Wisconsin Labor and Industry Review Commission --
Summary of Wisconsin
Court Decision relating to Unemployment Insurance
Subject: Lauren K. Pennell v. Drake & Company and LIRC (Wis. Cir. Ct., Dane Co., August 14, 2003)
Digest Codes: VL 1025
The employee worked for a temporary help agency. She was assigned to a "temp-to-hire" position for Swanson. Subsequently, the employer informed the employee that Swanson wanted to hire her directly, and the employee agreed. A few weeks later, she was let go by Swanson, with no reason given, and she applied for benefits. The LID allowed benefits. The Appeal Tribunal concluded that Reppen v. Trillium Staffing Solutions (LIRC, Nov. 14, 2001), holds that a transfer from a temporary staffing employer to its client is a quitting only if the employee had the option to continue working for the temporary employer and had been informed of that choice. The Appeal Tribunal found that the employer had never explicitly informed the employee of that choice. LIRC reversed, stating that what Reppen held was that a transfer from a temporary staffing employer to its client is a quitting if the employee had the option to continue working for the temporary employer and the employee was aware that such an option existed. LIRC noted that in Reppen the employee had not been directly notified of the option to continue with the temporary agency but "assumed" he had such an option. LIRC found that in this case as well, the employer would have continued to allow the employee to work for it if she did not agree to go to Swanson, and it noted the employee's testimony that she "assumed" that she could have kept working for the employer. Employee appealed.
Held: Affirmed. The court finds that LIRC's findings that the employer would have allowed the employee to continue, and that the employee understood that she had such an option, were supported by the record. Turning to the question of LIRC's conclusions of law, the court concludes that "great weight" deference is the appropriate standard. The court then decided that LIRC's conclusion, while not the only possible reasonable one in the case, was a reasonable interpretation and therefore was to be upheld under "great weight" deference. The court noted, "[T]he appropriate question under Reppen was Pennell's objective understanding of her right to continue working through Drake & Company."
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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