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GRACE DRILLING COMPANY
vs.
DIRECTOR OF LABOR and Gary Ramsey
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Issues:
Unemployment benefits, evidence, safety, random drug testing, policy and procedure
Case Summary:
Officials with the Grace Drilling Company appeal a state board's decision to grant unemployment benefits to a former employee. Company officials terminated Gary Ramsey's employment after he tested positive for marijuana in a random drug screen. The company's policy deemed a positive result as grounds for dismissal. Ramsey denied using the drug, but admitted to being in a car with individuals who were smoking the drug. The company challenged Ramsey's claim for unemployment insurance benefits, and his original application was denied. A subsequent appeal hearing affirmed the denial of benefits. Ramsey appealed for another review.
Decision of lower jurisdiction:
A state benefits review board reversed the decision of the lower panels and awarded benefits to Ramsey. The board stated there was insufficient evidence to warrant a denial of benefits. The company now appeals.
Outcome:
The company wins. The Arkansas Court of Appeals, Division One, reversed the ruling of the state's board of review. The appeals court noted there was sufficient evidence to conclude that Ramsey violated the company's anti-drug policy.