Kleinwachter v. Dept. of Employment Services

• Decision Date: 10 October 1975
• Docket Number: No. 45309,45309
• Citation: 234 N.W.2d 822,305 Minn. 568
• Parties: Eugene F. KLEINWACHTER, Relator, v. DEPARTMENT OF EMPLOYMENT SERVICES, Respondent.
• Court: Minnesota Supreme Court

Page 822

234 N.W.2d 822

305 Minn. 568

Eugene F. KLEINWACHTER, Relator, v. DEPARTMENT OF EMPLOYMENT SERVICES, Respondent.

No. 45309.

Supreme Court of Minnesota.

Oct. 10, 1975.

Richards, Montgomery, Cobb & Bassford and Jack A. Rosberg, Minneapolis, for relator.

Warren Spannaus, Atty. Gen., Peter W. Sipkins, Sol. Gen., Peter C. Andrews, Asst. Atty. Gen., Frank W. Levin, Special Asst. Atty. Gen., St. Paul, for respondent.

Considered and decided by the court without oral argument.

PER CURIAM.

Writ of certiorari to review a decision of the commissioner of employment services holding claimant ineligible for unemployment compensation because he is a full-time, self-employed farmer. We reverse and remand with directions.

Claimant's base-period employer was Ziegler, Inc., of Minneapolis. Claimant worked as a mechanic for Ziegler at a salary of $5.44 per hour from March 21, 1969, to June 29, 1973. While employed by Ziegler, claimant purchased a 400-acre farm near Strandquist, Minnesota, of which 160 to 170 acres are tillable. Although employed full time at Ziegler, claimant still managed to farm his land by working it on weekends.

In June 1973, claimant quit his job at Ziegler and moved to his farm. In July 1973, claimant began a 1-year farm management course at Middle River approved by the Veterans Administration for benefits provided by the Veterans' Readjustment Benefits Act of 1966, 80 Stat. 12, et seq., as amended. As a student in the course, claimant had to attend classes 2 nights a week, 4 hours each night, and receive on-the-farm training at least once a month. Because the course met the statutory test of a full-time course, ¹ claimant received a full-time educational assistance allowance each month.

Claimant filed an application for unemployment benefits on August 5, 1973. The commissioner, affirming the appeal tribunal, based his decision that claimant was ineligible for compensation not on the theory that claimant was unavailable for work, but on the theory that claimant was self-employed on a full-time basis and therefore not 'unemployed' within the meaning of the act.

Minn.St. 268.04, subd. 23, defines 'unemployment' as follows 'An individual shall be deemed 'unemployed' in any week during which he performs no service and with respect to which no wages are payable to him, or in any week of less than full time work if the wages payable to him with respect to such week are less than his weekly benefit amount. The commissioner may, in his discretion, prescribe regulations relating to the payment of benefits to such unemployed individuals.'

The applicable regulation adopted by the commissioner provides as follows:

'(c) No individual shall be deemed to be unemployed in any week in which he

'(1) Devotes his full time to the performance of services for an employing unit or is engaged in self employment regardless of the amount of remuneration paid or payable or earned by him for such services;

'(2) Devotes less than his full time to the performance of services for an employing unit or in self-employment for which services a remuneration is paid, payable, or earned in an amount equal to or more than his weekly benefit amount for total unemployment.' Minn.Reg. ES20(c).

Claimant has not challenged the validity of the regulation: The question is whether there is substantial evidence to support the finding...