Asylum Co v. District of Columbia Department of Employment Services

10 A.3d 619, 2010 D.C. App. LEXIS 732, 2010 WL 5185414
CourtDistrict of Columbia Court of Appeals
DecidedDecember 23, 2010
Docket08-AA-1158
StatusPublished
Cited by11 cases

This text of 10 A.3d 619 (Asylum Co v. District of Columbia Department of Employment Services) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Asylum Co v. District of Columbia Department of Employment Services, 10 A.3d 619, 2010 D.C. App. LEXIS 732, 2010 WL 5185414 (D.C. 2010).

Opinion

THOMPSON, Associate Judge:

As the Compensation Review Board (the “CRB”) wrote in its decision that petitioners have asked us to review, the issues before us “center on [claimant/interve-nor’s] status as an undocumented alien.” 1 Petitioners, Asylum Company and Insurance Designers of Maryland (together, the “Employer”), contend that claimant/inter-venor, Palemón Cassarubias Gonzales (“Claimant”), who sustained a workplace injury on June 30, 2005, is not entitled to “compensation for lost wages for temporary total disability after July 17, 2005,” the date when the Employer learned of his undocumented-alien status and terminated him. The Employer asks us to hold that the CRB erred in upholding the contrary determination by a Department of Employment Services (“DOES”) administrative law judge (“ALJ”).

To resolve the specific questions presented by the Employer’s petition, we must begin by resolving an issue that is one of first impression in this jurisdiction: whether a worker who is an undocumented alien is covered under the District of Columbia Workers’ Compensation Act (the “Act”). 2 This question requires us to consider (i) whether a worker who is an undocumented alien is an “employee” within the meaning of the Act, and, if so, (ii) whether, for purposes of the Act, the cause of the worker’s wage loss following an incapacitating workplace injury may be considered to be the worker’s physical (or mental) incapacity, rather than the provision of federal law (IRCA) that makes it unlawful for an employer in the United States who has knowledge of the worker’s status to employ the worker. An additional question we must resolve is whether, if an undocumented-alien claimant is eligible to receive benefits under the Act, IRCA has the preemptive effect of precluding a workers’ compensation award to such a *623 claimant that is equal to the claimant’s average weekly wage. And, finally, we must decide whether the record in this case supports a determination that the Employer is liable for payment of the average-weekly-wage penalty that the Act imposes for an employer’s bad-faith delay in paying wage-loss benefits.

We affirm the CRB’s ruling as to all but the last of these issues and therefore uphold the determination that Claimant was entitled to temporary total disability benefits for the period June 30, 2005 to January 25, 2006. As to the last issue, relating to imposition of the average-weekly-wage penalty, we reverse and remand, because the record does not support the ALJ’s finding that no reason was presented for the Employer’s delay in payment of benefits, and because the ALJ did not make credibility determinations or other findings to support an inference of employer bad faith. The CRB’s rationale for upholding the average-weekly-wage penalty — rejection of the Employer’s argument that it could not lawfully pay wage-loss benefits to Claimant — was not a sufficient basis for concluding that the Employer acted in bad faith.

I.

On June 30, 2005, Claimant was working as a busboy and bar bus at a restaurant and bar owned by petitioner Asylum Company when he was struck in the right eye by a bottle thrown by a customer. Another employee of the establishment took Claimant to the hospital, where he was diagnosed with a dislocated lens. As described in the ALJ’s compensation order, the lens of Claimant’s right eye “had been dislocated outside of the visual field of the eye causing 100% total loss of vision” of the right eye. In July 2005, Claimant underwent surgery on his eye. Not until January 25, 2006, was Claimant cleared to return to work by his treating physician. During the course of his recovery, Claimant suffered eye pain, elevated eye pressure (glaucoma), and blurred vision.

In the meantime, Claimant’s hospital bills, which showed his name as “Palemón Casarrubias Gonzalez,” had been sent to the Employer. At the hearing before the ALJ, David Karim — an owner of the establishment where Claimant worked, whose duties included supervision as well as hiring and firing of employees — testified on behalf of the Employer. Karim explained that he was confused when he received hospital bills for services provided to “Pa-lemon Casarrubias Gonzalez,” since he knew Claimant as “Armando Casarrubias” or “Armando Casarrubias Gonzalez,” the name shown on records in the Employer’s personnel files. On July 17, 2005, although not yet cleared to return to work by his treating physician, Claimant returned to the establishment and asked to resume work part-time. According to Karim, it was then that the Employer learned that Claimant had obtained his job by using the name and papers of his cousin (Armando Casarrubias), and that Claimant himself was an undocumented alien. 3 Kar- *624 ira testified that he gave Claimant money (a total of $1,000) to help pay his expenses, but told Claimant that he “could not continue to employ [Claimant] because it would be illegal” because of Claimant’s undocumented status. Claimant testified that he began working for another employer in February 2006.

On August 15, 2005, Claimant filed a claim for workers’ compensation benefits. Although the woi'kers’ compensation statute requires an employer either to make prompt payment of wage-loss benefits or to file a timely notice controverting the worker’s claim, the Employer neither began paying benefits nor filed a notice of controversion. The matter eventually went to hearing, and in an August 1, 2007 compensation order, the ALJ determined that Claimant was temporarily and totally disabled and entitled to benefits for the June 30, 2005-January 26, 2006 period. The ALJ found that Claimant’s wage loss for that period was attributable to his workplace injury and that Claimant’s attempt to return to work on July 17, 2005, had been against medical advice. The ALJ also found that the Employer had failed to file a timely notice of controversion and had withheld payment of compensation in bad faith. Upon the finding of bad faith, the ALJ awarded Claimant wage-loss benefits in the amount of Claimant’s average weekly wage ($362.66), as provided in D.C.Code § 32-1528(b) (2001). 4 The ALJ also awarded Claimant an additional ten percent as a penalty on the Employer for failure to timely file a notice of controversion, 5 as well as interest on accrued benefits. The Employer sought review by the CRB, which affirmed the compensation order in a decision dated August 22, 2008. The Employer’s petition to this court followed.

II.

Our review of administrative agency decisions is limited, and we must affirm an agency decision unless it is arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. Providence Hosp. v. District of Columbia Dep’t of Emp’t Servs., 855 A.2d 1108, 1111 (D.C.2004). In workers’ compensation cases, we review the decision of the CRB and not that of the ALJ, but “we cannot *625 ignore the compensation order which is the subject of the Board’s review.” Washington Metro. Area Transit Auth. v. District of Columbia Dep’t of Emp’t Servs.,

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10 A.3d 619, 2010 D.C. App. LEXIS 732, 2010 WL 5185414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/asylum-co-v-district-of-columbia-department-of-employment-services-dc-2010.