289 NLRB 579
Conti-Nental Corp.
CONTINENTAL INSURANCE CO.
Continental Insurance Company, Division of Conti-
nental Corporation and Hotel Employees and
Restaurant Employees Union Local 100, New
York, New York and Vicinity, AFL-CIO, Suc-
cessor to Local 6, Hotel, Restaurant and Club
Employees and Bartenders Union , AFL-CIO
Marriott Food Service, Inc., a Division of Marriott
Corp. and Hotel Employees and Restaurant
Employees Union Local 100, New York, New
York and Vicinity, AFL-CIO, Successor to
Local 6, Hotel, Restaurant and Club Employees
and Bartenders Union, AFL-CIO
Interstate United Corporation and Hotel Employees
and Restaurant Employees Union Local 100,
New York, New York and Vicinity, AFL-CIO,
Successor to Local 6, Hotel, Restaurant and
Club Employees and Bartenders Union, AFL-
CIO. Cases 2-CA-17886, 2-CA-17887, and 2-
CA-18204
June 30, 1988
DECISION AND ORDER
BY CHAIRMAN STEPHENS AND MEMBERS
JOHANSEN AND BABSON
On July 25, 1984, Administrative Law Judge
Harold B. Lawrence issued the attached supple-
mental decision. Thereafter the Respondent, Conti-
nental Insurance Company, and the General Coun-
sel filed exceptions and supporting and answering
briefs.
The National Labor Relations Board has delegat-
ed its authority in this proceeding to a three-
member panel.
The Board has considered the record and the at-
tached Supplemental Decision in light of the ex-
ceptions and briefs and has decided to affirm the
judge's rulings, findings,' and conclusions2 only to
the extent consistent with this Decision and Order.
In his decision, the judge concluded that back-
pay claimants Bertha DePalma, Angelo Bonomo,
and Elaine Hickey should receive the backpay
sought for them by the General Counsel. Specifi-
cally, the judge found that these three discrimina-
tees made reasonable and diligent efforts to obtain
i The Respondent has excepted to some of the judge 's credibility find-
ings The Board's established policy is not to overrule an administrative
law judge's credibility resolutions unless the clear preponderance of all
the relevant evidence convinces us that they are incorrect
Standard Dry
Wall Products, 91 NLRB 544 (1950), enfd 188 F 2d 362 (3d Cir 1951)
We have carefully examined the record and find no basis for reversing
the findings
2 In accordance with our decision in New Horizons for the Retarded,
283 NLRB 1173 ( 1987), interest on and after January 1, 1987, shall be
computed at the "short -term Federal rate" for the underpayment of taxes
as set out in the 1986 amendment to 26 U S.C § 6621 Interest on
amounts accrued prior to January 1, 1987 (the effective date of the 1986
amendment to 26 U S C § 6621), shall be computed in accordance with
Florida Steel Corp, 231 NLRB 651 (1977)
579
employment during the backpay period. The Re-
spondent has excepted to these findings and, for
the reasons set forth below, we find merit in the
Respondent's contentions.
The record shows that on February 27, 1981,3
Marriott Food Service, Inc. (Marriott) terminated
the operation of a cafeteria and executive dining
room for personnel of the Continental Insurance
Company (the Respondent) at the Company's of-
fices in downtown Manhattan. In June, Interstate
United Corporation (Interstate) resumed operation
of the facility and offered similar positions to many
of the previously discharged cafeteria employees.
The reinstatement and tolling date for the backpay
period was July 6.
Bertha DePalma
Claimant
Bertha
DePalma,
who resided on
Staten Island, was employed by Marriott as a wait-
ress at its downtown facility. While employed in
that position she traveled to work by ferry and bus
to downtown Manhattan. According to DePalma's
testimony, she talked to Marriott' s general manag-
er, Carol Kramer, about employment opportunities
at other Marriott facilities. As a result, Kramer of-
fered DePalma a similar position at Marriott's mid-
town Manhattan facility located on 42d Street.4
However, in order to reach this facility, DePalma
would have had to travel by subway to midtown
after the ferry ride. DePalma testified that it was
too far to travel on the salary being offered and
that she had never ridden the subway. For these
reasons, she rejected Kramer's offer.
The judge found that DePalma's rejection of this
position was not, by itself, a sufficient ground to
disqualify her from receiving backpay. Rather, he
concluded that DePalma was under no obligation
to accept employment in midtown since she had
diligently sought positions elsewhere5 and there
was an abundance of restaurants in the downtown
Manhattan area.
Unlike the judge, we view DePalma's action not
in terms of the reasonableness of limiting her job
search but as a refusal to accept an offer of similar
employment.6 DePalma testified that she rejected
8 All dates are in 1981
4 On termination of its operation at the Continental facility, Marriott
transferred Kramer to its Pfizer facility, located on 42d Street, as the
general manager there
5 In this regard the evidence shows that DePalma read newpaper ad-
vertisements each day and answered a number of them She contacted
several brokerage firms, applied at several restaurants , and inquired of a
friend who was a dining room supervisor at Chase Manhattan Bank She
did not accept any of the jobs advertised because they required night or
weekend work and she wanted to continue to work normal daytime
hours as she had done at the Respondent's facility.
6 See Lundy Packing Co, 286 NLRB 141, 142 (1987)
289 NLRB No. 77
580
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
Kramer's offer at Marriott's midtown facility be-
cause it was too far to travel on the salary being
offered and because she had never ridden the
subway. DePalma offered no specifics, however, as
to the difference in travel time or expense. The ab-
sence of such evidence, coupled with the fact that
her stated reason for not riding the subway was a
personal preference, leads us to conclude that the
record contains an insufficient basis for excusing
DePalma's rejection of this job offer.7 According-
ly, we find that DePalma's rejection of a compara-
ble job offer tolled her backpay.
Angelo Bonomo
Angelo Bonomo had been employed as the first
chef at the Continental facility and was 66 years
old at the time of his discharge. A few days prior
to the closing of the cafeteria, Bonomo advised
Marriott's general manager, Carol Kramer, that he
intended to retire. According to Kramer's testimo-
ny, Bonomo stated he would not apply for a posi-
tion at other Marriott facilities because "he was an
old man and intended to retire." Similarly, Marri-
ott's personnel director, Delores Coe, testified that
Bonomo had advised her that he intended to retire
on his dismissal.8
During the backpay period Bonomo collected
social security and union pension payments in addi-
tion to receiving unemployment insurance benefits.
Moreover, according to his credited testimony,
Bonomo sought employment by reviewing newspa-
per advertisements, and by visiting the Union's em-
ployment office, a private employment agency, and
the New York State employment referral service
several times a week.
The judge found that Bonomo was eligible for
backpay. In arriving at this determination, he relied
on the fact that Bonomo had collected unemploy-
ment insurance benefits and concluded that
Bonomo had conducted a reasonable job search.
7 We acknowledge, as our dissenting colleague notes, that DePalma is
a grandmother . We also note, however , that she testified that she "[had
her] health" and that her subsequent acceptance of a position as a wait-
ress makes it clear that she was physically capable of carrying out the
duties of that job
Regarding her objection to taking the subway, DePalma testified that
she did not do so because "I don't have to " Under further questioning
by counsel for the General Counsel, she elaborated on her reasons as fol-
lows- "I'd be afraid to I don't know anything about the subway. I may
as well tell you the truth I never rode them I worked on Bleeker Street,
and then I worked on Maiden Lane " We note, however, that so far as
the record indicates, the job at Marriott's midtown facility, which De-
Palma declined, was a day-shift job that would call for travel on the
subway at times when millions of other New Yorkers are traveling by
subway to their jobs We further note that DePalma also testified that she
"take[s] the bus" in New York, but she indicated that she had not both-
ered to find out whether the bus would take her to 47th Street, where
the Marriott facility was located, since she had "never travelled that far."
8 The judge did not discredit the testimony of either Kramar or Coe
Bonomo did not contradict the testimony of management officials or a
fellow employee that he told them he planned to retire
The judge further found that Bonomo's collecting
social security benefits and union pension payments
did not automatically mean that he had elected to
rely exclusively on that income, and that his ac-
ceptance of those benefits is not necessarily incon-
sistent with a desire to obtain employment. Since
he found that Bonomo had conducted a reasonable
job search, the judge concluded that this claimant
is entitled to backpay from February 27 to June 29,
when he failed to accept Interstate's offer of rein-
statement. We disagree.
The unrefuted evidence demonstrates that
Bonomo advised three management officials and
one fellow employee that he intended to retire on
the closing of the cafeteria. Consistent with this
stated intention, Bonomo actually collected both
social security and union pension benefits. Al-
though Bonomo also collected unemployment in-
surance benefits and visited several unemployment
agencies, there is no substantial evidence that
Bonomo either interviewed or applied for specific
positions during the backpay period. The record
does show, however, that Bonomo was contacted
during this time and offered employment by AT&T
as an occasional cook. Bonomo rejected this offer
because he was going away but stated that he
would contact AT&T on his return. He never fol-
lowed up on this offer.9 Bonomo was also offered
reinstatement by Interstate in mid-July but effec-
tively rejected the offer by responding that he was
planning a vacation and would be unavailable until
September.
In the particular circumstances here, we find that
Bonomo's visits to several employment agencies do
not warrant finding that he engaged in a reasonable
job search. Thus, Bonomo's stated intent to retire
and his acceptance of retirement benefits, his re-
sponse to the AT&T and Interstate job offers, and
the absence of a showing that he actually inter-
viewed or applied for a specific job lead us to con-
clude that, if he did not retire, he effectively re-
moved himself from the job market." ° More specif-
ically, Bonomo's refusal of jobs with AT&T and
Interstate because those jobs did not suit his con-
venience demonstrate that he would only have ac-
cepted work when he chose and as he pleased.
That being so, Bonomo's visits to employment
agencies are not inconsistent with his announced
retirement intentions (which may well have dis-
9 We find this evidence relevant not for the purpose of showing a
comparable offer, but as an indication of Bonomo's actions consistent
with his stated intention to retire
10 In so finding we are not overruling the judge's crediting of Bono-
mo's testimony that he made attempts to find employment , but are find-
ing that such attempts were insufficient to establish a reasonable job
search
CONTINENTAL INSURANCE CO.
suaded Marriott from offering him work at its
other facilities) and his claiming social security and
pension benefits. Indeed, viewed in the context of
Bonomo's job refusals and the receipt of such bene-
fits, those visits appear to have been for the pur-
pose of enabling him to decide if there were any
jobs he might be interested in, rather than as active
efforts on his part to seek work and fulfill his obli-
gations to mitigate any backpay that might be
owed him.11 Accordingly, we find that Bonomo is
ineligible for backpay.
Elaine Hickey
Elaine Hickey had been employed as a waitress
for Marriott and resided on Staten Island. During
the backpay period she followed advertisements in
a Staten Island newspaper, and applied for posi-
tions at several restaurants , department stores, and
a clothing store. With the exception of a diner in
Brooklyn, all of these positions were located on
Staten Island. In this regard, Hickey testified that
she did not apply for jobs in other city boroughs
but confined her search to the Staten Island area
because she believed it was too expensive to com-
mute to Manhattan.
Although the judge observed that by essentially
limiting her job search to Staten Island, Hickey
had eliminated prospects for employment in other
boroughs, he, nevertheless, concluded that this did
not mean that she failed to conduct a diligent job
search. Rather, based on the evidence, the judge
found Hickey made reasonable efforts to find em-
ployment on Staten Island and is entitled to an
award of backpay.
Contrary to the judge, we find that Hickey un-
reasonably limited her job search. We find it signif-
icant that Hickey was working for Marriott in
Manhattan when she was unlawfully discharged
and she subsequently accepted reinstatement with
Interstate there. Her exclusion of this area is, there-
fore, at odds with a reasonable job search and,
therefore, we conclude that Hickey did not make
reasonable efforts to seek interim employment. Ac-
cordingly, we find her to be ineligible for an award
of backpay.
ORDER
The National Labor Relations Board adopts the
recommended Order of the administrative law
judge as modified below and orders that the Re-
spondents, Continental Insurance Company, Divi-
sion of Continental Corporation;
Marriott Food
Service, Inc., A Division of Marriott Corp.; and
11 Likewise, his claiming unemployment benefits indicated no more
than that he believed he was entitled to such benefits simply because he
had been terminated from his job at the Continental cafeteria.
581
Interstate
United
Corporation,
their
officers,
agents, successors , and assigns, shall take the action
set forth in the Order as modified.
Delete the following named claimants and the
amounts set forth opposite their names from the
Order: Angelo Bonomo, Elaine Hickey, and Bertha
DePalma.
MEMBER JOHANSEN , dissenting in part.
It is a rare and regrettable chapter in the annals
of Federal statutory compliance in which a panel
majority of the National Labor Relations Board in-
forms a grandmother earning social security that
she must either conquer her fear of the New York
City subway system or forgo restitution under the
Act. Backpay claimant Bertha DePalma actively
sought out job opportunities waitressing on two
shores of New York Harbor and rejected no job
offer in the relevant job market for a woman of her
age,' experience, and skills.2 I dissent from the
tolling of her backpay on June 29, 1981.
' To a question by counsel for the General Counsel seeking to adduce
her precise age, DePalma gave the following response . "Do I have to tell
my age? All that matters is that I have my health , right?"
2 See Lundy Packing Co., 286 NLRB 141, 142 (1987).
Leonard Grumbach, Esq., Peter Fuster, Esq.
and Ellen
Dichner, Esq., for the General Counsel.
Melvin S. Katzman, Esq., of New York, New York, for
Respondent Continental.
Louis Neuman, Esq. (Guggenheimer & Untermyer), of
New York, New York, for Respondent Interstate.
Carlton J. Trosclair, Esq., of Washington, D.C., for Re-
spondent Marriott.
Robert M. Archer, Esq. (Suozzi, English & Cianciulli,
P. C), of Mineola, New York, for the Petitioner.
SUPPLEMENTAL DECISION
STATEMENT OF THE CASE
HAROLD B. LAWRENCE, Administrative Law Judge.
Pursuant to an Order of the National Labor Relations
Board approving a stipulation entered into among the
Respondents and the Board on July 15, 1981, in which it
was provided that the Respondents, jointly and severally,
would make whole the losses suffered by the discrimina-
tees named in these proceedings for any loss of pay that
they may have suffered by reason of the alleged discrimi-
nation against them , and differences having arisen con-
cerning to the amounts payable under the Order, the Re-
gional Director for Region 2 issued a backpay specifica-
tion and notice of hearing in Cases 2-CA-17886, 2-CA-
17887, and 2-CA-18204. The Respondents have filed an
answer and two amended answers to the backpay specifi-
cation, which admitted the allegations of the backpay
specification except regarding cutoff dates, the effect on
the claimed amounts of wage increases, overtime pay-
ments, vacation pay, bonuses, and fringe benefits, and
denied knowledge or information sufficient to admit or
582
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
deny the interim earnings data supplied in the appendices
to the specification. However, the Respondents admitted
the correctness of the allegations relating to gross back-
pay of the claimants, the formula for determining the net
earnings, and the formula for determining net backpay.
The Respondents have conceded the correctness of 11
of the backpay specifications; questioned one, that of Oc-
tavio Parra, only as to the correctness or propriety of in-
cluding medical expenses in the backpay award; request-
ed retention of jurisdiction for 1 year with respect to 4
claimants who did not appear at the hearing; and contest
the eligibility for backpay of 29 of the claimants. They
have alleged affirmative matter in the answer and
amended answers that essentially embraces five points:
that the claimants failed to exercise reasonable diligence
in seeking employment during the backpay period; that
claimants who did not follow up on a suggestion made
by Marriott that they file applications for employment at
other Marriott facilities should be deemed to have will-
fully failed to seek employment; that the backpay period
should be deemed tolled as of the date when Respondent
Interstate sent out a mailgram to the claimants offering
reinstatement; that the Respondents are entitled to offset
severance pay given to the employees; and that Respond-
ents are entitled to offset certain amounts that were erro-
neously paid to two employees when the employees re-
ceived vacation paychecks to which they were not enti-
tled.
A hearing was held before me at New York City,
New York, on April 25-27 and 29; May 2-5; June 1-3;
and July 5, 1983. The parties were afforded full opportu-
nity to be heard, to call, examine and cross-examine wit-
nesses, and to introduce relevant evidence. Posthearing
briefs have been filed on behalf of the General Counsel
and by Respondent Continental Corporation on behalf of
all the Respondents.
On the entire record and based on my observation of
the demeanor of the witnesses and the manner in which
they gave their testimony and after consideration of the
briefs submitted, I make the following
FINDINGS OF FACT
I. BACKGROUND AND ISSUES
Marriott Food Service, Inc. (Marriott) is a division of
Marriott Corp. It operated a cafeteria and executive
dining room for personnel of the Continental Insurance
Company at that Company's offices in downtown Man-
hattan, New York City. It terminated its operation of
these facilities on February 27, 1981,1 on very short
notice to the employees. It paid many of them severance
pay equal to 1 week's wages. Respondent Interstate
United Corporation (Interstate) took over the operation
of the facilities immediately thereafter. On June 26, Inter-
state sent mailgrams to the backpay claimants, as follows:
You are hereby offered employment with Interstate
United Corporation at 80 Maiden Lane, New York
City, in the same job you formerly held with Marri-
I All references to dates and quarter years refer to dates in 1981 and
quarters of that year unless otherwise stated
ott Food Service at that address or in a substantially
equivalent job. If interested, please write Don Ger-
stein,
Interstate
United
Corporation, 80
Maiden
Lane, New York, N.Y., 10038, or telephone him at
(212) 440-2670, within two weeks from your receipt
of this message.
A number of the claimants responded to the mailgram
and were interviewed by Donald Gerstein, Interstate's
district food service manager. The proposed reinstate-
ment date was July 6, 1981, which I accordingly find to
be the date on which the backpay period was tolled
except in certain specific situations noted hereinafter.
II. CONTENTIONS APPLICABLE TO MORE THAN ONE
CLAIMANT
A. The Standard of Diligence by Which Claimants'
Efforts to Find Employment Must be Judged
The Respondents' admission of the gross backpay
computations made it incumbent on the Respondents to
allege and prove any respect in which any of the claim-
ants were ineligible for backpay or any respect in which
the backpay specifications were incorrect. Marlene Indus-
tries, 234 NLRB 285 (1978); Blue Hills Cemetery, 240
NLRB 735 (1979). The Employer has the burden of
showing that the backpay claimant incurred a willful loss
by refusing to take new employment or by neglecting to
make reasonable efforts to fmd interim work. Inland
Empire Meat Co., 255 NLRB 1306, 1308 (1981), enfd.
mem. 692 F.2d 764 (9th Cir. 1982). The determination of
whether there has been a lack of diligence in looking for
work depends on the facts and circumstances of each
case. Amshu Associates, 234 NLRB 791, 794 (1978). The
discriminatee is required only to make reasonable efforts
to find work. Consequently, his failure to explore some
employment possibilities or to employ a particular mo-
dality of search, as when an employee concentrates on
personal applications but fails to consult newspaper ad-
vertisements, does not by itself compel the conclusion
that a diligent search was not conducted. DeLorean Cad-
illac, 231 NLRB 329, 330 (1977), modified on other
grounds 614 F.2d 554 (6th Cir. 1980). See Blue Hills
Cemetery, supra at 736. Doubts respecting such matters
are resolved in favor of the backpay claimant and against
the respondent employer, who is the wrongdoer respon-
sible for the existence of the uncertainty. United Aircraft
Corp., 204 NLRB 1068 (1973).
Amshu Associates and Inland Empire make it very clear
that examination of the backpay claimant and attempts to
impeach his testimony are not acceptable substitutes for
affirmative proof by the employer that the claimant
failed to make reasonably diligent efforts to fmd interim
employment, but there is an important qualification that
is explicitly mentioned in both these decisions. The testi-
mony of the backpay claimant must be credible. Thus, in
Amshu it was held that a prima facie case was made of
diligent effort to find work that shifted the burden to the
Respondent to establish willful loss of earnings, but the
testimony of the backpay claimant was expressly credited
by the administrative law judge. Similarly, in
Inland
Empire, the respondent attempted to impeach the testi-
CONTINENTAL INSURANCE CO.
mony of the backpay claimant in much the same way the
Respondents attempted to do in this case , and was held
not to have met its burden of proof in the face of testi-
mony by the backpay claimant that the administrative
law judge expressly credited. Nothing different is in-
volved in those cases (such as Blue Hills Cemetery, supra)
in which it has been held that the General Counsel meets
his burden by putting the backpay specification into evi-
dence, whereupon the respondent has the burden of
showing failure to make a reasonable effort to find inter-
im employment. If the Respondent calls the backpay
claimant to testify and the administrative law judge cred-
its the testimony, the Respondent will have failed to
meet its burden, in the absence of introduction of any
other evidence.
At the same time, it must be recognized that the rules
respecting burden of proof are not matters of mechanical
application. Where "reliance on the bare testimony of
[the claimant] himself is not warranted based upon the
record as a whole" the mere fact that the General Coun-
sel has filed a specification will not clothe the backpay
claimant with special standing to recover simply because
the employer has been unable to produce affirmative evi-
dence of failure to make diligent effort to obtain interim
employment. See DeLorean Cadillac v. NLRB, supra, 614
F.2d at 555 . I have found the testimony of several of the
claimants in these proceedings to be unworthy of belief
and have accordingly found them ineligible to receive
backpay.
The fact that backpay liability arose in this case by
reason of a stipulation between the General Counsel and
the Respondents does not alter the parties' burdens of
proof. They are in the same position as any other parties
to a backpay proceeding . It is therefore in accordance
with these and other generally applicable principles that
I have reviewed the 29 disputed claims . The parties have
also urged that I take into consideration court decisions
rendered under other statutes and certain area employ-
ment statistical data.
The Respondents call attention to language contained
in court decisions rendered under the Civil Rights Act of
1964 to the effect that award of backpay is a discretion-
ary power that must be guided by meaningful standards.
The Respondents assert that I should be guided by the
application of standards consistent with the purposes of
the National Labor Relations Act (the Act ). Award of
backpay under the Act is not at all discretionary with me
but is mandated by law. Board decisions and court deci-
sions interpreting the Act are controlling regardless of
any seemingly contradictory language that may be found
in cases dealing with an altogether different statute that
addresses problems other than the concerns of this case
and the National Labor Relations Act.
Both the General Counsel and the Respondents have
urged me to consider statistics that they presented re-
specting employment conditions in the New York area,
and that supposedly are of probative value with respect
to the capacity of many of the claimants to find jobs.
The Respondents challenge the reliability of the General
Counsel's statistics, which concededly are based on a
sample rather than a full count of the population. Sam-
pling on a defined statistical basis is a standard method of
583
preparing such statistics and does not invalidate them.
However, I have not accorded any weight to the statis-
tics adduced by either side, for they are simply not pro-
bative of the facts they were offered into evidence to
prove. They would be relevant if they showed that it
would be either difficult or easy for these particular
claimants to obtain employment . They do not show that.
The utility of statistics to show whether jobs are avail-
able in an area is extremely limited . In Flite Chief Inc.,
258 NLRB 1124 (1981 ), affd. 696 F.2d 1003 (9th Cir.
1982), it was observed:
At
most,
Respondents'
statistical
analysis
may
create an element of doubt . Any doubts must be re-
solved in favor of the backpay claimant rather than
Respondents. [258 NLRB at 1128.]
Accordingly, my findings are based on the evidence ac-
tually adduced by the parties that would tend to show
what efforts particular backpay claimants made or failed
to make to find employment.
B. Offsets Claimed by the Respondents
The Respondents contend that a week 's severance pay
received by each of the claimants and vacation checks
erroneously issued to two of the claimants are appropri-
ate offsets against backpay due them.
The guiding principle underlying the award of back-
pay is that the discriminatees must be made whole for
the losses that they have suffered by reason of the em-
ployer's unfair labor practice. In cases in which the em-
ployer has already compensated the discriminatees in
some manner for that loss, failure to deduct the amount
of such compensation from the gross backpay due to the
discrimmatees
would in effect overcompensate them.
Consequently, it has been held that severance payments
made by an employer to discriminatees during the back-
pay period should be deducted from the amount of gross
backpay awarded . Fibreboard Paper Products Corp.,
180
NLRB 142 (1969), enfd. sub nom. United Steel Workers of
America v. NLRB, 436 F .2d 908 (D.C. Cir. 1971).
The General Counsel calls attention to the Board's
failure to make such a deduction in a later case, Laidlaw
Corp., 207 NLRB 591 (1973), enfd. 507 F.2d 1381 (7th
Cir. 1974), cert. denied 422 U.S. 1042 (1975). However, I
do not believe that case is applicable to the instant situa-
tion. The severance payments made in Laidlaw were not
made during the backpay period and did not overlap the
backpay award . The language employed in the decision
clearly indicated that the award of backpay, by itself,
was the compensation for the loss suffered by the discri-
minatees and that the severance payment was voluntarily
made independently thereof only to certain of the em-
ployees on closing of a plant in Peru , Indiana, several
years after the latest backpay period date of any of the
claimants in the case . One event had nothing to do with
the other.
In the present case, Respondent Marriott made the
severance payments at the time the facility was closed
(February 27) in lieu of pay for the first week of the
backpay period, and they must therefore be deducted
584
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
from backpay owing for the first quarter of 1981. See
W. R. Grace & Co., 247 NLRB 698, 704 (1980).
The Respondents claim to be entitled to an offset
against the backpay due to two of the claimants because
they were erroneously paid vacation pay to which they
were not entitled . This tribunal is asked to ensure that
the claimants are not unjustly enriched, because they will
have received payment for vacation pay in the gross
backpay as calculated by the General Counsel. It is
agreed that accrued vacation pay normally is includable
in a backpay award . Richard W. Kaase Co., 162 NLRB
1320 (1967); Kartarik, Inc., 111 NLRB 630 (1955), enfd.
227 F.2d 190 (8th Cir. 1955).
The Respondents' rights to a setoff is questionable.
Dolores Coe, Marriott's director of personnel, testified
that an explicit decision was made not to stop payment
on the checks when it was discovered that they had been
erroneously mailed out. No effort was made prior to
these proceedings to recover the sums paid out. The
making of the payments was a deliberate act that entailed
payroll deductions, such as taxes. The entitlement of any
of the Respondents to a refund is therefore a matter for
determination in a plenary proceeding specifically direct-
ed to that issue. The Respondents can not be given an
offset in this proceeding , which is concerned with alto-
gether different types of issues, but must seek restitution
in a forum that has jurisdiction to determine the relative
rights of the parties with regarding the money and con-
sider equitable factors that might justify an order of resti-
tution.
Accordingly, vacation pay will not be offset from any
amounts owed as backpay.
C. The Backpay Cutoff Date
The Respondents contend that the backpay cutoff date
for all eligible claimants was June 26 , on which date Re-
spondent Interstate sent out mailgrams offering them re-
instatement. It is uncontroverted, however, that claim-
ants returning to work as a result of the mailgram were
to start on July 6. Accordingly, the backpay period is
tolled only as of that date except in certain cases noted
below in which a different cutoff date is mandated by
the particular circumstances.
D. Failure to Seek and Accept Alternate Positions with
Marriott
The joint answers interposed by the Respondents con-
tain an affirmative defense claimed to be applicable to
Angelo Bonomo and Malcolm Thomas , to the effect that
discriminatees who were offered and failed to accept al-
ternate positions by Marriott are ineligible for backpay,
and another affirmative defense claimed to be applicable
to them and to 13 other employees, to the effect that dis-
criminatees who were offered positions by Interstate and
failed to accept such positions , though they were with-
out alternate employment, are ineligible for backpay.
The Respondents introduced evidence that on February
24, two of Marriott's Washington-based officers, Dolores
Coe, the personnel director , and James Davis, Marriott's
manager of employee relations, visited the Continental
cafeteria and dining room in New York City and advised
the employees being laid off that they could file applica-
tions for employment at other Marriott facilities , and that
Carol Kramer, general manager of the facilities at Conti-
nental, also advised employees that they could file appli-
cations at the other Marriott facilities. It seems clear that
such a visitation was made, but most of the employees
dispute the claim that they were invited to file applica-
tions at other facilities.
Despite the Respondents' attack on the credibility of
the claimants, I believe the testimony of the 22 employ-
ees who testified that they were not advised that they
could file applications for employment at other Marriott
facilities. The credible evidence indicates that only 10 of
the claimants were approached . The Respondents' own
witnesses conceded that application forms were given to
only 15 of the employees who had just been laid off, and
it is not even claimed that any information was dissemi-
nated about locations where job openings existed. Rupert
Cayenne and Ruth Lang testified that they made inquir-
ies at other Marriott facilities and received negative and
discouraging responses. The evidence clearly establishes
that no effort was made to advise the claimants that they
could apply at other Marriott facilities . On the contrary,
Respondent Marriott's witnesses conceded that, as of
February 27, there were no job openings at other Marri-
ott facilities. Marriott application forms were available at
the premises, but no attempt was made to distribute them
among all or among any large number of the employees
who were leaving. The letter of February 27 advising
the backpay claimants of their termination makes no
mention of any opportunity to file applications at other
Marriott facilities, though the letter contains information
about numerous other matters such as vacation benefits,
medical and life insurance, and other employee fringe
benefits.
The Respondents' contention founders in any event on
the obvious fact that the communication to the few em-
ployees to whom anything was said did not constitute an
unconditional offer of employment . At best, it was
merely an invitation to a few employees to put in appli-
cations at other locations, with no assurance that jobs
comparable to those from which they had just been laid
off were available.
A final point that deserves consideration is the basic
question whether employees who believed, as many of
the employees in the present case certainly believed, that
they had been discriminatorily and unfairly treated, were
obligated to pursue the suggestion that the Respondents'
claim was made to them that they apply for positions at
other facilities operated by the Marriott organization. An
employee is not obligated to attempt to return to work
for the very same employer who has discriminatorily dis-
charged him,
or with an affiliated employer. In the
present case, therefore, the reason the claimants think
they were terminated is a relevant consideration. The
Respondents never conceded that such discrimination ex-
isted, but it was the gravamen of the complaint against
the Respondents that was settled by stipulation , and thus
it is a given factor in this case that the employees be-
lieved they had been discriminatorily discharged. That
circumstance may be considered , therefore, in evaluating
CONTINENTAL INSURANCE CO.
the reasonableness of their efforts to find employment,
and in a proper context may preclude a determination
that efforts had not been reasonably diligent because
they did not seek or accept positions with the former
employer.
III. THE CLAIMANTS
A. Undisputed Claims
The Respondents concede the eligibility and correct-
ness of amount owed for backpay of only 12 of the 44
claimants referred to in the backpay specification. These
claimants are Phillip Deutsh, Alice Fox, Esther Gutnick,
Geoffrey Hill, Jenny Irizarry, Anna Jankunis, Bridget
McNamara, Octavio Parra, Blanca Schauer, Elenora Su-
kovich, Gregory Taylor, and Maria Unterreiner. This
concession is subject to the Respondents ' general conten-
tion respecting the deductibility of severance pay re-
ceived by all the claimants at the time of their termina-
tion, with which I concur and, in the case of Parra, sub-
ject to such adjustments as may be required by coordina-
tion of medical benefits with other private and govern-
mental coverages (the basic backpay being conceded).
As is shown in Appendix A hereto, I have made allow-
ance for their receipt of severance pay in my calculation
of the backpay to which they are entitled. Parra's claim
for medical benefits is discussed separately below.
B. Claimants Who Did Not Appear at the Hearing
The Respondents contend that four claimants who did
not appear at the hearing and did not testify (Lewis
Barbee, Ermine Blades, Betty McPherson, and George
Whitehead) are not entitled to be paid because their eligi-
bility cannot be determined. Request was made in Re-
spondents' posthearing brief that the administrative law
judge retain jurisdiction for 1 year so that the record
could be reopened on proper application.
It suffices that a backpay specification was filed, as is
indicated by authorities previously cited. The claimants'
failure to appear cannot automatically be deemed to sug-
gest some fault or lack of credibility or reliability on
their part or some lack of merit to their claims. The
burden is on the Respondents, who have possession of
the payroll records and had recourse to subpoenas to
compel the attendance at the hearing of any claimants
whom they wished to examine (a right of which they
availed themselves when it suited them in the case of at
least one other claimant), to show any respect in which
the specifications were incorrect or inaccurate. No show-
ing having been made that the specification fails to set
forth the proper amount owning to these four claimants,
their claims must be allowed as alleged in the specifica-
tion.
The Respondents never lose the burden of proving
that a claimant willfully incurred loss of earnings during
the backpay period. They have sustained that burden
only insofar as they have demonstrated that all four of
the claimants received severance pay. However, since
the Respondents have not had the opportunity to exam-
ine the claimants respecting interim earnings, the amount
of gross backpay as reduced by the amount of the sever-
ance payments, as indicated in Appendix A, will be paid
585
to the Regional Director to be held by him in escrow for
a period of 1 year from the date of the Order. During
that time, the Regional Director will arrange for the Re-
spondents to conduct their examinations of the claimants,
if the Respondents so desire, and afford them an oppor-
tunity to present other witnesses and other relevant evi-
dence with respect to the amount of backpay due to the
claimants. The General Counsel shall be represented at
any such examinations or presentations. The Regional
Director will determine whether any deductions should
be made from the amount of claimants' gross backpay by
reason of interim earnings or otherwise, returning all
sums so deducted to the Respondents and making pay-
ment of the net backpay to the claimants. The Regional
Director shall report the status of the matter to the
Board on its conclusion.
Accordingly, the claimants, Lewis Barbee, Ermine
Blades, Betty McPherson, and George Whitehead are
awarded the amount of backpay alleged in the specifica-
tion, less the amounts received by them as severance
pay, as detailed in Appendix A hereto.
C. Contested Claims
1. Eric Allen
The specification alleges that Allen, who worked as an
assistant cook, earned $5.10 per hour or $204 per week.
A total of $3632 backpay is claimed for the period from
February 27 to July 6, when he resumed work with
Interstate. Respondents' objection to such payment is
that Allen did not make a reasonable effort to obtain em-
ployment.
The Respondents' contention is based on
Allen's own testimony respecting his efforts to find em-
ployment, which are asserted to be not credible. To the
extent that it is credible, Respondents argue that it shows
that his efforts to obtain interim employment were inad-
equate because the claimant did not apply to employ-
ment agencies, did not seek work with any other food
service contractor, and applied for a job as an electrician
for which he was patently unqualified. Respondent ex-
plains the failure of the claimant to furnish information
showing attempts to obtain employment on a form sup-
plied by the Board, but as a general matter, I did not
consider failure to list efforts to find employment on the
Board forms as necessarily requiring that the claimant's
testimony regarding such efforts be discredited, especial-
ly when the testimony regarding such efforts is clear and
specific and remains unimpaired after cross-examination.
See Crary Horse Saloon, JD-621-81, slip op. at 21, 22.
Allen testified that he is illiterate, but that advertise-
ments were read to him from the newspapers three or
four times a week by his cousin. I do not credit his testi-
mony. Allen could not say why three or four times a
week was the appropriate number of times to check the
newspaper, and later changed his testimony to assert that
the advertisements were read to him five or six times a
week. His testimony that he could not remember the
name of his cousin, who supposedly read the newspapers
to him so frequently, placed a near fatal strain on his
credibility.
586
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
There is no requirement, however, that a backpay
claimant seek the precise type of work in which he had
engaged prior to his termination. Allen's failure to seek
work with other food service contractors and his going
for an interview for a job as an electrician does not dis-
qualify him for the simple reason that his main reliance
was on the placement service at the Unemployment In-
surance Office to assist him in obtaining employment. It
is that office that referred him for an electrician's posi-
tion. He filed for and collected unemployment insurance
until he was hired by Interstate. He was counseled by
the
Unemployment
Insurance Office twice a week.
Moreover, the evidence indicates that the Unemploy-
ment Insurance Office referred Allen for a cook's posi-
tion and for one other position and that Allen, on his
own, applied for a job as an auto mechanic at a company
where his cousin was employed.
I am convinced from listening to the testimony and
observing the demeanor of this witness that the witness
made an effort to obtain employment that, in the light of
all of his personal circumstances, was a reasonably suffi-
cient effort. It consisted mainly of going to the Unem-
ployment Insurance Office and going out on the job
interviews with the prospective employers to whom they
referred him. When an offering occurred at Interstate, he
took the job.
I find that Allen made reasonable and diligent efforts
to obtain work. No issue was raised with respect to the
calculation in the specification of the backpay due him
and I accordingly find him entitled to the amounts al-
leged, less severance pay that he received in the amount
of $204. I have deducted that amount from his gross
backpay owing for the first quarter and find him entitled
to net backpay in the amount of $3468, as set forth in
Appendix A.
2. Joseph Autry
Interim second quarter earnings as a pot washer in the
amount of $400 reduced Joseph Autry's backpay specifi-
cation to $2211 for the period February 27 to July 6.
The Respondents suggest that Autry's attempt to find
employment with a company for which he had formerly
worked as a security guard, and which terminated him
for being out of uniform, did not constitute a diligent
effort to find employment. However, it may be argued
with equal force that an employee who attempts to find
work even with an employer who has once before dis-
charged him is making an unusually diligent effort to
find employment.
The Respondents are also critical because Autry ad-
mitted that the only newspaper advertisements he looked
for were for security jobs and he did not look for an-
other job as a pot washer. Autry testified that he consid-
ered his experience at Marriott to be bad since his em-
ployment there lasted only a few months, and that he
looked for work as a security guard because he had sev-
eral years of experience in that area. The law does not
require an employee to limit himself to the lowest possi-
ble pay scale when he is looking for work or accept any
work regardless of how menial. He is required to seek
employment within the broad overall range of his experi-
ence and capabilities. The question, therefore, is whether
Autry's efforts to find a job were reasonably diligent in
the light of all the circumstances. His failure to look for
a job as a pot washer does not mean that he could not
have made a diligent search for some other type of em-
ployment.
Much more serious is Autry's concession that one of
the Marriott supervisors advised him to transfer before
the layoff occurred, but he made no effort to find em-
ployment at any other Marriott hotel or restaurant. He
did not suggest any reason for his failure to do so that
even remotely hinted at any desire to avoid a discrimina-
tory employer. Furthermore, he gave an altogether un-
satisfactory explanation of his failure to apply for unem-
ployment insurance benefits. Though he was advised by
Marriott personnel how to do so, he did not file for un-
employment insurance benefits because, he said, he
wanted to use his time to look for a job. I cannot believe
that. (Strangely, the Respondents purported to believe
him, asserting in their posthearing brief that "the reason
he did not file was due to a previous experience wherein
he was denied benefits.") The testimony of the claimant
that he did not file leads me to believe that he did not
make a reasonable effort to find employment. His testi-
mony respecting his efforts to find work was totally in-
credible. He testified that he and a coworker named
Whitehead went together to look for work and that he
saw Whitehead every day because he lived in the same
apartment as Whitehead throughout the backpay period,
and Whitehead was also unemployed. The evidence indi-
cates, however, that Whitehead was employed and that
his total backpay entitlement amounted to only $86. It
seems almost superfluous to note that Whitehead did not
testify in this proceeding.
(The glaring inconsistency between Autry's testimony
and the Whitehead backpay specification placed the
burden on the General Counsel to call Whitehead as a
witness. His failure to do so can only give rise to an in-
ference that Whitehead's testimony would not have sup-
ported that of Autry.)
My grave reservations regarding Autry's credibility
prevent me from crediting his account of efforts to find
work as a security guard at five companies that he
named and his testimony respecting his efforts to obtain
work as a shipping clerk at Alexander's Department
Store.
Accordingly, I find that Joseph Autry failed to make a
reasonable effort to find employment during the backpay
period and is not eligible for backpay.
3. George Bacote
George Bacote was alleged to be due backpay in the
amount of $1743 for the period February 27 to July 14.
After being laid off, Bacote spent 7 or 8 months in
New Haven, Connecticut. He did not apply for unem-
ployment insurance benefits. After taking a few weeks
off and living on money that he had saved, he confined
his efforts to find work to visits to an employment
agency specializing in temporary jobs. He showed up
there at 6 a.m. three or four times a week. It was not
until after the end of the backpay period that he became
CONTINENTAL INSURANCE CO.
interested in looking for employment of a permanent
nature.
The Respondents contend that they should not be
compelled to support the lifestyle of a person whose am-
bitions are limited to a series of temporary jobs.
The legal requirement is not that a backpay claimant
seek a permanent job, but that he make reasonable efforts
to secure employment and mitigate the damages caused
by his wrongful termination. The question in this in-
stance is whether the claimant's search for a succession
of temporary jobs amounts to the same thing as looking
for one job with a single employer and therefore consti-
tutes a reasonable attempt to mitigate the loss by obtain-
ing interim employment.
There is good reason to answer in the negative. Im-
plicit in solicitation of employment through a temporary
agency is the prospect that whatever employment is ob-
tained will come to a relatively speedy end, resulting in a
renewed period of unemployment. Thus, solicitation only
of temporary employment must be viewed as incurring a
willful loss. The evidence is clear that Bacote only
worked when the agency sent him out and as a result
there were weeks when he did not work at all.
This type of situation has nothing to do with the kind
of situation in which a backpay claimant's prior experi-
ence in job hunting and his work capacities severely
limit the type of job hunting of which he is capable. It is
possible to agree with the General Counsel's argument
that, in judging the reasonableness of the claimant's ef-
forts to obtain interim employment, we take him as we
find him and judge his efforts in the light of his back-
ground and capabilities, while at the same time taking
due cognizance of this claimant's testimony that it was
only after the backpay period expired that he searched
for permanent employment. If he is credible, then he had
the capacity and should have hunted for permanent em-
ployment during the backpay period, and his failure to
do so was a willful failure to mitigate the loss. His later
conduct illuminated his conduct during the backpay
period, and should not be overlooked. Big Three Industri-
al Gas & Equipment Co., 263 NLRB 1189 (1982).
Accordingly, I find that Bacote is not eligible for
backpay. I have made a similar finding on somewhat
similar circumstances in the case of Malcolm Thomas,
below.
4. Marie Belhsi
The backpay specification for Marie Bellisi indicates
net backpay owing in the amount of $1144, a reduction
having been made for interim earnings in the second and
third quarters of 1981. The Respondents point to an ap-
parent error regarding her statement of interim earnings
for the week of June 5, 1981, and submit that the Gener-
al Counsel failed to meet the burden of proof.
The claimant obtained interim employment at a fixed
salary of $160 per week, but the amount listed for inter-
im earnings for the week ending June 5, 1981, was only
$128. Her paycheck stub so indicated. The Respondent
contends that she should be chargeable for the fixed
salary of $160. The claimant testified that she did not
recall the reason for the reduction in salary that week.
She did not recall having been out sick and was unable
587
to furnish any other explanation . This failure is not
chargeable against her, however, but against the Re-
spondents. The burden is on them to come forward with
proof of lack of diligence on her part in reducing the
loss. It should not have been difficult to establish the
reason for the reduced pay in that 1 week, inasmuch as
the Respondent Interstate was her Employer and had the
pertinent records.
The claimant, on the other hand, worked the week
before and the week after the week in question, as well
as during the week in question . She cannot be said to
have made no reasonable effort to mitigate the Respond-
ents' damages.
Accordingly, the General Counsel was correct in com-
puting her interim earnings for that week at $128, the
amount that she actually earned and by which Respond-
ents' backpay liability is mitigated.
The law requires that interim earnings be deducted
from the gross amount of backpay and that the backpay
claimant receive the net backpay after such deductions.
That is precisely what the General Counsel has comput-
ed in this instance. I have made a further deduction of
the amount of $184 paid to her as severance pay.
Accordingly, I find that Marie Bellisi is entitled to net
backpay in the amount of $960 , as set forth in Appendix
A.
5. Angelo Bonomo
The backpay specification respecting Angelo Bonomo,
who was employed as chief chef in the Continental facil-
ity, calls for payment of $5779 net backpay for the first
and second quarters of 1981. There were no interim
earnings during this period. At the hearing the General
Counsel moved to amend the backpay specification to in-
clude an additional $336, vacation pay accrued during
this period, bringing the total net backpay requested to
the sum of $6115. The Respondents contest any backpay
award to this claimant on the ground that he had clearly
indicated his intention to retire, and consistently there-
with, had refused to submit an application for employ-
ment at any other Marriott facility though invited to do
so. Three Marriott officials and a former coworker testi-
fied with respect to statements he made respecting his in-
tention to retire and the Respondents emphasize Bono-
mo's complete failure to work since he was laid off by
Marriott. Nevertheless, the Respondents, despite their
contention that Bonomo retired, introduced evidence
that when he was offered reinstatement by Interstate as
of June 29 he rejected the offer, but said that he would
be available on his return from vacation in September.
He received social security benefits and union pension
payments, but also collected unemployment insurance
benefits.
Bonomo testified that he visited the employment office
of Local 302, that he visited a private employment
agency, and that he went to the New York State Em-
ployment Referral Service four or five times a week. In
addition, he applied for and collected unemployment in-
surance. He reviewed the advertisements in the New
York Times. I found Bonomo's testimony credible.
588
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
The fact that Bonomo was collecting social security
benefits and payments from a union pension fund, and
therefore had other income, does not automatically mean
that he had elected to rely exclusively on that income.
His acceptance of those benefits is not necessarily incon-
sistent with a desire on his part to obtain employment
and does not contradict his testimony regarding his at-
tempts to find it. Because I credit Bonomo's testimony
that he made the attempts that he described to find em-
ployment, the fact that he did not in fact return to work
is not persuasive. The Respondents cite Big Three Indus-
trial Gas & Equipment Co., 263 NLRB 1189 (1982), that
holds that conduct after the close of the backpay period
is not dispositive regarding the question of whether a
backpay claimant has taken himself out of the labor
market at an earlier point, thus indicating that to a
degree an examination of such conduct may be pertinent.
It is significant, however, only if there is some evidence
tending to show a lack of serious interest in employment
before the close of the backpay period. No such showing
is made with respect to Bonomo. True, when he declined
employment by Interstate he said he was taking a vaca-
tion; however, while that might bring into question his
availability at that time and during some period (unde-
fined in length) immediately preceding, it affords no war-
rant for wholesale speculation and it must be remem-
bered that the offer from Interstate was not made until
June 26, making for a backpay period much too long to
support the kind of speculation in which the Respond-
ents seek to indulge.
The Respondents properly raised the question; the
burden remains on them , however, to come forward
with proof (not speculation). The testimony of Bernice
Jackson that she offered Bonomo employment did not
help them in that regard. She was unable to fix the time
when she made the offer, except to say that she made the
offer between the months of May and July. Even at that,
the offer was only for "an occasional cook's job" which
is an altogether inadequate offer. It suffers from precisely
the same deficiency that caused the Respondents to urge
that backpay be denied to those claimants who only
sought temporary work through temporary employment
agencies.
Bonomo testified that he was on jury duty from late
June (he said June 27, which was a Saturday) to July 14
and spoke to the Interstate manager the following
Monday. The manager told him to come into work the
next day, but Bonomo replied that he was taking the
month of August as his vacation and could not come in
until September. He patently was unavailable for work
from June 29 onward.
I find that from February 27 to June 29, Bonomo was
available to work and is entitled to backpay for that
period, reduced by severance pay that he received in the
amount of $336 and augmented by a like amount for ac-
crued vacation pay. Having rejected a specific offer of
permanent employment by Interstate on June 29, howev-
er, Bonomo cannot collect for the period after that date.
Accordingly, I find that Angelo Bonomo is entitled to
backpay for the period from February 27 to June 29, in
the amount of $5779, as set forth in Appendix A.
6. Rupert Cayenne
Backpay in the sum of $3876 was claimed by Rupert
Cayenne for the first three quarters of 1981. He resumed
work on July 6, 1981, after receiving an offer of rein-
statement from Interstate . The Respondents contest his
entitlement to backpay on the ground that he did not
make credible efforts to obtain interim employment. Re-
spondents specifically note Cayenne's testimony that he
did not recall being invited to file an application for em-
ployment at any other Marriott facility. This is not a
valid objection because even had he been told to file at
another Marriott facility, his failure to do so would not
by itself have disqualified him from receiving backpay.
The issue is whether he made a reasonable effort to
obtain other employment. In fact, Cayenne testified that
he was told by Carol Kramer that he would not be em-
ployed in any other position with Marriott.
The Respondents also cite Cayenne's work stoppage in
the last week, when he refused to work, until he was ad-
vised whether employees would be paid all moneys due
them on their last day of work. I think that is irrelevant
to the issue.
Cayenne testified that he was employed as a chef at a
salary of $240 per week and had worked for Marriott for
approximately 5 years. During the period from February
27 to July 6, 1981, he attempted to find employment. He
applied first to a few of the airlines at Kennedy Airport.
He specifically named Delta and North West, where he
said he put in applications approximately 2 or 3 weeks
after he was laid off and was told that he would be
called if they needed him. He also went to Skychef.
The manager of Skychef called him in for an interview
and told him that if he was needed they would call him.
As a matter of fact, they did call him, 2 weeks before he
was called back to work by Interstate, but by that time
he was working in a factory.
Cayenne testified that he also put in applications at
several hospitals, and named several of them. He put in
an application at an employment agency where he ap-
plied for any type of job that he thought he could get
and he either visited or telephoned the agency every
week. In addition, he filed an application with the place-
ment division of the New York State Unemployment In-
surance Division, where he was advised that there were
no openings. He followed the ads in the New York
Daily News and the New York Post every day. Friends
and relatives assisted him in the job hunt. Two weeks
before Interstate called him back, a friend finally got him
a job with a paper company as a machine assistant at
$5.50 per hour for a 40-hour week.
The Respondents seek to impale Cayenne on his own
testimony that experienced chefs like himself do not have
difficulty finding work in the restaurant industry. This
flies in the face of Cayenne's testimony respecting his un-
successful efforts to obtain interim employment. Even if
generalities such as this straw grasped by the Respond-
ents might otherwise be helpful in weighing the facts, the
credible testimony of Cayenne regarding the specific ef-
forts made by him would always, and in this instance
does, outweigh it.
CONTINENTAL INSURANCE CO.
I credit Cayenne's testimony that he was always avail-
able to work during the period from February 27 to June
26. He appears to have made a reasonable effort to
obtain employment and, accordingly, I find him eligible
for backpay. In my calculation of the amount of backpay
owing, I find that he received severance pay in the
amount of $240 that must be deducted from his gross
backpay for the first quarter and I do not interpret the
testimony as requiring deduction of 2 weeks' interim
earnings from the gross backpay for the second quarter.
Cayenne's testimony was that he was available through
June 26. He worked on the interim job during the week
of June 29 to July 3. (He testified that his friend got him
the job 2 weeks before he resumed work with Interstate,
not that he worked for those 2 weeks.) His interim earn-
ings thus amounted to $220 for .4 weeks in the second
quarter and .6 weeks in the third quarter. I therefore cal-
culate Cayenne's net backpay at $4100 as set forth in Ap-
pendix A.
7. Bertha DePalma
The backpay specification in the amount of $2112 for
Bertha DePalma covers the first two quarters of 1981
and the first 2 weeks of the third quarter, and is based on
a weekly salary of $114. At the hearing, the specification
was amended to allege average weekly earnings of
$142.50
prior to termination and net backpay of
$2,764.50. She had been a waitress at the Continental fa-
cility since April 1979, earning an hourly wage of $5.70.
The number of hours that she worked each week vaned.
The Respondents dispute her eligibility because she re-
jected a position with Marriott, and assert that if she is
eligible the cutoff date should be not later than June 29.
DePalma conceded that she asked Carol Kramer about
another job and Kramer offered her a job at the Marriott
facility at the Pfizer facility. DePalma felt that the loca-
tion was unsuitable because it was uptown around 47th
Street in Manhattan. She lives in Staten Island. She did
not feel that she could travel that far by ferry and bus on
the salary that was being offered. She was used to
coming to work by ferry and bus to downtown Manhat-
tan and did not like the idea of having to ride the
subway uptown. Because of the travel factor, she turned
down the job.
DePalma's rejection of employment in midtown Man-
hattan is not, by itself, reason to disqualify her from re-
ceiving backpay. The test is whether she actively sought
employment. She testified credibly that she did. She reg-
istered for and collected unemployment insurance bene-
fits. She read the want ads in the New York Daily News
and Staten Island Advance every day and answered sev-
eral advertisements (she did not take the jobs advertised
only because they required night or weekend work and
she wanted to continue working normal daytime hours
as she had done at the Continental facility). She contact-
ed several brokerage firms in New York City. She ap-
plied at several restaurants in Staten Island. She made in-
quiry of a friend who was a dining room supervisor at
Chase Manhattan Bank.
DePalma's testimony respecting her reluctance to use
the subways and her desire to continue the mode of
work that she had known up to that point is reasonable
589
and credible. If downtown Manhattan was an area in
which restaurants were few and restaurant work scarce,
it might be argued that she was under some obligation to
consider job openings in nearby areas easily reached by
public transportation. However, restaurants are plentiful
in lower Manhattan and DePalma did, in fact, subse-
quently obtain employment there with Interstate. She re-
sponded immediately to Gerstein's June 26 mailgram and
came in for an interview with him. Under the circum-
stances, I find that DePalma's efforts to find employment
were reasonable and sufficient to entitle her to backpay
for the period.
In her interview with Gerstein, he authorized her to
return to work on July 13, 1981, instead of July 6 be-
cause she was caring for her grandchildren while her
daughter-in-law was in the hospital. She testified that she
had made a commitment to take care of her grandchil-
dren during the week of July 6, pursuant to plans that
had been made in late June and early July. When she
was offered a position by Interstate, to start July 6, she
requested and received permission to start on July 13 in-
stead. The Respondents contend that in view of that cir-
cumstance the proper cutoff date for backpay is June 29,
arguing that her unreadiness to resume work on the date
requested makes it highly unlikely that she was looking
for work the week of June 29. They assert she could not
have been looking if she had a commitment for the week
of July 6.
The Respondents' argument runs afoul of the fact Ger-
stein did not offer DePalma work for the week of June
29, and thus their assumption that she could not have
been looking for work fails to take into account the pos-
sibility that had Gerstein asked her to work the week of
June 29, she might have agreed, while still arranging to
take the following week off. The latter speculation is
sounder than that of the Respondents.
Furthermore, it is well settled that a reasonably dili-
gent effort to find interim employment does not require
that the search be conducted in each and every week of
the backpay period, but only that a reasonably diligent
effort be conducted over the course of the entire back-
pay period. That is what was proved to have been done
in DePalma's case.
The General Counsel agreed that DePalma's backpay
period should be tolled as of July 5, instead of July 12,
by reason of her unavailability during the week of July
6, and amended the backpay claim to $2622 instead of
$2,764.50, deducting $142.50 for that week.
I have reached a different result for the amount of the
backpay owing to the claimant. I have calculated DePal-
ma's backpay at $142.50 per week for the 4.4 weeks of
the first quarter, the 13 weeks of the second quarter, and
.6 weeks of the third quarter, and have deducted the
amount of severance pay received by her from her back-
pay for the first quarter. This has yielded a final net
backpay figure of $2,416.80, as elucidated in Appendix
A.
8-9. Louise Fuller and Celia Hassett
Louise Fuller and Celia Hassett were part-time wait-
resses who were employed solely in connection with spe-
590
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
cial functions held in the Continental facility's Monroe
Room. They worked an extremely limited schedule.
I am satisfied that the evidence establishes that both of
them made reasonably diligent efforts to find employ-
ment as part-time party waitresses comparable to that
which they had had prior to the layoffs.
The Respondents characterize the testimony of these
claimants respecting their efforts to obtain employment
as vague, generalized, and uncorroborated . Listening to
the claimants at the hearing, I heard them testify to vari-
ous efforts that they made to obtain employment, includ-
ing following ads in the newspapers and making visits to
various prospective employers. Fuller listed a number of
such employers, identified the newspapers in which she
followed ads, and testified that she sought
assistance
from friends in finding employment and kept in touch
with Marriott. She collected unemployment insurance
during this period and reported regularly to the New
York State Placement Service.
Hassett's testimony was similar. She named employers
from whom she sought employment, followed the news-
papers, and reported to the New York State Placement
Service after registering for unemployment insurance
benefits. Both claimants returned to work when they
were called back. I found the testimony of the two
claimants sufficiently specific and detailed to merit credi-
bility in all particulars.
The real issue with respect to these claimants pertains
to the computation of the amount of their backpay. The
General Counsel has computed the sum of $2268 to be
owing to Louise Fuller and the sum of $2916 to be
owing to Celia Hassett. His calculation assumes that they
would have worked the normal weekly hours that they
had worked previously. In fact, however, they both
would have worked considerably fewer hours. It is alto-
gether unnecessary to speculate or make assumptions re-
specting this question, for the Respondents introduced
into evidence a listing of the functions held in the
Monroe Room from March 2 through October 30, 1981.
The records establish precisely the number of hours
Fuller and Hassett would have worked. Ironically, in
this instance, the General Counsel and the Respondents
adopted the reverse of the positions they argued in the
case of Marie Bellisi, when the Respondents wanted to
speculate that she really earned her normal salary while
the General Counsel rested on the actual paycheck stub.
The General Counsel further urges, in his posthearing
brief, that the information regarding the actual number
of functions held at which these two waitresses would
have worked ought to be excluded from evidence be-
cause they were not alleged in either the Respondents'
original answer or in their first amended answer. The ar-
gument that the Respondents are required to set forth in
their answer with specificity the basis on which they
contend that the backpay should be calculated differently
than as set forth in the specification is true generally but
is not applicable in these circumstances. The purpose of
that requirement is to place on the Respondents the
burden of showing any respect in which an error is
claimed to exist and to prevent surprise to the General
Counsel. When evidence is introduced by the Respond-
ents that shows the existence of an error in the specifica-
tion and shows in what respect an error exists, and goes
further to establish incontrovertibly the true facts of the
case, there is no justification for excluding such evi-
dence. The Respondents have met precisely the burden
that is placed on them by the rules that govern the pro-
cedure in backpay cases.
The General Counsel does not complain of surprise.
There is no respect in which the backpay claimants can
legitimately complain that they have been prejudiced by
the introduction into evidence of the actual history of
the dining room during the pertinent backpay period,
which fixes the maximum number of hours they could
possibly have worked there. With the actual facts avail-
able, it would be unconscionable to hold that backpay
should nevertheless be based on the average earnings of
the claimants during the period prior to the layoffs, for
that would entail conscious and deliberate speculation re-
garding something whose history is already fully known
(and which contradicts the proposed speculation). I not
only refuse to speculate when I have the actual facts
before me, but I reject the General Counsel's contention
that the Respondents' argument is "speculative"; I
cannot see how proven facts can be deemed a matter of
conjecture. I also decline to speculate, as the General
Counsel urges, that Fuller and Hassett might have re-
quested and been granted additional work to fill in as ex-
ecutive dining room waitresses. There is not a shred of
evidence to support that argument, which is literally
couched in speculative terms, and the evidence of the
claimants as to the type of interim employment they
looked for makes it cear that, if anything is probable, it
is that they would not have sought to augment their
working hours.
In any event, though the Respondents' answer and
first amended answer did not deny the correctness of the
formula used to compute gross backpay, the second
amended answer alleged that the number of shifts the
claimants would have worked had they continued in
Marriott's employ during the backpay period (a fact that
is known precisely because the number of functions is
known) should be the basis of the computation. That was
sufficient compliance with the pleading requirements, for
it clearly put the General Counsel on notice that the Re-
spondents expected to introduce the history of the dining
room and argue that the claimants' backpay should be
calculated on the basis of it.
The Respondents introduced evidence to the effect
that 29 functions were held in the Monroe Room on var-
ious dates during the backpay period: on six dates in
March, 3 dates in April, 5 dates in May, 5 dates in June,
6 dates in July, 3 dates in August, and 1 date in Septem-
ber. The claimants' maximum earnings can thus be calcu-
lated. Each would have worked a maximum of 6 hours.
Fuller would have earned a maximum in the entire
period of $1,017.90 ($5.85 x 6 x 29) and Hassett would
have earned a maximum of $1131 ($6.50 x 6 x 29). For
the purpose of fixing the backpay award, I assume (or
speculate) that they each would have worked all 29
functions. That speculation is permissible because it in-
volves clearly defined limits, and in backpay proceedings
doubts are resolved in favor of the claimants.
CONTINENTAL INSURANCE CO.
Hassett and Fuller each received severance payments
for which due allowance has been made. As is set forth
in Appendix A, I have calculated Fuller's net backpay in
the amount of $900.90 and Hassett's net backpay in the
amount of $1001.
10. Gerald Furby
The Respondent objects to the specification filed on
behalf of Gerald Furby for net backpay in the amount of
$2448 for the period from February 27 to July 6, the
date when he was reinstated by Interstate, on the ground
that the claimant's testimony as to his efforts to find em-
ployment are contradicted by the recitation of extremely
limited efforts set forth in a statement that he signed on
August 3, 1981. The Respondents offer no evidence that
would indicate a good reason to discount Furby's testi-
mony other than the paucity of information contained in
the written statement of claim. They assert that "Furby's
testimony bears a remarkable resemblance to the litany
of efforts to obtain employment testified to by most of
General Counsel's witnesses." I see nothing remarkable
about it: there are just so many ways in which an unem-
ployed person can seek employment and the backpay
claimants in this case inevitably had recourse to similar
means of looking for a job, including interviews with
prospective employers, applications to the New York
State Placement Service, scrutiny of newspaper ads, and
followup of leads furnished by relatives and friends.
Written statements furnished by the claimants on various
occasions, such as interviews by Board investigators, are
not necessarily more accurate accounts of their efforts to
find employment than their testimony. Their testimony
under oath, subject to cross-examination, and under con-
trolled conditions is much more dependable. Respond-
ents' disappointment in their failure to elicit retractions
on cross-examination does not justify doubts about the
veracity of the claimants based solely on the meager con-
tents of their earlier statements, which were obviously
prepared by the claimants, persons unaccustomed to pre-
paring such documents, with scant regard to their ulti-
mate importance in these proceedings.
I find that Gerald Furby made reasonable efforts to
find employment during the backpay period. Deducting
severance pay in the amount of $136, I calculate his
backpay at the sum of $2312 as set forth in Appendix A.
11. Nicholas Graham
Graham was unemployed for 5 .2 weeks in the first and
second quarters of 1981 (February 27 to April 7). The
backpay specification alleges a sum owing in the amount
of $832 with interest. There were no interim earnings.
The Respondents contend that because he concededly
collected unemployment insurance benefits during this
period, the amount he received should be deducted from
the backpay, along with severance pay which he re-
ceived . By their calculation, he sustained no loss of earn-
ings and therefore is entitled to nothing, since he testified
he received unemployment insurance benefits till he re-
turned to work.
The claimant testified initially that he collected bene-
fits for 1 week; he later stated he collected them until he
591
returned to work. His testimony is not inconsistent. Be-
cause collection of benefits must await expiration of a 2-
week waiting period, he patently was referring to the
circumstance that he collected benefits for 1 week,
which was the week before he returned to work. In any
event, unemployment insurance benefits are not an offset
against gross backpay. However, severance pay that
claimant received in the amount of $160 is an offset and
brings net backpay to the sum of $672, as set forth in
Appendix A.
12. Curtis Hailey
The net backpay alleged in the specification for Curtis
Hailey for the period from February 27 to July 6 is
$2408, allowing for interim earnings in the second quar-
ter in the amount of $400. Hailey earned $156 per week
at Continental as a cook's helper. He testified that he
sought employment during the backpay period with vari-
ous restaurants, with a drycleaning establishment, and
with a security guard company, followed up newspaper
advertisements and leads from friends, and registered for
unemployment insurance benefits.
The Respondents pointed out a number of specific cir-
cumstances testified to by Hailey himself as casting
doubt on the sincerity of his attempts to seek employ-
ment. The Respondents contend that he should therefore
be found ineligible for backpay. However, in each case
Hailey offered specific and detailed explanations of what
had occurred.
For example, though Hailey applied for unemployment
insurance benefits, he was disqualified from receiving
them because he failed to appear on one of his reporting
dates (May 20). He testified that he failed to report be-
cause he had been ill on that day, and that the failure
was not excused because he could not cope with the
agency's procedure for removing the default (he was
asked to fill out certain forms, but he did not do so be-
cause he could not understand what was required of
him). This certainly is enough to arouse suspicion, but
closer examination of all the circumstances discloses that
Hailey did collect unemployment insurance for about a
month and a half up to the date when he missed making
his report. He had started collecting in the second week
in March, and testified without contradiction that he re-
ported to the unemployment insurance office on two ear-
lier occasions when he was supposed to report.
Another questionable circumstance for which he made
a satisfactory explanation was his rejection of a job as a
dishwasher 3 or 4 weeks after he filed for unemployment
insurance benefits. He told the interviewer he was look-
ing for a job as a cook's helper. While he was at the Un-
employment Insurance Placement Office the placement
worker telephoned the prospective employer and was
advised that there was an opening for a dishwasher, and
asked him if he wanted the job. He declined it. He
wanted to try to stay a cook's helper. This is credible in
light of his testimony that he filled out applications and
sought employment in restaurants as a cook's helper. I
do not believe that Hailey's credibility is diminished by
the fact that he accepted temporary employment as a
carpenter's helper, assisting the owner of the house in
592
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
building an extra room. He worked from 9 a.m. to 5 p.m.
5 days a week for 4 weeks and earned $100 per week,
clearly proving his willingness to work if worthwhile
work was available.
The fact that he did not respond to the mailgram of-
fering him reinstatement is cited as a refusal on his part
to accept work. He testified that he ignored the mail-
gram because he never actually read it . I find no difficul-
ty in believing, on the basis of all his testimony , that had
he understood the mailgram he would have reported.
That certainly was his reaction when he received a tele-
phone call instructing him to report for work . This ob-
jection by the Respondents ignores the claimant 's testi-
mony that friends furnished leads and that the lead to the
construction work came from his brother. I attach no
significance to Hailey's failure to contact Local 6. He is
required to have made a reasonable effort to obtain inter-
im employment; that does not mean he must be penalized
for having overlooked some possibility that has occurred
to the Respondents' lawyers.
The fact that the construction work started shortly
after May 20 has prompted the Respondents , in their
posthearing brief, to speculate that Hailey missed his re-
porting date at the Unemployment Insurance Office be-
cause he was already working, and that the period of in-
terim employment is therefore longer than he admits.
However, no affirmative proof was presented, such as
testimony from the owner of the house . Backpay cannot
be reduced on the basis of speculation.
The questions that the Respondents raise respecting
the claimant's testimony are not unreasonable, but in
each instance that they cited, the claimant provided an
explanation plausible enough to entitle his overall testi-
mony that he attempted to fmd other work to be cred-
ited. Again, it is to be noted that doubts are required to
be resolved in favor of the claimant in a backpay pro-
ceeding.
I credit the claimant's testimony that he looked for
work. In fact, he found work and when he did, he
worked a full working day, 5 days a week , for an entire
month. The fact that there is no testimony that he spoke
to friends or relatives or contacted Local 6 , a point
argued in the Respondents' posthearing brief, does not
eradicate the substantial evidence of the efforts that he
did make to find work.
Accordingly, allowing for the severance pay that he
received in the amount of $156, and his interim earnings
in the amount of $400 in the second quarter, I fmd him
entitled to backpay in the amount of $2252 as set forth in
Appendix A.
13. Eddie Hall
The backpay specification for Eddie Hall is $2332, for
a period covering 13.4 weeks, from February 27 to June
3, at $175 per week . Though Hall obtained employment
before receiving an offer of reinstatement , the Respond-
ents contend that he failed to make diligent efforts to
obtain interim employment . Their position is based en-
tirely on the manner in which Hall testified . The Re-
spondents point out that initially Hall testified to efforts
that he made during the month of March , and those
seemed to be the only efforts that he made; after what
the Respondents characterize as prompting by the Gen-
eral Counsel, he testified to efforts made subsequently.
I did not have the impression , while listening to this
claimant, that his testimony was the result of prompting,
nor did I find it incredible that he did not succeed in ob-
taining employment by following newspaper advertise-
ments. I credit his explanation that he was not qualified
for many of the positions advertised.
During the backpay period, he signed up to take sever-
al civil service examinations. He took and passed the
Post Office examination but was not called for a position.
The Respondents' argument, that Hall failed to go after
certain jobs that appeared to offer only minimum wages,
ignores Hall's very credible explanation that these par-
ticular employers were looking for people just coming
out of school who would be willing to work for the min-
imum wage . There was no point to his taking a job that
paid a salary below what he needed to live , and the law
does not require acceptance of employment on a level
lower than that from which he was discriminatively dis-
charged.
Accordingly, allowing for $160 severance pay that
Hall received, I calculate his net backpay at $2172 as set
forth in Appendix A.
14. Elaine Hickey
The backpay specification for Elaine Hickey indicated
net backpay owing in the amount of $1857 for the first
and second quarters of 1981, from February 27 to June
29, based on her weekly salary of $108 . This was amend-
ed at the hearing to reflect a cutback of the period to
May 8, 1981, and a reduction of net backpay to $1555.
However, as a result of her testimony, the General
Counsel has moved to amend the backpay specification,
again, this time to toll backpay as of July 20 and to re-
flect a reduction in the amount of 1 week's pay for a
week in which she was on vacation. Net backpay owing
is therefore asserted to in the amount of $2052. The Re-
spondents, however, contend that Hickey made no dili-
gent effort to attempt to seek employment and therefore
is ineligible, because she limited her search to Staten
Island. Respondents point out that the unemployment in-
surance benefits that she was receiving , plus savings on
carfare that resulted from her not coming into Manhat-
tan, were almost equivalent to the amount of her former
salary. They contend that this proves she had a motiva-
tion not to work . They hypothesize that she must have
been unwilling to go job hunting in the brisk March
weather after returning from a week's vacation in sunny
Puerto Rico. Finally, they assert that the mere fact that
she was eligible for unemployment insurance benefits
does not establish that she made diligent efforts to find
employment.
The Respondents' argument wholly ignores the actual
evidence that is in the record and that they have failed
to rebut. The fact that Hickey limited her job hunt to
Staten Island and thus eliminated prospects for employ-
ment in other boroughs, chiefly Manhattan, does not
mean that she did not conduct a diligent search in Staten
Island. The mere fact that unemployment insurance pay-
ments that she received almost equaled her income when
CONTINENTAL INSURANCE CO.
she worked does not negate the claimant's sworn (and
credible) testimony respecting efforts that she made to
find a job. The Respondents' skepticism cannot take the
place of evidence. The Respondents' assertion of the ob-
vious, that it is colder in New York in March than it is
in sunny Puerto Rico, similarly proves nothing. Finally,
the General Counsel did not rely on the fact that the
claimant received unemployment insurance benefits but
on her testimony as to actual efforts made by her to find
a job.
Hickey testified that she applied to numerous restau-
rants on Staten Island and to a diner in Brooklyn; she ap-
plied for sales positions on two occasions at May's De-
partment Store and at a clothing store on Staten Island;
she filed an application with a private employment
agency in Staten Island; she followed the want ads in a
Staten Island newspaper, which furnished her leads to
the opportunities at May's, at the clothing store, and at
one of the restaurants. She reported to the unemploy-
ment insurance office weekly except for 1 week at the
end of March when she went to Puerto Rico. When she
was offered reinstatement by Interstate, she accepted and
was reinstated as of July 20, 1981.
On this evidence I find that the backpay claimant
made reasonable efforts to find employment and is enti-
tled to backpay for 3.4 weeks in the first quarter, 13
weeks in the second quarter, and 2.6 weeks in the third
quarter, with the first quarter's backpay reduced by the
severance payment that she received. I calculate net
backpay in the amount of $1944 as set forth in Appendix
A.
15. Ruth Lang
The backpay specification for Ruth Lang, in the
amount of $2931, covers the period from February 27 to
July 6, when she was reinstated by Interstate. The Re-
spondents contest her eligibility for backpay on the
ground that she did not make reasonable efforts to find
employment during the backpay period.
I do not believe that Lang made any serious attempts
to find employment, notwithstanding the fact that she
collected unemployment insurance benefits. Lang failed
to list places to which she applied for employment on
her statement of backpay claim dated August 4, 1981.
Her demeanor and testimony during the hearing were
such as to compel me to reject her explanation of her
failure to furnish the information. Notwithstanding my
reluctance to penalize claimants for lack of completeness
in filling out such questionnaires, I cannot accept Lang's
excuse that she did not furnish the information because
she did not believe that her right to backpay depended
on how many places she went to in search of a job.
Unlike some other claimants whose statements were
sparse or incomplete, she could not credibly fill in the
details omitted from the statement by testimony regard-
ing such efforts. Then she conceded that her efforts were
minimal. I find altogether incredible her testimony that
she did not look for employment because she did not
have carfare. Her testimony showed that she had carfare
to travel to the unemployment insurance office and to
May's Department Store, where she claimed she looked
for work; that on being laid off, she received a paycheck
593
in the approximate amount of $137, a severance payment
of $186, vacation pay of $502.20, and an additional erro-
neous check for vacation pay of $576.60; and that she
collected unemployment insurance benefits during the
backpay period. In the face of this, I cannot credit her
testimony, when pressed for a reason why she did not
have enough carfare to go job hunting, that she had to
pay bills. I can understand the necessity to pay pressing
expenses and the difficulty of traveling in an era of high
transportation costs. Nevertheless, the quickest solution
to her problems would have been to find employment.
Under these circumstances, while failure to institute a
job search immediately after being laid off does not dis-
qualify a backpay claimant, in this situation the claim-
ant's failure to begin looking for 3 or 4 weeks under-
mines her credibility. A much more strenuous effort was
indicated than she appears to have made, and her excuse
for her failure is singularly inappropriate.
Lang's credibility was not enhanced by her testimony
that she was ignorant of the amount of money that her
husband earned. Not only is that hard to believe, as I re-
press my incredulity at his failure to lend her carfare, but
I am baffled at her testimony that her husband drove her
back and forth by car to collect her unemployment in-
surance checks but she could not remember what kind of
car he owned. I also cannot credit her testimony that
even the little cash she had available for carfare was re-
duced because her bills increased after she became unem-
ployed.
Accordingly, I find that Ruth Lang is not eligible for
backpay by reason of her failure to make a reasonably
diligent effort to obtain interim employment.
16. Tina Lindsey
The backpay specification filed for Tina Lindsey origi-
nally alleged backpay owing in the amount of $1755 for
the 16-week period from February 27 to June 29, with-
out offset for interim earnings. It was amended to reflect
interim earnings of $640 in the second quarter and net
backpay of $1013, and was further amended, in the Gen-
eral Counsel's posthearing brief, to reflect interim earn-
ings of $770. Respondents question the calculation of net
backpay.
On the basis of Lindsey having worked Saturdays and
Sundays for 10 weeks, from April 18 through June 21,
with average tips of $17.50 per day and an interim
weekly salary of $42, making a weekly total of $77 per
week, the General Counsel arrived at a total of $770 in-
terim earnings for that period. On June 25, she began
working a 28-hour week, at the same hourly rate of
$3.50. Her weekly salary for the 4 days immediately pre-
ceding June 29 would therefore amount to $98, with tips
of $70, bringing her total earnings for that week to $168.
I thus calculate that Tina Lindsey had interim earnings
of $968 in the second quarter, which, with the severance
pay of $102 that she received in the first quarter, must be
deducted from her backpay entitlement. Her net back-
pay, as set forth in Appendix A, therefore amounts to
$1285.
594
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
17. Evelyn Major
Evelyn Major's eligibility for net backpay for the
period from February 27 through the third quarter of
1981 (June 29) amounting to $2322 is challenged by Re-
spondents on the basis of her written statement in July
1981 listing only two prospective employers to whom
she had made application for employment. These were
the Chase Manhattan Bank and the Chemical Bank. The
Respondents cite discrepancies between that statement
and her testimony at the hearing and suggest that she
may have been coached. They call attention to the simi-
larity of her testimony to factors listed in the NLRB Ca-
sehandling Manual. I find nothing in the claimant's testi-
mony that would lead me to believe that she had been
"coached" in the pejorative sense of that term. That a
witness covers essential favorable points in the course of
her testimony is certainly not cause to disregard it-ad-
herence to such a view would speedily reduce our legal
system to shambles, for no prima facie case could ever
be accepted as credible.
There has been no effective attack on testimony that
she gave under oath as to her efforts to find employ-
ment. She testified that after her termination she returned
to the Continental facility to seek employment by Inter-
state; she applied to Chase Manhattan Bank, Chemical
Bank, Orbachs, and Macy's; she went back to an em-
ployment agency from which she had previously ob-
tained part-time employment and attempted through that
agency to obtain a full-time position; she read the want
ads in the Daily News and the New York Post on a
daily basis; she responded to an ad placed by a private
employment agency for a cafeteria worker; she enlisted
the assistance of other persons in her search for employ-
ment; she reported on several occasions to the New
York State Placement Service, and she collected unem-
ployment insurance benefits. As soon as Interstate of-
fered her reinstatement she accepted the position and
went back to work.
Accordingly, I find that she is entitled to backpay as
alleged in the specification, but reduced by severance
pay received by her in the first quarter in the amount of
$136. As set forth in Appendix A, her net backpay thus
amounts to $2186.
18. Peter McCabe
The only issue with respect to Peter McCabe's claim is
whether the 1 week's severance pay given to him by
Marriott at the time of his termination precludes his re-
ceiving backpay for the 1 week that elapsed before he
was rehired. Though the specification alleged that he
was out of work from February 27 to March 16, he testi-
fied that he was rehired 1 week after he was terminated.
Acordingly, the Respondents contend he is not entitled
to backpay.
McCabe testified that the Marriott operation at Conti-
nental Insurance closed on Friday and the following
week he made application with Marriott to work at its
Pfizer Corporation facility because he knew Marriott had
just opened up there and needed help. He was hired 5 or
6 days thereafter. He testified that he was out just that
week and went back to work the following week. Docu-
mentary evidence shows his return to work on March
11, 1981.
The receipt of severance pay does not destroy eligibil-
ity, but the amount of the severance pay received must
be deducted from the backpay due the claimant. He is
entitled to 1 week's backpay in the amount of $336. He
received severance pay in the amount of $364, according
to the schedule of severance pay introduced into evi-
dence by the Respondents. He concededly received not
less than 1 week's severance pay. He is therefore not
owed any net backpay.
19. Catherine Moran
The backpay specification for Catherine Moran, as
amended at the hearing, set forth a claim for backpay in
the amount of $2709, representing gross backpay for the
period from February 27 to August 24, allowing for a re-
duction in the amount of $258 for 2 weeks during which
she was concededly unavailable for work. Interstate sent
her a reinstatement mailgram on June 26, but she did not
return to work for Interstate, for reasons discussed
below; instead, she began work on August 24 at the ex-
ecutive dinning room of the Federal Reserve bank.
The Respondents, disputing her credibility, contend
that Moran did not make reasonable efforts to obtain em-
ployment during the backpay period and that that period
should be cut back to June 20 because her testimony in-
dicates that she was not available for work after that
date.
On direct examination, Moran testified that she visited
and applied for employment at approximately 10 restau-
rants, which she named, and that she also applied to the
caterers at a number of temples and one church. She fur-
ther testified that she reviewed the advertisements regu-
larly in the New York Times and in the Irish Echo; that
she made three visits to the New York State Placement
Service and that she collected unemployment insurance
benefits throughout her backpay period. She responded
affirmatively to the mailgram from Interstate, but ad-
vised Gerstein that she needed a 2-week delay in starting
because two members of her family were ill at that time.
On July 13, she filed an application for a position as an
executive dining room waitress at the Federal Reserve
bank.
I am not unmindful of the existence of some contradic-
tions (seeming or actual) in Moran's testimony, but they
are not material and do not detract from the essential
credibility of her testimony as a whole. The Respond-
ents, for example, call attention to testimony by her that
they quote as being to the effect that she did not recol-
lect whether she responded to advertisements in the
New York Times and that the Irish Echo did not have a
section devoted to advertisements for waitress' positions.
Her actual testimony, however, was that she watched
the New York Times and the Irish Echo that is pub-
lished three times a week but she looked at it once a
week. It was in response to a question whether she re-
sponded to any of the advertisements that she said, refer-
ring to the Irish Echo, that "there was no section of
waitresses in there." This answer was patently the result
of a misunderstanding of the question, because later in
CONTINENTAL INSURANCE CO
her testimony she explicitly stated that she read Irish
Echo once a week and the New York Times three times
a week, looking for a position as an executive dining
room waitress.
The Respondents also seek to impeach the claimant's
testimony that she was always available for work on the
basis that she was not available during a period, in late
June and early July, when her husband and her daughter
were hospitalized or required care at home . It was plain
to me, listening to her testimony, that Moran does not
use the English language with the specificity that might
be expected of lawyers, but that is not a sufficient basis
for an attack on credibility.
The only serious question respecting Moran's credibil-
ity arose from her testimony that she made known to an
interviewer at the unemployment insurance office the
fact that Interstate had sent her a mailgram offering rein-
statement. She continued to collect benefits thereafter.
She testified that she returned to the unemployment in-
surance office the following week, but there was no fol-
lowup respecting the job offer. She could not, however,
recall what was said to her by the interviewer. She con-
ceded that she did not tell the unemployment insurance
interviewers that she had spoken to Gerstein by tele-
phone and never revealed to them that she had told Ger-
stein that she was unavailable for work because she was
taking care of members of her family.
I do not credit Moran's testimony that she advised the
unemployment insurance interviewers that she had been
offered a job, but I have no difficulty believing her testi-
mony as to her efforts to find employment. Portions of a
witness' testimony may be credited even though not all
of it is believed. L. D. Brinkman Southeast, 261 NLRB
204, 205 fn. 5 (1982). Moran obviously did not seek em-
ployment during the several weeks that she was taking
care of the two members of her family and that period of
unavailability requires appropriate reduction of the gross
backpay. However, her entitlement to backpay for the
period prior to that time is not affected, and I do not
agree with the speculative contention of the Respondents
that she started actual work a month after she got the
job at the Federal Reserve bank because she was taking
care of her family. There is no record at the Federal Re-
serve bank that she had asked for deferral of her starting
date there. Officials of the bank had no knowledge of the
reason for the delay in putting her to work after she
complied with the preliminary hiring requirements and
was assigned to a position in accordance with the bank's
routine hiring procedures.
I find, therefore, that Moran made reasonably diligent
efforts to find interim employment.
Also at issue was the question of the proper cutoff
date. Moran testified that she responded to Interstate's
mailgram of June 26, but asked for an extension of time
to return to work because two members of her family
were ill. She had been caring for one of them since June
20. Moran testified that in a telephone conversation with
Donald Gerstein, she was advised that if she did not
return within the time specified in the mailgram, the job
might not remain available for her. As she had to take
care of her sick family members, she considered the op-
portunity at Interstate to have been extinguished, and
595
counted on the promise of the job with the Federal Re-
serve bank. She started actual work there on August 24.
The General Counsel therefore contends that August 24
is the cutoff date of the backpay period for Moran; the
Respondents argue that , because she was not available
from June 20, that is the cutoff date.
Unquestionably, Moran was not prepared to resume
work when the offer of reinstatement was made by Inter-
state. She testified that her husband was hospitalized for
13 days, from June 20 to the middle of July, suffering
from phlebitis, and that her daughter underwent surgery
on June 28 and was hospitalized for 8 days thereafter.
Other things being equal, her backpay period would end
on June 20, in view of her testimony. However, the Gen-
eral Counsel contends that, because of what Gerstein
said to her on the telephone, she was entitled to believe
that she no longer had the Interstate offer, and had to
continue job hunting. This she did successfully, landing
the job at the Federal Reserve Bank. The problem there
is that, though she asserted that she got the job in July,
she did not begin until August 24. The Respondents con-
tend she delayed beginning work in order to care for her
husband and her daughter , but this is unproven specula-
tion. The evidence indicates that the delay was not at all
her fault.
Moran was interviewed and given a physical examina-
tion at the Federal Reserve bank, but was not directed to
report until August 24. The bank personnel who hired
her testified at the hearing that they were unable to ex-
plain the reason for the delay in her starting date. There
is nothing in their records that would indicate that
Moran asked for any delay in starting , and routine per-
sonnel procedures of the bank appear to have been fol-
lowed in all respects, except for the delay in starting her.
The Respondents have produced no evidence that the
delay was Moran 's fault, and the burden is on them to
produce such evidence, if there is any.
I credit Moran's testimony respecting her telephone
conversation with Gerstein. She therefore properly relied
on the job offer from the Federal Reserve bank. Accord-
ingly, her backpay period runs from February 27 to
August 23, with deductions for severance pay, in the
amount of $120, and for the period of unavailability from
June 20 to July 12. I calculated her net pay in the
amount of $2718 as set forth in Appendix A.
20. Sheila Nelson
The backpay specification for Sheila Nelson covers a
period of 8 weeks from the first quarter through a por-
tion of the third quarter in the total sum of $3744. There
were no interim earnings. Her period of unemployment
ended when she was reinstated by Interstate on July 6,
1981. The Respondents contend that she did not make a
reasonable effort to find interim employment.
Nelson testified that she visited the personnel depart-
ment at Continental Insurance Company seeking employ-
ment but did not file an application because no one gave
her an application to fill out. She named the person to
whom she spoke. The Respondents, however, produced
two witnesses who worked in the Continental Insurance
Company personnel department at the time Nelson says
596
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
she filed her application, and who testified that the pro-
cedure of the office was that anyone who inquired about
employment was routinely given an application to fill
out. The company's affirmative action plan was cited as
requiring that applications be given out. These witnesses
also testified that there had never been a person em-
ployed in the personnel department with the name given
by Nelson.
The Respondents also fault Nelson for failing to regis-
ter with any private employment agency, failing to seek
help through the Union, failing to answer any newspaper
advertisements, and even failing to speak with any of her
fromer coworkers in order to be kept informed. Howev-
er, the test of whether a claimant has made reasonably
diligent efforts to obtain employment is not what she
failed to do, but what steps the actually took to secure
interim employment. Nelson had been a cashier who
worked in the office at the Continental facility . She testi-
fied that during the period from February 18 to July 6,
1981 , she looked for employment by making personal
visits to large stores and applying for whatever jobs they
might have open . At the May's store in Brooklyn, New
York, she was told that an opening for a cashier had just
been filled, and told the interviewer that she would take
any other job that they had. She went to another depart-
ment store in downtown Brooklyn and applied for a po-
sition either as a cashier or as a floor girl; she was ad-
vised that there were no openings. She did not file writ-
ten applications with either store and testified that this
was because she was not asked to do so . She visited
some of the jewelry stores in the downtown area of
Brooklyn. She was unable to furnish the names of any of
the stores she visited, but testified that they all said they
had no openings. She went to 120 Broadway and applied
for a job as a clerk. She was uncertain about when she
did that, but thought it might have been in March. She
could not state either the name of the company to which
she made application or the name of the supervisor to
whom she spoke . She did not fill out a written applica-
tion. She described the incident as follows : She walked
in and asked a man at the front desk if she could talk to
a supervisor or anybody in charge because she was look-
ing for a job . He called a lady who came out and spoke
to her. Nelson testified that she made application for any
position that was open at Macy's at 34th Street, New
York City, but she could not fix the time when she did
so and did not remember to whom she spoke. When
asked if she went to the store's personnel department,
her testimony was, "I really don't think I went to the
Personnel Department." She then explained the proce-
dure she followed when she visited stores looking for
employment : "When I go inside, I always ask for the In-
formation Desk, because I don't know where I'm going.
I asked for the Personnel Department . . . and they said
that the man was busy at the time , but they would have
somebody to help me ." A lady from the personnel de-
partment came out to talk to her and told her that there
were no job openings but made a note of her telephone
number and promised to call if they had any jobs. How-
ever, she never received a call. She testified that she ap-
plied for jobs in gorcery stores in the neighborhood
where she lives; she thought she had done that in May.
She asserted that she applied at Chemical Bank at 55
Water Street, New York City, but was not sure of the
month in which she did so. She asserted that on her
visits to the Chemical Bank, "I applied for anything."
She followed the same procedure there that she had fol-
lowed elsewhere : She asked at the information desk
whether they knew of any job openings . She received a
negative response. she had a conversation with some-
body there about typing, but there were no typing jobs
open. She did not know the name of the man to whom
she spoke.
Nelson registered for unemployment insurance on
March 2. She collected unemployment insurance and tes-
tified that on her visits to the unemployment insurance
office she answered inquiries about her job search. She
filled out slips that they gave her on which she indicated
places that she had gone looking for work . They sent her
to one location, where she had an interview, but she was
not hired.
The claimant's testimony is not a model of precision
and exactitude . Nevertheless, it sets forth a history of at-
tempts to find employment. Though short on details, it is
supported by her success in obtaining unemployment in-
surance benefits and by the fact that she accepted work
when she was offered reinstatement. I conclude that her
testimony should be credited despite absence of details
that would permit easy verification. The fact that she did
not pursue every avenue that a more alert job hunter
might have pursued does not mean that she was untruth-
ful with respect to her description of the efforts to fmd
work that she testified she made . The burden of estab-
lishing lack of diligence is on the Respondents and
doubts must be resolved in favor of the backpay claim-
ant. Accordingly, I find that the claimant is entitled to
net backpay in the amount of $3536, as set forth in Ap-
pendix A. Allowance has been made for severance pay
that she received in the amount of $208.
21. Cornelius Noonan
The backpay specification for Cornelius
Noonan
claims net backpay of $2448 for an 18-week period ex-
tending from the first quarter into the third quarter of
1981. The claimant had no interim earnings. He accepted
reinstatement by Interstate and returned to work on July
6. The Respondents assert that his efforts to obtain inter-
im employment were not diligent because he limited his
efforts to a search for a job as a security guard whereas
he had worked for Marriott as a dishwasher and utility-
man. He made no attempt to obtain work as a dishwash-
er.
A backpay claimant will not be held to have failed to
make diligent effort to find interim employment merely
because he sought a different type of position than that
in which he had been employed when he was wrongful-
ly terminated. He must seek employment, but not neces-
sarily employment in an identical job. Seeking a some-
what different type of job does not disqualify a backpay
claimant so long as he does not reject or fail to seek, in
addition, employment substantially similar to his former
employment. Avon Convalescent Center, 219 NLRB 1210
(1975), modified 549 F.2d 1080 (6th Cir. 1977). An as-
CONTINENTAL INSURANCE CO.
sessment of the reasonableness of his effort requires con-
sideration of his skills and qualifications and his age. Flite
Chief, Inc., 258 NLRB 1124 (1981), affd. mem. 696 F.2d
1003 (9th Cir. 1982). Noonan testified that his original
field was security and he wanted to return to it, and that
among his reasons were the fact that there seemed to be
more positions in that field than there appeared to be
openings for dishwashers and the fact that security posi-
tions pay more than dishwashers' positions. I credit this
testimony. There being no evidence that Noonan failed
to attempt to obtain employment, he is entitled to back-
pay. The amount will be reduced by the amount of the
severance pay that he received in the amount of $136.
Accordingly, I compute his net backpay in the sum of
$2312 as set forth in Appendix A.
22. Octavio Parra
The backpay specification for Octavio Parra called for
payment of net backpay in the sum of $1440 for an 8-
week period in the first and second quarters running
from February 27 to April 26, when Parra suffered a
heart attack that incapacitated him and tolled the back-
pay period. He had already accepted an offer of rein-
statement and was due to return to work on April 27.
The serious problem in this instance is presented by
the amendment of the specification at the hearing to in-
clude such amounts as Parra became liable for as ex-
penses of his medical treatment. Parra is still under treat-
ment and the ultimate total cost cannot presently be
known, but at the time of the hearing Parra was indebted
for medical expenses in a substantial amount. A portion
of his medical expenses was paid by the Marriott Corpo-
ration Medical Benefits Plan (the Plan) and by Medicare.
The group insurance carrier, however, disclaimed further
liability after paying a portion of the initial expenses on
the ground that Parra was no longer employed by Marri-
ott at the time he became ill. Whatever amounts the car-
rier would have paid had Parra been on the Marriott
payroll when he suffered his heart attack therefore
become a liability of the Respondents in this backpay
proceeding.
The Respondents stipulated that the provisions of the
Plan would be applicable to Parra if he were an employ-
ee of Marriott. The insurance carrier's position that
Parra's coverage ended when he was terminated on Feb-
ruary 27 is not pertinent in this proceeding except insofar
as it makes the amount of the medical expenses that
would have been paid under the Plan a direct liability of
the Respondents. Although conceding Parra's basic enti-
tlement to backpay, the Respondents nevertheless con-
tended that medical expenses should not be included be-
cause proof was lacking that Parra would actually have
to pay the medical bills, some of which were 2 years old
and, in Respondents' view, "stale" and because Parra
was covered by Medicare.
It is well settled that in these circumstances a backpay
claimant such as Parra is entitled to be reimbursed for
medical payments for which he becomes liable during
the backpay period and for all such expenses that accrue
thereafter that would have been covered by the medical
insurance but for his wrongful termination. With respect
to medical expenses, incurring of liability for same by
597
Parra is, for the purposes of these proceedings, the
equivalent of having paid them, and creates liability on
the part of the employer for their payment by inclusion
of such expenses in the backpay award. See
Carter's
Rental, 250 NLRB 344, 352-353 (1980), and Matlock
Truck Body & Rental Corp., 248 NLRB 461, 473-474
(1980). The question of coordinating additional cover-
ages for medical expenses is something that should be
worked out later as a matter of mechanics.
Accordingly, the General Counsel's motion at the
hearing was granted and the backpay specification was
deemed amended to include all sums that would be paid
by the Plan to cover Parra's medical expenses already in-
curred and to be incurred.
The Respondent introduced into evidence a booklet
dated January 3, 1981, that summarized the Plan.
Though it sets forth that the Plan documents control in
the event of any conflict between the provisions of the
Plan and the booklet, the Plan documents were not
placed in evidence. Accordingly, for the purposes of this
proceeding, the terms and conditions stated in the book-
let must be deemed controlling insofar as they fix the
minimum extent of the liability of the Respondents. Ex-
tracts of pertinent provisions of the Plan booklet are
made part of this decision as Appendix B for the conven-
ience of the compliance officer, who is, of course, not
precluded thereby from having recourse to all other rele-
vant provisions contained in the booklet or to the provi-
sions of the Plan documents themselves.
The evidence in the record, including statements of ac-
count, bills, and correspondence from the providers of
medical services to Parra, establishes that, as of the time
of the hearing Parra was indebted to them for covered
medical expenses in the total amount of $10,762.75. This
indebtedness was incurred during the fiscal year of Mar-
riott Corporation ending December 31, 1981, and during
the fiscal year ending December 31, 1982, a fact that
must be taken into consideration in applying the provi-
sions of the Plan relating to yearly deductibles from ben-
efits, because these are governed by Marriott Corpora-
tion's fiscal year.
As of June 5, 1983, when the hearing was concluded,
the Plan had already paid $1650 to Cabrini Medical
Center and a Medicaid allowance in the amount of
$5,328.10 had been applied against the St. Vincent's Hos-
pital & Medical Center bill of $5,766.10. Charges still
open were as follows:
To Cabrini Medical Center:
Hospital expenses
$9,304.75
X-Ray
440.00
Echocardiogram
To St. Vincent's Hospital:
200.00
Hospital expenses
438.00
Clinic
300.00
Doctors' fees
80.00
$10,762.75
The medical insurance carrier having disclaimed fur-
ther liability, further contribution can only be foreseen
from governmental coverages, and except as reduced by
598
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
such coverages and the authorized deductibles, Respond-
ents are liable for payment of the foregoing expenses, to-
gether with any additional expenses incurred since the
close of the hearing or that accrue in the future and that
would have been covered by the Plan.
Parra had no interim earnings. His gross backpay for
the first quarter, in the amount of $792 must be reduced
by the severance payment that he received in the amount
of $180. His gross backpay for the second quarter, com-
puted to the date his illness commenced, amounts to
$648. I therefore compute his net backpay, exclusive of
medical benefits, in the sum of $1260, as set forth in Ap-
pendix A.
The compliance officer will determine whether any
deductions must be made from the amount awarded for
medical expenses by reason of deductibles or of govern-
mental or other private coverages for such expenses, and
the amount thereof. The compliance officer will also
have to ascertain whether there have been any additional
medical expenses incurred by Parra and, if so, whether
and to what extent those would have been covered
under the Plan, taking into account the deductibles and
the requirement for coordination with governmental cov-
erage for such expenses. Any net sums found owing to
Parra should be added to the aforesaid sum of
$10,762.75. On the compliance officer's determination of
the net amount owing to Parra on all the foregoing, he
will effectuate payment of same by the Respondents,
jointly and severally. The compliance officer will retain
oversight to determine what additional sums if any,
become owing to Parra from the Respondents as he con-
tinues his treatment and to ensure that payment of same
is timely made and that coordination of benefits with
governmental and other private coverages is implement-
ed, in accordance with this decision.
23. Donna Stallone
Backpay in the amount of $1320 is alleged to be due to
Donna Stallone for the period February 27 to March 30.
Respondents dispute her entitlement on the ground that
prior to the termination she had given Marriott notice
that she was resigning to take another job.
The posture of the case with respect to Stallone is
somewhat unusual. She was not called on to testify by
the General Counsel but by Respondent Marriott, by
whom she is currently employed. She has worked for
Marriott since February 1976 and worked in the office at
the Continental facility for approximately 3 years. She
took a 2-week vacation after it closed, worked 3 weeks
for a company in New Jersey, and then returned to work
for Marriott. She testified that she had not responded to
letters concerning backpay because she did not feel that
Marriott owed her anything, for she had given notice to
Marriott 2 weeks prior to the closing that she was re-
signing to take a position with the company in New
Jersey and, in addition, had declined an offer of a posi-
tion at another Marriott unit made by Marriott's district
manager on or before February 27.
The General Counsel concedes that if the facts were
as testified to by the backpay claimant she would not be
entitled to backpay, but argues, without any factual basis
whatsoever, that Stallone's testimony was a fabrication
advanced by the Respondents to embarrass the General
Cousnel by creating the appearance that the General
Counsel had failed to make adequate efforts to determine
the interim earnings of the claimants. Quite aside from
the fact that I find such a suggestion highly implausible,
I cannot ignore Stallone's testimony or her demeanor
while testifying. No information was elicited on cross-ex-
amination that indicated any reason to disbelieve her tes-
timony or to believe that she had deliberately committed
perjury for the benefit of the Respondents. She testified
explicitly that she gave 2 weeks' notice that she was re-
signing, that she expressly declined a position with an-
other Marriott unit in which she cold have started work
immediately, and that she did so because she was inter-
ested in trying out a job in New Jersey. Her testimony
was plausible and believable. I am thus compelled to
deny backpay as alleged in the specification for this
claimant. I do not see anything in this particular situation
that suggests that the claimant's own needs should be
transcended in order to ensure adequate enforcement of
the National Labor Relations Act. The claimant's undis-
puted testimony indicates she is not eligible for backpay
and it would be perversion of the aims of the Act to
award backpay in the face of such evidence.
24. Ervin Terry
The backpay specification alleges the sum of $2457 to
be owed to Ervin Terry for a 21-week period extending
from the first quarter through the third quarter of 1981,
from February 27 to July 27. Terry, who had been em-
ployed as a food server, testified with respect to his ef-
forts to find interim employment. The Respondents con-
tend that his testimony is altogether incredible and that,
therefore, backpay should be denied because he must be
found to have made no diligent effort to obtain employ-
ment. The General Counsel takes the position that
Terry's credibility, if it was impeached, was only im-
peached with respect to irrelevant collateral matters and
that the Respondents did not meet the burden that the
law places on them of presenting evidence to prove will-
ful loss of earnings.
I concur in the Respondents' view that a great deal of
the testimony of the backpay claimant respecting his ef-
forts to get employment is not credible. That failure of
credibility manifestly does not relate to a collateral
matter, but to a central issue, whether the backpay
claimant did or did not make diligent efforts to find in-
terim employment. The most cursory examination of
Terry's testimony raises doubts respecting his credibility
strong enough to require rejection of all of his testimony.
For example, he testified that over the course of a 5-
month period he did not see a single newspaper adver-
tisement in the New York Post or the New York Daily
News to which he felt he could respond, though he read
both of these newspapers two or three times each week.
Another example is the conversation Terry claimed to
have had with a friend, while sitting in the friend's auto-
mobile. Terry testified that his friend referred him to a
store in a shopping mall where he might obtain employ-
ment. He went to the store in the shopping mall but was
told by someone there that no job openings existed.
CONTINENTAL INSURANCE CO.
What makes the story incredible is that the person at the
store who told Terry that there were no job openings
was his friend, the same person who, sitting in the car
with him, had suggested that he apply for employment at
that store. Then again, Terry testified that he attempted
to obtain work as a security guard by talking to a friend
who was a security guard at the World Trade Center.
He could not remember the name of the friend. He made
no inquiry at any employment office at the World Trade
Center while he was there.
The credibility of Terry's testimony that he applied for
a job at a nursing home in Freeport, Long Island, while
staying at his uncle's place in that area, was undermined
by other testimony by him to the effect that he would
not travel to that same area to borrow money, a subject
that came up because he claimed that he was unable to
look for work because he did not have carfare. He had,
of course, received a week's severance pay, so he had
some money, and he testified that his Freeport relatives
lent him money to help pay his rent. They are the rela-
tives who had referred him to the nursing home in Free-
port. He testified that he did not attempt to borrow more
money from them because it would have taken money to
get out to see them on Long Island. He did not explain
why he could not telephone them to ask them for help.
Terry's testimony that he went to an employment
agency in March 1981 is suspect because of his complete
inability to remember the name of the agency. He testi-
fied that that agency and five or six other agencies to
which he applied requested their fees in advance, but he
was unable to pay the fees. As I have just noted, he was
not completely without funds.
Having disclosed his inability to pay fees to advertis-
ing agencies, and despite his assertion that he did not
have the necessary carfare to hunt for employment in
March and April, Terry proceeded to testify that he nev-
ertheless gave an unnamed person $25 as a fee at a con-
struction site in the Borough Hall area of Brooklyn and
was instructed by him to report to work the following
Monday. It turned out that Terry had been victimized by
a fraud, for when he went to the jobsite that person was
nowhere to be found. However, while he was there he
did not talk to anybody else at the jobsite about possibly
working at the construction site and he did not look for
any other work in the Borough Hall area. His failure to
do so makes it impossible for me to believe this portion
of his testimony.
Terry testified that he attempted to obtain a job with a
taxi company, but conceded that he did not have the
special driver's license needed to operate a taxicab and
that he never made any attempt to obtain one.
Terry, along with other former employees, was sent a
mailgram by Interstate on June 26, offering reinstate-
ment. It took him a month to respond. He testified that
he did not receive it until July 24. His explanation for
the delay was wholly unsatisfactory, especially because it
appeared that he received mail from the Regional Office
of the Board without difficulty.
The General Counsel argues that the backpay claim-
ant's lack of understanding and the fact that he is ill-
equipped to complete forms, such as the statement of
claim, should not be factors that are utilized to reduce or
599
eliminate his backpay award. The problem that exists in
this case, however, is whether the claimant is credible.
His whole story is unrealistic, vague, inherently self-con-
tradictory, and unbelievable.
Accordingly, I find the backpay claimant, Ervin
Terry, ineligible for backpay.
25. Malcolm Thomas
The specification for Malcolm Thomas alleges net
backpay of $2146 owing for the first and second quar-
ters, with an offset for interim earnings in the amount of
$399. A further deduction was necessitated by disclosure
at the hearing of additional earnings of $108. The claim-
ant obtained his interim employment through an agency
specializing in temporary jobs known as the Tip Top
Agency. The Respondents contend that Thomas is ineli-
gible for backpay because he limited his efforts to that
agency, and that did not constitute a reasonable effort to
obtain interim employment.
The circumstances are not unlike those in the case of
George Bacote, considered above, in which I have
denied backpay. Thomas initially obtained his employ-
ment as a dishwasher at the Continental facility through
Tip Top, which sent him to Marriott as a temporary
worker. He was paid directly by the agency on a daily
basis. Marriott hired him as a full-time employee. During
the backpay period, he went out on jobs to which Tip
Top referred him. Almost every day, at 5 a.m., he pre-
sented himself at the office of Tip Top to be sent out for
a day's work. This bespeaks a willingness on his part to
work when he is put to work, but such willingness is not
synonymous with the making of a reasonable effort to
find interim employment.
I do not credit the claimant's testimony that he sought
assistance in finding work of friends and of the boarders
at the rooming house where he lived, and that he
checked the New York Post every day for employment
opportunities. He testified that he made an application to
a messenger service, and I am willing to credit that testi-
mony because it fits in with his pattern of search for only
temporary employment. The General Counsel, in fact,
conceded that that was the limit of his effort, arguing
that Thomas tried to obtain employment solely through
the Tip Top Agency because he knew no other method.
The General Counsel makes an argument akin to the one
he employed in the case of George Bacote, that the
claimant must be taken as we find him, and asserts that
the restriction of his effort to find employment to the
temporary employment agency was reasonable because
he was "obviously beaten down by sixty-four years of
living [and] knew only one way of surviving-shaping
up at a temporary agency." However, shaping up at a
temporary agency was not, as the General Counsel
argued, the only way he knew how to survive, for
having had the experience of working for Marriott on a
permanent basis he could have tried to do so again. He
obviously did not want to have a permanent job.
Sympathy for a claimant's limitations does not require
gullible acceptance of the argument that he made reason-
ably diligent effort to mitigate the wage loss when his
testimony
and the evidence indicates the reverse.
600
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
Thomas did not file for unemployment insurance bene-
fits. I do not credit his explanation for omitting to do so,
which was to the effect that he did not believe he was
eligible for it because he had only worked for Marriott
for 2 months. He never bothered checking with the Un-
employment Insurance Division to find out if he was eli-
gible and made no attempt to utilize the facilities of its
placement service to try to find a job.
Thomas did believe he was eligible for social security
retirement benefits, and filed for those . He explained that
he did so in order to obtain a steady income without
having to run to the agency every morning for a rela-
tively uncertain income. (That testimony also under-
mined the General Counsel 's argument that he limited
his effort to get work to visits to the agency because that
was the only way he knew how.)
When Thomas was offered reinstatement by Interstate,
he declined the offer. He testified that the reason he de-
clined the job was because he was discouraged with
Marriott, inasmuch as he had been fired after he had
worked hard for Marriott. If this were true, his failure to
accept reinstatement would not necessarily disqualify
him from receiving backpay. However, I find his testi-
mony in this regard unpersuasive and incredible , by itself
and in view of his testimony, given subsequently , that he
found it too much of a hardship to run to the agency
every morning only to be sent out on an occasional basis.
Accordingly,
I
find
that the claimant,
Malcolm
Thomas, is not eligible for backpay.
26. Mary Towey
It is alleged that the sum of $3697 is owing to Mary
Towey as net backpay for the period February 27 to
June 29, when she received the mailgram from Interstate
offering reinstatement and declined to accept the posi-
tion. Respondents' objection rests on the fact that though
she made a number of employment inquiries , she did not
follow them up and she expressed lack of interest in a
number of job opportunities that Respondents claim she
could have had if she had wanted to work. However,
Towey testified as to the reasons why she did not follow
up certain apparent job opportunities or why she de-
clined them after obtaining more detailed information
about them. Her testimony was specific with respect to
each instance. Her reasons appeared to be sound in every
case. Thus, she turned down a job that would have pro-
vided her with a net income considerably less than what
she had earned at Marriott; she declined a position in
Manhattan that required night work and travel by
subway; she declined a position with a caterer that
would have required her to work through the night; and,
in a number of instances, she made inquiries of prospec-
tive employers only to discover that there were no job
openings. Her willingness to work is apparent from her
12-year work history at Continental and her completely
credible testimony.
Accordingly, I find Mary Towey entitled to backpay,
reduced by the amount of $261 severance pay that she
received, and calculate the same in the net amount of
$3436 as set forth in Appendix A.
27. Lila Victorio
The backpay specification for Lila Victorio , as amend-
ed at the hearing, alleged net backpay owing in the
amount of $2484, for the period February 27 to August
7, when, Victorio testified, she obtained a job at Manda-
lay Caterers on Staten Island . The Respondents contend
that her backpay period should be tolled as of sometime
prior to July 1, when she ceased to be available for em-
ployment. The Respondents asserted that she was offered
reinstatement to an equivalent position at the same loca-
tion with the same hours as her former job.
During and after the time she worked for Marriott,
Victono attended the Parsons School of Design in New
York City. She had classes 2 days a week from 3 to 8
p.m. At Continental, she was an executive dining room
waitress. She testified that she searched unsuccessfully
for similar employment throughout the backpay period,
making inquiry of a number of concerns located in Man-
hattan, Queens, and Staten Island, where she lived. She
testified that she also attempted to obtain a position as a
layout artist with the Staten Island Advance . However,
she could not accept the position because the hours con-
flicted with her school schedule. She collected unem-
ployment insurance benefits until she commenced work
at Mandalay Caterers. She reported to the New York
State Placement Service, which referred her to a position
with the Queensborough Public Library on one occasion.
She did not accept the job because it would have in-
volved 6 hours of traveling each day . When she received
the mailgram from Interstate offering reinstatement, she
went in for an interview and was offered a position in
which the working hours were from 9 a.m to 4 p.m. Her
work hours at Continental had been from 10 a.m. to 2:30
p.m. She testified that she explained to Leslie Karen, the
Interstate interviewer, that the conflict with her school
schedule prevented her from taking the job and also told
the interviewer that she was contemplating taking a va-
cation in Florida, where her parents resided, and that she
would not return to New York until September.
Ronald Gerstein testified that he was the one who
interviewed Victorio and that he offered her a job with
the same hours at Continental that she had previously
worked, but that Victorio declined the offer with the ex-
planation that she might not be available until September
as she was probably going to Florida for the summer.
Gerstein testified that he was left with the impression
that she would call him if she changed her mind.
Elaine Hickey had worked with Victorio prior to their
termination, and for a time had shared living quarters
with Victorio. She testified that while employed at Con-
tinental, Victono had also worked nights at a cafe on
Staten Island and that she continued working there after
the Continental layoff. I reject Respondents' contention
that this affects the merits of her case, either from the
standpoint of entitlement or from the standpoint of the
amount of backpay owing. The additional job existed
prior to the layoff and did not supercede the employ-
ment from which she had been barred by the layoff. The
earnings from her extra employment are therefore not an
offset against any backpay entitlement . However, before
the existence of the second job had been disclosed in the
CONTINENTAL INSURANCE CO.
hearing, Victorio had testified that she told the Interstate
representatives on July 9 that she was immediately avail-
able for employment and did not have another job. (Ac-
tually, the interview at Interstate occurred on July 1.)
Her credibility is thereby brought into question. Other
aspects of the evidence raised further doubts about her
credibility.
Besides the testimony that Victorio said she was not
available for employment during the summer of 1981, the
evidence establishes that she did not attend summer
school at the Parsons School of Design during that
summer. The spring term having ended in mid -May, she
was available for the job offered by Gerstein because
there was no class schedule with which its hours might
conflict. While she was entitled to an offer of employ-
ment at hours and pay comparable to those of her former
job, there is no requirement that the offer be of a precise-
ly identical job, and the circumstance that she was not in
fact attending school destroys her credibility in ascribing
reasons for her rejection of the Interstate employment
offer and that circumstance also contradicts her stated
reason for declining the job at the Staten Island Ad-
vance.
On the job application that she filed with Interstate on
July 1, she stated flatly that she was not available for
work until September 1, 1981. The Respondents argue
that this casts doubt on her availability at any period
prior to July 1. This is pure speculation, and it would be
just as easy to speculate that she made the decision to go
to Florida on that very date and had therefore been
available and able to work up to July 1. Such speculation
is unnecessary. Legitimate doubts about her asserted ef-
forts to obtain interim employment in the preceding
months are raised by the other evidence in the record
and the contradictions in her own testimony.
On the application filed with Interstate, Victorio indi-
cated that she had a job as of July 6. The Respondents
contend that this negates the possibility that her employ-
ment with Mandalay Caterers began as late as August 7.
She was making this statement as of July 1. While it is
possible that her arrangements underwent a change, it
would appear that had there been any change she would
have notified Interstate if she were interested in obtain-
ing employment.
Falsehoods contained in her written statement respect-
ing her efforts to obtain employment cannot be over-
looked. Respondents have pointed out that she listed, as
one of the places to which she had applied for employ-
ment, the cafe where, according to her roommate, she
was actually already working. That written
statement
also omits any mention of the job applications with the
Staten Island Advance and the Queensborough Public
Library.
The inconsistencies in Victorio's testimony and her de-
meanor while testifying convinced me that she was not
being truthful about her efforts to obtain interim employ-
ment. In this instance, it may reasonably be argued, in
the light of all the other circumstances, that her income
from her second job and the unemployment insurance
benefits that she collected seemingly removed the stress
from her period of unemployment and lessened her moti-
vation to seek interim employment. She testified candidly
601
that she contemplated spending the entire summer in
Florida, possibly even seeking employment down there. I
cannot find on this record that she was available for em-
ployment throughout the backpay period at the same
hours that she had previously worked, or that she made
reasonable efforts to obtain employment in a job calling
for her to work similar hours.
Accordingly, I find that Lila Victorio is not eligible
for backpay.
28. Leonora Vilabrera
Leonora Vilabrera was allegedly owed $1422 net
backpay for the period February 27 to May 5, when she
obtained a job. The matter has been tried on the basis of
a cutoff date of May 5, with no interim earnings, though
she accepted an offer of reinstatement from Interstate
and returned to work for Interstate on July 6. There is
no data respecting her earnings from May 6 through July
3, her backpay period being deemed to end with May 5.
Besides asserting that gross backpay should be reduced
by the amounts of severance pay and vacation pay that
Leonora Vilabrera received, the Respondents advance
the argument that unemployment insurance benefits that
she collected should be deducted from backpay because
she rejected what they characterize as suitable employ-
ment.
In the first week after the layoff, Vilabrera visited
Interstate at the Chase Bank on William Street in down-
town Manhattan. She spoke to the manager and told him
she was looking for the same type of job that she had
had at Continental. There she had worked from 6 a.m. to
2:30 p.m., 5 days a week. He called her a few days later
and offered her a part-time job, 4 hours a day. She
turned it down because the money was insufficient; in
fact, it amounted to less then her unemployment insur-
ance benefits.
The Respondents assert on the basis of this testimony
that, because she never inquired as to the pay rate and
could not therefore be certain that her earnings would be
less
than the unemployment insurance benefits, the
amount of those benefits should be deducted from gross
backpay. This argument fails because I credit her testi-
mony that she assumed that Chase would start her at the
minimum hourly wage rate. She was entitled to make
that assumption, for that is what had happened when she
began work at Marriott. She was receiving approximate-
ly $90 per week in unemployment insurance benefits.
The job that she was offered involved working half the
number of hours of her former job, 20 hours instead of
40. She could reasonably concluded that the job would
make her economic position worse instead of better.
Unemployment insurance benefits are not interim earn-
ings and are not normally offset against backpay liability.
No reason to apply a different rule has been demonstrat-
ed in this case.
The sincerity of the claimant's efforts to find interim
employment is manifest from the fact that she found a
permanent job and started on it on May 5, substantially
reducing the Respondents' backpay liability.
Accordingly, I find that Leonora Vilabrera is entitled
to the net backpay a alleged in the specification, reduced
602
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
by severance pay that she received in the amount of
$158. Accordingly, I calculate her net backpay at $1264
as set forth in Appendix A.
29. Simona Vilabrera
Simona Vilabrera is alleged to be owed net backpay in
the amount of $3888 for the period February 27 to July
6, when she returned to work on Interstate's offer of re-
instatement. The Respondents contend that her testimony
respecting efforts to obtain interim employment is not
credible. They unquestionably have plenty of ammuni-
tion with which to work, but my own appraisal of her
overall testimony leads me to accept it as credible.
There are a number of points about Vilabrera's testi-
mony that the Respondents rightly point to as raising
questions. After testifying that she did not speak to other
Marriott ex-employees prior to testifying at the hearing,
she admitted she had discussed the case with some of
them. She appeared to be evasive about the manner in
which she had obtained a copy of the backpay specifica-
tion and about the date when she first saw it. First she
testified that she saw it posted on a bulletin board; then
she testified that she received it in the mail, but was
unable to furnish a lucid explanation of how that had
come about. She appeared also to have contradicted her-
self specifically with respect to whether she had dis-
cussed her testimony with Rupert Cayenne, another
backpay claimant. There was also a contradiction be-
tween her testimony and that of Cayenne respecting a
conversation they had. She testified that he obtained a
job as a chef and told her that there was no position
open for her in the place where he was working. He tes-
tified that he did not find work until 2 weeks before he
was called back by Interstate and that the job he ob-
tained was in a paper factory.
Some of her testimony appeared to me to be improb-
able, such as her testimony that the General Counsel did
not prepare her in any way for her appearance at the
hearing in this backpay proceeding. She later modified
that testimony.
The items of testimony that I have just cited and
Simona Vilabrera's demeanor while testifying convinced
me that she was not a completely truthful witness with
respect to those matters. However, the troublesome por-
tions of her testimony, to which I have just alluded,
were given along with a great deal of creditable testimo-
ny, and those portions of her testimony, while vague
with respect to some particulars, created a believable
picture of reasonably diligent effort to obtain interim em-
ployment. Significantly, almost all that testimony was
uncontroverted.
Simona Vilabrera testified that she was a second cook.
She asked Carol Kramer about another job with Marri-
ott. Though she could not remember Kramer's response,
it was apparently not encouraging and Kramer, who tes-
tified at the hearing, said nothing that contradicted
Simona Vilabrera's testimony. The first week of her un-
employment she telephoned the manager of the new op-
eration at Continental at 80 Maiden Lane, New York
City, to see if there was any work, and was advised that
there were no openings. She followed newspaper ads in
the New York Times and the New York Daily News
and made telephone calls. She made a long subway trip
to investigate a babysitting job, which she turned down
because the pay was insufficient. She spoke to other
former Marriott employees and to her friends, Cayenne
and Ermine Blades, asking for their help in finding a job.
At the suggestion of another friend, she put in an appli-
cation at the new Hyatt Hotel in New York City. At the
suggestion of yet another friend, she applied for a job at
a hospital on Jamaica Avenue in Queens, New York (she
could not recall the name of the hospital but later re-
ferred to it as a nursing home). She went to only one
employment agency, in April. She paid a $20 fee and
was sent out to be interviewed for two nonexistent jobs
and, after great difficulty, obtained refund of the fee. She
applied to Consolidated Edison.
She applied for, and received, unemployment insur-
ance benefits. Here again, her testimony raised, as well as
answered, questions. She asserted that she went out look-
ing for a job two or three times a week. That should
have created a substantial job-hunting history at the Un-
employment Insurance Division which, even if not di-
rectly available, should have left a lot of information in
her own memory. She testified that she reported her ef-
forts to find employment to the interviewers at that
agency. However, her recollection was that the unem-
ployment insurance interviewers only asked her if she
had been looking for work and did not ask where she
had looked. The entire conversation would consist of her
being asked if she had been looking and her affirmative
reply; there was no curiosity on their part as to where
she had looked or as to the identity of the firms to which
she had made application.
Careful consideration of Simona Vilabrera's testimony
indicates to me that most of the problems with it result
from her extreme vagueness respecting dates and the
substance of conversations. There are, as I have stated,
some actual contradictions in her testimony. Neverthe-
less, vagueness as to details is not synonymous with
falsehood, and not all contradictions mean that the wit-
ness was lying. For example, the claimant gave addition-
al testimony that I think clarified seeming inconsistencies
regarding
her
conversation
with
Cayenne and the
manner in which she had been prepared for the hearing
by the General Counsel. She testified that the General
Counsel had told her to try to remember the past and to
tell the truth and to remember where she had gone to
apply for jobs. That testimony seemed altogether reason-
able and truthful. As to her testimony about the conver-
sation with Cayenne, it is to be noted that her testimony
that he had a job cooking was actually given after she
had stated several times that she was vague about the
kind of work he was doing. In response to a question put
to her as to whether he had told her he had obtained a
job, she first answered simply that he had told her that
"he had something," but she did not know what it was,
but thought it was in cooking. She did not even know
whether he was working full time or part time. Although
this may seem surprising, considering that Cayenne and
Blades were friends of hers to whom she spoke frequent-
ly, it is apparent that her testimony became contradicto-
ry as to immaterial details under repeated questioning
CONTINENTAL INSURANCE CO.
and an apparent desire on her part to supply answers,
rather than as a result of any deliberate attempt to distort
the truth.
The claimant's testimony as a whole is imprecise, but
not incredible. Almost all of it is uncontroverted. In its
important details it was consistent and remained unsha-
ken on cross-examination . She collected unemployment
insurance benefits throughout the entire backpay period,
and Respondents conceded that the procedure followed
by the Unemployment Insurance Division of the New
York State Department of Labor is to inquire periodical-
ly of recipients of unemployment insurance benefits
whether they have made efforts to find employment and
to refer them to a State-operated placement bureau to be
sent out on job prospects. I do not find that the claim-
ant's credibility regarding the main issue has been at all
eroded. I find that she made the efforts to find employ-
ment to which she testified and I find that those were
reasonably diligent efforts to secure interim employment,
and that she is therefore eligible to receive backpay. I
note again that in this backpay proceeding, doubts are
resolved in favor of the claimant and against the Re-
spondents, and that the burden of showing failure to
make reasonable efforts to find interim employment is on
the Respondents.
The claimant received a severance payment in the
amount of $216. Accordingly, I have calculated her net
backpay in the sum of $3672 as set forth in Appendix A.
THE REMEDY
The Respondents' obligations to the backpay claimants
will be adequately discharged by their payment to the
claimants of the respective amounts set forth in the at-
tached Appendix A, which is based on the amounts set
forth in the specification, as amended by the General
Counsel and as modified by me in accordance with my
findings. Interest, computed in the manner prescribed in
Florida Steel Corp.,
231 NLRB 651 (1977), and
Isis
Plumbing Co., 138 NLRB 716 (1962), shall be payable on
such amounts, commencing with the last day of each cal-
endar quarter of the backpay period on the amount due
and owing for such period, as set forth in Appendix A,
and continuing until the date of payment thereof. There
shall be deducted from such payments and taxes required
to be withheld pursuant to Federal, state, and local laws.
Appendix A sets forth the gross backpay, interim earn-
ings, and severance pay, and net backpay for each claim-
ant whom I have ascertained to be entitled to payment
of backpay. No claimant who had interim earnings sub-
mitted evidence respecting expenses incurred in connec-
tion therewith, and therefore the earnings figures pre-
sented represent net earnings.
On these findings of fact and conclusions of law and
on the entire record, I issue the following recommend-
ed2
2 If no exceptions are filed as provided by Sec 102 46 of the Board's
Rules and Regulations,
the findings, conclusions, and recommended
Order shall, as provided in Sec. 102 48 of the Rules, be adopted by the
Board and all objections to them shall be deemed waived for all pur-
poses
603
ORDER
The Respondents, Continental Insurance Company,
Division of Continental Corporation;
Marriott
Food
Service, Inc., a Division of Marriott Corp.; and Inter-
state United Corporation, and their officers, successors,
and assigns, shall make whole the following named back-
pay claimants involved in this proceeding by payment to
them of the following amounts of net backpay set forth
opposite their names together with interest to be comput-
ed in the manner set forth in the remedy section of this
decision, minus tax withholding as required by Federal,
state, and local laws:
Eric Allen
Lewis Barbee
Marie Bellisi
Ermine Blades
Angelo Bonomo
Rupert Cayenne
Phillip Deutsch
Bertha DePalma
Alice Fox
Louise Fuller
Gerald Furby
Nicholas Graham
Esther Gutnick
Curtis Hailey
Eddie Hall
Celia Hassett
Elaine Hickey
Geoffrey Hill
Jenny Irizarry
Anna Jankunis
Tina Lindsey
Evelyn Major
Bridget McNamara
Betty McPherson
Catherine Moran
Sheila Nelson
Cornelius Noonan
Octavio Parra
Blanca Schauer
Elenora Sukovich
Gregory Taylor
Mary Towey
Maria Unterreiner
Leonora Vilabrera
Simona Vilabrera
George Whitehead
$3,468.00
1,360.00
960.00
168.00
5,779.00
4,100.00
2,527.00
2,416.80
210.00
900.90
2,312.00
672.00
188.00
2,252.00
2,172.00
1,001.00
1,944.00
292.00
204.00
560.24
1,285.00
2,186.00
238.00
1,620.00
2,718.00
3,536.00
2,312.00
1,260.00
1,836.00
250.00
164.00
3,436.00
39.00
1,264.00
3,672.00
65.00
It having been determined that the backpay claimant,
Octavio Parra, incurred liabilities for medical expenses
that, as of July 5, 1983, amounted to $10,762.75, in an ill-
ness covered by the Marriott Corporation Medical Bene-
fits Plan (the Plan), and that the said amount is the net
amount owing after payment of the sum of $1650 by the
Plan and payment of the sum of $5,328.10 by a Medicaid
allowance, it is further Ordered:
(a) That the compliance officer ascertain whether any
further deductions should be made from the aforesaid
sum of $10,762.75 to comply with deductibles provided
for in the Plan or to allow for coordination with pay-
604
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
ments that have been made by reason of coverage under
any Federal or state medical insurance programs, and
compute the net balance thereof that shall be promptly
paid by the Respondents to the backpay claimant, Octa-
vio Parra.
(b) That the compliance officer ascertain the amount
of any medical expenses incurred by Octavio Parra since
July 5, 1983, which are covered by the Plan, and the
amount of any deductibles or payments made pursuant to
any other private or governmental insurance coverage,
and compute the net balance thereof, which shall be
promptly paid by the Respondents to the backpay claim-
ant, Octavio Parra.
(c) That the compliance officer retain oversight to de-
termine what additional sums , if any, become owing to
Parra from the Respondents as he continues his treat-
ment, to ensure that coordination of benefits with gov-
ernmental coverages is implemented and that payment to
Parra of the net balances due is promptly made by the
Respondents.
The Regional Director for Region 2 is directed to
place in escrow for a period of 1 year from the date of
this Order the total amounts of backpay plus interest,
without excluding tax withholdings required by Federal,
state, and local laws, awarded Lewis Barbee, Ermine
Blades, Betty McPherson, and George Whitehead and to
make suitable arrangements for examination of these four
claimants by the Respondents and the General Counsel
respecting their interim earnings and efforts to procure
interim employment during the backpay period. In the
event the Respondents choose to conduct such examina-
tion and any of the said former employees fail to submit
to such examination or cannot be located within the
escrow year, the amount of backpay placed in escrow
for such employee shall be returned to Respondents. Re-
garding those employees who appear and submit to ex-
amination, the Regional Director shall make a final de-
termination whether such employee had interim earnings
or received any other moneys that are deductible from
the backpay award of the claimant, such determination
to be made in accordance with existing Board precedent.
On such determination, the Regional Director shall make
such deductions as are appropriate , return the amounts
deducted to the Respondents, and pay the net backpay to
the claimant. The Regional Director is further directed
to report to the Board when these matters have been
fully resolved but in no event later than 1 year from the
date of the Board's Supplemental Order, the status of
these cases at such time.
Claimant
Yr. & Qtr.
Gross Backpay
Severance Pay
Net Interim
Earnings
Backpay Net
Eric Allen
1981-1
$ 898.00
$204.00
None
$ 694.00
1981-2
2,652.00
None
2,652.00
1981-3
122.00
None
None
122.00
Total
$3,468.00
Lewis Barbee
1981-1
$598.00
$136.00
Unknown
$462.00
1982-2
898.00
-
Unknown
898.00
Total
$1,360.00
Mane Bellisi
1981-1
$ 810.00
$184.00
None
$626.00
1981-2
2,392.00
-
$2,076.00
316.00
1981-3
110.00
92.00
18.00
Total
$960.00
Ermine Blades
1981-1
$ 364.00
$196.00
Unknown
$ 168.00
Angelo Bonomo
1981-1
1,478.00
336.00
None
1,142.00
1981-2
4,637.00
-
None
4,637.00
Total
$5,779.00
Rupert Cayenne
1981-1
$1,056.00
$240.00
None
$1,056.00
1981-2
3,120.00
-
$88.00
3,032.00
1981-3
144.00
132.00
12.00
Total
$4,100.00
Phillip Deutsch
1981- 1
$ 686.00
$156.00
None
$ 530.00
1981-2
1,997.00
-
None
1,997.00
Total
$2,527.00
Bertha DePalma
1981-1
$ 627.00
$114.00
None
$ 513.00
1981-2
1,852. 50
-
None
1 ,852.50
CONTINENTAL INSURANCE CO.
605
Claimant
Yr. & Qtr.
Gross Backpay
Severance Pay
Net Interim
Earnings
Backpay Net
1981-3
85.50
-
None
51.30
Total
$2,416.80
Alice Fox
1981- 1
$324.00
$114.00
None
$ 210.00
Louise Fuller
1981-1
210.60
117.00
None
93.60
1981-2
456.30
-
None
456.30
1981-3
351.00
-
None
351.00
Total
$900.90
Gerald Furby
1981-1
$ 598.00
$136.00
None
$ 462.00
1981-2
1,768.00
-
None
1,768.00
1981-3
82.00
-
None
82.00
Total
$2,312.00
Nicholas Graham
1981-1
$704.00
$160.00
None
$544.00
1981-2
128.00
-
None
128.00
Total
$672.00
Esther Gutnick
1981-1
$ 376.00
$188.00
None
$ 188.00
Curtis Hailey
1981-1
686.00
156.00
None
530.00
1981-2
2,028.00
-
$400.00
1,628.00
1981-3
94.00
-
None
94.00
Total
$2,252.00
Eddie Hall
1981-1
$ 766.00
$160.00
None
$ 606.00
1981-2
1,566.00
-
None
1,566.00
Total
$2,172.00
Celia Hassett
1981-1
$234.00
$130.00
None
$104.00
1981-2
507.00
-
None
507.00
1981-3
390.00
-
None
390.00
Total
$1,001.00
Elaine Hickey
1981-1
$ 367.20
108.00
None
$ 259.20
1981-2
1,404.00
-
None
1,404.00
1981-3
280.80
-
None
280.80
Total
$1,944
Geoffrey Hill
1981-1
$438.00
$146.00
None
$292.00
Jenny Irizarry
1981-1
408.00
204.00
None
204.00
Anna Jankunis
1981-1
475.00
108.00
None
367.00
1981-2
108.00
-
None
108.00
'
85.24
Total
$560.24
Tina Lindsey
1981-1
$449.00
$102.00
None
$347.00
1981-2
1,306.00
-
$938.00
93800
Total
$1,285
Evelyn Major
1981-1
$ 568.00
$13600
None
$ 43200
1981-2
1,677.00
-
None
1,677 00
1981-3
77.00
-
None
77.00
Total
$2,186
Bridget McNamara
1981- 1
$ 346.00
$108.00
None
$ 23800
Betty McPherson
1981-1
475.00
108.00
Unknown
367.00
1981-2
1,253.00
-
Unknown
1,253 00
606
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
Claimant
& Qtr
Yr
Gross Backpay
Severance Pay
Net Interim
Backpay Net
.
.
Earnings
Total
$1,620.00
Catherine Moran
1981-1
$ 567.60
$120.00
None
$ 447.60
1981-2
1,496.40
-
None
1,496.40
1981-3
774.00
-
None
774.00
Total
$2,718.00
Sheila Nelson
1981-1
$ 915.00
$208.00
None
$ 707.00
1981-2
2,704.00
-
None
2,704.00
1981-3
125.00
-
None
125.00
Total
3,536.00
Cornelius Noonan
1981-1
$ 598.00
$136.00
None
$ 462.00
1981-2
1,768.00
-
None
1,768.00
1981-3
82.00
-
None
82.00
Total
$2,312.00
Octavio Parra
1981-1
$792.00
$180.00
None
$612.00
1981-2
648.00
-
None
648.00
Sub Total
$ 1,260.00
Medical Expenses
10,762.75
Total
$12,022.75
Blanca Schauer
1981-1
$ 475.00
$108.00
None
$ 367.00
1981-2
1,404.00
-
None
1,404.00
1981-3
65.00
-
None
65.00
Total
$1,836.00
Elenora Sukovich
1981-1
$ 375.00
$125.00
None
$ 250.00
Gregory Taylor
1981-1
328.00
164.00
None
164.00
Mary Towey
1981-1
957.00
261.00
None
696.00
1981-2
2,740.00
-
None
2,740.00
Total
$3,436
Maria Unterriner
1981-1
$233.00
$194.00
None
$ 39.00
Leonora Vilabrera
1981-1
695.00
158.00
None
537.00
1981-2
727.00
-
None
727.00
Total
$1,264.00
Simona Vilabrera
1981-1
$ 950.00
$216.00
None
$ 734.00
1981-2
2,808.00
-
None
2,808.00
1981-3
13000
-
None
130.00
Total
$3,672.00
George Whitehead
1981-1
$ 59800
$136.00
$ 577.00
1981-2
1,768.00
-
1,706.00
$62.00
1981-3
82.00
-
79.00
3.00
Total
$65.00
1 Health insurance
APPENDIX B
Hospital Room and Board: Plan Benefits pay up to
confinements continuing beyond a 60 day period
the semi-private room rate for up to 60 days for
may be covered by Major Medical Benefits.
each necessary hospital confinement.
Necessary
CONTINENTAL INSURANCE CO.
If a participant is in a private room or in the in-
tensive or coronary care unit of a hospital, the Plan
will pay a daily rate equal to the hospital's average
room and board charge for a semi-private room. If
confined in an intensive or coronary care unit, or in
a private room because of contagious disease, the
difference between the average semi-private room
rate and the charge for the private room will be
covered by Major Medical Benefits.
If a participant re-enters the hospital for treat-
ment of the same or related condition within 90
days following the initial discharge, it will be con-
sidered the same continuous period of confinement.
Otherwise, readmission will be treated as a new
confinement.
Other Hospital and Anesthesia Expenses: For any
one hospital confinement period. Basic Plan Benefits
cover up to the first $500 in expenses for the fol-
lowing:
1. operating room, recovery room, surgical sup-
plies, anesthesia supplies, drugs, dressings, oxygen,
and antibiotics:
2. diagnostic tests, radiology services, and physi-
cal therapy:
3. anesthesiologist's services: and
In most cases, after payment of the yearly de-
ductible, Major Medical Benefits pay 80% of the
next $5000 and 100% of almost all other covered
expenses incurred during each Plan Year.
The Plan year is the same as the Company's fiscal year,
which ends on the Friday closest to December 31.
The yearly deductible is the first $100 for cov-
ered medical expenses not included in Basic Plan
Benefits. While it applies separately to each covered
family member, the maximum deductible a family
must pay is $200.
With Major Medical Plan Benefits on top of Basic
Plan Benefits, the most you would have to pay for
any one member of your family each year is $1,100
of covered medical expenses (the $100 deductible,
plus 20% of the next $5000). Major Medical Bene-
fits provide up to $1,000,000 in coverage for each
participant. Major Medical Benefits for psychiatric
care, however, are limited to a lifetime maximum of
$5000 per person.
What expenses are covered by Major Medical Plan Ben-
efits?
Major Medical Plan Benefits provide coverage
for the reasonable and customary charges for the
following services, supplies and treatment when rec-
ommended as medically necessary by a doctor for
the care and treatment of a covered illness or
injury. (Covered Major Medical expenses do not in-
clude charges eligible for or reimbursed by Basic
Plan Benefits.)
607
Hospital Expenses:
1. Hospital room and board expenses , including
any excess in the daily room rate for coronary or
intensive care units over the average semi-private
room rate. Additional charges for a private room
are not covered unless required by health regula-
tions due to contagious disease.
2. Other hospital and anesthesia expenses over
$500 per confinement. (Covered services, supplies
and treatment are described under "Other Hospital
and Anesthesia Expenses.")
3. Services, supplies, and treatment rendered by a
hospital's outpatient facilities or an ambulatory sur-
gical center.
Professional Expenses:
1. Diagnosis, treatment, and surgery by a doctor
in connection with a covered illness or injury. This
includes oral surgery performed by a Doctor of
Dental Surgery, which (1) results from an acciden-
tal injury occurring after the patient's effective date
of participation in the Plan or (2) is due to a non-
dental
impairment requiring hospitalization for
dentalsurgery.
6. Private duty nursing services directed by the
attending physician.
Other Covered Expenses:
2. Prescription medication:
4. Medical laboratory tests ordered by a doctor.
5. Oxygen, including the rental of equipment for
administration:
The Plan has a "coordination of benefits" provi-
sion designed to reduce Plan costs to you and the
Company by preventing the duplication of benefits
payments.
The term "other plan or plans" includes (1) Parts A and
B of the Federal Medicare program:
If charges are subject to deductibles under the
Medical Benefits Plan, the deductibles must be paid
before Plan benefits are payable. The coordination
of benefits provision applies separately to each type
of service and date of treatment.
If more than one plan covers a particular charge,
responsibility for payment will be assigned in the
following order:
If the other plan or plans either (1) do not have a
coordination of benefits provisions, or (2) is the
Federal Medicare program . . . its benefits will be
applied to the charges first before payments can be
made from the Medical Benefits Plan. . .