Sections 14, 33, 34
APPEALS, Interested party, UA Rule 201
CITE AS: Riutta v Chrysler Corp, No. 47475, (Mich App July 30, 1980).
Appeal pending: No
Claimant: Wayne Riutta
Employer: Chrysler Corp
Docket No: B76 9910 52480
COURT OF APPEALS HOLDING: An employer's liability status and statutory rights and obligations are not directly affected by a determination to grant extended benefits. Employer's interest is insufficient for it to be deemed an interested party. As a result the employer is not entitled to protest or appeal the Commission's determination that claimant was eligible for extended benefits.
FACTS: In April, 1976, claimant was held to have no benefit entitlement changeable to the employer because the prorated weekly amount of his pension from employer exceeded his benefit rate. Employer appealed a redetermination holding claimant "eligible" but not specifying the period of eligibility. Based on MESC Rule 201 (R421.201), the Referee dismissed the appeal for lack of jurisdiction because the employer was not an "interested party" under the Rule. "Interested parties" have the right to receive copies of Commission determinations and may protest or appeal them as provided in the MES Act. Extended benefits are funded by a reserve account to which all employer's contribute. Though the employer was not chargeable for any benefits paid to the claimant, the employer was concerned that in the future, the amount of claimant's pension might drop below his benefit rate and he would become eligible to receive extended benefits.
DECISION: Affirm dismissal of employer's appeal. Employer not an interested party.
RATIONALE: Although any employer may claim an interest in ensuring that extended benefit claims are only paid when proper, every employer cannot be given standing to challenge every claim which might impinge on the solvency of the reserve account which funds extended benefits. To hold otherwise "would be illogical, would prove burdensome to the Commission, and would open the floodgates of litigation."
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