
Washington's Supreme Court recently decided
Verizon v. Employment Security Dept., a case regarding unemployment compensation benefits and employee eligibility during an employer's reduction in force. The majority's decision is a convoluted interpretation of the administrative regulation regarding reductions in force and employee eligibility for benefits. The Court reversed the grant of benefits to approximately 200 citizens, finding that the technical wording of the reduction in force program meant Verizon did not take the "final action" in the employees' job separations.
In Verizon, the majority reversed the ruling of the Administrative Law Judge, the Employment Security Department Commissioner, and a Superior Court judge that the employees who volunteered to be a part of Verizon's "Voluntary Separation Program for Management Employees" in late 2003 were eligible for benefits. There is an administrative regulation which outlines when employees are qualified for benefits, even though they have participated in "voluntary" layoff/reduction in force. That regulation has three prongs:
a) the employer takes the first action an announces in writing that i) it intends to reduce its work force through a layoff or reduction in force, and ii) employees can offer to be among those included in the layoff or reduction in force;
b) the employee offers to be one of the individuals included in the layoff or reduction in force; and
c) the employer takes the final action in the separation process by accepting the offer of the employee, thereby ending the employment relationship.
The Supreme Court found that because Verizon had no power to "reject" the employees who volunteered, and because the employees did not exercise their right to revoke their offer to participate in the RIF, this layoff did not fall within the regulation.
Justice Tom Chambers wrote a dissent which called out the disingenuous nature of the majority opinion, and it is worth quoting at length:
I fear the majority is ignoring the widely accepted realities of large company layoffs. The agreement to participate in a voluntary reduction in force program is not, meaningfully, a voluntary decision to leave a job without good cause. . . . An employee is placed between the proverbial rock and a hard spot when her employer announces that the company is going to lay off a substantial number of employees and the employee is one of those at risk. She can close her eyes, hold her breath, and hope that she is not one of the employees fired. But is she is one of the unfortunate ones laid off, she risks losing the income stream necessary to pay her bills. Alternatively, she can choose to participate in a reduction in force program. . . . But rarely are either of these choices, the rock or the hard spot, nearly as desirous as continued employment with a company for whom the employee has established a work history and gained some seniority.
Please consult an attorney or the Employment Security Department before you volunteer to be part of a reduction in force or a layoff program.