JOHN H. KOHLHAUFF, APPELLANT,
v.
FLORIDA UNEMPLOYMENT APPEALS COMMISSION AND FORT MYERS LUMBER & SUPPLY COMPANY, APPELLEES
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
Kohlhauff, a mill shop supervisor, was discharged for soliciting fellow employees to join him in a competing business venture. The court affirmed the unemployment appeals commission's decision that his conduct constituted misconduct disqualifying him from unemployment benefits, establishing this as a matter of first impression in Florida.
The court held that soliciting fellow employees to join a competing business venture constitutes misconduct connected with employment, disqualifying the employee from unemployment benefits. This conduct breaches the employee's duty of loyalty to the employer and is disruptive, supporting the employer's discharge decision.
[1] An employee's solicitation of fellow employees to join him in a competing business venture constitutes misconduct disqualifying the employee from unemployment benefits.
[2] Disloyalty exhibited by soliciting fellow employees to work for a competitive business is sufficient to sustain a finding of misconduct.
Previewing 2 of 6 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“the disloyalty exhibited by soliciting fellow employees to work for a competitive business is enough to sustain a finding of misconduct”
Court's discussion of legal standard for misconduct based on solicitation of co-workers for competing business
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceKohlhauff was employed as a supervisor at Fort Myers Lumber & Supply Company. Several months into employment, the company received reports from employ…
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Misconduct Connected With Work cases and more on FLexlaw
QUINCE, Judge.
John H. Kohlhauff appeals an Unemployment Appeals Commission (UAC) order affirming the referee’s decision that he was terminated due to misconduct related to his employment. We affirm for the reasons below.
Kohlhauff was employed to supervise the mill shop and molding division of Fort Myers Lumber & Supply Company. Several months after Kohlhauff was hired, the employer began receiving reports from' other employees that Kohlhauff had inquired whether they were satisfied with their jobs. The employees also reported that Kohlhauff inquired whether they would be interested in working for him in a similar business. When the employer confronted Kohlhauff with these allegations, he did not deny the inquiries occurred as stated. The employer subsequently discharged Kohlhauff.
The appeals referee concluded Kohlhauff was disqualified from receiving unemployment compensation benefits because he was discharged for misconduct connected with work. The UAC affirmed the referee’s decision.
The issue of whether misconduct includes the actions of an employee who asks fellow employees whether they would like to join him in a business venture similar to their existing employment is one of first impression in Florida. However, we have found three cases which support a finding of misconduct for this type of activity.
In LeBlang v. Office of Unemployment Security, 425 So. 2d 910 (La. 4th Cir.Ct.App. 1983), LeBlang was discharged for many reasons, including making plans on company time to open a competitive business and discussing these plans with his co-workers. In affirming the referee’s decision, the court commented that the disloyalty exhibited by soliciting fellow employees to work. for a competitive business is enough to sustain a finding of misconduct. Accord, Porth v. Iowa Dep’t of Job Service, et al., 372 N.W. 2d 269 (Iowa 1985).
In Potts v. Review Board of Indiana Employment Sec. Div., 475 N.E. 2d 708 (Ind.Ct. App.1985), an employee invested in a competing cab company while working for Red Carpet Cab. The referee found that the employer had discharged the employee for breaching his duty of loyalty to his employer which was just cause for discharge. The court affirmed the referee, finding that such an arrangement was potentially hazardous for the employer since Potts was in a position to sabotage Red Carpet’s operation. The presence of a number of discontented Red Carpet employees leaving to join Pott’s new cab company makes Potts factually distinguishable from this case. However, the court’s analysis that such a situation is disruptive to the employer is persuasive in affirming the referee’s decision in the instant case.
We find it hard to find a clearer example of misconduct than an employee soliciting fellow employees on the job for his own business venture in competition with his current employer. The referee was free to weigh the evidence and judge the credibility of the witnesses. Continental Baking Co. v. Vilchez, 219 So. 2d 733 (Fla. 2d DCA 1969). There was more than adequate evidence to sustain a finding of misconduct.
Affirmed.
FRANK, C.J., and PATTERSON, J., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
-
Terry Roberts Site Work, Inc. v. Unemployment Appeals Comm'n, 908 So. 2d 592 (Fla. 5th DCA 2005)…oyee.” § 443.036(29)(a), Fla. Stat. (2003). An employer has a right to expect that his or her employee will not solicit fellow employees on the job to join the employee’s competing business venture. See Kohlhauff v. Fla. Unemployment Appeals Comm’n, 646 So. 2d 799 (Fla. 2d DCA 1994) (holding unemployment compensation claimant’s conduct in asking fellow employees whether they would like to join him in a business venture similar to their existing employment was misconduct disqualifying claimant from receiving b…
-
Massey Servs., Inc. v. Sanders (Fla. 5th DCA 2021)…r he had offered Mr. Engel a job at Shell Pest. Again, none of these actions constitute solicitation of Massey’s employees. Massey relies on two cases to support its argument. In the first case, Kohlhauff v. Florida Unemployment Appeals Commission, 646 So. 2d 799 (Fla. 2d DCA 1994), Kohlhauff’s employment was terminated due to work-related misconduct which involved Kohlhauff asking other employees “whether they were satisfied with their jobs” and “whether they would be interested in working for him in a simi…
Authorities Cited
- Cont'l Baking Co. v. Vilchez, 219 So. 2d 733 (Fla. 2d DCA 1969)