GEORGE'S INC. v. DIRECTOR, Employment
Security Department, and Jimmy Don Wilson
E 93-259___ S.W.2d ___
Court of Appeals of Arkansas
En Banc
Opinion delivered June 28, 1995
1. Appeal & error -- review of Board of Review proceedings --
factors considered on appeal. -- On appeal, the findings of
fact of the Board of Review are conclusive if they are
supported by substantial evidence; substantial evidence is
such relevant evidence as a reasonable mind might accept as
adequate to support a conclusion; the evidence and all reasonable inferences deducible therefrom is reviewed in the light
most favorable to the Board's findings; the court's review is
limited to a determination of whether the Board could
reasonably reach its decision upon the evidence before it.
2. Employment security -- misconduct defined for purposes of
unemployment compensation -- necessary intent discussed. --
"Misconduct," for purposes of unemployment compensation,
involves: (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
of his employees, and (4) disregard of the employee's duties
and obligations to his employer; there is an element of intent
associated with a determination of misconduct; mere good faitherrors in judgment or discretion and unsatisfactory conduct
are not considered misconduct unless they are of such a degree
of recurrence as to manifest culpability, wrongful intent,
evil design, or intentional disregard of an employer's
interest; whether the employee's acts are willful or merely
the result of unsatisfactory conduct or unintentional failure
of performance is a fact question for the Board to decide.
3. Employment security -- intentional disregard of employer's
standards of behavior not established -- Board's finding
supported by substantial evidence. -- Where the evidence did
not establish that by his off-duty drug use the appellee
intentionally disregarded a "standard of behavior the employer
had a right to expect," the Board found that appellant was not
entitled to relief, since it had not met its burden of
establishing misconduct; the Board's finding that appellee did
not violate a standard of behavior was supported by
substantial evidence.
4. Employment security -- prerequisite for finding misconduct for
violation of employer's rules -- rules must be reasonable. --
A prerequisite to finding misconduct for violation of an
employer's rule is that the rule be reasonable.
5. Employment security -- drug-free policy -- justification for.
-- The dangerous nature of the employer's industry or an
employee's job duties, as well as the existence of risk
factors, may justify a drug-free policy as reasonable when the
policy is implemented to promote safety.
6. Employment security -- drug free-policy -- employer may
discharge employee for trace amounts of illegal drugs whether
or not there is a showing of impairment on the job. -- An
employer is not required to show that the employee is actually
impaired in his job performance before he may discharge an
employee after a drug test indicates trace amounts of illegal
drugs; here the Board was incorrect to imply that in addition
to finding a positive drug test, appellant must also
demonstrate that appellee was impaired before appellant's
drug-free policy would be reasonable.
7. Employment security -- proof of impairment of job performance
prior to discharge not necessary -- illegal drug use brings
potential harm to an employer, regardless of any demonstrated
impairment. -- It was unnecessary for appellant to determine
that appellee was impaired in his job performance beforedischarging appellee because appellee's test revealed a
detectable amount of illegal drugs; i.e., a controlled
substance without a prescription; illegal drug use brings
potential harm to the employer, regardless of the worker's
demonstrated impairment, especially when a worker's duties
involve exposure to machinery.
8. Employment security -- drug policies -- reasonable to provide
for drug testing following a work-related accident. -- Drug
policies that provide for drug testing following a work-related accident are considered reasonable.
9. Employment security -- Board's finding that appellant's drug
policy was unreasonable was not supported by substantial
evidence -- drug policy found reasonable. -- Where the court
could not conclude that the Board's finding that appellant's
drug policy was unreasonable was supported by substantial
evidence, appellant's drug policy was found to be reasonable
and the case was remanded for the Board to decide whether
appellee intentionally or deliberately violated appellant's
drug policy.
Appeal from the Arkansas Board of Review; reversed and
remanded.
Bassett Law Firm, by: Shawn D. Twing, for appellant
Ronald A. Calkins, for appellee Arkansas Employment Security
Department.
John Mauzy Pittman, Judge.
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PITTMAN, J. - 2