Wis.LIRC UC Decision: Still, Lloyd - June 4, 2002 - VL 1059.07 - Wages - Failure or refusal to pay - wage deduction - by law, employers may not make deductions from wages unless employee has agreed in advance to such deductions, or has agreed to employer's right to make such deductions for poor work and - employer failures to follow such law re wage payments, constitute good cause to quit employment - here, employer's deductions from employee's paychecks for alleged unsatisfactory work performance gave employee good cause to quit

STATE OF WISCONSIN
LABOR AND INDUSTRY REVIEW COMMISSION
P O BOX 8126, MADISON, WI 53708-8126 (608/266-9850)

LLOYD T STILL, Employee

H B EXPRESS, Employer

UNEMPLOYMENT INSURANCE DECISION
Hearing No. 02400365GB

An administrative law judge (ALJ) for the Division of Unemployment Insurance of the Department of Workforce Development issued a decision in this matter. A timely petition for review was filed.

The commission has considered the petition and the positions of the parties, and it has reviewed the evidence submitted to the ALJ. Based on its review, the commission agrees with the decision of the ALJ, and it adopts the findings and conclusion in that decision as its own.

DECISION

The decision of the administrative law judge is affirmed. Accordingly, the employee is eligible for benefits beginning in week 49 of 2001, if otherwise qualified.

Dated and mailed June 4, 2002
stillll . usd : 105 : 8 VL 1059.07

/s/ David B. Falstad, Chairman

/s/ James A. Rutkowski, Commissioner

/s/ Laurie R. McCallum, Commissioner

MEMORANDUM OPINION

The commission has affirmed the appeal tribunal decision in this case, because it agrees with the administrative law judge that the employee's quit was with good cause attributable to the employer.

The employer conceded having made deductions from the employee's paychecks, primarily for two matters: a late delivery by the employee, and the employee's failure to have secured signatures on bills of lading for loads he had delivered. In other words, the employer was penalizing the employee for unsatisfactory work performance. Wisconsin statute § 103.455 prohibits an employer from making deductions from wages due an employee, however, for defective or faulty workmanship, unless the employee had previously authorized the employer to do so, in writing. In the alternative, deductions may be made after the employee and employer have agreed that employee negligence or intentional conduct caused the loss, or a court has essentially so held. The Wisconsin Supreme Court has held that this statute requires a determination of employee fault before a deduction and that, in addition, before a deduction the employee must be given opportunity to demonstrate he or she was not at fault. See Donovan v. Schlesner, 72 Wis. 2d 74, 240 N.W.2d 135 (1976). The commission followed this case, when it held that a mobile home sales employer's withholding of bonuses to an employee, because of alleged problems in mobile homes the employee ordered, gave that employee good cause to quit her employment. See Middour v. Affordable Homes of LaCrosse, UI Dec. Hearing No. 93001949LX (LIRC March 15, 1994). The commission again applied this statute, when it held that an employer's withholding of an entire paycheck for cargo damages the employee allegedly caused, gave the employee good cause to quit his employment. See Johnson v. Croix River Transportation, Inc., UI Dec. Hearing No. 93200753EC (LIRC May 26, 1994).

The commission's holdings in these cases make it clear that employer failures to follow the law in regard to wage payments, constitute good cause for quits of employment, pursuant to Wis. Stat. § 108.04(7)(b). The deduction for the late delivery obviously falls under s. 103.455. So does the withholding of wages due to the alleged failures to get signatures on bills of lading. This is because the employer did not establish that the employee did not get the necessary signatures. The employee testified that he obtained the signatures and, while the employer denied he had done so, the employer did not provide the necessary documentary proof (copies of the bills themselves), evidence which is in the employer's possession.

Based upon the above precedents, the commission agrees with the administrative law judge that the employee's quit was with good cause attributable to the employer. For these reasons, and for those stated in the appeal tribunal decision, the commission has affirmed that decision.

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uploaded 2002/06/10