Rowan v. Dream It, Inc.
2012 Minn. App. LEXIS 31
| Minn. Ct. App. | 2012Background
- Rowan worked for Dream It as a painter from Sept 2006 to Nov 2010, with a prior 2009 unemployment benefit during a layoff.
- In Nov 2010 Rowan formed an LLC at her supervisor’s urging and began performing work as an independent contractor for Dream It.
- She submitted self-insurance forms, signed a resignation letter, and continued working the same duties after forming the LLC.
- Dream It reduced her hours and proposed LLC pay by square footage, promising higher pay for fewer hours.
- On Dec 9, 2010 she refused a Dream It offer, Dream It stopped offering work, and she had no other employment.
- A ULJ initially found her eligible and later reconsideration found ineligibility and an overpayment; this court reverses in Rowan’s favor.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did Rowan have good reason to quit caused by the employer? | Rowan | Dream It | Yes; good cause established for quitting caused by Dream It |
Key Cases Cited
- Nelson v. Levy, 796 N.W.2d 386 (Minn.App.2011) (relevance to employee vs LLC status and standard of review for good cause)
- Skarhus v. Davanni’s Inc., 721 N.W.2d 340 (Minn.App.2006) (deference to ULJ factual findings and standard of review)
- Ferguson v. Dep’t of Emp’t Servs., 311 Minn. 34, 247 N.W.2d 895 (Minn. 1976) (definition of good cause in quitting for employer-caused reasons)
- Johnson v. Walch & Walch, Inc., 696 N.W.2d 799 (Minn.App.2005) (good cause as a question of law, reviewed de novo)
- Rootes v. Wal-Mart Assocs., Inc., 669 N.W.2d 416 (Minn.App.2003) (good cause framework and employer-related reasons to quit)