Castaneda v. Department of Employment Security
1-12-40457
Ill. App. Ct.Mar 21, 2025Background
- Julia Castaneda, a former Walmart cashier, was fired for violating attendance policies in March 2022 and initially denied unemployment benefits for misconduct.
- The Illinois Department of Employment Security (IDES) mailed her a determination letter stating she could appeal but must continue to certify for benefits while her appeal was pending.
- Castaneda appealed the misconduct finding, but did not certify for benefits during the appeal process.
- After a favorable appeal ruling in October 2022, she sought backdated benefits for the period she failed to certify, explaining she was unaware of the requirement and citing a bad memory.
- IDES refused the backdated certification because she did not meet any listed Code exceptions (e.g., employer misconduct, agency error, unawareness of rights), and this decision was upheld by the Board; the circuit court, however, reversed for Castaneda, interpreting "unawareness" subjectively.
- The state appealed; Castaneda did not file a brief on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Castaneda qualified for late filing of certifications under Code § 2720.120(b) | Castaneda did not know she had to certify during her appeal and argued "unawareness" applied | IDES argued she received clear instructions, thus was not "unaware" under the law | Castaneda was not "unaware"; she received and read letters; denial of late filing affirmed |
| Whether "unawareness" should be applied subjectively or objectively | Circuit court accepted a subjective standard for "unawareness" of rights | IDES argued the correct standard is objective and based on notice provided | Appellate court adopted objective standard, defers to agency interpretation |
| Whether failure to meet other exceptions for late certification applied (agency/employer failure, coercion, or other circumstances) | Castaneda offered no evidence of agency or employer fault, or other control-limiting circumstances | IDES argued no evidence supported these exceptions and instructions were adequate | No exceptions applied; claimant's own mistake insufficient for late filing |
| Whether the Board's decision was clearly erroneous | Circuit court found error, noting claimant's "unawareness"; interpreted evidence differently | IDES argued Board's decision was not clearly erroneous based on record | Board's findings upheld under deferential standard; circuit court reversed |
Key Cases Cited
- AFM Messenger Service, Inc. v. Department of Employment Security, 198 Ill.2d 380 (standard for "clearly erroneous" agency decisions)
- Universal Sec. Corp. v. Department of Employment Sec., 2015 IL App (1st) 133886 (scope of appellate review focuses on Board, not lower tribunals)
- Cinkus v. Vill. Of Stickney Mun. Officers Elec. Bd., 228 Ill. 2d 200 (standard of review for mixed questions in administrative review)
- Childress v. Department of Employment Security, 405 Ill. App. 3d 939 (burden on claimant to show unemployment benefit eligibility)
