ILNews

Supreme Court upholds unemployment benefits for Chrysler workers

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Supreme Court has affirmed the decision by the Review Board of the Indiana Department of Workforce Development granting unemployment benefits to Chrysler workers who took voluntary buyouts.

In 2008 and 2009, Chrysler offered a buyout program – the Enhanced Voluntary Termination of Employment Program – to employees in Kokomo. Employees who participated in the EVTEP relinquished all recall and seniority rights with Chrysler. The Indiana Department of Workforce Development then terminated unemployment benefits for those employees who had been on layoff prior to accepting the EVTEP, and it denied unemployment benefits to the employees who had been actively working for Chrysler prior to accepting EVTEP. Both groups appealed to an administrative law judge, who determined that those employees who were on indefinite layoff before accepting the EVTEP were entitled to continued unemployment benefits, but the employees who were actively working or on temporary layoff were not. Chrysler and the employees then appealed to DWD’s review board, which found that all employees who accepted the buyout were eligible for benefits under Indiana Code 22-4-14-1(c) despite a lack of good cause for leaving their job.

Subsection (c) said that “[e]xcept as provided in IC 22-4-5-1, a person who: (1) accepts an offer of payment or other compensation offered by an employer to avert or lessen the effect of a layoff or plant closure; and (2) otherwise meets the eligibility requirements established by this article; is entitled to receive benefits in the same amounts, under the same terms, and subject to the same conditions as any other unemployed person.”

Even though the provision at issue has been repealed, the justices ruled on the case because it’s a matter of real consequence to the parties involved, wrote Chief Justice Randall T. Shepard for the unanimous court in Chrysler Group, LLC v. Review Board of the Indiana Dept. of Workforce Development and T.A., et al., No. 93S02-1109-EX-565.

The justices agreed with Chrysler’s argument that I.C. 22-4-14-1(c) requires a desire to avert or lessen the effect of a layoff or plant closure be viewed from the perspective of the employer. But the justices didn’t accept Chrysler’s argument that it hadn’t explicitly announced the particular plant closure or layoffs, so the provision at issue shouldn’t apply.

The high court didn’t see why such an explicit declaration of the employer’s intent is necessary under the provision, and “Chrysler’s approach would undermine these humanitarian purposes, allowing a disingenuous employer to side-step its responsibilities under the Act by simply choosing its words carefully to avoid an explicit declaration of intent,” wrote the chief justice.

The justices also found no reason that Chrysler must have intended to close the plants where the employees worked or lay off additional people at those plants for the provision to apply. The EVTEP did ultimately avert or lessen the effects of the layoffs, and there is substantial evidence that Chrysler intended for the program to lessen the effect of the layoffs or plant closure.  

 

ADVERTISEMENT

  • A forgery EVTEP
    A EMPLOYEE HAVE BEEN THREATENED TO TAKE THE BUYOUT, ON THE DAY OF 12/04/2009 SHE NERVER SIGN OUT FOR NO BUYOUT, CHRYSLER THREATETENED HER TO TAKE IT. CHRYSLER ALSO BACK DATED TO 11/13/2009,
  • lawyer to take my case
    I also took buyout in 09 yet I have not recieved my unemployment looking for lawyer to win my case
  • Need Info
    I also am seeking information pertaining to the lawyers that handled this case. Also how to make a claim.
  • Chrysler worker
    I took the buyout in 2009, I would like to know how I go about checking my eligibility for these benefits?

    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 just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

    2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

    3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

    4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

    5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

    ADVERTISEMENT