Wisconsin Labor and Industry Review Commission --
Summary of Wisconsin Court Decision relating to Unemployment Insurance


Subject: Kristie J. Kapke v. LIRC (Landmark Credit Union), Case 11-CV-5631 (Wis. Cir. Ct., Milwaukee Co., Oct. 7, 2011)

Digest Codes: VL 1005.01  VL 1039.09  VL 1054.01

The employee worked as a senior manager service representative for the employer. She asked that her hours be significantly reduced so she could accept an offer of employment from Farmers Insurance. Due to the conflict of interest the two employments would present, the employer denied the employee's request. The employee then quit her employment with the employer to take the job with Farmers Insurance, but that employment was nothing like what the employee expected it to be and she earned no wages therefrom before separating from it.

The commission held that the employee's quit was disqualifying under Wis. Stat. § 108.04(7)(a). It was to pursue a new opportunity, which is not a reason attributable to the employer, nor did it meet any other exceptions to the general disqualification.

Held: AFFIRMED. The court gave great weight deference to the commission's decision, because of the commission's longstanding experience, technical competence, and specialized knowledge in administering Wis. Stat. § 108.04. The commission properly found that the employee's quit did not meet any of the exceptions to Wis. Stat. § 108.04(7)(a). The employee's quit was to pursue a new opportunity, and the employer was not at fault for that choice by the employee. As for the employee's request to reduce her hours, the employer was not “at fault” for denying a request that was not in its business interests.

In addition, had the employer granted the employee's request to reduce her hours, that in itself would have constituted a voluntary quit by operation of Wis. Stat. § 108.04(7)(m). It seems illogical that a denied request to reduce hours could be good cause for a quit, when a granted request is a quit. “If an employer were automatically "at fault" in such a case, an employee would requalify for benefits whenever the employer denies an employee's request for reduced hours. This result is absurd and contrary to statute. An employer who denies a request for reduced hours does not provide automatic justification for the employee's decision to quit under Wis. Stat. § 108.04(7)(b).”


Please note that this is a summary prepared by staff of the commission, not a verbatim reproduction of the court decision.

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