Unemployment benefits, drug testing, refusal, union issues, policy and procedure.

Louis Carraro, appeals a state board's decision to reject his claim for unemployment insurance benefits. Carraro, a former employee of Southwestern Bell, was dismissed for refusing to submit to a drug test that was requested by the company's employee assistance program counselor. Carraro was required to see the EAP after he was involved in a confrontation with a coworker. Carraro hesitated to take the drug test until he had an opportunity to speak with a representative of his union. The EAP told Carraro the delay would be reported as a refusal to take the test. The company subsequently terminated Carraro for misconduct and later challenged his claim for unemployment benefits. An initial review of the claim concluded that Carraro was dismissed for misconduct and not eligible for benefits. Carraro appealed the ruling.

A state benefits review board affirmed the finding of the initial review. The board ruled that Carraro refused to comply with the drug test and was dismissed for misconduct. Carraro now appeals.

Carraro wins. The Arkansas court of Appeals, Division Three, reversed the ruling of the lower jurisdiction. The appeals court remanded the case with specific instructions to grant unemployment benefits to Carraro.