Metcalf v. Department of Industrial Relations, 3 Div. 407.

• Decision Date: 03 February 1944
• Docket Number: 3 Div. 407.
• Citation: 16 So.2d 787,245 Ala. 299
• Parties: METCALF et al. v. DEPARTMENT OF INDUSTRIAL RELATIONS et al.
• Court: Alabama Supreme Court

16 So.2d 787

245 Ala. 299

METCALF et al. v. DEPARTMENT OF INDUSTRIAL RELATIONS et al.

3 Div. 407.

Supreme Court of Alabama

February 3, 1944

Rehearing Denied March 2, 1944.

Appeal from Circuit Court, Montgomery County; Walter B. Jones Judge.

The agreed statement of facts is as follows:

"It is agreed by and between counsel for the appellant, W. H Metcalf, J. T. Chesser, Jr., and Alto Davis, partners, doing business as Auto Parts and Tool Company, and appellees, the State of Alabama, the Department of Industrial Relations thereof, and John D. Petree, as Director of said Department that the appeal of appellant from the determination of said Director of Industrial Relations which fixed the rate of contribution to be made by appellant under the Alabama Unemployment Compensation Law for the period beginning April 1, 1941, and ending March 31, 1942, at 1.0 per centum for the employer and 0.3 per centum for its employees, shall be submitted upon the following agreed statement of facts and agreements, viz:

"1. (a) That the state experience factor for the calendar year 1941, which was employed by the Director as one factor used to determine the contribution rate for appellant and its employees for the period April 1, 1941, to March 31 1942, was determined by the said Director as follows:

"(b) He found the state-wide total of benefit wages with respect to all employers subject to the law to be the aggregate of $133,543,984.21, for the calendar years 1938, 1939, 1940. That the said aggregate sum of $133,543,984.21 was made up of $74,024,061.85 for the year 1938; $33,535,568.25 for the year 1939; and $25,984,354.00 for the year 1940; all arrived at as stated hereinbelow.

"(c) That said aggregate sum was arrived at by totaling the amount of benefit wages (as determined by the Director according to his construction of the law as set out herein) charged to each employer subject to the law. That the amount of such benefit wages so determined and charged to an employee's employer or employers on account of his being paid benefits was determined by finding the amount of wages actually earned by the said employee (who was paid benefits) during the period which the Director determined to be his base period according to the Director's construction of the law as set out herein.

"(d) The benefit wages once charged to an employer or employers were not thereafter again charged to any employer. In determining the amount of benefit wages, the Director used the following method:

"(1) As to claims becoming compensable during the first quarter of the calendar year 1938 the Director included all wages earned by the respective claimants from employers subject to the act during the first three quarters of the calendar year 1937. As to claims becoming or being compensable during the second quarter of the calendar year 1938 the Director included all wages so earned by the respective claimants during all four quarters of the calendar year 1937. As to claims becoming or being compensable during the third quarter of the calendar year 1938 the Director included all the wages so earned by the respective claimants during five quarters consisting of all four quarters of the calendar year 1937 and the first quarter of the calendar year 1938. As to claims becoming or being compensable during the fourth quarter of the calendar year 1938 the Director included all wages so earned by the respective claimants during six quarters consisting of all four quarters of the calendar year 1937, and the first two quarters of the calendar year 1938. As to claims becoming or being compensable during the first quarter of the calendar year 1939 the Director included all wages so earned by the respective claimants during seven quarters consisting of all four quarters of the calendar year 1937 and the first three quarters of the calendar year 1938. As to claims becoming or being compensable during the second quarter of the calendar year 1939 the Director included all wages so earned by the respective claimants during eight quarters consisting of all four quarters of the years 1937 and 1938. As to claims becoming or being compensable during the third quarter of the calendar year 1939 the Director included all wages so earned by the respective claimants during the last three quarters of the calendar year 1937, all four quarters of calendar year 1938 and the first quarter of the calendar year 1939. As to claims originally filed during the fourth quarter of the calendar year 1939 the Director included all wages so earned by the respective claimants during the last two quarters of the calendar year 1938 and the first two quarters of the calendar year 1939. As to claims filed during any of the quarters of the calendar year 1940 the Director included all wages so earned by the respective claimants during the first four of the last five completed calendar quarters preceding the respective dates of the filing of the respective valid claims.

"2. (a) That the Director determined the 'amount required for the fund', as defined by Section 204(E) of Title 26, to be the aggregate sum of $16,447,159.63, which aggregate sum consisted of $7,936,921.32 for the calendar year 1938; $4,075,624.22 for the calendar year 1939; and $4,434,614.09 for the calendar year 1940.

"(b) That the Director determined the state experience factor by dividing $16,447,159.63 by $133,543,984.21 and adjusting to the next higher multiple of 1%, as provided by Section 204 of Title 26.

"3. That in Exhibit I, referred to below, the columns captioned 'Net Required', and 'Total Taxable Payroll' including the figures for each of the years 1938, 1939, and 1940, and the totals thereof are true and correct.

"4. That it is agreed, subject to legal objection as to materiality, the balance in the unemployment trust fund to the credit of the State of Alabama as of the close of business on December 31, 1937, was $8,790,941.07; as of December 31, 1938, $7,360,741.23; as of December 31, 1939, $11,780,219.96; and as of December 31, 1940, $17,064,180.44.

"5. That on, to-wit, March 15th, 1941, the Director determined the contribution rate of the appellant and of appellant's employees, using the same methods and interpretations with respect to base periods and benefit wages as were in each instance used by him in determining the state experience factor. On said date the Director notified appellant of said determination. Exhibit I, which is attached hereto and incorporated herein, is a true and correct copy of the said notice, and an office copy of the same is a part of the official records of the Department of Industrial Relations. That appellant has appealed from such determination.

"6. It is further agreed that if the method used by the Director in determining the benefit wages, as set out herein, is correct that the contribution rate determined by the Director for the appellant is correct. It is further agreed, however, that if the method of determining the benefit wages is incorrect that the contribution rate as determined by the Director is excessive and should be redetermined in accordance with the court's decision. In the latter event, either or both parties may offer any admissible and material testimony on the issues at a hearing before the Court or before a Commissioner or Referee appointed by the Court to take testimony.

"7. It is further agreed, subject to legal objection as to materiality or relevancy, that the liability of each contributor to the Unemployment Compensation Fund, subject to the Experience Rating provisions of the law in 1941, was computed by the same formulas as those applied to the appellant, but that each contributor had the same right to appeal as did this appellant, and that a number of others, approximately forty-five out of a total of approximately six thousand, to whom the law applied, did in fact appeal and their appeals are now pending."

Exhibit No. I.

"State of Alabama,

"Department of Industrial Relations,

"Montgomery,

"March 15, 1941

"Auto Parts & Tool Co.,

"Cor Bibb & Catoma St. 3287-66-5011

"Montgomery Ala.

"Gentlemen:

"The Alabama Unemployment Compensation Act, as amended, provides that, for the twelve month period beginning on the 1st day of April, 1941, and for each twelve month period thereafter, employers with three consecutive years of benefit experience shall be eligible for revised rates for both employer and employee tax.

"This is to notify you that, based on your benefit experience for the years 1938, 1939 and 1940, your rate of contribution beginning April 1, 1941, and ending March 31, 1942 shall be 1.0% for employer and 0.3% for employees.

"The schedule as shown below gives the computation of the State Experience Factor and the Individual Employer Benefit Wage Percentage. Should your record of Benefit Experience be less than the three consecutive years required, the Employer Benefit Wage Percentage cannot be completed, and will give only the information now available for use in computing your rates in ensuing years.

"On all report forms mailed you for reporting after the first quarter 1941, your rates for both employer and employees will be indicated near your name on the addressograph plate. No changes of rates are effective until the second quarter 1941.

State Experience Factor Net Required State Benefit Wages Per Cent Factor

1938 $7,936,921.32 $74,024,061.85

1939 4,075,624.22 33,535,568.25

1940 4,434,614.09 25,984,354.11

----------------------------------------------------

Total $16,447,159.63 $133,543,984.21 13%

Benefit Wage Total Benefit Wages Total Taxable Pay Roll Per Cent

Percentage Factor

1938 $3,054.21 $16,797.90

1939 None 20,320.37

1940 None 22,543.89

-------------------------------------------------------

...