California Supreme Court

Paratransit, Inc., Plaintiff and Respondent v. Unemployment Insurance Appeals Board, Defendant and Respondent…

July 3, 201459 Cal. 4th 551

Summary

The court held that an employee’s refusal to sign a disciplinary notice did not constitute misconduct disqualifying him from unemployment benefits, even assuming the employer’s order was lawful and reasonable and justified termination. Because the undisputed circumstances showed that the employee acted from a genuine, reasonable, and good-faith belief that signing would admit disputed allegations, his conduct was at most a good faith error in judgment. The court reversed the Court of Appeal’s judgment and remanded for further proceedings.