State court rules that fired Paratransit driver cannot be denied unemployment benefits - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
July 4, 2014 Newswires
Share
Share
Tweet
Email

State court rules that fired Paratransit driver cannot be denied unemployment benefits

Denny Walsh, The Sacramento Bee
By Denny Walsh, The Sacramento Bee
McClatchy-Tribune Information Services

July 04--In a victory with broad implications for the state's army of unemployed, the California Supreme Court ruled Thursday that unemployment benefits for a Sacramento Paratransit driver cannot be denied because he was fired for refusing to sign a formal notification of discipline.

"Even assuming (Paratransit's) order to sign the disciplinary notice was reasonable and lawful, and even assuming (Craig Medeiros') refusal to do so may have justified his termination ... the ... issue here is whether the ... facts, which are undisputed, establish that he committed misconduct within the meaning of" a state statute, the court said. "We conclude the answer is no," it declared.

The unanimous opinion was authored by Justice Marvin R. Baxter.

After a passenger filed a complaint against Medeiros in 2008 alleging he harassed her and Paratransit decided the claim was well founded, he defied repeated orders to sign a memorandum that he was being disciplined for the incident, including two days on suspension without pay.

Medeiros said he disputed the factual scenario depicted in the document, he believed he had the right to consult with a union representative before deciding whether to sign it, and he was concerned he would be admitting wrongdoing.

Paratransit officials warned Medeiros that, if he did not sign the notice, it would be a violation of the company's collective bargaining agreement with the union and would be viewed as insubordination and grounds for termination.

But Medeiros would not accept the company's assurances that his signature would not be an admission of guilt but would only acknowledge receipt of the notice.

So, in May 2008, after six years with Paratransit, Medeiros was fired.

Paratransit Inc., is a private nonprofit corporation providing transportation to disabled and elderly people and related agencies throughout the Sacramento region.

In the years of legal wrangling that followed Medeiros' firing, his lawyers did not question the legitimacy of his termination, but they challenged findings by trial and appellate courts that he is not entitled to unemployment benefits because he was fired for misconduct.

California law bars unemployment benefits for someone fired for misconduct, as the law defines that term, and Paratransit says that is the reason Medeiros was discharged.

But the Supreme Court, reversing decisions in the two lower courts, ruled that his refusal to sign the notice does not fall under the rubric of misconduct, "but was, at most, a good faith error in judgment that does not disqualify him from unemployment benefits."

Carole Vigne, a staff attorney at the Legal Aid Society-Employment Law Center in San Francisco, described the ruling as "important on multiple levels."

Vigne, who filed a brief with the Supreme Court in support of Medeiros, said it is the court's "first substantive decision interpreting the Unemployment Insurance Code that we've had in 30 years. It is a very clear affirmation that the code is intended to relieve hardship and cannot be vitiated by a one-time incident of disobedience."

She said the decision "is certainly timely, given the huge unemployment numbers we've had in recent years. Unemployment insurance is a safety net and lifeline for so many people, especially low-wage workers, and now there is no doubt they do not forfeit that protection when they lose a job through no fault of their own by disobeying what even might have been a reasonable and lawful order."

Paratransit attorney Laura McHugh takes strong exception to that view and to the high court's conclusion.

Thursday's opinion "is result-oriented and inconsistent with the purpose of unemployment benefits, which are meant to help people who have lost their jobs through no fault of their own," McHugh said.

"Mr. Medeiros had an option," she said. "He could have signed off on the suspension, continued to work and grieved it through the union. So, it was his own fault that he wasn't employed.

"But wait, now we're told it was not his fault. So he gets unemployment.

"This allows employees to refuse to comply with reasonable and lawful directives from their employers," McHugh said. "It makes it easier for them to come up with excuses why they don't have to do what they are told. It is disappointing that our courts here in California continue to gravitate toward these types of positions."

Stacey Leyton, an attorney who filed a brief with the Supreme Court in support of Medeiros on behalf of United Steelworkers, said the "general legal principles regarding honest-mistake termination" were established in earlier California case law, but the factual scenario in Medeiros had not before been addressed.

She said the Supreme Court's ruling "is tremendously important. The lower courts were out of sync with the law and the purpose of unemployment insurance."

"This is common," Leyton said of the situation Medeiros claims he found himself in. "It happens to a lot of people. It is not at all unusual for someone to believe they are admitting wrongdoing if he or she signs such a document.

"But now we have a definitive answer: Even if they can be fired for not signing, they can't lose their right to unemployment benefits."

------

___

(c)2014 The Sacramento Bee (Sacramento, Calif.)

Visit The Sacramento Bee (Sacramento, Calif.) at www.sacbee.com

Distributed by MCT Information Services

Wordcount:  864

Advisor News

  • Bill aims to boost access to work retirement plans for millions of Americans
  • A new era of advisor support for caregiving
  • Millennial Dilemma: Home ownership or retirement security?
  • How OBBBA is a once-in-a-career window
  • RICKETTS RECAPS 2025, A YEAR OF DELIVERING WINS FOR NEBRASKANS
More Advisor News

Annuity News

  • An Application for the Trademark “DYNAMIC RETIREMENT MANAGER” Has Been Filed by Great-West Life & Annuity Insurance Company: Great-West Life & Annuity Insurance Company
  • Product understanding will drive the future of insurance
  • Prudential launches FlexGuard 2.0 RILA
  • Lincoln Financial Introduces First Capital Group ETF Strategy for Fixed Indexed Annuities
  • Iowa defends Athene pension risk transfer deal in Lockheed Martin lawsuit
More Annuity News

Health/Employee Benefits News

  • Aetna to cover IVF treatments for same-sex couples in national settlementAetna to cover IVF treatments for same-sex couples in national settlementA federal judge in California has approved a preliminary agreement for a class action lawsuit that requires Aetna to cover fertility treatments for same-sex couples the same as they do with heterosexual couples
  • Why even unsubsidized Californians could pay more for health insurance
  • The crisis isn’t coming – it’s here
  • EDITORIAL: Congress has another chance to keep health insurance more affordable
  • Bookman: Republicans are fighting a losing battle on health care
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • Affordability pressures are reshaping pricing, products and strategy for 2026
  • How the life insurance industry can reach the social media generations
  • Judge rules against loosening receivership over Greg Lindberg finances
  • KBRA Assigns Rating to Soteria Reinsurance Ltd.
  • A new era of advisor support for caregiving
More Life Insurance News

- Presented By -

Top Read Stories

  • How the life insurance industry can reach the social media generations
More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Slow Me the Money
Slow down RMDs … and RMD taxes … with a QLAC. Click to learn how.

ICMG 2026: 3 Days to Transform Your Business
Speed Networking, deal-making, and insights that spark real growth — all in Miami.

Your trusted annuity partner.
Knighthead Life provides dependable annuities that help your clients retire with confidence.

Press Releases

  • Two industry finance experts join National Life Group amid accelerated growth
  • National Life Group Announces Leadership Transition at Equity Services, Inc.
  • SandStone Insurance Partners Welcomes Industry Veteran, Rhonda Waskie, as Senior Account Executive
  • Springline Advisory Announces Partnership With Software And Consulting Firm Actuarial Resources Corporation
  • Insuraviews Closes New Funding Round Led by Idea Fund to Scale Market Intelligence Platform
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2025 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet