The Hawaii Supreme Court ruled on June 4, 2026, that Hye Ja Choi is entitled to unemployment benefits after her employer, Tachibana Enterprises, LLC, wrongfully terminated her for alleged misconduct. The court found that the incidents cited by Tachibana did not meet the legal definition of misconduct under Hawaii's unemployment law. This decision impacts Choi and sets a precedent for how similar cases may be handled in the future.
Choi was employed as a part-time airport guide from September 2016 until her termination in March 2020, shortly after the COVID-19 pandemic began. Following her termination, Choi applied for unemployment benefits, which were initially granted but later denied after Tachibana claimed she was discharged for misconduct. The case went through several levels of appeals, ultimately reaching the state Supreme Court, which reviewed the lower court's decisions.
The dispute arose when Tachibana claimed Choi was terminated due to her refusal to sign an acknowledgment form for a revised employee handbook, as well as two customer service complaints. The Department of Labor and Industrial Relations (DLIR) sided with Tachibana, leading to Choi's appeal through the circuit court and the Intermediate Court of Appeals (ICA), both of which upheld the DLIR's decision. Choi then sought certiorari from the Hawaii Supreme Court to review the case.
The Supreme Court's ruling emphasized that the employer did not meet its burden of proof to demonstrate that Choi's actions constituted misconduct. The court stated, "we hold that, under the circumstances of this case, Tachibana failed to meet its burden of proving that any of the three incidents upon which Tachibana relied satisfied this definition and standard of misconduct." The justices included Chief Justice Mark E. Recktenwald and Associate Justices Sabrina S. McKenna, Michael D. Wilson, and others.
The court's decision highlighted that the incidents cited by Tachibana did not show a "wilful or wanton disregard of the employer's interests," which is necessary to disqualify an employee from receiving unemployment benefits. The court found that Choi's refusal to sign the acknowledgment form was due to a lack of understanding and that she had not been given sufficient time to comply with the employer's request.
This ruling is significant as it reinforces the protections for employees under Hawaii's unemployment law, particularly during the economic challenges posed by the COVID-19 pandemic. It clarifies that employers must provide clear and reasonable opportunities for employees to comply with workplace policies before claiming misconduct. The decision may influence future cases involving unemployment benefits and employee rights in Hawaii.
Moving forward, this ruling means that employees in similar situations may have a stronger case for receiving unemployment benefits if their terminations are based on claims of misconduct that do not meet the legal standards set by Hawaii law. The decision could also encourage employers to ensure they follow proper procedures when terminating employees to avoid disputes over unemployment claims.
As for what’s next, the case has been remanded to the DLIR for further proceedings to determine the amount of unemployment benefits Choi is entitled to receive. There is no indication in the court filing that Tachibana plans to appeal this decision.