Verizon Northwest v. Wash. Emp. Sec. Dept.
| Decision Date | 23 October 2008 |
| Docket Number | No. 81024-9.,81024-9. |
| Court | Washington Supreme Court |
| Parties | VERIZON NORTHWEST, INC., Appellant, v. WASHINGTON EMPLOYMENT SECURITY DEPARTMENT, Steven D. Ackerman, Lessa P. Adams, Angela L. Alexander, Matthew J. Alice, Marsha A. Allgire, Ann M. Almli, Larry F. Ames, Carol A. Arendse, Christine S. Bailey, Jerry J. Bakko, Sharon A. Barakat, Melissa J. Barran, David O. Bauer, Marlena S. Bauer, Thomas W. Becker, Suzanne M. Beckmann, Joanne L. Bell, Trent A. Berring, Starla J. Bessler, Michael E. Bevis, Denman M. Bird, Michael L. Bly, Bohdon W. Bodnarchuk, Russell L. Boknecht, John A. Boorman, Terri L. Bowker, David L. Bradford, Don R. Branson, Patricia A. Bray, Sonya L. Breaum, Travis S. Brian, Billye L. Brooks, Douglas M. Brown, Pamela J. Brown, Gary A. Buckner, Joseph T. Buongiorno, Nicki R. Burns-Amma, Katie G. Byrnes, Ron J. Caffreye, Kelly L. Campbell, Deborah J. Carlson, Lisa R. Carlson, Richard L. Carroll, Karen L. Carson, Richard F. Castano, Francisco J. Cayere, Raymond D. Chavis, Judy A. Chesley, Ezekiel J. Christenson, Steven R. Cleveland, Shirley A. Coleman, Kenneth D. Collins, Deborah M. Cooper, Kenneth A. Cunningham, Russell D. Curran, Thomas E. Dales, Sheila K. Davidson, Rosemary B. Davis, Tyra L. Debono, David J. Dingman, Dennis M. Dobbelaere, Jeanette S. Dodson, Thomas Doran, Jennifer L. Dowling, Fonda K. Downs, Judy Eddy, Gregory J. Eitelberg, Sheree L. Elmendorf, Joanne M. Ericksen, Cecile L. Ervin, Pamela J. Evans, Glenn W. Extor, Kenneth F. Faircloth, Roger M. Farrar, Tarri N. Feden, William C. Fisher, Edward T. Florez, Steve J. Fontaine, Floyd C. Foster, Donald J. Franks, George C. Fuller, Christine M. Funkhouser, Randy L. Furnas, Sterling H. Gibson, Terri L. Gibson, Marla J. Giese, Joye M. Gill, Karen M. Graham, Keith P. Green, John H. Griffis, Scott S. Haeger, Rodney D. Hagge, Cynthia A. Hall, Paula E. Harrington, Tim Harris, Larry M. Henderson, Sue J. Hicks, Thomas W. Higdon, Lynda A. Hildebrant, Curtis D. Hill, James C. Hill, Corine M. Hoiness, Norma K. Homann, Holly L. Hopper, Ellen A. Horne, Vanessa R. Horning, Berke T. Horrocks, Erik D. Hovde, Betsy J. Howard, Michael R. Howard, Steven J. Howard, Jerry R. Hudson, Gayle A. Humann, Regina H. Hunt, Michael G. Hupf, Nancy M. Hurlbut, David M. Jacobsen, Randal V. Jensen, Billy Jira, Alan W. Johnson, Debra J. Johnson, Leanne E. Johnson, Lori A. Johnson, Patricia E. Johnson, Thomas A. Johnson, Alvin W. Joiner, Mary A. Jones, Racquel K. Jonson, Dawn Kauhane, Robert W. Killops, Douglas P. Knight, Charlene Y. Kolacki, Alicyn S. Komine, Andrew F. Kops, Daniel N. Krah, Diana L. Ladiser, Gary S. Larson, Charles W. Lawrence, Andrea E. Lazanis, David W. Lee, Donna M. Legore, Dino J. Lence, Darla J. Lennier, Emory D. Lindgard, Richard D. Lippincott, Patricia A. Lohse, William C. Long Gregory J. Lundgren, Kenneth C. Maas, Jeanine M. Mackenzie, Mike P. Mahoney, Susan C. Malone, Kathleen G. Marrinier, Marcia A. Matson, Dallas L. McCormick, Debra C. McDade, Kristi A. McMullen, James C. McMurtry, Charles E. Mell, Linda J. Mismas, Karen A. Montague, Merrilyn J. Morrison, Joella J. Mueller, Kay S. Mulder, Constance C. Murry, Robert E. Neal, Edward D. Nelson, Gary L. Nelson, Robert A. Nelson, Terry L. Ness, Vinnie H. Nguyen, Patricia C. Nordby, Lorna M. Nunn, Stephen C. Olesen, Barry N. Ordell, Andre H. Osborne, Kathryn A. Panfili, Janice Parker, Gretchen L. Paylor, Pamela Perryman, Jean M. Peterson, James M. Rainer, Gordon L. Rechcygl, David P. Ridgeway, Jeanne R. Rogers, Howard E. Ronkin, Gerald K. Ross, Ryan M. Roumonada, Mildred L. Ruosch, Beverly C. Russell, Mike T. Ryman, Ava G. Sakowski, Jill E. Saunders, Robert D. Schlagel, Keith D. Schulz, James D. Seaberg, Diane L. Searson, William K. Seufert, Jeffrey T. Shipley, Stephen D. Shipley, Margaret E. Simmons, Dallas J. Singleton, Dwight O. Sissons, John L. Smits, Faith V. Snelgrove, Cheryl A. Snyder, Fern K. Soderstrom, Cynthia A. St. Clair, Traci L. Steenburgen, Donald W. Stingley, Sharon L. Stjern, Diana L. Storey, James M. Strago, Carol S. Stultz, Doug E. Sundin, Christine I. Surina, Julie A. Swanson, Patrick C. Sweeney, Jo Ellen F. Swehla, Jose F. Terrazas, Candace M. Testa, Eileen A. Teufel, Donald P. Thomas, Stacey S. Thomas, Richard W. Tickle, David N. Ulrich, Rodney A. Visser, Eric M. Wahl, Krina L. Wall, Robin E. Warren, Michael J. Weddle, Janet L. Weeks, Greg R. Wegner, Steve L. Westman, William Westwood, Barbara J. Wetzel, Alison D. Weymouth, William A. Wheaton, Jr., James R. Whisman, Jonathan C. White, Charlene M. Wicklund, Sherri L. Williams, Terry E. Wilson, Feye L. Woods, Maria Wraspir, Ralph R. Yunker, Fred T. Zelich, Respondents. |
Timothy J. O'Connell, Theresa A. Briscoe, Stoel Rives LLP, Seattle, WA, for Appellant.
Gregory Marc Worthy, Erika G.S. Uhl, Office of Attorney General, John Tirpak, Unemployment Law Project, Seattle, Steven J. Howard, Bothell, Alan W. Johnson, Orting, Cynthia A. St. Clair, Everett, Charlene M. Wicklund, Marysville, for Respondents.
¶ 1 In late 2003, a number of managers employed by appellant Verizon Northwest, Inc. (Verizon) chose to participate in a Voluntary Separation Program for Management Employees (MVSP). The former managers (the employees) then applied for and were granted unemployment benefits. This case requires us to interpret the regulatory "employer-initiated layoff" exception to the Employment Security Act (ESA), Title 50 RCW, rule that employees are disqualified from receiving benefits if they leave their employment "voluntarily without good cause" (the "good cause" provision). RCW 50.20.050.
¶ 2 After the Employment Security Department (ESD) determined that the employees were eligible for unemployment benefits, Verizon appealed to the Office of Administrative Hearings for the ESD.1 An administrative law judge (ALJ) granted summary judgment that the employees were entitled to benefits, and a commissioner of the ESD (Commissioner) affirmed. A Snohomish County Superior Court judge affirmed the Commissioner's ruling. This court now reverses the Commissioner's ruling and holds that Verizon is entitled to summary judgment that the employees are not qualified to receive benefits.
¶ 3 In July 2003, Verizon announced that it had a goal of reducing its work force by 5,000 employees out of a total of approximately 220,000 employees nationwide. In September, it sent an email to "All Management Employees" announcing the MVSP. Commissioner's Record (CR) at 879-85. The email said, in part: CR at 880.
¶ 4 On October 1, 2003, the company sent a notification letter to those employees who were eligible to participate in the MVSP, a group that included nearly all of its managers. It stated: "We are pleased to inform you that you are among a group of employees who are eligible to volunteer for a reduction in force (RIF)." CR at 843. The MVSP included severance payments, one year of health benefits, immediate stock option vesting, and, in some cases, pension enhancements for participating employees. The letter set the deadline for participation at November 14.
¶ 5 Employees could participate by submitting the volunteer form on-line or by fax and by signing a separation agreement and release (Release). The Release stated: "I am voluntarily leaving the employment of [Verizon] effective November 21, 2003 because of a Reduction in Force (`RIF')." CR at 1002. Employees who volunteered on-line received a confirmation screen with the title "Acceptance of your voluntary separation received." CR at 847.
¶ 6 Verizon provided employees with a lengthy list of "Questions and Answers" about the MVSP. CR at 946-87. Question number 60 advised that individual states determine unemployment benefit eligibility and that "[m]ost states disqualify applicants who leave employment voluntarily." CR at 969.
¶ 7 On November 14, 2003, Verizon sent an email clarifying that employees who had accepted the offer to participate in the program could rescind their acceptances until November 22. On November 17, the company informed all employees by email that more than 20,000 employees, including more than 16,000 managers, had chosen to participate in voluntary separation programs. This number represented about 10 percent of the total Verizon work force. The email stated: CR at 1015. At the time of this announcement, the employees had five days remaining in which to rescind their participation in the MVSP.2
¶ 8 Verizon posted and filled 37 management jobs in Washington State from September to November 2003. It posted over 3,000 job openings nationwide in December 2003.
¶ 9 More than 200 former Verizon employees who had participated in the MVSP applied for unemployment benefits in Washington. The ESD issued determination notices declaring that the employees were disqualified from receiving unemployment benefits because they had left work "voluntarily without good cause," as outlined in RCW 50.20.050(1). The ESD then reversed itself and issued redetermination notices to the employees.
¶ 10 Verizon appealed, and the appeals were consolidated before an ALJ at the Office of Administrative Hearings for the ESD. After reviewing the record and listening to oral argument by counsel, the ALJ granted summary judgment to the employees, affirming the ESD's determination that they were eligible for benefits. Specifically, she found that the employees were entitled to judgment in that they had satisfied...
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