Tina Beach v. State Employment Security
49688-7
| Wash. Ct. App. | Oct 31, 2017Background
- Tina Beach was employed by Sander Resources, LLC (started July 2014) and traveled frequently for work; she received a company credit card in October 2014.
- The company had no written expense-policy handbook, but the owner, Lindsay Sander, repeatedly instructed employees verbally to minimize spending, charge business expenses to the corporate card, keep receipts, and timely submit reconciliation reports.
- Beach charged both business and personal purchases to the company card, sometimes reimbursing the company and sometimes not; her expense reports were often inaccurate and updated after reimbursement checks were issued.
- Specific disputed charges included: cell-phone tracking software (personal gift), unauthorized airline flights (including a trip to Billings), conference extras and a leadership seminar, and other charges Beach did not adequately document or explain.
- Beach was terminated March 11, 2015 for misuse of the company card; the Dept. of Employment Security denied benefits for misconduct, ALJ and commissioner affirmed denial after a de novo hearing, superior court reversed, and the Court of Appeals affirmed the commissioner.
Issues
| Issue | Plaintiff's Argument (Beach) | Defendant's Argument (Department/Employer) | Held |
|---|---|---|---|
| Whether substantial evidence supports findings that Beach made unauthorized charges | Beach: purchases were reasonable or reimbursed; some charges were for business; no clear written rule | Dept/Employer: testimony, card records, and emails show multiple unauthorized personal charges and inadequate documentation | Held: Substantial evidence supports findings of unauthorized charges |
| Whether Beach failed to account for personal expenses | Beach: she attempted reconciliation, reporting system issues, acted in good faith | Dept/Employer: reports were "a mess," receipts missing, reimbursements did not match reports | Held: Substantial evidence supports finding she did not adequately account for expenses |
| Whether Beach was terminated for misuse of company funds (causal connection) | Beach: other reasons listed; some charges occurred months earlier; employer credibility questioned | Dept/Employer: termination report and Sander’s testimony tie discharge to repeated card misuse | Held: Substantial evidence supports that misuse was a reason for discharge |
| Whether Beach’s conduct constituted legal "misconduct" under RCW (willful disregard, rule violation, deliberate disregard of standards) | Beach: acted in company’s interest or in good faith; no written policy; errors in judgment | Dept/Employer: repeated unauthorized charges, notice of expense rules, failure to follow procedures show willful/repeated violation | Held: Court affirms commissioner — Beach committed disqualifying misconduct under multiple statutory theories |
Key Cases Cited
- Smith v. Employment Security Department, 155 Wn. App. 24 (agency factual findings entitled to deference)
- Kirby v. Employment Security Department, 179 Wn. App. 834 (commissioner decision presumed correct; scope of review)
- Michaelson v. Employment Security Department, 187 Wn. App. 293 (mixed question of law and fact for misconduct analysis)
- Tapper v. Employment Security Department, 122 Wn.2d 397 (misconduct standard; ordinary negligence vs culpable conduct)
- Daniels v. Employment Security Department, 168 Wn. App. 721 (company rules need not be written to constitute misconduct)
- Wilson v. Employment Security Department, 87 Wn. App. 197 (rule-violation cases; intent and repeated conduct considerations)
- Ciskie v. Employment Security Department, 35 Wn. App. 72 (good-faith deviations may not be misconduct)
- Washington Trucking Association v. Employment Security Department, 188 Wn.2d 198 (statutory interpretation; give ordinary meaning to undefined terms)