Cook v. Director, Department of Workforce Services
480 S.W.3d 194
Ark. Ct. App.2016Background
- Marilyn Cook, an ADC employee, worked as audit manager while continuing some duties as agency controller in the construction division; she reported to different supervisors at different times.
- In March 2015 Cook, at the direction of construction supervisor Leon Starks, corrected a typographical error in an August 14, 2013 construction-budget status report (changed $2,000,000 to $200,000) without noting the alteration.
- The corrected document conflicted with an earlier version previously given to the Board of Corrections; the legislative auditor noticed the discrepancy and was later provided the original version.
- ADC investigated and terminated Cook for dishonesty, asserting she should have annotated the change and informed the director (Wendy Kelley), who Cook contends she was not reporting to at the time of the change.
- The Arkansas Board of Review affirmed disqualification for misconduct (dishonesty); Cook appealed to the Arkansas Court of Appeals.
Issues
| Issue | Cook's Argument | ADC's Argument | Held |
|---|---|---|---|
| Whether Cook’s unnoted correction of a historical budget report constituted misconduct/dishonesty disqualifying her from unemployment benefits | The change was a good-faith correction of a typographical error made at Starks’s direction, with no intent to deceive and no personal gain | Cook knew she should have noted the change and informed the director; failing to do so was dishonest and a violation of standards | Reversed — Court held evidence showed a good-faith error, not intentional dishonesty, so disqualification not supported |
Key Cases Cited
- Rockin J Ranch, LLC v. Director, Department of Workforce Services, 469 S.W.3d 368 (Ark. Ct. App. 2015) (standard of review: Board’s factual findings upheld if supported by substantial evidence)
- Hubbard v. Director, Department of Workforce Services, 460 S.W.3d 294 (Ark. Ct. App. 2015) (misconduct requires intent; distinguishes good-faith errors from disqualifying misconduct)
- King v. Director, Employment Security Department, 92 S.W.3d 685 (Ark. Ct. App. 2002) (defines dishonesty in unemployment context as disposition to lie, cheat, or defraud)