1. A. To determine whether a claimant’s misappropriation of company funds or property is misconduct that will disqualify the claimant from receipt of unemployment benefits, the Department shall consider the employer’s practices regarding the handling of funds and whether the claimant knew that the claimant was misappropriating funds.

   1. 1. A claimant who is discharged for knowingly misappropriating company funds is discharged for misconduct connected with employment. Misappropriation includes misusing credit cards, checks, or other financial instruments owned or controlled by the employer.
   2. 2. A claimant who is discharged for retaining funds to which the claimant honestly believes the claimant is entitled, and makes adjustment or restitution upon notification, is discharged for reasons other than misconduct relating to such funds.
   3. 3. A claimant who is discharged for knowingly misappropriating company property, or conversion of the employer’s property or theft is discharged for misconduct connected with employment.
   4. 4. A claimant who is discharged for retaining company property to which the claimant honestly believes the claimant is entitled, and makes adjustment or restitution upon notification, is discharged for reasons other than misconduct relating to such company property.

2. B. A claimant who is discharged for falsification of an employment application or for falsification of a written document related to the claimant’s obtaining or retaining employment or for falsification of work or time records is discharged for misconduct related to employment when the available evidence establishes that the falsification was or is:

   1. 1. Material to the claimant’s ability to obtain, retain, or perform the job; and
   2. 2. Of such a nature as to adversely affect a material or substantial interest of the employer.

Historical Note

Former Rule number Misconduct 140. - 140.25. Former Rule repealed, new Section R6-3-51140 adopted effective January 24, 1977 (Supp. 77-1). Amended as an emergency effective August 1, 1979, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 79-4). Former emergency adoption now adopted effective October 30, 1979 (Supp. 79-5). Amended effective December 20, 1995 (Supp. 95-4). Amended by final rulemaking at 24 A.A.R. 1417, effective June 19, 2018 (Supp. 18-2).