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| Looking Back to '08, Looking Forward to '09: The Reign of Spain: ULP Wins At Supreme Court |
| Marc Lampson |
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In a major victory for claimants and for ULP in 2008, the Washington Supreme Court decided in favor of our client Sara Spain in its June decision, Spain v. Employment Security Department. The decision was the biggest legal news of the year for ULP. After a four-year long fight on behalf of Ms. Spain and many other claimants, we convinced our state's highest court that the ESD's interpretation of the "good cause" quit statute was wrong.
Since 2004, the ESD had interpreted the statutory list of examples of "good cause" as an exhaustive list. Thus, if a worker quit a job for a reason other than the ten examples listed in the statute, the ESD denied benefits. This interpretation had never been made prior to 2004, but when the legislature expanded the list from four to ten examples, the ESD changed its interpretation of the list.
Ms. Spain came to us in 2004 after she quit work for an abusive employer. The employer routinely called his employees "retards" and other derogatory names. He periodically threw boxes of nails and hand tools around the office when he was mad. And one winter day he made the entire crew stand outside in the rain while he berated them for doing a bad job, telling them that he did not care if they got wet and cold. When Ms. Spain complained, he promised he would change his behavior but failed to do so.
After Ms. Spain quit in disgust, she applied for unemployment benefits. The ESD denied benefits, claiming that because her reason for quitting - an abusive, obnoxious employer - was not on the list of ten in the statute, she did not have "good cause" to quit. We appealed Ms. Spain's case to the Thurston County Superior Court, which held that we were right - the list was not exhaustive and even if the legislature intended to make it so, the legislature had failed to do so. The ESD appealed to Division II, which reversed and sided with the ESD. We petitioned for review to the Washington Supreme Court. After waiting several years and engaging in various procedural skirmishes, we were excited when the Court finally accepted review in February 2008 and set argument soon thereafter.
A quick four months later, the Washington Supreme Court unanimously agreed with our position that the list of "good cause" examples was not an exhaustive list and that workers could qualify for benefits after quitting jobs for reasons not listed in the statute. The ESD has subsequently issued an "emergency rule" that sought to limit the impact of the Spain decision, but we continue to challenge that rule as well as the ESD's continued limited interpretation of "good cause."
Though fighting for benefits remains a challenge, the result of the Spaindecision has been that hundreds of "quit" cases have been returned to the ESD for redetermination of benefits under Spain and untold numbers of future claimants will have a better chance at receiving benefits when they are forced to quit their jobs for reasons not listed in the statute.
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| For 2009, Civil Legal Aid Programs Latest Economic Casualties |
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For most of us, this New Year is tainted with the looming stress of economic collapse, record foreclosures, and sky-rocketing unemployment rates. Unfortunately, the turmoil of the economic crisis is stifling the financial pleas of the non-profit community. The collapse of the financial system, preceded by a significant downturn in the real estate market, and followed by drastic deficits in county and state government budgets, have all combined to result in plummeting levels of funding for civil legal aid programs throughout Washington.
Though slightly off the radar of mainstream economic casualties, the substantial loss in civil legal aid funding not only impacts the legal programs themselves, but the thousands of citizens who seek legal help from those programs as well. Many civil legal aid programs, including ULP, will see a dramatic loss in annual operating revenue as a result of the economic crisis. A main source for legal aid funding in Washington comes from IOLTA funds. IOLTA, or Interest on Lawyers Trust Accounts, is a law-related program that is a central component in generating civil legal aid funding. A recent article in the Washington State Bar News (WSBA) December issue suggests that while IOLTA losses are rooted in the stagnant real estate market, the low interest rates that banks pay on IOLTA accounts further exacerbate revenue losses.
"Access to civil legal aid for the economically disadvantaged has never been more important." - WSBA President, Mark Johnson
Charitable Giving Diminishes: Dwindling Funds for ULP
In addition to significantly reduced IOLTA funding, non-profits such as ULP have also lost operating funds because charitable donations suddenly drop in economic hard times as well. Ultimately, many of our clients - who historically have made significant voluntary donations to us - are forced to choose between putting dinner on the table and donating to charity. And our other contributors who may not face such a drastic choice as our clients must nevertheless choose in their charitable giving between ever more desperate charitable programs. The downturn in donations is historically predictable.
A closer look at the last forty years shows that for each year the economy has been in a state of recession, charitable giving has fallen accordingly. The recessionary years of 1980, 1987, and 1990, were all lean years for the non-profit community. In 2001, a constricted economy led to a 2.3 percent fall in giving. Currently, overall giving has dramatically decreased since 2007. Used clothing stores and thrift shops are down an estimated 20% while food drives estimate an 80% drop in donations. Such losses occur at ULP as well.
Donations make up one-third of ULP's annual budget and have dropped considerably in the last six months. Our client-based donations are currently 26.3% under budget. ULP friends and labor organization donors are currently 65% under budget respectively. Combine the loss in donations with the loss of grant funding and a big raise in rent, and ULP will face at least a $56,000 deficit from last year's operating budget.
And this loss of operating funds comes in the midst of staggering unemployment across the nation and in Washington. Thus, just when our services are most needed - in an economic crisis - our funding becomes most unstable.
Higher Job Loss, Higher Clientele Demand
Job loss continues to increase at record rates, with an annual net total loss of 1.3 million jobs. Accordingly, the "official" unemployment rate calculated by the government and reported in mainstream media was 6.7% in November.
That rate, called the "U-3" rate, however, drastically understates true unemployment. An alternative calculation, called the "U-6" rate includes not only those counted in the narrow definition of unemployment under the U-3 rate, but also counts those excluded in that rate as well, that is, the marginal and discouraged employment seekers plus those seeking full time employment but who can only find part time work. That rate for November, according to a December 5 article in the Wall Street Journal, was a drastic 12.5%. Even at the height of the Great Depression, the rate was around 25%.
The estimated percentage of the population currently holding a job is a mere 61.8 percent. Furthermore, more than one in five unemployed individuals (10.1 million people) has been unable to find work after 27 weeks or more of searching.
At the same time, the demand for unemployment benefits have also risen, approaching 500,000 in initial claims. In a recent meeting of the Unemployment Insurance Advisory Committee, hosted by the ESD and consisting of members from the business, labor, and advocacy communities, including ULP, representatives of ESD noted the drastic increase. The ESD said there had been a 51% monthly increase of new claims between comparable months in 2007 and 2008 and a 66% monthly rise in continued claims. The ESD has hired 120 new intake personnel and 30 new adjudicators to try to handle this massive increase in claims. It also acknowledged that despite all its efforts, the wait time callers to ESD experience has increased drastically.
The increased claims reported by the ESD naturally increase ULP's workload in phone calls, intakes, helpline advice, and direct representation. While remaining understaffed and underfunded, ULP was able in November to hire a three-quarter time administrative assistant to help address the ever-growing demand of new clientele despite dwindling funds.
References:
Amin, Lisa. "Non-profits Struggle in Economic Crisis." South Bay News Dec. 2008: KGO-TV. San Francisco, CA. 16 Oct. 2008 < http://abclocal.go.com/kgo/story?section=news/local/south_bay&id=6452497
Goldman, David. "Lost: 1.9 Million Jobs." CNNMoney.com Dec. 2008 < http://money.cnn.com/2008/12/05/news/economy/jobs_november/index.htm
Johnson, Mark. "Equitable Interest Rates and IOLTA." Washington State Bar News
Rugaber, Christopher S. "Number of People on Unemployment Insurance Highest Since '83." Associated Press 6. Nov. 2008 < http://www.freep.com/article/20081106/BUSINESS07/81106032/1
Please help us continue to help others by sending in a donation today. Please send your check to:
Unemployment Law Project 1904 Third Avenue, Suite 604 Seattle, WA 98101
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| Ten Myths About Unemployment Benefits |
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Myth 1: It's better to quit than be fired
An employer will often offer an employee the "opportunity" to quit, rather than be fired. Many employees take the quit offer, believing it to be a better resume move. However, quitting can be difficult for one's pursuit of unemployment benefits because one must prove "good cause" to quit. While there are several qualifying reasons for quitting one's job and while the Spain case discussed above brightens prospects, it still is often difficult to prove good cause. A list of examples of "good cause" for quitting, though not the only "good causes" that will be recognized by ESD, can be found at http://apps.leg.wa.gov/RCW/default.aspx?cite=50.20.050 Myth 2: A worker cannot qualify for UI if he or she was fired
If a worker is a fired, but can establish that it was not due to "misconduct" under the statute, then the worker will likely qualify for UI.
Myth 3: Appeals are an impossibly difficult process
The appeals process exists for the core reason of getting a claimant a hearing. If one has been denied benefits by the Employment Security Department, it is not necessary to send in a lengthy or detailed letter concerning one's case. All one needs to appeal is one's name, telephone number, Social Security number, address, signature (it MUST be signed) and a statement that says: "I disagree with this decision. Please give me a hearing." After the appeal is properly filed, one receives a "appeal filed notice" in roughly a week or two. A week or two after that, one will receive a notice of hearing indicating the date and time of the scheduled appeal hearing. Appeals can be faxed to the ESD @ 800-301-1795.
Myth 4: A worker is automatically entitled to unemployment benefits because workers pay money into the unemployment system
Many employees feel that they should automatically receive unemployment benefits because they have paid into the fund. The employee, however, does not pay into the unemployment insurance system: the employer does. While some economists argue that the employee in effect pays into the system because the money the employer pays to UI would otherwise go to the employee, it remains true that it is the employer who makes payments. The payments are based on a specific tax rate that is set according to the employer's record of unemployment claims filed against it. This tax rate is often the reason employers contest employees receiving benefits.
Myth 5: The employer controls an employee's unemployment benefits
It is a common assumption that the employer determines whether or not a former employee will receive unemployment benefits. While it is true that many employers often contest an award of unemployment benefits because successful claims may result in an increased UI tax rate, the State's Employment Security Department ultimately decides whether or not one receives benefits.
Myth 6: Unemployment benefits will be paid up until re-employment
Unemployment insurance works similarly to auto insurance, medical insurance, and life insurance in that recipients must meet certain criteria to receive benefits. Benefits also will end after a specific period of eligibility. That period in Washington usually is 26 weeks. Once a claimant has reached that limit, benefit payments will most likely end. In extremely bad economic times such as our current situation, however, benefits may be extended under two special programs. One may receive Emergency Unemployment Compensation (EUC), a federal program that pays benefits through the State's ESD for an additional 13 weeks after one's eligibility period has ended. Second, one may receive additional benefits under the Extended Benefits Program (EB), a state program similar to the federal program that is triggered only under certain economic conditions. If one reaches the end of one's eligibility period and is still not employed, one should inquire if either the EUC or EB or both programs are in effect. Once one's eligibility period is exhausted, no more benefits will be paid until one re-qualifies for benefits by being re-employed in qualifying employment for a required number of hours and income.
Myth 7: When one's self-employment ends, one can qualify for unemployment benefits
People whose most recent work was self-employment do not ordinarily qualify for unemployment benefits.
Myth 8: Unemployment benefits are a form of welfare
Unemployment insurance, as its name indicates, is a form of insurance. The employer pays the premium through a specific tax rate and if the employer's employees lose their jobs they can often qualify for benefits based on those premium payments. The amount of money one receives in benefits is determined largely by state regulations but is based on how much money one earned.
Myth 9: A benefits appeal hearing is an in-person, face-to-face hearing
In Washington State, the vast majority of appeal hearings are held over the phone in a conference call format. These hearings, though they are serious legal proceedings, are relatively informal and claimants are allowed to ask the judge questions and to represent themselves or may be represented by others. Usually all participants are on the phone and not together in a hearing room.
Myth 10: Unemployment benefits are based on one's last paycheck
Generally, unemployment benefits are calculated on a "base" pay period that can extend through the last year.
This article was inspired by and based in part upon this web article:
Carroll, Carol Anne. “Ten Costly Myths about Unemployment Insurance.” Associated Press. 20 Sept. 2005 < http://www.associatedcontent.com/article/8821/ten_costly_myths_about_unemployment.html?cat=17
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Jason Arends – Office Manager/Paralegal – 5/08 - Present
Jason Arends is the new Office Manager, having replaced Kevin Bender in a bloodless coup. Jason moved to Seattle after graduating from Grinnell College in 2005, where he abandoned his farmer roots for a series of office jobs. Before joining the Unemployment Law Project, Jason worked for a class action settlement agency. If you’ve ever received a coupon for a free tire inspection as a result of several roll-overs, chances are he had something to do with it. In his free time, Jason is an avid Ultimate Frisbee player; his team, the Blue Footed Boobies, recently won the Seattle league title. When not mindlessly chasing a chunk of plastic, Jason can be found watching terrible, terrible movies or frequenting the city's fine arts scene.
Jessica Long-Legal Assistant - 11/08 - Present
Jessica Long is ULP's new legal assistant. Her interest in the non-profit community and social justice is gathered from her extensive overseas experience. Prior to ULP, Jessica lived in Kenya where she managed an orphanage and rural feeding program. She also has work and study experience in Europe, Central America, Africa, and Asia. Most recently Jessica returned from a year and a half teaching English in South Korea. Jessica has a BA in International Politics from Western Washington University and is considering a post-graduate degree in either Law or Business.
Seattle Interns 2008
Brent Berselli -- University of Washington Law Intern - 9/08 - 11/08
Brent Berselli is a 3L at the University of Washington School of Law. Prior to joining ULP as an extern, he volunteered at ULP doing intake interviews during his first year of law school. Brent is interested in both public interest law and federal tax law. In addition to his law degree, Brent is pursuing an LLM in Taxation from UW. Brent is also a member of the Federal Income Tax Clinic at UW. In his spare time, Brent enjoys exploring the greater Seattle area and attending as many Seahawks games as possible.
Therese Norton - Seattle Law Intern - 5/07- Present
Therese Norton is a 2L at Seattle University School of Law. Prior to joining ULP as an intern, she volunteered doing intake intermittently for the past 18 months. She is interested in public interest law and non-profit law. Therese is also involved in various student organizations including the Public Interest Law Foundation, Social Justice Coalition and the Women’s Law Caucus. In her spare time, she enjoys walking her dogs Lenny and Lucy around Greenlake and singing karaoke.
Spokane Interns 2008
Paul Oh- Gonzaga Law Intern - 11/08- Present
Paul grew up in Idaho Falls, Idaho. He attended the University of Utah, where he was given the opportunity to intern at the U.S. Supreme Court. After a number of twists and turns, he graduated with a degree in Political Science. After working for some time at a medical malpractice law firm and a district court in Salt Lake, he went to American University in Washington, D.C. for a Master of Public Administration degree. After two years in the big city, Paul had a yearning to get back to a smaller town. Thus, when law school came knocking, Spokane seemed to be just what he needed. As such, he is toiling in his second year at Gonzaga University and loving what it means to be a 2L. Hopefully he will find some time to ski this year, unlike the wonder which was his 1L year.
Charles Quackenbush - Gonzaga Law Intern- 05/08- Present
Charles is a 2L at Gonzaga Law. He received a PILF grant that allowed him to work full-time with us this past summer and he continued on into the school year. Charles graduated from UW where he was heavily involved in the Debate Society. He's also interested in drama and politics.
Amy Ulmer - Gonzaga Law Intern - 05/08 - Present
Amy is also a 2L at Gonzaga Law. She was a full-time work study intern during the summer and continued into the school year as well. Amy attended Chapman University and graduated from University of Idaho with a BS in Political Science and Minor in Women's Studies. Amy has a passion for employment law and public service, in part fueled by her time working with the union at Safeway and her mom's experience as a whistleblower.
Rose Villarreal - Gonzaga Law Intern - 5/07- Present
We were very happy that our 2L intern in 2007-2008, Rose Villarreal, returned to work with us for 2008-2009! Rose graduated from Gonzaga and commutes from her home in Coeur d'Alene, Idaho. Rose is an effective, dedicated advocate for our clients. Her experience has been a huge help as new interns have arrived. Rose is also a talented musician who was recently recruited to perform at Spokane's Community Building Street Fair!
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In the News...
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Welcome to The Unemployment Line
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We are happy to launch our e-newsletter, The Unemployment Line, with this issue. Economic times are rough and times for the unemployed are even rougher. So we plan to keep readers up-to-date on our work representing unemployment claimants, on unemployment issues generally, and on our Project's plans and personnel. We will send this out toward the end of each month and hope that you will enjoy keeping up with us and with the issues we encounter. A special thanks to Jessica Long, our newest staff member, who is largely responsible for this newsletter. And thanks to you, our readers, for your interest in ULP in the past and in 2009!
(If you'd rather not receive future newsletters, please scroll to the end to unsubscribe).
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Please Donate
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Please send your tax deductible donation today! Your donation is safe, secure and private, and helps support thousands of individuals seeking unemployment benefits.
Please send your check to:
Unemployment Law Project 1904 Third Avenue, Suite 604 Seattle, WA 98101
or click here
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ULP's Staff
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In Seattle:
Marc Lampson - Director and Appellate Attorney
John Tirpak - Senior Attorney
Jason Arends - Office Manager/Paralegal
Jessica Long - Legal Assistant and Newsletter Editor
Therese Norton - Seattle Law Intern
In Spokane:
Laurie Powers - Spokane Managing Attorney
Rose Villareal - Senior Intern - Gonzaga Law Intern
Paul Oh - Gonzaga Law Intern
Charles Quackenbush - Gonzaga Law Intern
Amy Ulmer - Gonzaga Law Intern
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Quick Links
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Are you having difficulty filing your appeal or applying for UI? Take a look at the links below for a step by step process to claiming your benefits.
Unemployment Law Project’s Website
Employment Security Department
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