To conclude that there has been misconduct for
unemployment-insurance purposes, we have repeatedly required an element of intent:
mere good-faith errors in judgment or discretion and unsatisfactory conduct are not
misconduct unless they are of such a degree or recurrence as to manifest culpability,
wrongful intent, evil design, or intentional disregard of an employer’s interest. 7
In the instant case, the employer has a policy prohibiting its employees from
discussing salary and wages, specifically stating as follows: “Discussing with other team
members salary/wages which will result in automatic termination.” The employer alleged
and Arwood testified that he stated to another employee, “Did you get your bonus cause I
just got mine?” He further testified that he did not know talking about his bonus was
against the employer’s policy because he did not believe his bonus had anything to do
with salary or wages, and he maintained that his bonus was a reward that differed from his
usual pay because it did not occur regularly. We agree with Arwood and believe that such
a statement in regard to his bonus amount was no more than an isolated instance of
ordinary negligence or a good-faith error in judgment.
The employer also presented conflicting evidence as to the reason for Arwood’s
discharge. Initially, the employer’s vice-president testified that he was discharged for
5
Price v. Dir., Ark. Dep’t of Workforce Servs, 2013 Ark. App. 205.
6
Id.
7
Id.
3
Cite as 2015 Ark. App. 285
discussing his bonus. However, his testimony revealed that he instructed the general
manager to present Arwood with a written reprimand. He later altered the reasons for
discharge to include the cash drawer incident, but the Board did not find that credible.
Nevertheless, the Board found that Arwood intentionally violated the employer’s rules
and disregarded its interests by discussing his bonus with another employee, amounting to
misconduct in connection with his work.
On appeal from the Board of Review, we do not conduct a de novo review;
instead, we review the evidence and all reasonable inferences deducible therefrom in the
light most favorable to the Board’s findings of fact.8 We will affirm the Board’s findings if
they are supported by substantial evidence, which is such relevant evidence as a reasonable
mind might accept as adequate to support a conclusion. 9 Even when there is evidence
upon which the Board might have reached a different decision, the scope of judicial
review is limited to a determination of whether it could have reasonably reached its
decision based upon the evidence before it.10 Our function on appeal, however, is not
merely to rubber stamp decisions arising from the Board.11 We conclude that the facts
presented in this case are not sufficient to support a finding of misconduct. Instead, the
evidence demonstrates that Arwood’s asking another employee about his bonus amounted
to a good-faith error in judgment or an isolated instance of ordinary negligence and that it
8
West v. Dir., 94 Ark. App. 381, 231 S.W.3d 96 (2006).
9
Id.
10
Id.
11
Millspaugh v. Dir., Ark. Dep’t of Workforce Servs., 2013 Ark. App. 450.
4
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did not establish wrongful intent or evil design. Such conduct may be a sufficient basis for
the discharge, but it is not a sufficient basis for the denial of unemployment compensation.
Reversed and remanded.
VAUGHT and HOOFMAN, JJ., agree.
Gary Don Arwood, pro se appellant.
Phyllis Edwards, for appellee.
5