ILNews

Court rules on early retirement benefits case

Back to TopCommentsE-mailPrintBookmark and Share

Employees who accept early retirement even in the worst economic times aren’t entitled to continued unemployment assistance, the Indiana Court of Appeals ruled today.

A 2-1 ruling came from the appellate court in C.G. LLC v. Review Board of the Indiana Dept. of Workforce Devel., et al., 93A02-1004-EX-441, involving an economically battered auto parts company that instituted an early retirement plan for both working and non-working employees at factories in Indiana and nationwide.

The company began reducing its workforce and laying off workers in 2008 and instituted the voluntary termination program to those who’d worked in late 2008 and early 2009. Those who accepted resigned from CG and relinquished their recall and seniority rights. Additionally, some received variations of a package including lump some payout amounts, a vehicle voucher, and six months of continuing health insurance coverage.

Some of those workers had been actively working while others were previously laid off, and some still received benefits at the time the program was offered. After taking the early retirement offer, some employees were denied unemployment benefits when they later applied, and previously laid-off workers who’d been receiving benefits found their benefits were cut off.

They appealed to an administrative law judge who determined that employees who’d been on indefinite layoff when joining the early retirement program were still entitled to unemployment benefits, but those who were on temporary layoff or were actively working at the time could not receive benefits. Both sides appealed.

The review board rejected the ALJ’s distinction between actively working employees and those laid off for purposes of eligibility for benefits, determining that all lacked good cause to voluntarily leave when they took the early retirement and resigned. The board concluded that all of the employees remained eligible for unemployment benefits pursuant to Indiana Code 22-4-14-1(c).

But the Court of Appeals majority disagreed, reversing and remanding the case saying that workers shouldn’t be able to receive continued benefits. Senior Judge John Sharpnack and Judge Elaine Brown specifically decided that the workers didn’t have good cause to voluntarily leave their employment because there weren’t specific threats or plans of future plant closings or layoffs, despite the overall economic climate and uncertainty facing the auto industry.

The majority relied heavily on York v. Rev. Bd. of Ind. Employment Sec. Div., 425 N.E. 2d 707 (Ind. Ct. App. 1981) as helpful guidance in constituting Indiana Code 22-3-14-1(c), which specifically applies to those who elect to retire in connection with a layoff or plant closure and receive compensation for that. That court held that employees who left due to risk of possible future changes but not direct threat of layoff were not entitled to benefits.

Judge James Kirsch dissented, writing that he believes the majority decision to deny unemployment compensation benefits to these workers goes against legislative directive and ignores what many face in these economic times.

“The Great Recession has had a catastrophic effect on this country and this state. Few, if any, industries were harder hit than automotive manufacturing, and the thousands of workers affected are unemployed through no fault of their own,” the judge wrote. “To say that the workers who accepted EVTEP retired for personal reasons is to ignore economic reality. This economic reality was marked by layoffs and plant closings … those layoffs and plant closings drove the decision of the claimants in this case to accept EVTEP.”

Judge Kirsch wrote that he would defer to the board’s judgment and expertise in employment matters and affirm its decision in all respects.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. I was wondering about the 6 million put aside for common attorney fees?does that mean that if you are a plaintiff your attorney fees will be partially covered?

  2. My situation was hopeless me and my husband was on the verge of divorce. I was in a awful state and felt that I was not able to cope with life any longer. I found out about this great spell caster drlawrencespelltemple@hotmail.com and tried him. Well, he did return and now we are doing well again, more than ever before. Thank you so much Drlawrencespelltemple@hotmail.comi will forever be grateful to you Drlawrencespelltemple@hotmail.com

  3. I expressed my thought in the title, long as it was. I am shocked that there is ever immunity from accountability for ANY Government agency. That appears to violate every principle in the US Constitution, which exists to limit Government power and to ensure Government accountability. I don't know how many cases of legitimate child abuse exist, but in the few cases in which I knew the people involved, in every example an anonymous caller used DCS as their personal weapon to strike at innocent people over trivial disagreements that had no connection with any facts. Given that the system is vulnerable to abuse, and given the extreme harm any action by DCS causes to families, I would assume any degree of failure to comply with the smallest infraction of personal rights would result in mandatory review. Even one day of parent-child separation in the absence of reasonable cause for a felony arrest should result in severe penalties to those involved in the action. It appears to me, that like all bureaucracies, DCS is prone to interpret every case as legitimate. This is not an accusation against DCS. It is a statement about the nature of bureaucracies, and the need for ADDED scrutiny of all bureaucratic actions. Frankly, I question the constitutionality of bureaucracies in general, because their power is delegated, and therefore unaccountable. No Government action can be unaccountable if we want to avoid its eventual degeneration into irrelevance and lawlessness, and the law of the jungle. Our Constitution is the source of all Government power, and it is the contract that legitimizes all Government power. To the extent that its various protections against intrusion are set aside, so is the power afforded by that contract. Eventually overstepping the limits of power eliminates that power, as a law of nature. Even total tyranny eventually crumbles to nothing.

  4. Being dedicated to a genre keeps it alive until the masses catch up to the "trend." Kent and Bill are keepin' it LIVE!! Thank you gentlemen..you know your JAZZ.

  5. Hemp has very little THC which is needed to kill cancer cells! Growing cannabis plants for THC inside a hemp field will not work...where is the fear? From not really knowing about Cannabis and Hemp or just not listening to the people teaching you through testimonies and packets of info over the last few years! Wake up Hoosier law makers!

ADVERTISEMENT