## Facts

- Mary E. Neubert worked as a radiologic technologist for St. Mary’s Hospital & Nursing Center from 1981 to June 1, 1984, with favorable evaluations.
- While on emergency duty, a physician requested a ventilation-perfusion lung scan through the hospital operator.
- Neubert was not qualified to perform the scan and advised the operator to locate qualified staff or have the physician renew the request on Monday.
- The physician complained to the hospital; management believed the incident harmed the hospital’s reputation.
- The hospital administrator reprimanded Neubert, stated her conduct could justify termination, but instead imposed a 90-day probation.
- During probation, the hospital suspended certain benefits, including vacation and sick leave.
- The employee handbook described progressive discipline and provided a multi-step grievance procedure ending in conciliation.
- Neubert believed the probation and benefit suspension deviated from the handbook’s progressive discipline and procedures.
- Neubert resigned without pursuing the final grievance step and applied for unemployment benefits.
- The agency denied benefits, finding she voluntarily quit without good cause attributable to the employer.

## Issues

1. Whether substantial evidence and correct legal standards supported the agency’s determination that Neubert quit without good cause attributable to the employer.
2. Whether an employer’s failure to follow material handbook-based disciplinary procedures can constitute good cause attributable to the employer for quitting under Minnesota unemployment law.

## Decision

- The Minnesota Court of Appeals reversed the Commissioner’s denial of benefits.
- The court held Neubert quit for good cause attributable to the employer.
- The court concluded the agency erred in treating the resignation as disqualifying where the employer imposed punitive discipline inconsistent with handbook-created expectations.

## Legal Principles

- A voluntary quit disqualifies an employee from unemployment benefits unless the quit is for good cause attributable to the employer.
- Good cause exists when an employer’s conduct would compel an average, reasonable worker to resign.
- Under Minnesota law, an employee handbook can create enforceable unilateral contract terms if offer, acceptance, and consideration are present.
- An employer’s material departure from handbook disciplinary procedures, coupled with materially adverse consequences (such as suspension of benefits), may supply good cause attributable to the employer.

## Conclusion

Because the employer imposed a punitive probation with loss of benefits in a manner inconsistent with the progressive discipline framework described in its handbook, the court held a reasonable employee could feel compelled to resign; the benefits denial was reversed.


Neubert v. St. Mary’s Hosp. & Nursing Ctr., 365 N.W.2d 780 (Minn. Ct. App. 1985)