Munro Holding, LLC v. Cook

• Decision Date: 03 May 2005
• Docket Number: No. A04-1249.,A04-1249.
• Citation: 695 N.W.2d 379
• Parties: MUNRO HOLDING, LLC, Relator, v. Jacki L. COOK, Respondent, Commissioner of Employment and Economic Development, Respondent.
• Court: Minnesota Court of Appeals

695 N.W.2d 379

MUNRO HOLDING, LLC, Relator, v. Jacki L. COOK, Respondent, Commissioner of Employment and Economic Development, Respondent.

No. A04-1249.

Court of Appeals of Minnesota.

May 3, 2005.

Brian E. Cote, Cote Law Firm, Ltd., Minneapolis, MN, for relator.

Jacki L. Cook, Ogilvie, MN, pro se respondent. Lee B. Nelson, Linda A. Holmes, Department of Employment and Economic Development, St. Paul, MN, for respondent Commissioner.

Considered and decided by MINGE, Presiding Judge; WRIGHT, Judge; and PORITSKY, Judge.¹

OPINION

WRIGHT, Judge.

Relator challenges the decision of the commissioner's representative that respondent-employee quit her employment with good reason attributable to the employer and is, therefore, entitled to receive unemployment benefits. Relator argues that (a) the evidence does not support the finding that the employer-owner engaged in sexual harassment; (b) the employee did not properly notify the employer of the harassment; and (c) even if the employee's notification were proper, the employer took timely and appropriate action to stop the harassing conduct. We affirm.

FACTS

Respondent Jacki Cook was employed by relator Munro Holding, LLC (Munro Holding) as a waitress from July 20, 2003, through October 8, 2003.² Munro Holding is owned by Pat Munro.

According to Cook, about once a week throughout her employment, employer-owner Munro grabbed her hips from behind and brushed against her while she was working. Munro did so even when there was sufficient space to pass Cook without touching her. Although Munro touched Cook in this manner at least eleven times, Cook neither confronted Munro nor informed a supervisor about Munro's conduct at the time it occurred.

On October 6, 2003, Cook was taking food from the pick-up station to serve a customer when Munro came up behind her and "grabbed [her] butt" by placing both palms on her buttocks and squeezing. On this occasion, Cook immediately told the cook who was standing nearby that Munro had grabbed her and that if Munro touched her again, she would quit. The cook reported the incident to the head cook, who phoned the kitchen manager, Debra Duffee, at home to relay Cook's complaint.

Duffee returned to the restaurant later that evening and spoke directly with Cook about the incident. Cook told Duffee that Munro had grabbed her buttocks that night, that he had intentionally grabbed her hips on several prior occasions, and that Munro's behavior made her very uncomfortable. Duffee responded that Munro was "just a very touchy-feely guy" and that "he didn't mean anything by it." According to Cook, Duffee also admitted that Munro had slapped her buttocks before, that other female servers had complained about Munro's conduct, and that she had previously "warned" Munro about his behavior. Duffee then offered to speak with Munro on Cook's behalf.

The next day, Cook called the head waitress, seeking a substitute to take her shift. Cook told the head waitress about Munro's actions the day before and her discussion with Duffee. During their conversation, Cook expressed concern that Duffee was not taking her complaint seriously. The head waitress relayed to Duffee that Cook was frustrated by Duffee's reaction to the alleged harassment. When Duffee called Cook to discuss their options for confronting Munro about his behavior, Cook advised Duffee that she would talk to Munro. Duffee expressed approval and reassured Cook that she "backed her employees a hundred percent."

On the morning of October 8, Duffee and the head waitress confronted Munro about Cook's complaint and informed Munro that Cook would be speaking with him about the allegations. Munro denied touching Cook. Shortly thereafter, Cook called Duffee and formally quit her employment because she was afraid to return to work.

Cook subsequently established an unemployment benefits account with the Department of Employment and Economic Development (department). The department determined that Cook quit with good reason caused by her employer and was, therefore, entitled to unemployment benefits. Munro Holding appealed to an unemployment law judge, who reversed the department's decision, concluding that Cook was disqualified from receiving benefits because Cook did not give Munro Holding "a reasonable opportunity to correct the adverse working conditions." Cook then appealed to the commissioner's representative, who reversed the decision of the unemployment law judge and reinstated Cook's benefits. The commissioner's representative found that Munro's conduct was inappropriate and offensive and created an intimidating and hostile work environment for Cook. The commissioner's representative concluded that "[Munro] was aware of the sexual harassment and ... [he] failed to take timely and appropriate action because [Munro] himself was the harasser and he continued to harass [Cook] during her employment." This certiorari appeal followed.

ISSUE

Did the commissioner's representative err in concluding that respondent quit her employment because of a good reason caused by the employer?

ANALYSIS

In unemployment cases, we review the record to determine whether it reasonably supports the decision of the commissioner's representative. Tuff v. Knitcraft Corp., 526 N.W.2d 50, 51 (Minn.1995). While we defer to the commissioner's representative's findings of fact if the record reasonably supports them, similar deference is not afforded questions of law. Ress v. Abbott Northwestern Hosp., Inc., 448 N.W.2d 519, 523 (Minn.1989). Whether an employee had good cause to quit is a question of law, which we review de novo. Peppi v. Phyllis Wheatley Cmty. Ctr., 614 N.W.2d 750, 752 (Minn.App.2000). Credibility determinations are resolved by the commissioner's representative and will not be disturbed on appeal. Jenson v. Dep't of Econ. Sec., 617 N.W.2d 627, 631 (Minn.App.2000), review denied (Minn. Dec. 20, 2000).

An employee who voluntarily terminates his or her employment is disqualified from receiving unemployment benefits unless he or she "quit the employment because of a good reason caused by the employer [.]"³ Minn.Stat. § 268.095, subd. 1(1) (Supp.2003).⁴ "Good reason caused by the employer" is defined as an action by the employer "(1) that is directly related to the employment and for which the employer is responsible;" and "(2) that is significant and would compel an average, reasonable worker to quit and become unemployed rather than remaining in the employment." Id., subd. 3(a)(1), (2) (Supp.2003).

Sexual harassment by an employer or by fellow employees provides an employee with a good reason to quit if (1) "the employer was aware, or should have been aware" of the harassment; and (2) "the employer failed to take timely and appropriate action." Id., subd. 3(e) (Supp.2003). The employee has the burden to demonstrate both that she gave the employer notice and that the employer failed to take timely and appropriate action. Biegner v. Bloomington Chrysler/Plymouth, Inc., 426 N.W.2d 483, 486 (Minn.App.1988).

A.

As a threshold matter, Munro Holding argues that the commissioner's representative erred in finding that Munro sexually harassed Cook. Whether one engaged in the actions underlying the sexual harassment claim is a question of fact. Fore v. Health Dimensions, Inc., 509 N.W.2d 557, 560 (Minn.App.1993). But whether such actions constitute sexual harassment under the statute is a question of law. Gradine v. Coll. of St. Scholastica, 426 N.W.2d 459, 463 (Minn.App.1988), review denied (Minn. Aug. 24, 1988).

Sexual harassment is defined in relevant part as "unwelcome sexual advances ... sexually motivated physical contact or other conduct or communication of a sexual nature" when "the conduct or communication has the purpose or effect of substantially interfering with an applicant's work performance or creating an intimidating, hostile, or offensive working environment." Minn.Stat. § 268.095, subd. 3(e)(3) (Supp.2003). Our canons of construction require us to construe the unambiguous language of a statute according to its plain meaning. See Minn.Stat. 645.16 (2004).

We are mindful that the Minnesota Human Rights Act and Title VII of the Civil Rights Act employ similar language in defining "sexual harassment." See Minn.Stat. § 363A.03, subd. 43 (2004); 42 U.S.C. §§ 2000e-2000e-17 (2000). We also acknowledge that caselaw under these statutory schemes has established a four-prong test to make a prima facie case of sexual harassment based on "hostile work environment," invoking a substantially higher standard than we employ here.⁵ However, because the unemployment benefits statutory scheme serves a different purpose than civil rights legislation, we decline to import the higher standard employed in these other bodies of law. See Weaver v. Minn. Valley Labs., Inc., 470 N.W.2d 131, 135 n. 2 (Minn.App.1991) (noting that Minnesota courts may "distinguish between ... harassment for unemployment compensation purposes and ... for other purposes, such as suit for money damages against the employer"). Here, we are asked to resolve the sole issue of whether an employee qualifies for unemployment benefits because she had a good reason to quit her employment caused by her employer, not whether an employee presents an actionable claim for damages in a sexual-harassment case.

The commissioner's representative found, "On a number of occasions during the applicant's employment, the owner touched the applicant's hips and brushed against her while the applicant was working." The commissioner's representative also found, "The final incident occurred on October 6, 2003 ... [when] the owner grabbed the applicant's hips with both hands and squeezed." In evaluating the evidence presented, the commissioner's representative further explained, "We find credible the evidence submitted by the applicant that she was subjected to inappropriate touching by the owner of the employer."

These findings are supported by the record....