Drugs, public employee, policy and procedure, unemployment benefits.

Alfred Smith, a Native-American employed as a substance abuse counselor by the Douglas County Council on Alcohol and Drug Abuse Prevention and Treatment, defied a written and verbal directive from his superior warning him that if he ingested peyote he would be discharged from his job. Smith intended to use the peyote as a part of a religious ceremony at the Native American Church. Regardless of the religious significance of the drug, Smith was fired when it became known that he consumed peyote. The Employment Division acknowledged that Smith had been dismissed for misconduct, but allowed him to receive benefits due to his adherence to religious beliefs. The Oregon Employment Appeals Board reversed. The board concluded that Smith had been discharged because of misconduct connected with his employment.

The Oregon Court of Appeals reversed the board's decision, but remanded the issue of whether or not Smith's usage of peyote was a religious act back to the board for additional review.

Smith wins. The Oregon Supreme Court affirmed the decision of the Court of Appeals However, the court did not remand the case for consideration of the peyote question.