The California Supreme Court was recently asked to decide if an employee’s refusal to sign for the “receipt” of a disciplinary notice is “misconduct” which would disqualify him from receiving Unemployment Insurance.  The answer is NO.

In the case, the Employer received a complaint about an Employee.  The Employer investigated the complaint and issued a disciplinary notice to the Employee.  The Employee refused to sign although his signature was for “receipt” of the disciplinary notice and not an admission of guilt.  The Employer fired the employee for his refusal to sign for disciplinary notice. The Employee filed for unemployment insurance benefits; his claim was denied his claim.  The EDD stated that the Employee was disqualified from receiving any benefits because he was terminated for misconduct connected with work – i.e., insubordination in refusing to sign the disciplinary notice.

The case went through various administrative appeals and was finally heard by the California Supreme Court which focused on the “humanitarian purpose of the unemployment compensation statutes” along with “judging the reasonableness of the employee’s action in the light of the circumstances facing him and the knowledge possessed by him at the time.”

The Court found the Employee was not engaging in misconduct within the meaning of the Unemployment Insurance Code. There was no substantial evidence of deliberate, willful, and intentional disobedience. Instead, the employee’s judgment was made in good faith, albeit in error, and he was therefore entitled to receive the humanitarian-based unemployment benefits.

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