IN THE COURT OF APPEALS OF IOWA
No. 1-1012 / 00-2018
Filed April 24, 2002
ARTISTIC SOLID WASTE SYSTEMS, INC.,
Plaintiff-Appellant,
vs.
EMPLOYMENT APPEAL BOARD,
Defendant-Appellee,
and
KELVIN HOWELL,
Intervenor-Appellee.
Appeal from the Iowa District
Court for Polk County, Linda R. Reade, Judge.
The employer appeals the district
court’s ruling on judicial review of agency action
affirming the award of unemployment benefits. AF
FIRMED.
Timothy McCarthy of McEnroe, McCarthy
& Gotsdiner, P.C., West Des Moines, for appellant.
Joseph Walsh of Hedberg, Owen & HedberDes
g, P.C., Moines, for intervenor Kelvin Howell.
Anita Garrison, Des Moines
, for appellee Employment Appeal Board.
Considered by Vogel, P.J.,
and Miller and Eisenhauer, JJ.
EISENHAUER, J.
The petitioner, Artistic Sold Waste Systems
of Iowa (Artistic), appeals the district court ruling
affirming on judicial review the Employment Appeal
Board’s decision affirming the award of unemployment
benefits to Kelvin Howell. Artistic contends: (1
) the district court erred in concluding there was
substantial evidence to support the agency’s findings
that it failed to prove misconduct on the part of it
Howell; (2) was not responsible for the laboratory
’s error in failing to preserve Howell’s drug test
specimen; and (3) Howell’s request for a second drug
retest was untimely. We affirm.
I. Background Facts and Proceedings.
Howell was employed by Artistic from August 10, 1999
until November 23, 1999. On November 9, 1999, Howell
injured his foot in a work-related incident. As part
of his treatment at the emergency room, Howell was
prescribed Tylenol 3 for pain. Artistic requested
Howell submit to a drug test. Howell complied with
the request, and a urine sample was sent to LabOne
for analysis. Howell requested the sample be split
to provide for a second analysis if necessary. The
test results indicated a trace amount of THC, a marijuana
metabolite. LabOne informed Howell of the test reand
sults, Howell immediately requested a retest. When
informed of Howell’s test results, Artistic fired him
for misconduct, pursuant to an informal company policy
that any probationary employee who tests positive for
a controlled substance will be discharged.
Howell filed the paperwork for the retest
and submitted the fee, but LabOne returned the paperwork
stating it was improperly completed. Howell’s attorney
called LabOne and requested new paperwork be resenLabOne
t. received the resubmitted paperwork on January LabOne
19, 2000. However, had already destroyed Howell’s
urine sample because more than forty-five days had
elapsed since the date of the initial test, as provided
in Iowa Code section 730.5(6)(b) (1999).
Howell filed a claim for unemployment On
benefits. February 10, 2000, Iowa Workforce Development
issued a claims decision stating that Howell was not
eligible. Howell appealed and an administrative law
judge reversed, finding Artistic had failed to prove
misconduct. Artistic appealed to the Employment Appeal
Board. The Board affirmed the ALJ, concluding that
although Artistic was not at fault for the sample being
destroyed, it had to bear the burden of that error
. On judicial review, the district court affirmed
the Board’s ruling. Artistic has appealed.
II. Scope of Review. This court’s review
of an agency decision is on error. Eaton v. Employment
Appeal Bd., 602 N.W.2d 553, 554 (Iowa 1999). The s
agency’decision is binding if substantial evidence
supports the decision and it is not based upon an
incorrect conclusion of law. Id. “Evidence is substantial
when a reasonable mind would accept it as adequate
to reach the same findings.” Id. The question is
therefore not whether the evidence might support a
different conclusion, but whether the evidence supports
the findings actually made. St. Luke’s Hospital v
. Gray, 604 N.W.2d 646, 649 (Iowa 2000).
III. Misconduct. Artistic contends the
district court erred in concluding there was substantial
evidence to support the Board’s finding Artistic had
failed to prove misconduct by Howell. Artistic maintains
it had a written policy which provided the option of
termination for any employee that tested positive for
drug use, and Howell’s failure to pass the initial
test was sufficient to justify his termination.
Iowa Code section 96.5(2) provides that
an employee discharged for misconduct is disqualified
for unemployment benefits. Iowa Administrative Code
rule 871-24.32(1)(a) defines misconduct:
Misconduct is defined as a deliberate act or omission
by a worker which constitutes a material breach of
the duties and obligations arising our of such wos
rker’contract of employment. Misconduct as the term
is used in the disqualification provision as being
limited to conduct evincing such willful or wanton
disregard of an employer’s interest as is found in
deliberate violation or disregard of standards of
behavior which the employer has the right to expect
of employees, or in carelessness or negligence of such
degree of recurrence as to manifest equal culpabilwrongful
ity, intent or evil design, or to show an intentional
and substantial disregard of the employer’s interests
or of the employee’s duties and obligations to the
employer. On the other hand, mere inefficiency, unsatisfactory
conduct, failure in good performance as the result
of inability or incapacity, inadvertencies or ordinary
negligence in isolated instances, or good faith errors
in judgment or discretion are not to be deemed misconduct
within the meaning of the statute.
Section 730.5 sets forth the rules by which a private
company may screen its employees for use of illegal
drugs. Pursuant to section 730.5(1)(h), a company
may test for drugs or alcohol “based upon evidence
that an employee is using or has used alcohol or other
drugs in violation of the employer’s written policy
drawn from specific objective and articulable facts
and reasonable inferences drawn from those facts in
light of experience.” The rules for such testing,
however, must be in writing and apply uniformly to
employees. Iowa Code § 730.5(9)(b).
Pursuant to section 730.5(7)(b), the company may obtain
urine samples by splitting the sample into two components
at the time of collection, the second specimen to afford
the employee an opportunity to request a retest. Both
specimens are to be sent to the laboratory chosen by
the employer, and the laboratory is required to store
those samples for a period of at least forty-five calendar
days following the completion of the initial confirmatory
testing, if the first test revealed a positive test
result. Iowa Code § 730.5(7)(b). The employee has
the burden of seeking a retest if the initial test
is positive. Iowa Code § 730.5(7)(i)(1). When a
positive result is received, the employer must notify
the employee of the test results by certified mail
. Id. Once the employee receives this notificatihe
on, is entitled, upon notice and payment of fees, to
request a second test. Id.
Did Artistic meet its burden of proof to
show Howell’s actions constituted misconduct? Howupon
ell, being orally notified by Artistic management of
the test results, denied using any illegal drugs and
immediately contested the positive test results, claiming
that the prescription drugs he was given at the hospital
to treat his injured foot caused the results to falsely
test positive for THC. He promptly requested a retest
and sent in his fee and paperwork, despite Artistis
c’failure to notify him by certified mail of the positive
test results as required by section 730.5(7)(i)(1)
. When LabOne informed Howell that his application
was incomplete, his attorney immediately called LabOne
and requested new paperwork. LabOne received the new
paperwork on January 19, 2000. However, LabOne had
disposed of Howell’s sample, and in a letter to Howell
dated January 27, 2000, expressed its regret in inadvertently
disposing of the contested sample. All parties had
actual notice that Howell contested the results of
the first test and had requested a retest. Howell
consistently and clearly disputed the positive test
results from the moment the first results were relayed
to him.
We also conclude that outside of the testimony
that Howell was riding on the garbage truck on an incorrect
manner, contributing to his foot injury, there is no
evidence in the record suggesting that Howell’s job
performance was somehow impaired as a result of consuming
illegal drugs. In Eaton, 602 N.W.2d at 557,the cls
aimant’employer had warned him that his repeated absences
and tardiness were affecting his job performance.
Eaton later tested positive for a controlled substance
pursuant to a random drug test requested by the emand
ployer, his employment was terminated. Eaton, 602
N.W.2d at 554. On appeal, the supreme court reversed
the denial of benefits, concluding the agency’s decision
was not supported by substantial evidence because the
employer did not have probable cause to believe Eaton
was impaired on the job based on the drug test results
alone. Id. Thus, pursuant to Eaton, a party must show
that the employee’s job performance had specifically
been affected or that the employee manifested symptoms
of illegal drug use.
Like the employer in Eaton, Artistic has failed to
show any “articulable facts and reasonable inferences
drawn from those facts” supporting their claim Howell
was impaired on the job at the time it requested he
submit to drug testing. See Iowa Code § 730.5(1)(Howell
h). did not refuse to take the drug test. He complied
with Artistic’s request and consistently disputed the
test results. Howell was unable to obtain a second
test because of LabOne’s inadvertent error and was
thus not afforded an opportunity to effectively challenge
his termination. Based on these particular
facts, we therefore conclude there was substantial
evidence to support the district court’s ruling affirming
the agency’s decision on this issue. We therefore
affirm.
AFFIRMED.