Landing, Inc. v. UCBR ( 2018 )


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  •            IN THE COMMONWEALTH COURT OF PENNSYLVANIA
    Landing, Inc.,                                :
    Petitioner               :
    :
    v.                              :    No. 313 C.D. 2017
    :    Submitted: October 6, 2017
    Unemployment Compensation Board               :
    of Review,                                    :
    Respondent                     :
    BEFORE:       HONORABLE MARY HANNAH LEAVITT, President Judge
    HONORABLE MICHAEL H. WOJCIK, Judge
    HONORABLE J. WESLEY OLER, JR., Senior Judge
    OPINION NOT REPORTED
    MEMORANDUM OPINION
    BY PRESIDENT JUDGE LEAVITT                                         FILED: January 5, 2018
    Landing, Inc. (Employer) petitions for review of an order of the
    Unemployment Compensation Board of Review (Board) granting Jeannie
    Eleftherion (Claimant) benefits under the Unemployment Compensation Law
    (Law).1 The Board affirmed the determination of the Referee that Claimant had
    cause of a necessitous and compelling nature to leave her job and, thus, was not
    ineligible for benefits under Section 402(b) of the Law.2 Employer argues that
    Claimant did not establish sufficient cause to leave her employment. We affirm the
    Board.
    1
    Act of December 5, 1936, Second Ex Sess., P.L. (1937) 2897, as amended, 43 P.S. §§751-918.10.
    2
    Section 402(b) of the Law states that an employee shall be ineligible for compensation for any
    week “[i]n which his unemployment is due to voluntarily leaving work without cause of a
    necessitous and compelling nature[.]” 43 P.S. §802(b).
    Employer runs a business known as “Fred’s Breakfast Membership
    Club” in New Hope, Pennsylvania that is owned by Chris Bollenbacher (Owner).
    Notes of Testimony, 11/14/2016, at 1 (N.T. __); Reproduced Record at 2 (R.R. ___).
    Claimant worked there full-time as a waitress, earning $2.84 per hour, plus tips, from
    2010 through September 6, 2016. Claimant resigned because she was “no longer
    able to emotionally handle the toxic, hostile environment [at work].” Certified
    Record (C.R.), Item No. 3 at 13.
    Claimant applied for unemployment benefits, asserting that she left her
    employment due to sexual harassment. In her application, Claimant stated that on
    August 18, 2016, she filed a sexual harassment and discrimination claim with the
    Equal Employment Opportunity Commission (EEOC). At that point, the work
    atmosphere began to decline to the point that her doctor advised her to quit to relieve
    her anxiety and depression. The UC Service Center denied her application for the
    stated reason that Claimant did not establish a necessitious and compelling reason
    for quitting. Claimant appealed, and a hearing was held before a Referee.
    Claimant testified that she quit because the workplace environment was
    not a healthy one. It caused her to suffer headaches, loss of sleep and loss of appetite.
    Claimant’s physician prescribed anxiety medication and recommended that she
    resign.
    Claimant explained that her work difficulties started in 2014,
    approximately two years before she quit, when a new waitress (New Waitress) was
    hired. After several customers complained to Claimant about New Waitress’ attire,
    Claimant raised the issue with Owner. He responded that there was nothing wrong
    with New Waitress’ attire and he liked looking at her breasts. N.T. 7; R.R. 8.
    2
    Thereafter, in August 2016 Claimant overheard a risqué conversation
    between New Waitress and Owner. New Waitress said that someone had burned the
    bread she had placed in the toaster, to which Owner replied that he only touched his
    own toast and no one had been playing with his toast lately. Claimant found this
    conversation uncomfortable and confronted Owner about it after work. Claimant
    also complained about New Waitress grabbing Owner’s buttocks on occasion.
    Claimant told Owner that she was troubled by New Waitress’ comment to customers
    that she and Owner were going to get a massage together after work and wondered
    if the massage would have a “happy ending.” N.T. 10; R.R. 11.
    Claimant testified that no one had ever made any sexual comments
    toward her or touched her improperly. She also agreed that Owner never grabbed
    anyone’s buttocks. However, she had observed Owner and New Waitress in the
    “back room” kissing and hugging. N.T. 12; R.R. 13.
    Employer presented the testimony of Owner. He stated that Claimant
    was a habitual complainer. Over the years, she complained about other employees
    and schemed to get rid of co-workers she did not like. He confirmed that Claimant
    complained about New Waitress’ attire, which were low cut t-shirts. However, he
    found that the attire was fine. Owner denied making a comment about New
    Waitress’ breasts.
    He claimed the toast conversation was innocent. Owner explained there
    is a recurring problem with one server putting bread in the toaster and another server
    removing it after it is toasted. Owner responded by giving each server a separate
    toast container. Owner does not make or handle toast that is served to customers.
    Owner stated he was present for, but not a participant in, New Waitress’
    conversation with customers about Owner and New Waitress getting a massage at a
    3
    reputable spa close to work. In his view, New Waitress likes to joke, and the
    customers laughed. It only offended Claimant because everything New Waitress
    does offends Claimant.
    Owner confirmed that New Waitress slaps people on the behind. At
    work “20-something-year olds do it to each other all day long. I’m the only old guy,
    I think, that’s getting slapped.” N.T. 14; R.R. 15. However, Owner never touches
    the employees.
    Employer submitted e-mail correspondence between Claimant and
    Owner dated August 15, 2016. Claimant’s e-mail message states:
    I wanted to recap our conversation in the parking lot last week
    when I expressed to you my discomfort in the unacceptable
    language and behavior that has been taking place at [work]. A
    few examples are:
     [New Waitress] talking loudly about the massages you are
    going to have and will they come with a “happy ending” in
    front of myself and the customers
     [New Waitress] grabbing your rear in front of myself and
    customers
     Talk about only touching one’s own “toast”
    There has also been discussion in the past regarding [New
    Waitress’] inappropriate attire; however, you find it acceptable
    because you said you enjoy looking at her breasts.
    During my seven-year tenure [my] duties have included
    management, hostess and waitressing. I have been a team player
    and accepted additional responsibility without question or
    training so you could be out of the restaurant with your ailing
    wife. After my dedication and work record, I do not believe that
    correct solution should be for me to leave because [New
    Waitress] is out of control and rude. The discrimination and
    sexual harassment that has been taking place over the last two
    years because of your “relationship” with [New Waitress] needs
    to be resolved. Her disrespect and rudeness towards me in
    4
    addition to the total lack of staff support is unacceptable, and I
    find myself in a hostile environment.
    Certified Record (C.R.), Item No. 3 at 5. Owner responded as follows:
    I appreciate all your efforts while Ellen was in hospice. You and
    the entire staff stepped up and I am grateful to everyone. You
    were hired as a hostess/waitress and you have done a fine job.
    Any other responsibilities that you accepted I assume was
    because you were willing. [New Waitress] is outspoken and a
    bit brazen. I understand that this is unacceptable to you. We did
    go to a spa together because we are friends and each had a
    massage in separate rooms. It was at Nurture spa [ ] which is a
    reputable institution. They do not offer happy endings. I am
    sorry that you are offended by her sense of humor. You are not
    being sexually harassed. If anyone chooses to slap my behind
    that is my problem not yours. She has done this to other people
    as well. She thinks it is funny. Some of the recipients also
    thought it was funny. I believe she has never touched you. No
    one is touching you. No one has ever to my knowledge made a
    sexual comment to you.
    Regarding [New Waitress’] attire, we do not require a uniform.
    We do not have a dress code. I have never said that I like her
    breasts. I have said that her attire is not offensive to me and I
    think that she looks fine. I think that if you bothered to look you
    would find that many of our bus girls wear ripped pants, butt
    shorts, and excessively tight yoga pants, so tight in fact that male
    customers often express their appreciation. I have never received
    a comment about [New Waitress’] dress [from anyone] other
    than you and Brad [(Owner’s stepson)]. Until we choose to have
    a dress code, the dress of the other girls is none of your concern.
    Everyone who works [for Employer] is dedicated and has a good
    work record. You are not special in this regard. You are not
    guaranteed an environment of your desire…. The problem here
    is that you are offended by [New Waitress]. I do not owe you an
    environment where you approve of your co-workers
    personalities. The hostile environment you believe exists is not
    one caused nor nurtured by management. You can document and
    complain and use words such as hostile and unacceptable all you
    wish and as I have told you before I am not a social director.
    [New Waitress’] attitude does not affect your ability to make
    money, does not affect your schedule or the policies under which
    5
    you work. There are about 100 employees at [work]. Some like
    [New Waitress], some like [New Waitress] a lot, some don’t care
    for her. You cannot seem to get along with her and seem to feel
    that the continued beating you give me about her is going to force
    me to make her behave in a fashion in which you approve….
    You are free to leave if you are unhappy. I feel this conversation
    is not going anywhere. You have made your point clear. I have
    made mine. I am asking you to drop this subject. This is not the
    first time I have asked you to drop it but since it is now in writing
    it will be considered the first. As you continue to bring this
    subject up I will write to you two more times asking you to drop
    this subject. Then I will ask you to leave my employment.
    C.R., Item No. 3 at 6.
    The Referee found Claimant credible and resolved all conflicts with
    Owner’s testimony in her favor. The Referee concluded that during the last several
    months of Claimant’s employment, Employer allowed vulgar jokes and remarks in
    the workplace in front of Claimant and customers who complained to Claimant.
    Even though Claimant brought these matters to the attention of Owner, he refused
    to take any action. The Referee found that the offensive workplace conduct gave
    Claimant a necessitous and compelling reason to leave employment and granted
    Claimant benefits. Employer appealed to the Board, which adopted the Referee’s
    findings and conclusions. The Board affirmed without further opinion.
    Employer petitioned for this Court’s review, arguing that Claimant did
    not meet her burden of proving there was a necessitous and compelling cause for
    quitting.3 Employer contends that Claimant was not sexually harassed, and she did
    not act reasonably in quitting.
    3
    “Our standard of review is limited to determining whether the Board’s adjudication is in violation
    of constitutional rights, whether an error of law has been committed, or whether the factual
    findings are supported by substantial evidence.” Brunswick Hotel & Conference Center, LLC v.
    Unemployment Compensation Board of Review, 
    906 A.2d 657
    , 660 n.2 (Pa. Cmwlth. 2006).
    6
    In support, Employer argues that cleavage is not offensive to an
    ordinary person. Likewise, an ordinary person would not quit because a co-worker
    is consensually grabbing someone else’s behind. Nor would an ordinary person quit
    after hearing off-color discussions that were not directed toward her.
    The Board responds that it did not find that Claimant was sexually
    harassed. Rather, it found that offensive conduct in the workplace gave Claimant a
    necessitous and compelling cause for terminating her employment.
    We begin with a review of the law. It is well settled that a
    [n]ecessitous and compelling cause for voluntarily leaving
    employment [is one that] results from circumstances which
    produce pressure to terminate employment that is both real and
    substantial, and which would compel a reasonable person under
    the circumstances to act in the same manner.
    Mercy Hospital of Pittsburgh v. Unemployment Compensation Board of Review, 
    654 A.2d 264
    , 266 (Pa. Cmwlth. 1995). We have offered the following guidelines for
    distinguishing normal workplace strains from pressures that justify a resignation:
    Resentment of a reprimand, absent unjust accusations, profane
    language or abusive conduct ...; mere disappointment with wages
    ...; and personality conflicts, absent an intolerable working
    atmosphere ... do not amount to necessitous and compelling
    causes.
    Ann Kearney Astolfi DMD PC v. Unemployment Compensation Board of Review,
    
    995 A.2d 1286
    , 1289 (Pa. Cmwlth. 2010) (quoting Lynn v. Unemployment
    Compensation Board of Review, 
    427 A.2d 736
    , 737 (Pa. Cmwlth. 1981)). “Whether
    a claimant had cause of a necessitous and compelling nature for leaving work is a
    question of law subject to this Court’s review.” Ann Kearney 
    Astolfi, 995 A.2d at 1289
    . When determining questions of law, our standard of review is de novo and
    7
    our scope of review is plenary.         Quality Care Options v. Unemployment
    Compensation Board of Review, 
    57 A.3d 655
    , 660 (Pa. Cmwlth. 2012).
    Claimant’s testimony, which the Board credited, was that (1) when
    Claimant complained about New Waitress’ attire, Owner responded that he liked
    looking at breasts; (2) Claimant had to listen to a conversation about toast that was
    full of sexual double entendres; (3) Claimant saw New Waitress grab Owner’s
    buttocks; and (4) customers who witnessed the off-color comments complained to
    Claimant.   The Board concluded that on these facts, Claimant established a
    demeaning workplace environment that justified her resignation.
    Workplace racial slurs, insults, and harassment will give an employee
    a necessitous and compelling reason to terminate employment. See, e.g., Taylor v.
    Unemployment Compensation Board of Review, 
    378 A.2d 829
    (Pa. 1977) (employee
    had necessitous and compelling reason to quit after employer repeatedly called him
    racially derogatory names); Mercy Hospital of 
    Pittsburgh, 654 A.2d at 266
    (employee had necessitous and compelling reason to quit after his co-workers
    repeatedly called him “faggot,” “alcoholic,” and “crazy” and employer was given an
    opportunity to fix the problem); and Danner v. Unemployment Compensation Board
    of Review, 
    443 A.2d 1211
    , 1212 (Pa. Cmwlth. 1982) (employee had necessitous and
    compelling cause to quit after employer failed to address employee’s complaints of
    verbal abuse and harassment by co-workers).         On the other hand, a merely
    “uncomfortable” workplace is not the same as an “intolerable” one and does not
    establish a compelling reason to quit. Ann Kearney 
    Astolfi, 995 A.2d at 1290
    (personality conflict with a co-worker and being chastised for crying and acting like
    a child by the boss made for an “uncomfortable,” but not “intolerable” work
    environment).
    8
    The Board concluded that Claimant demonstrated an intolerable work
    environment. She complained to Owner, who did not address her concerns. This is
    a close case, but we cannot say that the Board abused its discretion in holding that
    Claimant established a necessitous and compelling reason to resign. Accordingly,
    we affirm.
    _____________________________________
    MARY HANNAH LEAVITT, President Judge
    9
    IN THE COMMONWEALTH COURT OF PENNSYLVANIA
    Landing, Inc.,                      :
    Petitioner         :
    :
    v.                      :   No. 313 C.D. 2017
    :
    Unemployment Compensation Board     :
    of Review,                          :
    Respondent           :
    ORDER
    AND NOW, this 5th day of January, 2018, the order of the
    Unemployment Compensation Board of Review, dated February 21, 2017, in the
    above-captioned matter is hereby AFFIRMED.
    _____________________________________
    MARY HANNAH LEAVITT, President Judge