367 So. 2d 496 | Ala. Civ. App. | 1979
This is an unemployment compensation case.
The claimant applied for unemployment benefits for a second consecutive benefit year. The Director of the Department of Industrial Relations denied the claim on the grounds that the claimant had not met the employment requirements of §
The dispositive issue is whether the receipt of vacation pay in a prior benefit year may be considered wages for work in insured employment so as to qualify a claimant for benefits in a succeeding year under §
The record reveals the following facts: The claimant was employed for 26 years as a millwright at Republic Steel Corporation's Gadsden plant. Due to the unavailability of millwright work, the claimant was laid off on June 13, 1973 and began receiving unemployment compensation benefits of $60 per week on June 18, 1973. On July 7, 1973 he elected to take a ten-week vacation with pay, during which he received a total of $3,800 from Republic Steel. During the period he was receiving vacation pay, the Department of Industrial Relations, pursuant to §
On June 18, 1974, the claimant initiated a new benefit claim. The Department of Industrial Relations denied this claim on the grounds that the claimant had not earned wages for work in insured employment as provided by §
The claimant argues that the position of the Department of Industrial Relations regarding his vacation pay is contradictory and is contrary to our holding in Autwell v.State Department of Industrial Relations,
We must disagree.
We note initially that this case presents an issue of first impression in Alabama. Autwell, while it is helpful here, is not controlling. In Autwell, the claimants had been laid off from work for a two-week period which overlapped the Christmas and New Year's holidays. Under their union contract, the claimants were entitled to holiday pay for Christmas and New Year's Day. The Autwell court found that their holiday pay was wages within the meaning of §
Autwell follows the general rule that a claimant is not eligible for unemployment compensation while he is receiving vacation pay. This rule applies regardless of whether the vacation is taken during a period of forced lay-off. See, Annot., 30 A.L.R.2d 366 (1953); 81 C.J.S. Social Security § 218 (1977); 76 Am.Jur.2d, Unemployment Compensation, § 86 (1975). The reason for this rule lies in the basic purpose of the Unemployment Compensation Act, which is to provide funds to an involuntarily unemployed worker so that he may avoid destitution during his unemployment. Metcalf v. Department ofIndustrial Relations,
Autwell, is however, not dispositive of the principle issue here for two reasons. First, disqualification for a specific period under §
Autwell did not address the issue of requalification under §
Secondly, our holding that the "work in insured employment" required by §
Section
"[N]o otherwise eligible individual who shall have received benefits in a preceding benefit year shall be eligible to receive benefits in a succeeding benefit year unless and until such otherwise eligible individual, subsequent to the beginning date of the preceding benefit year, shall have worked in insured employment for which work he earned wages equal to at least eight times the weekly benefit amount established for such individual in the preceding benefit year." (Emphasis added.)
Note that the statute requires that qualifying wages received in the initial benefit year must be attributable to work performed during that benefit year. There is no question in the instant case that the claimant's accumulated vacation and attributable vacation pay were earned in insured employment. However, that work was performed prior to his initial benefit year. During his benefit year June 18, 1973 to *500 June 17, 1974 the claimant performed no actual work for which he earned wages.
The holding in Autwell that the receipt of holiday pay may imply that some form of services were performed on the holiday is inapplicable to the instant case.
The problem faced in Autwell arose because holiday pay is generally not received on the holidays for which it is payable. The issue was whether an individual could be considered unemployed on a holiday in which he performed no actual services. The issue faced in Autwell is not faced here. There is no problem of determining when the claimant's vacation pay was deemed payable. The claimant actually received that money during his vacation. He was denied unemployment benefits during that period not because it was found that he performed some implied services but because he was receiving compensation in excess of his unemployment compensation limits.
The Autwell case then is clearly distinguishable. On the other hand the federal legislation which affects this case addresses the specific issue here involved.
As we have often noted, our statute must be construed in harmony with appropriate federal legislation. Metcalf v.Department of Industrial Relations, supra; Holmes v. Cook,supra; Department of Industrial Relations v. Drummond,
"(7) an individual who has received compensation during his benefit year is required to have had work since the beginning of such year in order to qualify for compensation in his next benefit year;. . . ."
26 U.S.C.A. § 3304 (a)(7).
The stated purpose of this amendment was to prevent the payment of unemployment benefits in two successive benefit years based on only one separation from employment — the so-called "double dip." S.Rep. No. 91-752, 91st Cong., 2d Sess.,reprinted in 1970 U.S. Code Cong. Admin. News, pp. 3606, 3624-25. In the instant case, the claimant seeks to qualify for benefits in a second consecutive benefit year based on only one separation from employment. Construing §
Because the vacation pay received was not derived as wages for work performed in the base period, the judgment of the circuit court is reversed and the decision of the Board of Appeals for the Department of Industrial Relations denying benefits to the claimant for the benefit year beginning June 18, 1974 is hereby reinstated.
REVERSED AND RENDERED.
BRADLEY and HOLMES, JJ., concur. *501