Utley v. Board of Review, Department of Labor
Full Opinion (html_with_citations)
delivered the opinion of the Court.
For thirteen years, John Utley worked for the same company, relying on public transportation to get to work because he is visually impaired. After his shift hours were changed to a time when buses were not running, Utley carpooled with a eoworker. However, the company mandated that Utley work overtime, which resulted in his schedule not coinciding with the coworker. When the coworker had to leave the country for two weeks, the company refused to allow Utley to take his vacation time during the same two-week period. Without transportation to get home from work and fearing that he would be fired, he instead resigned.
The Board of Review of the Division of Unemployment and Disability Insurance (Board) denied Utley unemployment benefits on the basis that he quit his job âvoluntarily without good cause attributable to [his] work.â N.J.S.A 43:21-5(a). The Appellate Division affirmed. We now reverse and hold that the undisputed facts support the conclusion that Utley resigned from the company for work-related rather than personal reasons, entitling him to his statutory unemployment benefits.
I.
A.
In 1992, John Utley began working as a material handler for Myron Manufacturing Corporation (Myron) in Maywood, New Jersey.
In February 2005, Myron changed Utleyâs shift hours, requiring him to arrive at 3:30 p.m. and work until midnight, a time when there is no bus service from Paterson to Maywood. Utleyâwho at the time was earning approximately $12.00 an hourâbrought his transportation problem to the attention of his supervisors. To adapt to the shift change, Utley at first carpooled home with a supervisor who lived in Hackensack. Before long, however, the supervisor decided that detouring to Paterson was too much of an imposition and stopped taking Utley home. Utley then found a coworker on his shift named Raquel to drive him home from work.
That arrangement proved satisfactory while Utley and Raquel worked the same hours, including the âmandatory overtimeâ required by Myron. But at some point Raquel was relieved of the mandatory overtime while Utley remained tethered to the longer hours demanded by the company. On some evenings, Raquel would wait the several hours until Utleyâs extended shift ended and then take him home. On other occasions, despite the mandatory overtime requirement, Utley would leave at midnight in order to catch his ride. The transportation problem brought about by the shift change persisted for nine months. Utley explained the situation to his supervisors, but they demanded that he work overtime despite the fact that he would be stranded at the end of his extended shift.
In November 2005, shortly before Thanksgiving, Raquel announced that she had to leave the country for two weeks to care for her ill father. Utley then attempted, without success, to find
The stress from the constant friction with his supervisors became so overwhelming for Utley that it threatened his âmental and physical well being.â Without available public transportation, Utley feared that he would be let go because he could not work to the end of his shift during the two weeks of Raquelâs absence. Rather than be fired, he decided to leave the company.
The Division of Unemployment and Disability Insurance denied Utleyâs initial claim for unemployment benefits.
Thereafter, relying on N.J.S.A. 43:21-5(a), the appeals examiner rendered a decisionâwith virtually no factual analysisâholding that Utleyâs âleaving work due to lack of transportationâ was ânot connected to the work itself.â The appeals examiner, it seems, believed that an employee who voluntarily quits his job because of lack of transportation is per se barred from receiving benefits. For that reason, the examiner concluded that Utley âleft work voluntarily without good cause attributable to the work and [was]
B.
In an unpublished, per curiam decision, the Appellate Division affirmed the Board of Reviewâs denial of unemployment benefits to Utley. Relying on Self v. Board of Review, 91 N.J. 453, 453 A.2d 170 (1982), the panel noted that â[o]rdinarily, when transportation between work and home becomes unavailable resulting in loss of employment, the employee is disqualified for benefits.â The panel compared Utleyâs case to those of employees who quit their jobs because of plant relocations that lengthen commuting time, as in Morgan v. Board of Review, 77 N.J.Super. 209, 185 A.2d 870 (App.Div.1962), and Rolka v. Board of Review, 332 N.J.Super. 1, 752 A.2d 790 (App.Div.2000). In Morgan, supra, before the relocation, the employee walked to work in twenty minutes; afterwards she commuted in excess of one hour, a commute that she accepted for three years and eight months before resigning. 77 N.J.Super. at 210-12, 185 A.2d 870. In denying unemployment benefits, the Morgan panel emphasized that the employee accepted the longer commute as one of the conditions of her employment by âcontinuing in the companyâs employ after the plant was moved.â Id. at 214, 185 A.2d 870.
In Rolka, supra, the employee quit because the relocation of a business extended her commute from fifteen to twenty minutes to as long as two hours. 332 N.J.Super. at 3-4, 752 A.2d 790. The Rolka panel reversed the denial of unemployment benefits and remanded to the Board of Review, directing it to decide whether the reasons the employee left her job were attributable to her employerâs relocation or to stresses in her personal life arising from the need to obtain child care for her newborn baby.
We granted Utleyâs petition for certification. 191 N.J. 315, 923 A.2d 230 (2007).
II.
Utley contends that because he left his position for âgood cause attributable to [his] workâ and not for personal reasons, he is entitled to unemployment benefits. He points out that for thirteen years he took public transportation to and from work due to his impaired vision and that only after both a unilateral shift change, which left him stranded with no available means of getting home, and his employerâs refusal to offer any reasonable accommodation did he feel compelled to leave his job. Because he had taken every reasonable step to remain employed, Utley asserts that his attempts to continue working for nine months after the shift change, even when his employer impeded his efforts, should not be counted against him.
Amicus Legal Services of New Jersey maintains that Myron set in motion the chain of events that led to Utleyâs separation from employment. According to amicus, the shift change imposed on Utley should be considered a âdischarge and an offer of ânew work.â â Viewed in that light, it submits that Utley had a right to reject the new employment arrangement as âunsuitable,â for purposes of the unemployment compensation law, and should not
On the other hand, the Board of Review argues that Utley left his employment for personal, not work-related, reasons and therefore was rightly denied unemployment benefits. The Board focuses on the following facts to support its position: Utley âcontinued to work for the employer for [many] months after the change in his shiftâ; he lacked transportation for only two weeks; and he âresigned a full week beforeâ Raquelâhis ride homeâwent on a two-week vacation.
III.
New Jerseyâs Unemployment Compensation Law (Compensation Act or Act) is social legislation that provides financial assistance to eligible workers suffering the distress and dislocation caused by unemployment. Provident Inst. for Sav. v. Div. of Employment Sec., 32 N.J. 585, 590, 161 A.2d 497 (1960). In passing the Compensation Act in 1936, the Legislature declared that âeconomic insecurity due to unemployment is a serious menace to the health, morals, and welfare of the people of this state [and] ... often falls with crushing force upon the unemployed worker and his family.â N.J.S.A. 43:21-2. In essence, âthe purpose of the [Compensation Act] is to provide some income for the worker earning nothing, because he is out of work through no fault or act of his own____â Battaglia v. Bd. of Review, 14 N.J.Super. 24, 27, 81 A.2d 186 (App.Div.1951); see also Yardville Supply Co. v. Bd. of Review, 114 N.J. 371, 375, 554 A.2d 1337 (1989). â[T]o further its remedial and beneficial purposes,â we have recognized that âthe [Act] is to be construed liberally in favor of allowance of benefits.â Yardville Supply Co., supra, 114 N.J. at 374, 554 A.2d 1337; see also Provident, supra, 32 N.J. at 590, 161 A.2d 497. There is little question that had Utley been fired because his new shift hours did not coincide with public transportation, thus requiring him to leave early, he would have been entitled to benefits under the Act. See N.J.S.A. 43:21-4 and -5. See generally Sweeney v. Bd. of Review, 43 N.J. 535, 539, 206 A.2d 345 (1965) (âThe Unemployment Compensation Law seeks to ameliorate the impact of involuntary unemployment.â).
The Act, however, protects not only workers who are involuntarily unemployedâthose who are laid-off or terminated
N.J.S.A. 43:21-5(a) presently provides that an individual is disqualified for benefits â[f]or the week in which the individual has left work voluntarily without good cause attributable to such work, and for each week thereafter until the individual becomes reemployed.â Accordingly, benefits are available to a worker who voluntarily leaves his job only if it is for âgood cause attributable to [the] work.â Ibid. Therefore, if Utley quit his job for âgood cause attributable to [the] work,â he is eligible for benefits, but if he left for personal reasons, however compelling, he is disqualified under the statute. We must determine whether Utleyâs lack of transportation, which led to his separation from employment, was caused by work-related factors or purely personal factors within his control.
It is clear that when âcommuting problemsâ arise solely from the personal circumstances of the worker, unrelated to an alteration in the terms or conditions of employment, the worker
The Appellate Division overturned the decision of the Board of Review, which had denied the women unemployment benefits. Id. at 456, 453 A.2d 170. We then reversed the appellate panel and held that there was sufficient credible evidence in the record to support the Boardâs finding that the âclaimants, by their lack of transportation to work, initiated the chain of events which led to their separation.â Id. at 459, 453 A.2d 170. In Self we recognized that â â[ejommuting is usually considered a problem of the employee.â â Id. at 456, 453 A.2d 170 (emphasis added) (quoting Morgan, supra, 77 N.J.Super. at 214, 185 A.2d 870). Specifically, we determined that the âemployer [in Self] did nothing to increase the commuting problems of claimantsâ and therefore âthe reason they were unable to get to work was not work-related, but personal.â Id. at 460, 453 A.2d 170. On that basis, we concluded that âthe lack of transportation was not âgood cause attributable toâ their employment within the purview of the statute.â Ibid.
We acknowledged, however, that there could be circumstances in which the employer set in motion the chain of events that led to
Our discussion and seeming approval of the Bateman dictum in Self presaged the decision in Rolka.
The Appellate Division found that the Board had erred in characterizing Self as adopting âa mandatory ruleâ that â âemployees who leave work because of transportation or commuting difficulties leave without good cause attributable to the work and are disqualified for unemployment benefits.â â Id. at 5, 752 A.2d 790. Instead, the Rolka court determined that our decision in Self requires âa discrete balancing and evaluation of all factors ... [when] the claimant has made a showing of substantially increased commuting distance by reason of the employerâs relocation, with significant personal inconvenience attributable to the move.â Ibid. Accordingly, the appellate panel reversed the Board and remanded for it to determine whether Rolkaâs âconduct in quitting her job was an objectively reasonable response to the employerâs choice to relocateâ or whether her âaction was, instead, primarily motivated by personal factors which, however related to the move, were essentially independent of it.â Id. at 6, 752 A.2d 790.
Also relevant to our consideration is that in 1998, the Department of Labor promulgated regulations to guide the determinations of eligibility made by the Division of Unemployment and Disability Insurance, the Appeal Tribunal, and the Board of Review. See 30 N.J.R. 2027(a) (June 1, 1998) (codified at N.J.A.C. 12:17). Although N.J.AC. 12:17-9.1(e) indicates that âseparation from employmentâ due to â[l]ack of transportationâ âshall be reviewed as a voluntarily leaving work issueâ in deciding whether an individual is ineligible for unemployment benefits, N.J.A.C. 12:17-9.1(d) provides that â[a]n individual who leaves work for several reasons, one of which constitutes good cause attributable to such work, shall not be disqualified for benefits.â
Significantly, during the comment period accompanying the proposal of N.J.A.C. 12:17-9.1(e), the Department of Labor noted that it âdid not intend that this [regulation] automatically result in a finding of voluntarily leaving work without good cause attributable to the work when the leaving was due toâ such reasons as
When N.J.A.C. 12:17â9.1(d) and (e), along with the Department of Laborâs interpretive analysis, are read together, they embody the pragmatic approaches taken in Self, Bateman, and Rolka, which basically require a consideration of all relevant factors in deciding whether an employee has âleft work voluntarily without good cause attributable to such work.â N.J.S.A. 43:21-5(a). The term âlack of transportationâ is not talismanic; it does not dispel the need to assess whether the employee left for work-related reasons.
We now apply the principles enunciated in the applicable statute, regulations, and case law to the facts in this case.
IV.
Utley worked the same shift for thirteen years. During those years, he relied on public transportationâhis only means of getting to work due to his poor eyesight. He did not have a âtransportation problemâ until his employer changed his shift to a time when buses were not available to take him home. His new working hours, to some degree, altered the conditions of his employment. Nevertheless, he did not quit. Rather, for nine months, he attempted to make do, first by carpooling with a supervisor and then with a eoworker, Raquel. However, when his employer mandated that he work overtime, interfering with his ability to catch a ride home with Raquel, and barred him from taking his accrued vacation time to coincide with Raquelâs two-week trip out of the country to care for her ill father, Utley concluded that he could no longer meet the companyâs demands and chose to leave with dignity rather than be fired. See N.J.A.C. 12:17-9.5 (providing that when employee knows that discharge is âimminent,â meaning âwithin 60 days,â that employee may volun
Utleyâs plight is unlike the misfortunes of the two women in Self. There, the only means of getting to work was by car. Self, supra, 91 N.J. at 455, 453 A.2d 170. They did so for nine months until the car they were using became inoperable. See Self v. Bd. of Review, 182 N.J.Super. 361, 362, 440 A.2d 1364 (App.Div.1981), revâd, 91 N.J. 453, 453 A.2d 170 (1982). Unlike Utleyâs employer, their employer did nothing to alter the conditions of their employment that increased the difficulty of their getting to work. Unlike the claimants in Bateman and Morgan, who continued to commute to relocated company sites for five years and almost four years, respectively, only to retire with pensions, Bateman, supra, 163 N.J.Super. at 518-20, 395 A.2d 250; Morgan, supra, 77 N.J.Super. at 210-12, 185 A.2d 870, Utley attempted to adapt over nine months to the increasingly difficult conditions of his employment, and only when he realized that he could not meet the demands of his supervisors did he resign. It cannot be, as suggested by the Board, that had Utley quit at the time of his shift change he would have been entitled to unemployment benefits, but because he made bold efforts to maintain his employment over nine months that he is now somehow disqualified.
The undisputed facts reveal that the altered working conditions of Utleyâs employment made it impossible for him to use public transportation, which he, as a sight-impaired individual, depended
V.
The Division of Unemployment and Disability Insuranceâs appeals examiner apparently believed that âlack of transportationâ is always personal to the employee and automatically disqualified Utley from entitlement to unemployment benefits. In denying Utley benefits, with almost no factual analysis, the examiner briskly concluded, âAlthough leaving work due to lack of transportation may be a valid reason for leaving work, it is not connected to the work itself.â The Board of Review summarily affirmed the appeals examiner.
Utleyâs case called for a fact-sensitive analysis, not the mechanical approach taken by the appeals examiner, in assessing whether the reasons for Utleyâs departure from Myron were personal or work-related. See N.J.A.C. 12:17â9.1(d) (âAn individual who leaves work for several reasons, one of which constitutes good cause attributable to such work, shall not be disqualified for benefits.ââ); Rolka, supra, 332 N.J.Super. at 5, 752 A.2d 790 (requiring âa discrete balancing and evaluation of all factorsâ). The facts before the Board were undisputed. The Board, however, affirmed a decision based on a mistake of law. See Brambila v. Bd. of Review, 124 N.J. 425, 441, 591 A.2d 605 (1991) (reversing
Although in reviewing the decision of an administrative agency, we must give deference to the agencyâs findings of facts, Jackson v. Concord Co., 54 N.J. 113, 117-18, 253 A.2d 793 (1969), and some deference to its âinterpretation of statutes and regulations within its implementing and enforcing responsibility,â In re Appeal by Progressive Cas. Ins. Co., 307 N.J.Super. 93, 102, 704 A.2d 562 (App.Div.1997), we are âin no way bound by the agencyâs interpretation of a statute or its determination of a strictly legal issue,â Mayflower Sec. Co. v. Bureau of Sec., 64 N.J. 85, 93, 312 A.2d 497 (1973). Cf. Manalapan Realty, L.P. v. Twp. Comm. of Manalapan, 140 N.J. 366, 378, 658 A.2d 1230 (1995) (âA trial courtâs interpretation of the law and the legal consequences that flow from established facts are not entitled to any special deference.â).
Under the language of the statute, the ultimate question is whether the employee left his job âwithout good cause attributable to [his] work.â N.J.S.A. 43:21-5(a). A finding that an employee voluntarily left his job because of lack of transportation is not the end, but only one important part of the inquiry. As is clear from this case, all transportation problems do not originate with the employee; an employer may cause or exacerbate those problems. We do not retreat from our previous pronouncement that generally commuting troubles will not be considered work-related. See Self, supra, 91 N.J. at 460, 453 A.2d 170. In Self, we foresaw that a case might arise âin which a sudden change in employment circumstancesâ might make commuting so difficult that it could âproperly be regarded as a condition attributable to the work rather than to the employee.â Id. at 459, 453 A.2d 170 (quoting Bateman, supra, 163 N.J.Super. at 521, 395 A.2d 250). This is such a ease.
For the reasons already discussed, we conclude that Utleyâs reasons for leaving his thirteen-year employment at Myron consti
VI.
In summary, we hold that Utley satisfied his burden under N.J.S.A. 43:21-5(a) and N.J.A.C. 12:17-9.1 by showing that he quit his job for âgood cause attributable to [his] work.â We therefore reverse the judgment of the Appellate Division and remand to the Division of Unemployment Insurance for a determination of benefits consistent with this opinion.
The facts presented here are based on Utleyâs December 22, 2005 letter to the Appeal Tribunal of the Division of Unemployment and Disability Insurance and his testimony before the Tribunal on January 23, 2006. Those facts were not
The Division, located within the Department of Labor and Workforce Development, is now called the Division of Unemployment Insurance.
Although not mentioned in the panel's decision in this case, the employee in Rolka, supra, commuted to the relocation site for several months before resigning. 332 N.J.Super. at 3, 752 A.2d 790.
Although a named respondent in this matter, Myron did not file a response to Utley's appeal before the Appellate Division or file a response to the petition for certification.
Although the Board also argues that Utley âquit because he was angry with his employer for warning him about a prior incident in which he lost his temper when refusing to work mandatory overtime/' that assertion is not supported by the record.
They had only been in the employ of the company for nine months. Self v. Bd. of Review, 182 N.J.Super. 361, 362, 440 A.2d 1364 (App.Div.1981), revâd, 91 N.J. 453, 453 A.2d 170 (1982).
It bears mentioning that the panel in Rolka, supra, concluded that the Self Court "inferentially recogniz[ed]" the validity of the dictum in Bateman "as a rule of approach." 332 N.J.Super, at 4-5, 752 A.2d 790.
The Appellate Divisionâs footnote indicating that Utley "did not address the availability of taxi serviceâ is perhaps answered by the simple economics of a twelve-dollar-an-hour wage earner. Moreover, Utleyâs problems at work were more global. Utleyâs supervisors chastised him for not working overtime, even though doing so would have meant that he could not catch a ride home with a coworker, who was permitted to leave at the end of her shift. Therefore, Utley had to decide between disobeying orders or being stranded in Maywood.
Amicus Legal Services argues that the employer should have accommodated Utleyâs disability, citing LAD, N.J.S.A. 10:5-29.1, and the Americans with Disabilities Act of 1990, 42 U.S.C.A. §§ 12101 et seq. That issue is not before us.