ATTORNEY FOR APPELLANT: ATTORNEYS FOR APPELLEE:
JOHN B. DRUMMY JEFFREY A. MODISETT
Kightlinger & Gray Attorney General of Indiana
Indianapolis, Indiana ROSEMARY L. BOREK
Deputy Attorney General
SUSAN G. LINDSEY Indianapolis, Indiana
Floyd & Tudor, P.C. Attorneys for Review Board
Nashville, Tennessee
SAMUEL MORRIS
Agee, Allen, Godwin, Morris,
Laurenzi & Hamilton
Memphis, Tennessee
Attorney for Patrick Bender
BROWNING-FERRIS INDUSTRIES, )
)
Appellant-Employer, )
)
vs. ) No. 93A02-9702-EX-76
)
REVIEW BOARD OF THE INDIANA )
DEPARTMENT OF WORKFORCE )
DEVELOPMENT, and PATRICK BENDER, )
)
Appellees-Claimants. )
OPINION - FOR PUBLICATION
Browning-Ferris Industries ("BFI") appeals from the Unemployment Insurance
Review Board's ("Review Board") award of unemployment insurance benefits to Patrick
Bender. An administrative law judge ("ALJ") ruled, and the Review Board agreed, that BFI
failed to establish a prima facie case that it discharged Bender for just cause because it had
not shown that its drug and alcohol policy was reasonable. The ALJ determined that BFI's
drug and alcohol policy is unreasonable because it is more stringent than federal regulations
governing the use of drugs and alcohol by commercial drivers. The sole issue for our review
is whether BFI's drug and alcohol policy is unreasonable because it is more stringent than is
required by federal regulations.See footnote
1
We reverse and remand.See footnote
2
The facts most favorable to the Review Board's decision reveal that BFI discharged
Bender for violation of its drug and alcohol policy, which provides, in part, that any
employee "whose alcohol test level is .020 or greater while on duty or immediately following
driving will be subject to immediate termination." Record at 122. On the morning that BFI
terminated Bender's employment, Bender reported to work and began driving a BFI
commercial vehicle. Several hours into his shift, he contacted BFI's dispatch office and
indicated that he was having trouble controlling his vehicle. He then brought the vehicle
back to the dispatch yard and met with BFI's safety manager. Based upon Bender's
appearance and his statement that he was taking an antibiotic and felt high, he was asked to
submit to a drug and alcohol test. Bender was taken to a testing facility approximately one-
half hour later, where he submitted to a breathalyzer exam. Bender registered a .032 blood
alcohol content on the first test and a .026 blood alcohol content approximately 15 minutes
later.
On judicial review of an unemployment compensation proceeding, we determine
whether the decision of the Review Board is reasonable in light of its findings. Arvin North
American Automotive v. Review Bd., 598 N.E.2d 532, 535 (Ind. Ct. App. 1992), trans.
denied. We are bound by the Review Board's resolution of all factual matters; thus, we
neither reweigh evidence nor reassess witness credibility. I
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§ 22-4-17-12(a) (Supp.
1996); Bishop v. Review Bd., 611 N.E.2d 670, 672 (Ind. Ct. App. 1993). Rather, we
consider only the evidence most favorable to the Board's decision and the reasonable
inferences to be drawn therefrom, and if there is substantial evidence of probative value to
support the Board's conclusion, it will not be set aside. Monroe County Sheriff Dep't v.
Review Bd., 637 N.E.2d 155, 159 (Ind. Ct. App. 1994), reh. denied. When an appeal
involves a question of law, we are not bound by the agency's interpretation of law; rather, we
determine whether the agency correctly interpreted the law and correctly applied the
applicable law. Hughey v. Review Bd., 639 N.E.2d 1044, 1046 (Ind. Ct. App. 1994), trans.
denied.
BFI contends that it terminated Bender's employment for just cause, and as such,
Bender is not entitled to unemployment insurance benefits.See footnote
3
I
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C
ODE
22-4-15-1(d)(2)
(Supp. 1996) provides that an employer has just cause to terminate an employee for the
"knowing violation of a reasonable and uniformly enforced rule of an employer." The
employer bears the initial burden of establishing that an employee has been terminated for
just cause. Conseco, Inc. v. Review Bd., 626 N.E.2d 559, 561 (Ind. Ct. App. 1993), trans.
denied. In order to make out a prima facie case of termination for just cause under IC 22-4-
15-1(d)(2), the employer must show that the former employee: (1) knowingly violated; (2)
a reasonable; and (3) uniformly enforced rule. Butler v. Review Bd., 633 N.E.2d 310, 312
(Ind. Ct. App. 1994).
BFI argues that its drug and alcohol policy is reasonable within the meaning of IC 22-
4-1-15(d)(2). The ALJ recognized that BFI's drug and alcohol policy was reasonable insofar
as it was based on regulations promulgated by the United States Department of
Transportation ("DOT"). However, the ALJ determined that BFI's policy was unreasonable
to the extent that its drug and alcohol standards were more stringent than those mandated by
DOT regulations.
Two different sets of DOT regulations are implicated in this case. The first set of
regulations are codified in 49 C.F.R. § 382 (1996) and require the drivers of commercial
vehicles to submit to drug and alcohol testing which their employers must conduct.
Specifically, BFI was required by 49 C.F.R. § 382.307 to have Bender tested for blood
alcohol content on the morning he was discharged because company employees he spoke
with had a reasonable suspicion that he might have been under the influence of alcohol.
The second set of regulations is found at 49 C.F.R. § 383 (1996) and provides a set
of standards governing commercial driver's licenses. Commercial drivers, their employers,
and state licensing authorities must comply with the dictates of § 383. See 49 C.F.R. §
383.1. 49 C.F.R. § 383.51(b)(2)(I)(A) makes driving a commercial motor vehicle while a
person's blood alcohol content is 0.04 percent or more a disqualifying offense. A state is
required to suspend for at least one year the commercial license of a driver who commits a
disqualifying offense, and an employer may not knowingly allow such a person to drive its
vehicles. 49 C.F.R. § 383.51. The ALJ concluded that § 383.51(b) makes it unreasonable
for BFI to adopt a work rule which allows the company to terminate an employee whose
alcohol test is greater than 0.02.
The ALJ's decision reads, in pertinent part:
The employer does in fact have a set of rules which were reasonable insofar
as they were based on United States Department of Transportation regulations.
However, the employer's regulations are unreasonable insofar as they exceed
the requirements of the regulations. Title 49 CFR part 383.51(b) specifically
defines disqualifying offenses rendering a driver ineligible to drive for a period
of 1 year. The regulation specifically makes driving a commercial motor
vehicle while the person's alcohol concentration is 0.04 percent or more a
disqualifying event. The employer's rules would attempt to supersede federal
regulations by making a lesser blood alcohol concentration a disqualifying
event. While the employer may have a right and responsibility to prohibit
employees from driving while they have a blood alcohol concentration of 0.02
percent, termination for a standard less than that specified by federal
regulations would be unreasonable.
Record at 158-59.
The ALJ's opinion misinterprets the effect of BFI's work rule, and accordingly, his
conclusion is incorrect that BFI's work rule is unreasonable because of 49 C.F.R. §
383.51(b).
The ALJ states that "the employer's rules would attempt to supersede federal
regulations by making a lesser blood alcohol concentration a disqualifying event." Record
at 159. On the contrary, BFI's rule does not attempt to make having a blood alcohol content
of 0.02 or greater a disqualifying offense. "Disqualifying offense" is a term of art, and under
DOT regulations, a person who is found to have committed a disqualifying offense will have
his commercial driver's license suspended or revoked. 49 C.F.R. § 383.51. The sanction for
violating BFI's rule is not the loss of one's commercial driver's license -- it is the loss of one's
job. Thus, BFI's rule does not make driving at a level greater than 0.02 but less than 0.04 a
"disqualifying offense," and it does not in any way attempt to supersede federal regulations.
Moreover, DOT regulations remain neutral on whether an employer may or should
take disciplinary action against an employee with a blood alcohol content less than 0.04. 49
C.F.R. § 382.505 provides, ". . . no employer shall take any action under [§ 382] against a
driver based solely on test results showing an alcohol concentration less than 0.04. This does
not prohibit an employer with authority independent of [§ 382] from taking any action
otherwise consistent with law." Thus, under DOT regulations, it is an employer's decision
whether or not to levy employment sanctions against an employee who operates a
commercial vehicle with a blood alcohol content less than 0.04.See footnote
4
We hold that the ALJ's decision is incorrect to the extent that it concludes BFI's work
rule is unreasonable simply because the rule is more stringent than 49 C.F.R. § 383.51.
It is
important to note that we have not held that BFI's work rule is reasonable. We only hold that
the DOT regulations themselves do not make BFI's rule unreasonable. On remand, the
Review Board must reevaluate, in light of our holding, whether or not BFI's policy is
reasonable. In making this decision, the Review Board should consider this court's prior
holdings which have defined the type of work rule that is reasonable under IC 22-4-15-
1(d)(2).
See Best Lock Corp. v. Review Bd., 572 N.E.2d 520, 523 (Ind. Ct. App. 1994)
(holding that a work rule is reasonable if it regulates an employee's on-duty activities and it
protects the interest of the employer); General Motors Corp. v. Review Bd., 671 N.E.2d 493,
497 (Ind. Ct. App. 1996) (holding that a work rule is reasonable if it protects both the
interests of the employees and the employer). We reverse and remand to the Review Board
for proceedings consistent with this opinion.
Reversed and remanded.
HOFFMAN, J., and RILEY, J., concur.
On December 5, 1997, the State filed a petition to vacate our opinion and dismiss the
case on the grounds that the Indiana Court of Appeals lacks subject matter
jurisdiction over it. The State argues that this court lacks subject matter jurisdiction
because BFI failed to join the Review Board as a party appellee when it sought our
review of the board's decision to award Patrick Bender unemployment benefits. In
support thereof, the State cites Ind. Code § 22-4-17-12 (Supp. 1996) which provides
in part: "In every appeal the review board shall be made a party appellee . . . ." The
State contends and we agree that this requirement is jurisdictional. Teepe v. Review
Bd., 136 Ind.App. 331, 200 N.E.2d 538, 539 (1964) ("Where a statute provides the
remedy for review of a decision of an administrative board and a proceeding to be
followed, the procedure must be followed as a condition precedent to the acquiring
of jurisdiction").
Despite our dismissal, we allowed BFI to refile its appeal by naming the Review Board as a party appellee since it had complied with the other statutory prerequisites necessary for an appeal.