Paratransit, Inc. v. Unemployment Insurance Appeals Board

In this case, an employee refused his employer’s repeated orders to sign a written disciplinary notice, because he disputed the notice’s factual allegations and thought he was entitled to consult with his union representative first. There is no dispute over whether the employer was within its rights to fire the employee for his insubordination. The only question is whether that single act of disobedience constituted misconduct within the meaning of California’s Unemployment Insurance Code. If so, then the employee is disqualified from receiving unemployment compensation benefits.

Based on the undisputed facts in the administrative record, we conclude the employee’s refusal to sign the disciplinary notice was not misconduct but was, at most, a good faith error in judgment that does not disqualify him from unemployment benefits.

Factual and Procedural Background

The record before the administrative law judge (ALJ) discloses the following pertinent facts.

Craig Medeiros (Claimant) worked for Paratransit, Inc. (Employer), as a vehicle operator for approximately six years. As a condition of his employment, Claimant was required to join a union. The union and Employer were…