Premature Termination Before a Set Corrective-Action Deadline Does Not Prove “Misconduct” Disqualifying Hawaiʻi Unemployment Benefits

Introduction

Choi v. Tachibana Enterprises, LLC (Hawaiʻi Supreme Court, June 4, 2026) is a secondary agency appeal arising from the denial of unemployment insurance benefits on the ground of alleged “misconduct.” The petitioner, Hye Ja Choi, worked as a part-time airport tour guide for Tachibana Enterprises, LLC. After Tachibana terminated her employment at the outset of the COVID-19 pandemic, Choi applied for unemployment benefits.

Tachibana opposed benefits, asserting three work-related incidents disqualified Choi: (1) refusal to sign a revised employee handbook acknowledgment; (2) a February 17, 2020 airport/TSA “Gold Lane” complaint; and (3) a February 20, 2020 Japan Airlines complaint concerning Choi’s interaction with airline staff. DLIR’s appeals officer agreed with Tachibana and found misconduct; the circuit court and ICA affirmed. The Hawaiʻi Supreme Court granted certiorari and reversed.

The central legal issue was not whether Choi was an at-will employee or whether the termination was wrongful, but whether Tachibana met its burden of proving “misconduct connected with work” under Hawaiʻi unemployment law such that Choi could be disqualified from benefits.

Summary of the Opinion

The court held Tachibana failed to prove any of the three incidents constituted “misconduct” under HAR § 12-5-51(c). Key to the holding:

  • Handbook acknowledgment: Tachibana’s own progressive discipline document gave Choi until April 14, 2020 to comply, yet Tachibana terminated her on March 30, 2020—about two weeks early. The court also emphasized Tachibana’s delayed notice to tour guides (sent after the stated January 31 deadline).
  • Customer service complaints: The February 17 and February 20 incidents, on this record, did not show a “wilful or wanton disregard of the employer’s interests,” particularly where Tachibana did not incorporate them into the March 16 progressive discipline warning and did not show post-warning violations.

The court vacated the DLIR, circuit court, and ICA decisions and remanded to DLIR for further proceedings, including determining the amount of benefits. Because the court resolved the case on the “misconduct” issue, it did not reach Choi’s arguments about language access, though it noted the constitutional and statutory backdrop.

Analysis

Precedents Cited

Camara v. Agsalud

The court relied on Camara v. Agsalud for two foundational principles: (1) Hawaiʻi’s unemployment law is “enacted for the beneficent and humane purpose of relieving the stress of economic insecurity due to unemployment,” and (2) it must be liberally construed to accomplish that purpose. Camara also exemplifies the high threshold for “misconduct”: even a workplace-relevant traffic infraction causing an accident did not automatically establish the required “wilful or wanton disregard.” Choi extends that protective approach to employer claims of “insubordination” and alleged service failures—requiring proof that the conduct meets the regulatory definition, not merely that the employer was dissatisfied or chose to terminate.

Hardin v. Akiba

Hardin v. Akiba is the court’s principal comparator for misconduct proven through progressive discipline and notice. In Hardin, repeated counseling and notice about absenteeism supported the conclusion that the final unexcused absence reflected “wilful or wanton disregard” because the employee “knew or should have known” the job was in jeopardy.

In Choi, the court uses Hardin to underscore the opposite inference: where an employer’s own corrective-action document grants time to cure and warns of termination only if noncompliance continues past a set date, terminating before that date undermines the claim that the employee consciously disregarded a known risk of discharge for that conduct.

Keanini v. Akiba

Keanini v. Akiba illustrates that a single course of conduct can constitute misconduct when it entails a conscious decision in the face of a known (or knowable) risk central to the job (e.g., driving uninsured leading to license suspension for a professional driver). Choi distinguishes this “goes without saying” risk scenario from the disputed and evolving circumstances of airport operations and the employer’s own shifting deadlines.

Medeiros v. Dep't of Lab. & Indus. Rels.

Medeiros v. Dep't of Lab. & Indus. Rels. supplies two key rules: (1) the employer bears the burden to prove misconduct, and (2) “wilful or wanton disregard” does not require subjective malice; it is satisfied by “conscious disregard of a known (or which should have been known) risk.”

Choi applies Medeiros’s burden and culpability framework to hold Tachibana did not prove the requisite level of culpability: the handbook incident was enveloped by employer delay and an unexpired cure deadline; the customer-service incidents did not, on this record, show conscious disregard meeting the regulatory standard.

Flores v. Bd. of Land & Nat. Res. and Paul's Elec. Serv., Inc. v. Befitel

These cases provide the secondary appeal review framework under HRS § 91-14(g)—how courts sort issues into review of conclusions of law, procedural issues, fact finding, and discretion. Choi operationalizes that framework by treating the meaning of “misconduct” as a legal standard applied to facts and by rejecting agency and lower-court outcomes that were unsupported under the governing legal definition.

For Our Rights v. Ige and State v. Kwong

For Our Rights v. Ige is cited as part of the court’s description of COVID-19’s governmental response and context. State v. Kwong supports the court’s decision to take judicial notice of the pandemic’s response timeline “in the interests of justice” even though it was not in the record—reinforcing that appellate courts may judicially notice widely verifiable public facts relevant to context.

Legal Reasoning

1) The governing “misconduct” standard is deliberately demanding

The court foregrounded HAR § 12-5-51(c), which excludes from “misconduct”: “inefficiency, unsatisfactory conduct, poor performance because of inability or incapacity, isolated instances of ordinary negligence or inadvertence, or good-faith errors in judgment or discretion.” Misconduct requires “wilful or wanton disregard” or negligence so recurrent/severe as to show “wrongful intent or evil design.”

2) Handbook acknowledgment: employer delay + unexpired cure deadline defeats “insubordination” as misconduct

The court treated Tachibana’s claim as internally inconsistent with undisputed facts: Tachibana’s tour guide assistant manager did not notify tour guides about the acknowledgment requirement until after the stated January 31 deadline. The March 16 warning characterized Choi as “refusing” to submit something “due on January 31,” yet Tachibana’s own notice was late, implying flexibility.

Most significantly, Tachibana issued a “Progressive Counseling and Corrective Action Notice” on March 16 giving Choi until April 14, 2020 to submit “mandatory documents” and warning only that failure to comply by that deadline “may” lead to termination. The DLIR appeals officer’s finding that she was told to comply “as soon as possible” was deemed clearly erroneous in light of the document’s explicit deadline. Terminating Choi on March 30—before the employer’s own corrective deadline—made it unreasonable to infer the level of conscious disregard required by HAR § 12-5-51(c), especially where Choi sought explanation of the at-will clause consistent with the handbook’s instruction to ask a supervisor.

3) Customer service complaints: insufficient proof of “wilful or wanton disregard” on this record

The court acknowledged an employer’s legitimate interest in maintaining relationships with TSA and airline partners. But it emphasized the evidentiary and disciplinary structure: Tachibana did not include the February incidents in the March 16 written warning, and it did not identify post-warning violations. While some cases (e.g., Keanini, Medeiros) show that a single event can constitute misconduct, the court found these incidents did not rise to that level here.

The court also rejected the agency’s reliance on generalized references to “recurring” complaints when the record lacked written discipline history tied to those complaints, and when the employer itself framed “insubordination” over the acknowledgment as the primary termination reason. In short, the employer did not carry its burden to connect these disputed events to the stringent misconduct definition.

4) At-will employment is not the unemployment-benefits standard

The opinion repeatedly separates termination permissibility from benefits disqualification: an employer may terminate an at-will employee, but benefits may only be denied if the employer proves “misconduct connected with work” under HRS Chapter 383 and HAR § 12-5-51. This distinction prevents “at-will” from swallowing the unemployment statute’s humanitarian purpose.

5) Language access issues noted but not decided

The court did not reach Choi’s claims under HRS § 321C-3 because the case was resolved on the merits of “misconduct.” Still, it flagged the constitutional gravity of language access, noting that HRS Chapter 321C and Judiciary Policy #12 “animate rights inhering in Article I, Section 5 of the Hawaiʻi Constitution.”

Impact

  • Employer burden sharpened: Employers must prove the regulatory level of culpability—mere policy noncompliance, service complaints, or an employer’s dissatisfaction is not enough.
  • Progressive discipline documents can bind the misconduct analysis: When an employer sets a corrective-action deadline, terminating before that deadline can substantially undercut a later claim that the employee consciously disregarded a known risk of discharge. This is especially true when the warning is the first written warning and the employer’s own notice practices were inconsistent.
  • After-the-fact justification is disfavored: Incidents not included in the employer’s written warning but later listed in a termination notice may carry less weight in proving misconduct—particularly where no post-warning misconduct is shown and the record lacks robust documentation.
  • Administrative adjudication discipline: DLIR decisions must adhere closely to the record (e.g., what the warning actually said), because overstatements (like “as soon as possible” when a deadline exists) can amount to clearly erroneous fact-finding affecting the legal conclusion.
  • Pandemic-era context without a pandemic exception: The court contextualized the case within COVID-19 economic disruption, reinforcing the statute’s protective purpose, but it ultimately resolved the case by applying existing misconduct standards—not by creating a special pandemic rule.
  • Language access remains a live issue: Although not decided, the court’s constitutional signaling may encourage future litigants to develop fuller records on HRS § 321C-3 compliance in administrative and civil proceedings.

Complex Concepts Simplified

Secondary agency appeal
A court reviews an agency decision after it has already been reviewed once by a lower court (here, circuit court review of DLIR, then ICA, then Supreme Court on certiorari). The Supreme Court asks whether the circuit court was “right or wrong” under HRS § 91-14(g).
“Misconduct” for unemployment benefits
Not every workplace mistake or rule violation counts. Under HAR § 12-5-51(c), the conduct must be seriously blameworthy: a deliberate disregard of the employer’s interests/standards, or negligence so severe or repeated that it shows wrongful intent.
At-will employment vs. benefit disqualification
“At-will” means an employer may end employment for many reasons. But unemployment benefits can be denied only if the employer proves a specific statutory/regulatory ground—here, “misconduct connected with work.”
Progressive discipline
A step-based system of warnings and opportunities to correct behavior. In misconduct cases, it can show whether the employee had clear notice of job jeopardy and chose to disregard it. But it can also undermine the employer’s case when the employer does not follow its own steps or deadlines.
Judicial notice
A court’s recognition of certain facts as true without requiring formal proof, typically because they are publicly verifiable (e.g., official COVID-19 emergency proclamations), as referenced with State v. Kwong.

Conclusion

Choi v. Tachibana Enterprises, LLC reinforces Hawaiʻi’s long-standing principle that unemployment disqualification for “misconduct” is reserved for genuinely culpable conduct showing “wilful or wanton disregard” of the employer’s interests. The decision clarifies that when an employer gives an employee a corrective-action deadline and terminates before that deadline—especially amid employer-caused notice delays— the employer may be unable to prove the conscious-disregard culpability that the regulation requires. It also demonstrates that customer-service complaints, without a well-supported progressive discipline and evidentiary record tying them to the misconduct standard, may not suffice to deny benefits.

The broader significance lies in protecting the unemployment insurance program’s humanitarian purpose while imposing evidentiary discipline on employers and agencies: termination may be lawful, but benefit disqualification must be proven under the strict definition of “misconduct,” not inferred from generalized dissatisfaction or premature discipline.