Supreme Court Decides Important Workers’ Compensation Case on Intentional and Willful Misconduct

The Michigan Supreme Court has decided an important workers’ compensation case addressing employee misconduct. The case is Brackett v Focus Hope. The question in Brackett is whether an employee’s injury related to the intentional breaking of an employer rule precluded the employee from benefits. The Supreme Court holds that benefits are barred.

The employee in this case was told at the time of hire of an employer rule that mandated attendance at Focus Hope’s annual Martin Luther King celebration. The employee refused to attend the celebration, objecting to its locale. After being confronted about her non-attendance by a superior at work, plaintiff claimed a psychological and emotional breakdown and never returned to work.

The trial Magistrate, Workers’ Compensation Appellate Commission, and Court of Appeals awarded the employee benefits. They found that her actions were not bad enough to trigger the “intentional and willful misconduct” bar to benefits.

The Michigan Supreme Court reversed and denied benefits. The Court said the employee’s “refusal to attend an employer mandated event constituted ‘intentional and willful misconduct’ ….thereby barring her recovery of benefits under the Workers’ Disability Compensation Act,” MCL 418.305. The Court said “plaintiff’s deliberate and categorical refusal to attend this mandatory function constituted insubordination.” The Court said the law does not require that “misconduct” rise to a particular level of egregiousness. The Court cautioned, however, that: “An employer’s rule must be clearly established and consistently enforced in order for the employee to understand the mandatory nature of the rule and for its violation to constitute intentional and willful misconduct.”