Hubbard v. Director, Department of Workforce Services, 460 S.W.3d 294

Hubbard appeals a Board of Review denial of unemployment benefits for misconduct in connection with work.
The Board concluded Hubbard was discharged for misconduct and denied benefits; the denial also covered May 11–Aug 5, 2014 unrelated to this appeal but not challenged.
Hubbard was a Walmart employee for over seven years and was discharged in May 2014 for selling alcohol before 7:00 a.m.
The incident involved attempting to complete a beer sale before 7:00 a.m. when the system flagged item as not found; Hubbard manually entered the price and completed the sale after attempting to obtain supervisor assistance.
A supervisor later informed Hubbard that alcohol sales were prohibited before 7:00 a.m.; Hubbard refunded the purchase and retrieved the beer.
The Board found an intentional violation of known and reasonable rules, constituting misconduct, but the court reverses and remands for reconsideration on Hubbard’s eligibility.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Hubbard’s conduct constitutes misconduct requiring disqualification.	Hubbard argues the act was an isolated negligence without intent.	The Board found an intentional violation of employer rules.	Misconduct not proven due to lack of intent; remand for eligibility determination.
Whether the Board’s misconduct finding can stand on the current record and require remand.	Court should reverse due to insufficient evidence of intent.	Board’s finding supported by policy violation evidence.	Remand to determine eligibility under Ark. Code Ann. § 11-10-507(3)(A) consistent with lack of demonstrated intent.

Price v. Director, 2013 Ark. App. 205 (Ark. App. 2013) (isolated negligence not amounting to misconduct)
Spencer v. Director, 2014 Ark. App. 479 (Ark. App. 2014) (misconduct requires intentional or deliberate violation)