Bartelt Custom Automotive, Inc. v. Labor and Industry Review Commission
CourtCourt of Appeals of Wisconsin
Date FiledOctober 6, 2026
Docket2024AP000133
StatusPublished
📰 News Coverage: Read the LAWS.com news report on this case
Full Opinion
COURT OF APPEALS
DECISION NOTICE
DATED AND FILED This opinion is subject to further editing. If
published, the official version will appear in
the bound volume of the Official Reports.
October 6, 2026
A party may file with the Supreme Court a
Samuel A. Christensen petition to review an adverse decision by the
Clerk of Court of Appeals Court of Appeals. See WIS. STAT. § 808.10 and
RULE 809.62.
Appeal No. 2024AP133 Cir. Ct. No. 2023CV1222
STATE OF WISCONSIN IN COURT OF APPEALS
DISTRICT I
BARTELT CUSTOM AUTOMOTIVE, INC.,
PLAINTIFF-APPELLANT,
V.
LABOR AND INDUSTRY REVIEW COMMISSION AND KEVIN D. WARLOW,
DEFENDANTS-RESPONDENTS.
APPEAL from an order of the circuit court for Milwaukee County:
KRISTY KASHOUA YANG, Judge. Affirmed.
Before Donald, C.J., Geenen, and Petrashek, JJ.
¶1 GEENEN, J. Bartelt Custom Automotive, Inc. (“Bartelt”) appeals
from the circuit court’s order affirming a decision of the Labor and Industry Review
Commission (“LIRC”) awarding Kevin Warlow worker’s compensation benefits for
Bartelt’s unreasonable refusal to rehire him following his compensable workplace
No. 2024AP133
injury under Wisconsin’s worker’s compensation laws. See WIS. STAT. § 102.35(3)
(2023-24).1 The primary dispute concerns what showing an employee must make
to establish a prima facie case of an unreasonable refusal to rehire claim under
§ 102.35(3). Bartelt argues that an employee’s prima facie case includes showing
that the employee was not rehired because of the workplace injury and that the
employee applied for rehire.
¶2 There is a conflict in published court of appeals cases with respect to
what an employee must show to make a prima facie case under WIS. STAT.
§ 102.35(3). Following the first-in-time rule to resolve conflicts between published
court of appeals opinions, see State v. Swiams, 2004 WI App 217, ¶23, 277 Wis. 2d
400, 690 N.W.2d 452 (concluding that, to the extent a later published court of
appeals case conflicted with an earlier case, the later case “must give way” to the
earlier case); State v. Bolden, 2003 WI App 155, ¶¶9-11, 265 Wis. 2d 853, 667
N.W.2d 364 (holding that if two court of appeals decisions conflict, the first
governs), we agree with LIRC that § 102.35(3) does not require an employee to
prove that they were denied rehire because of the workplace injury, nor are they
required to demonstrate that they applied for rehire. To establish a prima facie case
for unreasonable failure to rehire under § 102.35(3), a claimant must show that
they: (1) were an employee; (2) sustained an injury in the course of their
employment; and (3) were subsequently denied rehire. West Bend Co. v. LIRC,
149 Wis. 2d 110, 123, 438 N.W.2d 823 (1989); Dielectric Corp. v. LIRC, 111 Wis.
2d 270, 277-78, 330 N.W.2d 606 (Ct. App. 1983).
¶3 We further affirm LIRC’s findings that Bartelt did not show
reasonable cause for failing to rehire Warlow, that suitable work existed within
1
All references to the Wisconsin Statutes are to the 2023-24 version.
2
No. 2024AP133
Warlow’s physical and mental limitations, and that Warlow acted in good faith to
try to mitigate his losses because these findings are supported by substantial and
credible evidence. Accordingly, we affirm the circuit court’s order.
BACKGROUND
¶4 The following facts are taken from the administrative record and
LIRC’s decision awarding Warlow wage-loss benefits.
¶5 Bartelt is a metal fabrication and machine shop located in Milwaukee.
Warlow worked for Bartelt as a welder. Warlow was originally offered a press
brake2 operator position, but he turned it down because, at the time, he had no
interest in operating a press brake and wanted to utilize other skills. Warlow had
prior experience as a press brake operator and was always comfortable running the
press brake, but he was wary of the machine because it could be dangerous.
¶6 On January 9, 2017, Warlow sustained an injury to his left hand while
at work. The injury was determined to be compensable under Wisconsin’s worker’s
compensation law. Warlow recovered from the injury and was released to return to
work without restrictions on February 28, 2017.
¶7 When Warlow returned to Bartelt’s facility following his release to
work, he was informed that work had slowed down while he was recovering from
his injury, and he was being laid off. However, Bartelt had actually filled Warlow’s
welding position with someone else. Although a press brake operator position was
available at that time, Bartelt did not offer Warlow that position. Warlow testified
2
A press brake is a piece of manufacturing equipment used to bend metal.
3
No. 2024AP133
that, for financial reasons, he would have accepted any job at Bartelt, including the
press brake operator position.
¶8 After he was laid off, Warlow briefly received unemployment
compensation before obtaining employment at Resource Management, earning
slightly less than he had earned at Bartelt. However, Warlow left this job after one
week when he learned the job was not temporary-to-permanent as had been
advertised. Warlow later obtained other employment operating a press brake but at
a wage lower than what he earned at Resource Management.
¶9 Warlow filed a complaint with LIRC alleging that Bartelt
unreasonably refused to rehire him when he was able to return to work after a
worker’s compensation injury, and he sought lost wages and benefits pursuant to
the worker’s compensation wage-loss statute, WIS. STAT. § 102.35(3). Following
administrative and judicial proceedings, including a prior remand from this court,
LIRC ultimately affirmed an administrative law judge’s (“ALJ”) determination that
Bartelt had unreasonably refused to rehire Warlow and awarded wage-loss benefits
under § 102.35(3).
¶10 LIRC agreed with the ALJ that the press brake operator position was
suitable for Warlow because the evidence demonstrated that both before and after
his employment with Bartelt, Warlow worked as a press brake operator. LIRC
rejected Bartelt’s argument that it was Warlow’s burden to inquire about other
available positions, concluding instead that Bartelt should have informed him about
the open press brake operator position and offered it to him. LIRC also rejected
Bartelt’s argument that Warlow’s wage-loss award should be reduced because
Warlow left Resource Management, resulting in a period of unemployment before
4
No. 2024AP133
Warlow obtained employment that paid him less than what he received at Resource
Management. The circuit court affirmed LIRC’s decision.
¶11 Bartelt appeals.
STANDARD OF REVIEW
¶12 We review LIRC’s decision, not the decision of the circuit court.
Pick n’ Save Roundy’s v. LIRC, 2010 WI App 130, ¶8, 329 Wis. 2d 674, 791
N.W.2d 216. LIRC’s decision must be affirmed unless LIRC acted without or in
excess of its powers, its decision was procured by fraud, or its findings of fact do
not support its order or award. WIS. STAT. § 102.23(1)(e).
¶13 Whether an employer unreasonably refused to rehire an individual is
a mixed question of fact and law. deBoer Transp., Inc. v. Swenson, 2011 WI 64,
¶29, 335 Wis. 2d 599, 804 N.W.2d 658. LIRC’s findings of fact are conclusive if
supported by substantial and credible evidence. Operton v. LIRC, 2017 WI 46, ¶18,
375 Wis. 2d 1, 894 N.W.2d 426. When there is no dispute as to the relevant facts,
our review is limited to LIRC’s application of the worker’s compensation statutes
to those facts. Epic Staff Mgmt., Inc. v. LIRC, 2003 WI App 143, ¶13, 266 Wis.
2d 369, 667 N.W.2d 765. An agency’s determination as to the meaning and
application of a statute is a legal conclusion, which we review de novo. Tetra Tech
EC, Inc. v. DOR, 2018 WI 75, ¶84, 382 Wis. 2d 496, 914 N.W.2d 21. In reviewing
LIRC’s legal conclusions, we give due weight, but not deference, to its experience
and specialized knowledge implementing Wisconsin’s worker’s compensation
laws. See id., ¶¶77-79.
5
No. 2024AP133
DISCUSSION
I. Prima Facie Framework under WIS. STAT. § 102.35(3)
¶14 We begin with a threshold issue that forms the majority of the parties’
dispute: what an employee is required to prove under WIS. STAT. § 102.35(3) before
the burden shifts to the employer to defend not rehiring the employee. Section
102.35(3) provides that an employer who, without reasonable cause, refuses to
rehire an employee injured in the course of employment is liable for lost wages. It
states:
Any employer who without reasonable cause refuses
to rehire an employee who is injured in the course of
employment, when suitable employment is available within
the employee’s physical and mental limitations ... has
exclusive liability to pay the employee, in addition to other
benefits, the wages lost during the period of such refusal, not
exceeding one year’s wages.
Id.
¶15 An employee making a wrongful refusal to rehire claim must make an
initial showing, sometimes called a prima facie case, by proving certain elements of
their claim, and after making this showing, the burden shifts to the employer to
defend its decision not to rehire the employee. West Bend, 149 Wis. 2d at 124-125.
Here, LIRC found that Warlow made a prima facie case that Bartelt wrongfully
refused to rehire him following a worker’s compensation injury, thus shifting the
burden of proof to Bartelt to establish that it had reasonable cause for its refusal to
rehire Warlow.
¶16 On appeal, Bartelt argues that LIRC applied the wrong legal standard.
The parties agree that the statute requires the claimant to show that they were an
employee injured in the course of employment and that the employer refused to
6
No. 2024AP133
rehire them. There is no dispute that Warlow was an employee injured in the course
of employment, that he was released to return to work, that his prior job was within
his restrictions, that he was permanently replaced while recovering from his work-
related injuries, and that Bartelt refused to rehire Warlow.
¶17 This appeal arises from the parties’ disagreement over what the statute
and case law require an employee to prove before the burden shifts to the employer
to defend not rehiring the employee. LIRC contends that WIS. STAT. § 102.35(3)
and our supreme court’s decision in West Bend establish a three-element test to
satisfy the employee’s initial burden of proving a prima facie case, and Warlow was
required to prove only that: (1) he was an employee of Bartelt; (2) he was injured in
the course of his employment; and (3) Bartelt refused to rehire him. See West Bend,
149 Wis. 2d at 123. Bartelt, on the other hand, argues that LIRC should have applied
a different, four-element prima facie case test which contains a different third
element and an additional fourth element. According to Bartelt, Warlow was
required to show that: (1) he was an employee of Bartelt; (2) he was injured in the
course of his employment; (3) he applied for rehire; and (4) he was denied rehire
because of his work injury. This formulation of the test was first articulated by this
court in Universal Foods Corp. v. LIRC, 161 Wis. 2d 1, 6, 467 N.W.2d 793 (Ct.
App. 1991), reiterated in Hill v. LIRC, 184 Wis. 2d 101, 107, 516 N.W.2d 441 (Ct.
App. 1994), and finally adopted post-Tetra Tech in Anderson v. LIRC, 2021 WI
App 44, ¶21, 398 Wis. 2d 668, 963 N.W.2d 89.3
3
In Tetra Tech EC, Inc. v. DOR, 2018 WI 75, ¶84, 382 Wis. 2d 496, 914 N.W.2d 21, our
supreme court ended the practice of courts deferring to agency interpretations of statutes and
clarified that all agency conclusions of law are reviewed de novo. Our decision in Hill v. LIRC,
184 Wis. 2d 101, 109-11, 516 N.W.2d 441 (Ct. App. 1994) applied the pre-Tetra Tech deferential
framework when determining the elements of a prima facie case for a WIS. STAT. § 102.35(3) claim,
so Anderson v. LIRC, 2021 WI App 44, ¶21, 398 Wis. 2d 668, 963 N.W.2d 89 made clear that it
was adopting Hill’s interpretation of § 102.35(3) under a de novo standard of review.
7
No. 2024AP133
¶18 The confusion over the employee’s burden in making the prima facie
showing is not unwarranted. In deBoer, 335 Wis. 2d 599, ¶41, our supreme court
identified a “potential inconsistency” stemming from the West Bend decision,
because the elements of a WIS. STAT. § 102.35(3) were set forth twice. In West
Bend, our supreme court first stated that “the employee’s prima facie case is met
after an employee shows that [he or] she has been injured in the course of
employment and subsequently is denied rehire.” deBoer, 335 Wis. 2d 599, ¶41
(citation modified). The West Bend court “did not specify that the employee must
show that [he or] she was denied rehire because of the injury.” deBoer, 335 Wis. 2d
599, ¶41. However, the court also stated in West Bend that “the last element of the
prima facie case is that the employee has been denied rehiring because of the injury
sustained in [his or] her work.” deBoer, 335 Wis. 2d 599, ¶41 (citation modified).
deBoer recognized that, in the wake of West Bend, some courts resolving claims
under § 102.35(3) were applying the three-factor test while other courts applied a
framework that included an additional element: the requirement that the employee
show that the failure to rehire was “because of the injury.” deBoer, 335 Wis. 2d
599, ¶40.
¶19 Adding an additional wrinkle, the deBoer court noted that the court of
appeals in Hill, 184 Wis. 2d 101, offered yet another formulation of the statutory
standard and burden shifting framework. deBoer, 335 Wis. 2d 599, ¶39 n.16. Hill
followed the four-factor test, requiring that the employee show that the failure to
rehire was “because of the injury,” but it also listed an additional element that the
employee was required to prove, namely, that the employee applied for rehire. Hill,
184 Wis. 2d at 111-12. The Hill standard was recently adopted in Anderson, 2021
8
No. 2024AP133
WI App 44, ¶21, stating that “we adopt Hill’s interpretation of [WIS. STAT.]
§ 102.35(3) as our own.”4
¶20 Bartelt argues that we must follow the Anderson/Hill formulation of
the test because Anderson, a published opinion from this court, is the most recent
binding expression of what WIS. STAT. § 102.35(3) requires. LIRC argues that the
three-factor formulation from West Bend should control because the Anderson/Hill
formulation of the test conflicts with earlier decisions from this court that applied
the three-factor West Bend formulation.
¶21 LIRC is correct. We have, on several occasions, resolved a conflict
between published court of appeals opinions by following the earliest, not the latest
case. See Swiams, 277 Wis. 2d 400, ¶23 (concluding that, to the extent a later
published court of appeals case conflicted with an earlier case, the later case “must
4
The concurrence suggests that Anderson’s adoption of Hill was more limited and did not
include the “because of injury” prima facie case requirement. Concurrence, ¶¶58-59. We see two
potential problems with this interpretation of Anderson.
First, while the Anderson court’s last reference to Hill appears to be limited in the way the
concurrence suggests, it did not use limiting language when it discussed Hill in light of Tetra Tech.
Earlier in the opinion, the Anderson court appears to adopt the entirety of Hill’s interpretation of
WIS. STAT. § 102.35(3) for the specific purpose of reaffirming Hill’s statutory analysis to prevent
Hill’s interpretation from being attacked based on its reliance on pre-Tetra Tech deference to
administrative agency interpretations of statutes. Anderson v. LIRC, 2021 WI App 44, ¶21 & n.8,
398 Wis. 2d 668.
Second, the Anderson court recognized that it might not have been necessary to reaffirm
Hill in light of Tetra Tech because the lead opinion in Tetra Tech sought to rebut the notion that
the precedential value of prior cases was imperiled by its decision to end the practice of court
deference to agency interpretations of statutes. Anderson, 398 Wis. 2d 668, ¶21 n.8. If Hill is
viewed as retaining all of its precedential value post-Tetra Tech, the Anderson court could not
have limited its adoption of Hill in the way the concurrence suggests that it did. See Cook v. Cook,
208 Wis. 2d 166, 190, 560 N.W.2d 246 (1997).
Ultimately, whether Anderson adopted Hill’s “because of injury” prima facie case
requirement does not affect the conflict in our published case law. As we explain later in this
opinion, the conflict remains regardless of the extent to which Anderson adopted Hill, and we
resolve that conflict by applying the first-in-time rule.
9
No. 2024AP133
give way” to the earlier case); State v. Bolden, 2003 WI App 155, ¶¶9-11, 265
Wis. 2d 853, 667 N.W.2d 364 (holding that if two court of appeals decisions
conflict, the first governs). The idea behind this rule is that the first published court
of appeals opinion deciding a particular issue is binding such that no subsequent
court of appeals case can overrule, modify, or otherwise contradict it. If a later court
of appeals opinion contradicts an earlier opinion, the later opinion constitutes a
violation of Cook v. Cook, 208 Wis. 2d 166, 560 N.W.2d 246 (1997), and cannot
be followed, even if the later opinion is published. See Bolden, 265 Wis. 2d 853,
¶¶9-11.
¶22 While our supreme court has never endorsed the first-in-time rule to
resolve conflicts in published court of appeals cases, it also has not repudiated the
rule despite having the opportunity to do so.5 Marks v. Houston Cas. Co., 2016 WI
5
In Marks v. Houston Casualty Co., 2016 WI 53, ¶¶78-80, 369 Wis. 2d 547, 881 N.W.2d
309, our supreme court acknowledged but expressed no opinion on the first-in-time rule and refused
to either endorse or repudiate it, although it instructed the court of appeals to certify cases
presenting similar types of conflicts. Unfortunately, these equivocal statements cause a conflict
within Marks itself. While this uncertainty was highlighted by one justice in a concurring opinion,
see id., ¶¶89-94 (R.G. Bradley, J., concurring), the majority opted not to pass judgment on the first-
in-time rule because the issue was inadequately briefed and raised “weighty” concerns regarding
the constitutional authority of the court of appeals, id., ¶79 n.34.
As the law currently stands, the first-in-time rule is established in our published case law,
and its validity has not been contradicted by our supreme court, so we are bound to follow the rule.
Indeed, were we to repudiate the rule ourselves, that in itself would constitute a violation of the
supreme court’s directive that “the court of appeals may not overrule, modify or withdraw language
from a previously published decision of the court of appeals.” Cook, 208 Wis. 2d at 190. If the
supreme court wishes to direct us to certify cases presenting similar types of conflicts in the future,
it must repudiate the first-in-time rule because we are not empowered to do so ourselves. See id.;
see also Marks, 369 Wis. 2d 547, ¶89 (R.G. Bradley, J., concurring); but see Wisconsin Voter
Alliance v. Secord, 2025 WI 2, ¶¶41, 51-59, 414 Wis. 2d 348, 15 N.W.3d 872 (Hagedorn, J.,
concurring) (questioning the rules announced in Cook).
(continued)
10
No. 2024AP133
53, ¶¶78-79, 369 Wis. 2d 547, 881 N.W.2d 309. Considering that we lack the power
to overrule, modify, or withdraw language from our previously published decisions,
Cook, 208 Wis. 2d at 190, we are bound by the first-in-time rule, and we follow
both West Bend and our first articulation of the prima facie case elements for a claim
under WIS. STAT. § 102.35(3).
¶23 Prior to Anderson, Hill, and Universal Foods, we decided Dielectric.
In Dielectric, we set forth the burden shifting framework of WIS. STAT. § 102.35(3),
explaining that after an employee shows that he or she has been injured in the course
of employment and was subsequently denied rehire, it becomes the burden of the
employer to show reasonable cause for not rehiring the employee. Dielectric, 111
Wis. 2d at 277-78. In West Bend, our supreme court explicitly adopted this
formulation of the framework, and it cited our decision in Dielectric in support of
the formulation. Following the first-in-time rule to resolve conflicts between
published court of appeals opinions, we agree with LIRC that the binding
formulation of the test does not require an employee to prove that they were denied
rehire because of the work-related injury, nor are they required to demonstrate that
they applied for rehire. To establish a prima facie case for unreasonable failure to
rehire under § 102.35(3), a claimant must show that they: (1) were an employee;
(2) sustained an injury in the course of their employment; and (3) were subsequently
denied rehire. West Bend, 149 Wis. 2d at 123; Dielectric, 111 Wis. 2d at 277-78;
To be clear, we are not expressing an opinion in this case about what the majority of this
panel believes the correct elements of a WIS. STAT. § 102.35(3) claim are or whether prior court of
appeals decisions misinterpreted the law. Rather, we are acknowledging a conflict in our published
case law with respect to this issue and following the first-in-time rule that our case law currently
requires us to follow.
In our view, this case presents an attractive vehicle to clarify both whether the first-in-time
rule is compatible with Cook and the proper elements of a prima facie case for a WIS. STAT.
§ 102.35(3) claim.
11
No. 2024AP133
see also deBoer, 335 Wis. 2d 599, ¶¶39-42 (discussing but not applying the Hill
formulation of the test and instead applying the three-factor formulation from West
Bend).
¶24 The parties agree that these elements were met, and we agree with the
parties. We conclude that Warlow satisfied his burden of showing a prima facie
case for an unreasonable refusal to rehire claim under WIS. STAT. § 102.35(3).
II. Reasonable Cause
¶25 Bartelt next argues that it had reasonable cause not to rehire Warlow.
Specifically, Bartelt offers three reasons: (1) the press brake operator position was
not suitable for Warlow; (2) it would be futile to offer Warlow a position he had
previously rejected; and (3) Warlow did not communicate that he changed his mind
and was interested in the press brake operator position. We conclude that LIRC’s
rejection of these reasons is supported by substantial and credible evidence.
¶26 As to the first reason, we conclude that substantial and credible
evidence supports LIRC’s finding that the press brake operator position was suitable
for Warlow. As LIRC explained in its decision, the record shows that Warlow had
significant press brake experience on machines similar to the one in Bartelt’s plant
both before and after his employment with Bartelt. Indeed, Bartelt’s president first
reached out to Warlow about the press brake operator position because he saw press
brake experience on Warlow’s resume. Warlow testified that when Bartelt initially
offered him the press brake job, he discussed his previous work operating a press
brake. He told Bartelt that he was always comfortable operating a press brake,
although he was aware that operating the machine could be dangerous. While
Bartelt points to some evidence in the record suggesting that Warlow believed he
was too small to operate a press brake, LIRC’s contrary finding is supported by
12
No. 2024AP133
substantial and credible evidence, and we do not reweigh the evidence or reassess
witness credibility on appeal. Operton, 375 Wis. 2d 1, ¶18.
¶27 As to the second reason, LIRC determined that it did not matter that
Warlow had previously turned down the press brake operator position. LIRC
explained that, when declining the press brake operator position, Warlow told
Bartelt that he was fully capable of operating the press brake but preferred welding.
LIRC also relied on Warlow’s testimony that he would have accepted the press
brake position because he had no other job and had expenses to pay, and it observed
that Warlow accepted a press brake operator position at a different facility after he
lost his job at Bartelt. LIRC reasonably determined that it would not have been
futile to offer Warlow the press brake operator position simply because Warlow had
previously turned down the position, and this determination is supported by
substantial and credible evidence.
¶28 As to the third reason, LIRC concluded that it was not Warlow’s
burden to inquire about positions that he was not aware were available. Warlow
testified that he did not know that there was an open press brake operator position
because, at the time he was injured, Bartelt already had a full-time press brake
operator. Bartelt does not point to any evidence that Warlow was aware of the
opening but failed to communicate his interest in it, and Bartelt cites no authority
for the proposition that an employee must affirmatively inform his employer that he
is open to other work without any awareness of what positions may be available.
¶29 On this issue, Anderson is instructive. In Anderson, we observed that
“there is no requirement under WIS. STAT. § 102.35(3) that a terminated employee
express a willingness to return to work in the same position that he or she occupied
before being fired.” Anderson, 398 Wis. 2d 668, ¶23. We continued, however,
13
No. 2024AP133
noting that the rule is different when an employee’s claim is grounded in the
employer’s refusal to rehire the employee for a different position than the one the
employee previously occupied. Id. “In those instances, the employee must
demonstrate, as part of his or her prima facie case,[6] that he or she indicated to the
employer a willingness to accept other work.” Id. The employee in Anderson was
expressly told to reach out to his employer about a sales position when he “felt
better,” id., ¶5, but he did not make any required “overtures” that would put his
employer on notice that he was interested in a sales position or any other position,
id., ¶¶19, 24.
¶30 Accordingly, the key focus is on whether the employer had notice that
the employee was seeking to return to work; it is enough for the employee to contact
the employer and indicate they want and are able to return to work. That is what
happened in this case. Warlow returned to work without restrictions and sought to
be reinstated. On this record and unlike the employer in Anderson, Bartelt was on
notice that Warlow was seeking and able to perform work at Bartelt after he was
released to return to work without restrictions.
¶31 In sum, LIRC found Bartelt’s proffered reasons for not rehiring
Warlow to be unreasonable, and that finding is supported by substantial and credible
evidence.
6
For the reasons stated in section I of this opinion, we are bound by Dielectric and West
Bend’s three-factor formulation of a prima facie case for a WIS. STAT. § 102.35(3) claim. However,
we view Anderson’s discussion as relevant to the question of whether an employer has reasonable
cause not to rehire an employee (e.g., the employer is never put on notice that the claimant is
seeking and capable of performing other work), and we therefore discuss Anderson in this context.
14
No. 2024AP133
III. Mitigation of Damages and Wage-Loss Award
¶32 Finally, Bartelt contends that LIRC should not have awarded Warlow
full wage-loss benefits as the result of its refusal to rehire Warlow because Warlow
failed to mitigate his losses. Specifically, Bartelt argues that Warlow failed to
mitigate his losses because he quit his subsequent employment at Resource
Management after approximately one week.
¶33 While WIS. STAT. § 102.35(3) makes no reference to an employee’s
duty to mitigate damages, LIRC routinely interprets the statute to include a duty to
mitigate lost wages, which it addresses on a case-by-case basis, guided by a standard
of reasonableness. We agree with LIRC that its interpretation of the statute is
consistent with the statute’s purpose and our supreme court’s declaration that
§ 102.35(3) should not be viewed as a penalty imposed on an employer. See West
Allis Sch. Dist. v. DILHR, 116 Wis. 2d 410, 421, 342 N.W.2d 415 (1984)
(providing that § 102.35(3) “should be viewed as a compensation payment inuring
to the benefit of a worker and not as a penalty imposed upon an employer”); see
also State v. Dinkins, 2012 WI 24, ¶29, 339 Wis. 2d 78, 810 N.W.2d 787 (holding
that statutes must be interpreted consistently with the statute’s manifest purpose).
¶34 Here, LIRC reasonably declined to reduce Warlow’s wage-loss award
for leaving Resource Management because the position was falsely advertised as
temporary-to-permanent. LIRC found that, when Warlow accepted employment
with Resource Management, the position was advertised as a temporary-to-
permanent position, but after discovering that the position was not as advertised,
Warlow quit in order to seek and obtain other, permanent employment. LIRC
reasonably concluded that Warlow had a valid reason for leaving Resource
15
No. 2024AP133
Management, and that he demonstrated good faith in mitigating his lost wages
because he subsequently took another job.
¶35 Bartelt’s arguments to the contrary are not persuasive. Bartelt
provides a quote from West Allis where our supreme court said that WIS. STAT.
§ 102.35(3) “should be viewed as a compensation payment inuring to the benefit of
a worker and not as a penalty imposed on an employer,” but Bartelt does not connect
this quote to an actual argument with respect to why Warlow should have his
benefits reduced for leaving Resource Management.
¶36 Bartelt also cites Gutkowski v. Bell Laboratories, Inc., LIRC
October 30, 1987, WC Claim 85-01922, but in addition to not being binding on this
court, Gutkowski is distinguishable from the present case. In Gutkowski, the
claimant held several part-time jobs after he was refused rehire. Id. The claimant
received a raise and decided that he could afford to stay home with his children
during the week, at which point he stopped looking for full-time work to replace his
previous job. Id. LIRC stated that “[t]he wages lost after that point in time were
caused by the applicant’s decision not to look for work and not by respondent’s
refusal to rehire the applicant.” Id.
¶37 Here, Warlow did not decide to stop looking for work after he left
Resource Management. After he resigned because the job was not accurately
advertised, he began his job search again.7 Nothing in the record suggests that
Warlow stopped looking for work at any point in time while he was unemployed.
7
We note that unemployment law permits a claimant to retain unemployment eligibility
even if they reject what would otherwise be offers of “suitable work” for a period of at least six
weeks after becoming unemployed if the job offer involves lower skill work, lower pay, or less
favorable working conditions than the employee’s previous employment, particularly where the
employee is diligent in seeking alternative employment. See, e.g., DILHR v. LIRC, 193 Wis. 2d
391, 535 N.W.2d 6 (Ct. App. 1995); WIS. STAT. § 108.04(8)(d).
16
No. 2024AP133
LIRC’s decision and its benefits award correctly applied the law and were firmly
grounded in substantial and credible evidence in the record.
CONCLUSION
¶38 For the foregoing reasons, we agree with LIRC’s recitation of the
prima facie case test for claims brought under WIS. STAT. § 102.35(3), and under
that recitation of the test, Warlow satisfied his burden. We further conclude that
LIRC’s findings that Bartelt did not show reasonable cause for failing to rehire
Warlow and that Warlow acted in good faith to try to mitigate his losses are
supported by substantial and credible evidence.
By the Court.—Order affirmed.
Recommended for publication in the official reports.
17
No. 2024AP133(C)
¶39 PETRASHEK, J. (concurring). I agree that application of the first-
in-time rule determines which of this court’s prior case law must be applied when
addressing the elements of an employee’s prima facie showing under WIS. STAT.
§ 102.35(3), and I join the majority opinion’s analysis of that issue and the other
issues Bartelt raises. I write separately to explain how, in my view, the waters have
been muddied by case law misconstruing West Bend’s clear adoption of the three-
element test for an employee to demonstrate a prima facie case of an unreasonable
refusal to rehire. See West Bend Co. v. LIRC, 149 Wis. 2d 110, 123, 438 N.W.2d
823 (1989). To be clear, I conclude the most accurate interpretation of West Bend—
and the only interpretation that is consistent with the statutory text, purpose, and
policy—is that, to establish a prima facie violation of § 102.35(3), the employee
need only show that they were (1) an employee, (2) injured in the course of their
employment, and (3) subsequently denied rehire. West Bend, 149 Wis. 2d at 123.1
1
I recognize that some cases have added an additional requirement that the employee
signal an openness to other work when the employee is alleging an unreasonable refusal to rehire
for a position other than the one they occupied before the injury. See Hill v. LIRC, 184 Wis. 2d
101, 112, 516 N.W.2d 441 (Ct. App. 1994); Anderson v. LIRC, 2021 WI App 44, ¶23, 398 Wis. 2d
668, 963 N.W.2d 89. Both decisions seem to exist in tension with L & H Wrecking Co., 114
Wis. 2d 504, 506-07 & n.3, 339 N.W.2d 344 (Ct. App. 1983), which held the employee does not
have a prima facie burden to show that other suitable work was available, although Anderson at
least attempted to reconcile those inconsistencies.
For purposes of this concurrence, I do not address whether Hill and Anderson improperly
place the burden on the employee to demonstrate that they have signaled an openness to other work.
Assuming that such a requirement exists, I conclude it was satisfied under the facts of this case,
mostly for the reasons set forth in LIRC’s decision and the majority opinion. Importantly, LIRC’s
specific factual finding was that when Warlow initially rejected the press brake operator position
with Bartelt, “he told Bartelt that he was more interested in a welding position.” Even assuming
Hill and Anderson are good law, this was sufficient to put Bartelt on notice that Warlow might
accept press brake work if a welding job was unavailable when he returned to work.
No. 2024AP133(C)
¶40 The majority opinion ably explains some of this history. Dielectric
Corp. v. LIRC, 111 Wis. 2d 270, 330 N.W.2d 606 (Ct. App. 1983), appears to be
one of the first appellate court decisions interpreting the meaning of WIS. STAT.
§ 102.35(3) following the enactment of that subsection.2 The court observed the
statute was “relatively new and has little, if any, helpful legislative history or case
law.” Dielectric, 111 Wis. 2d at 276. Interpreting the statute—in part by applying
the longstanding “general rule” that courts are guided not only by the exact words
used in a statute, but also a statute’s “apparent general purpose”—the court crafted
the burden-shifting framework later endorsed by our supreme court in West Bend.
Dielectric Corp., 111 Wis. 2d at 277-78 (citing Davis v. State, 134 Wis. 632, 115
N.W. 150 (1908)); see also West Bend, 149 Wis. 2d at 123.
¶41 Notably, the Dielectric statement of the statutory requirements did not
in any way suggest the employee bore a burden of showing, as part of their prima
facie case, that they were denied rehire because of the work injury they had suffered.
Instead, the court wrote that “[u]nder this new statute, once the employee has
suffered a worker’s compensation injury, the question initially becomes: does the
employer have good cause not to rehire.” Dielectric, 111 Wis. 2d at 278. The
legislature “mandated rehire unless an employer could demonstrate that
reemployment would create a substantial likelihood of reinjury to an employee or
injury to co-workers due to the nature of the employee’s physical or mental
condition.” Id. at 277 (emphasis added).
¶42 Because West Bend relied on Dielectric for its articulation of the
employee’s prima facie burden, it is no surprise that West Bend’s framing did not
2
For a discussion of the amendment history of WIS. STAT. § 102.35, see County of La
Crosse v. WERC,