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Sallmen v Danti Tool & Die, Inc. 18.10

Section 62(b)

FRAUD, Duty to disclose earnings

CITE AS: Sallmen v Danti Tool & Die, Inc, No. 86-23988-AR-3, Saginaw Circuit Court (September 8, 1986).

Appeal pending: No

Claimant: Ermin Sallmen

Employer: Danti Tool & Die, Inc.

Docket No: B85 09103 100921W

CIRCUIT COURT HOLDING: Any and all earnings regardless of how small must be reported to the Commission when certifying for benefits.

FACTS: After becoming unemployed the claimant began to perform part time services for another employer. The services consisted of the claimant's participating in a sales training program. During this program the claimant received $90.00 per week against future commissions.

Although earning $90.00 per week, the claimant failed to disclose these earnings to the Commission when he certified for his weekly benefits. The claimant indicated he failed to do so because a Commission clerk had advised him that if he earned less than half of his weekly benefit rate he would still be entitled to his full weekly benefits. Therefore, he did not think it necessary to disclose he was working and earning $90.00 per week since that was less than half of his benefit rate.

DECISION: Board decision modified. Claimant must pay restitution, but intentional misrepresentation not established. No fraud penalty.

RATIONALE: It was clear that the claimant had accepted and performed services for the new employer for remuneration and therefore had earnings within the meaning of Section 48(1) of the MES Act.

The claimant had a legal duty to disclose to the Commission that he was working and receiving pay from another employer regardless of the impact on his benefit rate.

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