Court Opinion

ID: 9424544
Source: CourtListenerOpinion
Date Created: 2023-08-02 23:11:55.212235+00
Date Added: 2024-06-11T17:22:50.913896
License: Public Domain

Mr. Justice Douglas,
concurring.
While I agree with the opinion of the Court, I add a few words.
The argument of California in this case is surprisingly disingenuous. First it seeks to distinguish Goldberg v. Kelly, 397 U. S. 254, on the ground that “welfare is based on need; unemployment insurance is not.” But that simply is not true, for the history makes clear that the thrust of the scheme for unemployment benefits was to take care of the need of displaced workers, pending a search for other employment. Second, California argues that delay in payment of benefits until the employer’s appeal is ended is necessary in terms of due process because “it is *136the employer’s money which is used to pay the claimant,” his account being “charged” and his experience rating “adversely affected” each time an employee is paid benefits. It is true that the amount of taxes contributed by each employer to the unemployment fund varies directly with the number of his former employees who qualify for unemployment benefits. Under the California scheme, however, an employer’s account is not finally charged with benefit payments until after he has exhausted all appeals in the administrative chain and also obtained judicial review. If he wins at any appellate level, he is not charged with any benefits paid to his former employee pending his appeal. Cal. Unemp. Ins. Code §§ 1335, 1380. He has no responsibility for recoupment. Thus, regardless of whether benefits to his former employees are suspended pending his appeal, an employer is assured of a complete opportunity to be heard before effective action is taken against him.
Therefore here, as in Goldberg, the requirements of procedural due process protect the payment of benefits owing the displaced employee and the employer has notice and hearing before his account is charged.
Whether due process would require the latter is a question we do not reach.*

 Cf. Labor Board v. Gullett Gin Co., 340 U. S. 361. Though that case involved a question whether the Labor Board must deduct unemployment insurance payments from back-pay awards, we said:
“Payments of unemployment compensation were not made to the employees by respondent but by the state out of state funds derived from taxation. True, these taxes were paid by employers, and thus to some extent respondent helped to create the fund. However, the payments to the employees were not made to discharge any liability or obligation of respondent, but to carry out a policy of social betterment for the benefit of the entire state.” Id., at 364. (Italics added.)