ANN VILLA VS. BOARD OF REVIEW(BOARD OF REVIEW, DEPARTMENT OF LABOR)
A-3961-15T3
| N.J. Super. Ct. App. Div. | Aug 9, 2017Background
- Ann Villa was Director of Development at Hunterdon Art Museum and applied for unemployment after leaving her position claiming she was fired.
- The Unemployment Insurance Deputy found she left voluntarily and denied benefits; Villa appealed.
- At a hearing Villa testified the Museum Director told her staff disliked her and that she had to change her personality or leave; Villa stood, thanked the Director, and left believing she had been terminated. The Director did not call her back.
- The Museum Director testified she intended to warn Villa to be more collaborative, not to fire her that day, but acknowledged Villa would be fired if she did not change.
- The Appeal Tribunal found Villa’s departure was involuntary (an employer-compelled resignation); the Board of Review reversed, ruling Villa left voluntarily and was disqualified from benefits. The Appellate Division reversed the Board.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Villa’s separation was voluntary under N.J.S.A. 43:21-5(a) | Villa contends she was effectively terminated — told to change or leave — so her resignation was compelled and therefore involuntary | Museum contends the meeting was a reprimand; Villa chose to leave and the employer did not terminate her that day | Separation was involuntary; employer compelled resignation by presenting change-or-leave choice |
Key Cases Cited
- Brady v. Bd. of Review, 152 N.J. 197 (court will not overturn agency action unless arbitrary or capricious)
- Utley v. Bd. of Review, 194 N.J. 534 (statutory framework for voluntary separation and good-cause analysis under unemployment law)
- Lord v. Bd. of Review, 425 N.J. Super. 187 (App. Div. 2012) (compelled resignation is involuntary when employer makes the decision to end employment)
- Campbell Soup Co. v. Bd. of Review, 13 N.J. 431 (employer’s de facto decision can render an employee’s departure involuntary)
