C. Sadler v. WCAB (Philadelphia Coca-Cola)
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Opinion
OPINION BY JUDGE COHN JUBELIRER
Carl Sadler (Claimant) petitions for review of the February 16, 2018 Order of the Workers' Compensation (WC) Appeal Board (Board) that affirmed, as modified, the Decision of the Workers' Compensation Judge (WCJ). The WCJ denied in part Claimant's Petition to Review WC Benefits (Review Petition) because Claimant failed to establish that his average weekly wage (AWW) was incorrectly calculated, and granted Philadelphia Coca-Cola's (Employer) Petition to Suspend WC Benefits (Suspension Petition) for 525 days on the basis that Claimant, under Section 306(a.1) of the WC Act, 2 was "incarcerated after a conviction." 3 On appeal, Claimant raises two issues. First, he argues that the WCJ incorrectly calculated his AWW because there is not substantial evidence that he was expected to work only 40 hours per week. Second, Claimant argues that it was error to suspend his benefits because he spent 525 days in pretrial incarceration, which, upon his conviction, was credited as time served, and this time does not meet the statutory requirement, "any period during which [he was] incarcerated after a conviction." 77 P.S. § 511.1 (emphasis added). We find merit in Claimant's arguments. The credited testimony was that Claimant was expected to work overtime during the summer, which the WCJ did not consider in calculating Claimant's AWW. Moreover, under the plain language of Section 306(a.1), incarceration that occurs before a conviction, due to the inability to meet bail, is not a "period during which the employe is incarcerated after a conviction," and such an interpretation would be inconsistent with the fundamental principles underlying the WC Act and its purpose. Id. Therefore, we will remand for a recalculation of Claimant's AWW, and will reverse the suspension of Claimant's WC benefits.
I. Factual and Procedural Background
A. Petitions
On July 2, 2012, Claimant sustained an injury while working as a production manager with Employer. Employer issued a Notice of Temporary Compensation Payable, which was subsequently converted, as a matter of law, to a Notice of Compensation Payable (NCP). The NCP recognized Claimant's injuries as right pinky finger amputation and low back sprain, entitling Claimant to a weekly disability rate of $ 652 based upon an AWW of $ 978.
On April 7, 2015, Claimant filed the Review Petition claiming that his AWW was miscalculated in violation of Section 309(d.2) of the WC Act 4 and that his AWW should have been no less than $ 1412.04, thereby entitling him to the maximum weekly disability rate of $ 888. Claimant also alleged an incorrect description of injury. 5 Claimant further sought penalties for Employer's miscalculation of his AWW.
On May 12, 2015, Employer filed the Suspension Petition, claiming that Claimant's benefits should be suspended because he spent 525 days in jail prior to his conviction and because he was credited with having served that time upon his conviction on January 22, 2015, Claimant should not be unjustly enriched and his benefits should be adjusted accordingly.
B. Hearings Before the WCJ
At the hearing before the WCJ, Claimant testified that at the time of his injury, he had been working for Employer for about four weeks. His normal rate of pay was $ 24.45 per hour. Typically, he worked for 10 hours a day from 5:30 a.m. until 3:30 p.m. for 6 days a week, or 60 hours a week. When he met with Dennis Veneri, who hired Claimant, Claimant was told to expect to work 10 hours a day, 6 days a week, at $ 24.45 an hour. There was never a week he did not work overtime, Claimant testified. In the summer, because of increased supply and demand, Claimant was told he would work in excess of 60 hours. He was never told that during the summer he would work 60 hours and, thereafter, his hours would be reduced. A Statement of Wages indicated, however, that Claimant worked 40 hours per week. Claimant stated that the Statement of Wages was inaccurate. Pay stubs entered into evidence indicated the following:
Week Regular Hours Overtime Hours Total Hours 6/12/12-6/17/12 34.5 5 39.5 6/18/12-6/24/12 40 22.52 62.52 6/25/12-7/01/12 40 10.02 50.02 7/02/12-7/08/12 10 0 10
(Certified Record (C.R.) Items 23, 27.)
Veneri testified that Employer employed him as Director of Maintenance for the Philadelphia Erie Facility, a position he held for five years. Veneri was involved in the hiring of employees. Veneri hired Claimant to work as a maintenance mechanic. The normal working hours are 4 10-hour shifts, but during the busy season, employees will work an extra day or 2 days for another 10-hour shift. In response to the question by Employer "[h]ow many hours was [Claimant] expected to work per week under the terms of his employment," Veneri answered "it was a four ten-hour shift, but it was explained to [him] that there could and probably would be overtime because it was the busy time of the year when he was hired." (C.R. Item 20, Hr'g Tr., Oct. 22, 2015, at 6.) In response to the question of "would that overtime be guaranteed overtime," Veneri answered, "In the busy season more than likely yes, because it was busy." ( Id. ) Veneri clarified that the busy season is "typically the hundred days of summer." ( Id. ) For overtime, Veneri noted, an employee received time and a half. Outside of summer, sometimes there was still overtime, depending on the schedule. Veneri noted that Claimant's paychecks showed that Claimant was paid a "job premium" rate, which was .35 cents per hour, and a "job premium overtime" rate, which was .525 cents; this reflected, Veneri testified, that Claimant was paid "a little extra" for working 10-hour shifts. ( Id. at 9-11.)
Regarding Claimant's incarceration, the parties stipulated that Claimant was first incarcerated on August 16, 2013, when, upon being charged, he could not meet bail. On January 22, 2015, Claimant pleaded guilty and was sentenced to 525 days time served. He received credit for the 525 days he spent incarcerated prior to his conviction and, therefore, was released from incarceration on January 22, 2015, the date of his conviction. ( Id. at 18-19.)
C. The WCJ's Decision
The WCJ granted the Review Petition in part and denied it in part and granted Employer's Suspension Petition. (WCJ Decision, Conclusions of Law (COL) ¶¶ 2-4.) The WCJ granted the Review Petition to the extent Claimant alleged he sustained additional injuries 6 as a result of his work accident, which Employer acknowledged in a Stipulation of Facts. (WCJ Decision, Findings of Fact (FOF) ¶¶ 22-23; C.R. Item 30, Stipulation of Facts ¶ 3.) The WCJ denied the Review Petition to the extent Claimant alleged that his AWW was incorrectly calculated. 7 ( Id.
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OPINION BY JUDGE COHN JUBELIRER
Carl Sadler (Claimant) petitions for review of the February 16, 2018 Order of the Workers' Compensation (WC) Appeal Board (Board) that affirmed, as modified, the Decision of the Workers' Compensation Judge (WCJ). The WCJ denied in part Claimant's Petition to Review WC Benefits (Review Petition) because Claimant failed to establish that his average weekly wage (AWW) was incorrectly calculated, and granted Philadelphia Coca-Cola's (Employer) Petition to Suspend WC Benefits (Suspension Petition) for 525 days on the basis that Claimant, under Section 306(a.1) of the WC Act, 2 was "incarcerated after a conviction." 3 On appeal, Claimant raises two issues. First, he argues that the WCJ incorrectly calculated his AWW because there is not substantial evidence that he was expected to work only 40 hours per week. Second, Claimant argues that it was error to suspend his benefits because he spent 525 days in pretrial incarceration, which, upon his conviction, was credited as time served, and this time does not meet the statutory requirement, "any period during which [he was] incarcerated after a conviction." 77 P.S. § 511.1 (emphasis added). We find merit in Claimant's arguments. The credited testimony was that Claimant was expected to work overtime during the summer, which the WCJ did not consider in calculating Claimant's AWW. Moreover, under the plain language of Section 306(a.1), incarceration that occurs before a conviction, due to the inability to meet bail, is not a "period during which the employe is incarcerated after a conviction," and such an interpretation would be inconsistent with the fundamental principles underlying the WC Act and its purpose. Id. Therefore, we will remand for a recalculation of Claimant's AWW, and will reverse the suspension of Claimant's WC benefits.
I. Factual and Procedural Background
A. Petitions
On July 2, 2012, Claimant sustained an injury while working as a production manager with Employer. Employer issued a Notice of Temporary Compensation Payable, which was subsequently converted, as a matter of law, to a Notice of Compensation Payable (NCP). The NCP recognized Claimant's injuries as right pinky finger amputation and low back sprain, entitling Claimant to a weekly disability rate of $ 652 based upon an AWW of $ 978.
On April 7, 2015, Claimant filed the Review Petition claiming that his AWW was miscalculated in violation of Section 309(d.2) of the WC Act 4 and that his AWW should have been no less than $ 1412.04, thereby entitling him to the maximum weekly disability rate of $ 888. Claimant also alleged an incorrect description of injury. 5 Claimant further sought penalties for Employer's miscalculation of his AWW.
On May 12, 2015, Employer filed the Suspension Petition, claiming that Claimant's benefits should be suspended because he spent 525 days in jail prior to his conviction and because he was credited with having served that time upon his conviction on January 22, 2015, Claimant should not be unjustly enriched and his benefits should be adjusted accordingly.
B. Hearings Before the WCJ
At the hearing before the WCJ, Claimant testified that at the time of his injury, he had been working for Employer for about four weeks. His normal rate of pay was $ 24.45 per hour. Typically, he worked for 10 hours a day from 5:30 a.m. until 3:30 p.m. for 6 days a week, or 60 hours a week. When he met with Dennis Veneri, who hired Claimant, Claimant was told to expect to work 10 hours a day, 6 days a week, at $ 24.45 an hour. There was never a week he did not work overtime, Claimant testified. In the summer, because of increased supply and demand, Claimant was told he would work in excess of 60 hours. He was never told that during the summer he would work 60 hours and, thereafter, his hours would be reduced. A Statement of Wages indicated, however, that Claimant worked 40 hours per week. Claimant stated that the Statement of Wages was inaccurate. Pay stubs entered into evidence indicated the following:
Week Regular Hours Overtime Hours Total Hours 6/12/12-6/17/12 34.5 5 39.5 6/18/12-6/24/12 40 22.52 62.52 6/25/12-7/01/12 40 10.02 50.02 7/02/12-7/08/12 10 0 10
(Certified Record (C.R.) Items 23, 27.)
Veneri testified that Employer employed him as Director of Maintenance for the Philadelphia Erie Facility, a position he held for five years. Veneri was involved in the hiring of employees. Veneri hired Claimant to work as a maintenance mechanic. The normal working hours are 4 10-hour shifts, but during the busy season, employees will work an extra day or 2 days for another 10-hour shift. In response to the question by Employer "[h]ow many hours was [Claimant] expected to work per week under the terms of his employment," Veneri answered "it was a four ten-hour shift, but it was explained to [him] that there could and probably would be overtime because it was the busy time of the year when he was hired." (C.R. Item 20, Hr'g Tr., Oct. 22, 2015, at 6.) In response to the question of "would that overtime be guaranteed overtime," Veneri answered, "In the busy season more than likely yes, because it was busy." ( Id. ) Veneri clarified that the busy season is "typically the hundred days of summer." ( Id. ) For overtime, Veneri noted, an employee received time and a half. Outside of summer, sometimes there was still overtime, depending on the schedule. Veneri noted that Claimant's paychecks showed that Claimant was paid a "job premium" rate, which was .35 cents per hour, and a "job premium overtime" rate, which was .525 cents; this reflected, Veneri testified, that Claimant was paid "a little extra" for working 10-hour shifts. ( Id. at 9-11.)
Regarding Claimant's incarceration, the parties stipulated that Claimant was first incarcerated on August 16, 2013, when, upon being charged, he could not meet bail. On January 22, 2015, Claimant pleaded guilty and was sentenced to 525 days time served. He received credit for the 525 days he spent incarcerated prior to his conviction and, therefore, was released from incarceration on January 22, 2015, the date of his conviction. ( Id. at 18-19.)
C. The WCJ's Decision
The WCJ granted the Review Petition in part and denied it in part and granted Employer's Suspension Petition. (WCJ Decision, Conclusions of Law (COL) ¶¶ 2-4.) The WCJ granted the Review Petition to the extent Claimant alleged he sustained additional injuries 6 as a result of his work accident, which Employer acknowledged in a Stipulation of Facts. (WCJ Decision, Findings of Fact (FOF) ¶¶ 22-23; C.R. Item 30, Stipulation of Facts ¶ 3.) The WCJ denied the Review Petition to the extent Claimant alleged that his AWW was incorrectly calculated. 7 ( Id. ¶ 16.) The WCJ found no dispute as to the authenticity of the pay stubs and that they were "a credible and accurate representation of the hours" Claimant worked. ( Id. ¶ 9.) However, the WCJ did not credit Claimant's testimony on this issue, instead crediting Veneri's testimony. ( Id. ¶¶ 12-13.) The WCJ explained that having viewed Claimant's "demeanor and comportment" and considered that Claimant acknowledged that Employer expected all employees to work overtime if requested and that Claimant's paystubs did not reflect "a base of sixty hours per week," Claimant was not credible on the number of hours he was expected to work each week. ( Id. ¶ 12.) Veneri, in contrast, was credible, the WCJ found, because, having viewed "his demeanor and comportment," and considering the years he spent hiring potential employees for Employer, he was the "the best individual to know the terms of employment for a mechanic in the Maintenance Department" of Employer. ( Id. ¶ 13.) Therefore, the WCJ concluded, Claimant "was hired to work a forty-hour work week with probable overtime during the busy season or 100 days of summer." ( Id. ¶ 14.) The WCJ further found "Claimant actually worked on average a forty-hours [sic] during the short time he worked for the Employer prior to his injury." ( Id. ¶ 15.)
On the incarceration issue, the WCJ concluded that Employer was entitled to reimbursement for benefits paid to Claimant during the 525 days Claimant was incarcerated. ( Id. ¶ 21.) The WCJ ordered that Employer not be given a future credit against benefits to be paid to Claimant, but that Employer petition the Supersedeas Fund for reimbursement. (COL ¶ 4.)
D. The Board's Opinion
Employer appealed and Claimant cross-appealed from the WCJ's Decision to the Board. The Board modified the WCJ's Decision by allowing Employer to seek reimbursement for total disability compensation paid to Claimant while he was incarcerated via a credit against future disability payments to Claimant rather than requiring Employer to seek reimbursement through the Supersedeas Fund. (Board Op. at 10.) The Board otherwise affirmed the WCJ's Decision. 8
II. Appeal to this Court
On appeal, 9 Claimant raises two issues for our consideration. First, he argues that the WCJ incorrectly calculated his AWW because there is not substantial evidence that he was expected to work only 40 hours per week but that, at least during the summer, he was expected to work overtime; second, he argues that it was error to suspend his benefits because he spent 525 days in pretrial incarceration, which, upon his conviction, was credited as time served, and this time does not meet the statutory requirement "any period during which [he was] incarcerated after a conviction." 77 P.S. § 511.1.
A. AWW Calculation
Claimant argues that there is not substantial evidence 10 to support the WCJ's Decision that he was expected to work only 40 hours per week. Claimant contends his pay stubs are consistent with the credited testimony of Veneri that Claimant was required to, and did, work overtime, at least during the busy season. In the 3 full weeks preceding his work-related injury, Claimant averaged 50.68 hours of work. By including in the calculation Claimant's last week, in which he worked only 10 hours before being injured, Claimant argues the WCJ "artificially deflated his average hours per week" resulting in an average of 40.51 hours. (Claimant's Brief (Br.) at 17 (emphasis omitted).) At the very least, Claimant argues, this overtime should have been taken into account in one 13-week period and then averaged with a 26-week period when Claimant was expected to work only 40 hours a week. Further, Claimant contends, the WCJ erred when she neglected to include in her calculation that Claimant was paid a job premium rate and job premium overtime rate.
Employer argues that the WCJ properly determined Claimant's AWW using Section 309(d.2) of the WC Act. Such a determination, Employer maintains, is a factual one subject to the WCJ's assessment of credibility. The WCJ, Employer notes, credited the testimony of Veneri and discredited Claimant's testimony. The credited testimony is substantial evidence to support the WCJ's finding that Claimant was expected to work 40 hours per week and, therefore, Employer concludes, that finding must be affirmed.
Because Claimant worked less than 13 calendar weeks, and had no fixed weekly wages, Section 309(d.2) of the WC Act applies. Section 309(d.2) provides the AWW is "the hourly wage rate multiplied by the number of hours the employe
was expected to work per week
under the terms of employment." 77 P.S. § 582(d.2) (emphasis added). In interpreting and applying this section, we are cognizant that the General Assembly's intent behind Section 309(d.2) was to cover "those instances of work injuries to recently[ ]hired employees for whom there was, by definition, no accurate measure of AWW other than taking the existing hourly wage and projecting forward on the basis of the hours of work expected under the employment agreement."
Reifsnyder v. Workers' Comp. Appeal Bd. (Dana Corp.)
,
The question of how many hours a claimant was expected to work per week is a question of fact for the WCJ. Id. at 1101. The authority of the WCJ "over questions of credibility, conflicting evidence and evidentiary weight is unquestioned." Id. Nonetheless, factual findings must be supported by substantial evidence.
While the parties do not dispute that Section 309(d.2) applies here, they do dispute whether Claimant was expected to work more than 40 hours per week. The WCJ credited the testimony of Employer's witness, Veneri, and found that the pay stubs credibly and accurately reflected the hours worked. Relevant here, Veneri's response to Employer's question, "[h]ow many hours was [Claimant] expected to work per week under the terms of his employment," was two-fold: he stated "it was ... four ten-hour shift[s], but it was explained to [Claimant] that there could and probably would be overtime because it was the busy time of the year when he was hired." (C.R. Item 20, Hr'g Tr., Oct. 22, 2015, at 6.) He further testified, in response to Employer's question of "[w]ould that overtime be guaranteed overtime ," "[i]n the busy season more than likely yes, because it was busy." ( Id. (emphasis added).) Veneri quantified the busy season as "typically the hundred days of summer." ( Id. ) Veneri's testimony is consistent with Claimant's pay stubs. Excluding Claimant's last week of work where he was injured and appeared to work only one day, the pay stubs show that he worked overtime hours in each of the three other weeks.
The WCJ specifically found, consistent with this credited testimony and evidence, that "Claimant was hired to work a forty-hour work week with probable overtime during the busy season or 100 days of summer." (FOF ¶ 14 (emphasis added).) Yet, the WCJ did not account for any award of overtime in calculating Claimant's AWW. Instead, despite this finding and Veneri's testimony regarding overtime during the summer, in the next finding, the WCJ concluded that "Claimant actually worked on average a [sic] forty-hours [sic] during the short time he" was employed. ( Id. ¶ 15 (emphasis added).) In reaching this conclusion, it appears, as Claimant argues, that the WCJ included the week in which Claimant was injured, adding together the total number of hours Claimant worked for 4 weeks (39.5, 62.52, 50.02 and 10 ) and dividing that figure (162.04) by 4 to reach a work week of 40.51 hours. We agree with Claimant that the WCJ should not have used the 10-hour work week in the calculation where Claimant's injury, occurring on a Monday , prevented him from continuing to work and completing, at the very least, the 40 hours the undisputed evidence showed he was expected to work.
The credited testimony and evidence demonstrated that Claimant worked overtime for every week that he actually worked a complete work week. Yet, the WCJ did not take any overtime into consideration. We have required that overtime be taken into account when calculating a claimant's AWW under Section 309(d.2),
Lahr Mechanical
,
In summary, to determine the hours Claimant "actually worked on average," (FOF ¶ 15), requires the calculation to "reflect the economic reality of ... [C]laimant's recent pre-injury earning experience."
Triangle Bldg. Ctr.
,
Therefore, we must remand to the Board with direction to further remand to the WCJ to recalculate Claimant's AWW, 12 taking into account that Claimant was expected to work overtime during the summer. 13 , 14
B. Claimant's Pre-Conviction Incarceration
Claimant argues that it was error to suspend his benefits because he was not
"incarcerated
after
a conviction," as Section 306(a.1) requires. 77 P.S. § 511.1 (emphasis added). Rather, his incarceration occurred
before
his conviction and was the result of his inability to make bail while awaiting trial. Claimant asserts that the text of Section 306(a.1) does not allow for the suspension of benefits where, as here, the time Claimant spent incarcerated occurred prior to his conviction, he received a credit of time served upon his conviction for that period of pretrial incarceration and then was released. The Board's interpretation of Section 306(a.1) to include the suspension of benefits under these circumstances "engraft[s] language onto the statute" that the General Assembly did not see fit to include. (Claimant's Br. at 29 (quoting
Rogele, Inc. v. Workers' Comp. Appeal Bd. (Mattson)
,
Employer argues that Claimant's benefits were properly suspended. Employer asserts that once Claimant was sentenced to 525 days of incarceration upon his guilty plea, that time, credited as time served, "converted to incarceration for conviction for his crime." (Employer's Br. at 25, 28 (emphasis omitted).) To interpret Section 306(a.1) as Claimant suggests would be contrary to "the spirit and intent[ ]" of the WC Act, Employer argues, because it would operate as a windfall to Claimant since he would receive compensation for a loss of earning power that was not the result of his work-related injury. (
Id.
at 25 (citing
Banic v. Workmen's Comp. Appeal Bd. (Trans-Bridge Lines, Inc.)
,
We begin with a review of the settled principles of statutory interpretation. As with all statutory interpretation, "[t]he object ... is to ascertain and effectuate the intention of the General Assembly." Section 1921(a) of the Statutory Construction Act of 1972, 1 Pa. C.S. § 1921(a). "Generally, the best indication of the General Assembly's intent is the plain language of the statute."
Allstate Life Ins. Co. v. Commonwealth
,
The plain language of Section 306(a.1) states, in pertinent part, that payment of WC benefits is not required "for any period during which the employe is incarcerated after a conviction ...." 16 77 P.S. § 511.1 (emphasis added). The ordinary meaning of "after" in this context is "behind in place or time" or "later than a particular time or period of time." Webster's Third New International Dictionary 38 (2002). Incarceration may occur before or after a conviction. Often referred to as pretrial detention, incarceration can occur before a conviction when the accused is unable to meet bail while awaiting trial, as occurred here. 17 Incarceration may also occur after or following a criminal conviction when the accused is sentenced to a period of incarceration.
Here, Claimant was incarcerated
before
his conviction because he was unable to make $ 150,000 bail. Consistent with the plain unambiguous language of Section 306(a.1), Claimant's benefits could not be suspended during this period. Employer, however, would have us essentially deem
Claimant's pretrial incarceration as having occurred after his conviction because he received credit against his post-conviction sentence for the time he spent incarcerated before his conviction. To do so, however, would require us to supply a word the General Assembly chose to omit, contrary to settled principles of statutory construction. Indeed, when the General Assembly enacted Section 306(a.1) in 1996,
18
it knew that pursuant to Section 9760(1) of the Sentencing Code, 42 Pa. C.S. § 9760(1),
19
an individual incarcerated prior to conviction was entitled to a post-conviction credit for time served.
See
Zager v. Chester Cmty. Charter Sch.
,
Our decision in Rogele supports applying a plain language interpretation to Section 306(a.1). In Rogele , this Court wrote:
Section 306(a.1) expressly authorizes the termination of payments only during periods of incarceration after conviction. This section makes no reference to a termination of benefits during periods of incarceration prior to conviction ....
...
First and foremost, this Court is not authorized to engraft language onto a statute. And this Court will not impute an intent where the statutory language is unambiguous.
Clearly, the legislature intended the discontinuance of benefits for an incarcerated recipient after conviction. Absent explicit statutory provision, this Court is not free to reduce statutorily-created benefits. If the legislature had intended that benefits be discontinued for an incarcerated recipient prior to conviction, it would have written the statute to achieve that result.
Further, Employer's interpretation of Section 306(a.1) would not be consistent with its purpose. In
Henkels & McCoy, Inc. v. Workers' Compensation Appeal Board (Hendrie)
, our Supreme Court explained that the intent of the General Assembly in enacting Section 306(a.1) was "to preclude the payment of workers' compensation benefits to persons who are convicted of violations of the Pennsylvania Crimes Code and who, as a result of those convictions, are
thereafter
removed from the work force."
20
Here, Claimant was
not
incarcerated, or removed from the workforce,
after
his conviction. There is no argument that Claimant at all times has a work-related injury that prevents him from earning wages. Prior to his conviction, Claimant was incarcerated because of his inability to make bail, not because of a conviction for criminal conduct. To suspend Claimant's benefits during a period that he is not incarcerated after a conviction, and during which his loss of earning power is caused by his work injury, essentially punishes him because he was unable to meet bail.
21
This is not consistent with the humanitarian purpose of the Act and is not consistent with the plain language of Section 306(a.1).
See
Merva v. Workers' Comp. Appeal Bd. (St. John the Baptist R.C. Church)
,
In conclusion, the plain language of Section 306(a.1) does not support deeming incarceration that occurs
before
a conviction as having occurred
after
a conviction in order to suspend WC benefits of a claimant who could not meet bail. The plain language of Section 306(a.1) is consistent with the fundamental principles underlying the WC Act and its purpose. Because the WC Act is a remedial act and statutory provisions that disqualify claimants from benefits "should be narrowly construed" unless the claimants are "unequivocally excluded by the plain language of" the statute,
Harmon
,
III. Conclusion
For the foregoing reasons, we conclude that the Board erred when it affirmed the WCJ's Decision denying the Review Petition to the extent Claimant alleged his AWW was miscalculated. We also conclude that the Board erred to the extent it affirmed the WCJ's Decision granting the Suspension Petition because Claimant was not "incarcerated after a conviction."
Accordingly, we remand the matter to the Board with direction that it be further remanded to the WCJ for a recalculation of Claimant's AWW, taking into account that Claimant was expected to work overtime during the summer, and, thereafter, a determination of whether Claimant is entitled to an award of penalties.
ORDER
NOW , May 22, 2019, the Order of the Workers' Compensation Appeal Board (Board), entered in the above-captioned matter, is hereby REVERSED to the extent it affirmed the Decision of the Workers' Compensation Judge (WCJ) which granted the Suspension Petition of Philadelphia Coca-Cola and VACATED to the extent it denied the Review Petition of Carl Sadler (Claimant) alleging his average weekly wage (AWW) was miscalculated and seeking an award of penalties. We REMAND the matter to the Board with the direction that it be further remanded to the WCJ for a recalculation of Claimant's AWW, taking into account that Claimant was expected to work overtime during the summer, and, thereafter, a determination of whether Claimant is entitled to an award of penalties. The Board's Order, to the extent it affirmed the WCJ's Decision granting the Review Petition in part because the parties stipulated that the description of Claimant's injury was incorrect, is AFFIRMED .
Jurisdiction relinquished.
DISSENTING OPINION BY JUDGE COVEY
Because I believe the Workers' Compensation (WC) Judge (WCJ) properly denied Carl Sadler's (Claimant) Review Petition alleging an incorrect average weekly wage (AWW) calculation and properly granted Philadelphia Coca-Cola's (Employer) Petition to Suspend WC Benefits (Suspension Petition), I would affirm the Workers' Compensation Appeal Board's (Board) order, and therefore respectfully dissent from the Majority.
AWW
Section 309(d.2) of the WC Act (Act) 1 provides:
If the employe has worked less than a complete period of thirteen calendar weeks and does not have fixed weekly wages, the [AWW] shall be the hourly wage rate multiplied by the number of hours the employe was expected to work per week under the terms of employment.
77 P.S. § 582(d.2). Here, it is undisputed that Claimant worked for Employer for less than 13 weeks, i.e. , he worked 3 full weeks and a day, and did not have a fixed weekly rate, i.e. , he was paid an hourly rate of $ 24.45. Claimant asserts that he was expected to work 60 hours a week.
With respect to Claimant's expected work hours, Employer's Plant Manager Dennis Veneri (Veneri) testified:
Q. So [ ] Veneri, can you just clarify again what the normal working hours are?
A. The normal working hours are four ten-hour shifts , but then when we have a busy season we work an extra day or two days or whatever we have to do to get the proper help.
Q. When you have to run an extra day or an extra two days, that's another ten-hour shift?
A. Yes, ma'am.
Q. How many hours was [Claimant] expected to work per week under the terms of his employment?
A. When he was hired, it was a four ten-hour shift , but it was explained to [Claimant] that there could and probably would be overtime because it was the busy time of the year when he was hired.
Q. Would that overtime be guaranteed overtime?
A. In the busy season, more than likely yes, because it was busy.
Q. Would [Claimant] be required to work extra hours during the busy season?
A. Yes. As well as everyone else that works there, yes.
Q. How is it determined when the busy season is, how many weeks does that last?
A. It's typically the hundred days of summer when the schedule gets, you know, very busy.
Q. And then after those hundred days of summer?
A. It kind of slows down.
Q. To your knowledge, what was [Claimant's] hourly rate at the time of his injury on July second, 2012?
A. I believe it was twenty-four forty-five.
Q. In July of 2012, did [Employer] pay a different amount of pay for overtime hours over forty?
A. Yes. Typically it would be time and a half for over forty.
Q. Would [Claimant] have been entitled to that overtime paid for hours that he worked over forty hours?
A. Yes. Yes, he would.
Certified Record (C.R.) Item 20 (Notes of Testimony (N.T.) October 22, 2015) at 6-7 (emphasis added). The WCJ found Veneri's testimony credible.
2
See
WCJ Dec. at Finding of Fact (FOF) 13. Contrarily, the WCJ found Claimant's testimony not credible "as to the terms of his employment on hours." WCJ Dec. at FOF 12. Neither the Board nor the Court may reweigh the evidence or the WCJ's credibility determinations.
Sell v. Workers' Comp. Appeal Bd. (LNP Eng'g)
,
The Majority believes, contrary to Section 309(d.2) of the Act, the AWW calculation should be based on Claimant's actual hours worked. Notwithstanding that Claimant worked less than 13 weeks, the Majority wants to remand the case to the WCJ to recalculate the AWW considering Claimant's "award of overtime." 4 Majority Op. at 378-79.
However, Section 309(d.2) of the Act "provides for a
prospective calculation
of
potential earnings
. By its terms, [it] contemplates persons for whom there is little work history with the employer upon which to calculate the AWW."
Reifsnyder v. Workers' Comp. Appeal Bd. (Dana Corp.)
,
In the instant case, had Claimant not been injured, his expected work hours would be 40 hours per week with probable overtime during the 100 day busy season. Thus, 60 hours per week would not be an "accurate and realistic measure of what [Claimant] could have expected to earn had he not been injured[.]"
Hannaberry HVAC
,
Suspension Petition
Section 306(a.1) of the Act 7 states: " Nothing in this [ A ] ct shall require payment of compensation under clause (a) [ (relating to total disability) ] or (b) [ (relating to partial disability) ] for any period during which the employe is incarcerated after a conviction ...." 77 P.S. § 511.1 (emphasis added). Here, Claimant was incarcerated while awaiting trial because he could not afford bail. The day he was convicted, Claimant was sentenced to 525 days of incarceration, which is approximately 1 year, 5 months and 10 days, with credit for time-served and, thus, was released. The Majority concludes that because Claimant was incarcerated before his conviction, Claimant's WC benefits should not be suspended.
"Our inquiry is guided by the principles set forth in the Statutory Construction Act [of 1972 (Statutory Construction Act) ], including the primary maxim that the object of statutory construction is to ascertain and effectuate legislative intent. 1 Pa.C.S. § 1921(a)."
Slippery Rock Area Sch. Dist. v. Pa. Cyber Charter Sch.
,
Moreover, "[the] Court does not dissect statutory text and interpret it in a vacuum."
Commonwealth v. Kingston
,
The polestar of statutory construction is to determine the intent of the General Assembly. 1 Pa.C.S. § 1921(a) ; see also Hannaberry HVAC v. Workers' Comp. Appeal Bd. (Snyder) , ... [575 Pa. 66 ]834 A.2d 524 , 531 ( [Pa.] 2003). It is settled that, '[w]hen the words of a statute are clear and free from all ambiguity, they are presumed to be the best indication of legislative intent.' Hannaberry ,834 A.2d at 531 . However, if 'the words of the statute are not explicit' on the point at issue:
the intention of the General Assembly may be ascertained by considering, among other matters:
(1) The occasion and necessity for the statute .
(2) The circumstances under which it was enacted.
(3) The mischief to be remedied .
(4) The object to be attained .
(5) The former law, if any, including other statutes upon the same or similar subjects.
(6) The consequences of a particular interpretation .
(7) The contemporaneous legislative history.
(8) Legislative and administrative interpretations of such statute.
1 Pa.C.S. § 1921(c).
Griffiths v. Workers' Comp. Appeal Bd. (Seven Stars Farm, Inc.)
,
Here, the Majority maintains that the legislature used the term "after conviction" to preclude the suspension of WC benefits of claimants incarcerated before their convictions because they cannot afford bail. The Majority extends this reading to include a claimant who
is
convicted, but whose sentence is credited for time-served. The Dissent respectfully disagrees that the focus of Section 306(a.1) of the Act is limited to "after conviction" as the Majority has done herein. Such a narrow reading of that section fails to give effect to all of the words in that provision. The General Assembly specifically stated that nothing in the Act shall require the payment of WC for "
any period during which
the employe is incarcerated after a conviction ...." 77 P.S. § 511.1 (emphasis added). The Majority's interpretation ignores the first half of Section 306(a.1) of the Act,
8
and by focusing on the word "after," the Majority distorts the meaning of the statute. The law is well-established that "[w]hen interpreting a statute, courts must presume that the legislature did not intend any statutory language to exist as mere surplusage; consequently, courts must construe a statute so as to give effect to every word."
Commonwealth v. Golden Gate Nat'l Senior Care LLC
, --- Pa. ----,
The Dissent's interpretation is in accord with Pennsylvania Supreme Court and Commonwealth Court precedent, and supports the General Assembly's purpose for
enacting the Act - the remedy of "[WC] payments is part of the quid pro quo in which the sacrifices and gains of employers and employees are balanced. An injured employee is provided 'expeditious and certain payments' without having to prove fault. In return, the worker gives up the right to sue the employer."
Nagle v. TrueBlue, Inc.
,
In the context of a claimant incarcerated but on work release , this Court explained:
Prior to the enactment of [the Act of July 2, 1993, P.L. 190, known as] Act 44 in 1993, there was no express rule prohibiting an incarcerated claimant from collecting workers' compensation benefits. However, by passing Act 44 and creating Section 306(a)(2) of the Act, [ 9 ] our General Assembly unambiguously demonstrated its intent to disqualify a claimant from receiving [ WC ] benefits for any period of time during which the claimant is incarcerated after a conviction . The Legislature did not create an exception in Section 306(a)(2) of the Act for prisoners on work release, and we cannot add an exception to a statute that the Legislature did not see fit to include.
Moreover, while this case raises an issue of first impression in [WC] law, we have decided similar issues in the context of unemployment compensation law. In Kroh v. Unemployment Compensation Board of Review ,711 A.2d 1093 (Pa. Cmwlth. 1998), we considered whether it was constitutional to disqualify an incarcerated claimant, who was eligible for work release, from receiving unemployment benefits under Section 402.6 of the Unemployment Compensation Law (Law), [ 10 ] which provides that '[n]othing in this act shall require payment of unemployment compensation benefits for any weeks of unemployment during which the employe is incarcerated after a conviction.' We explained that the General Assembly had a rational basis to disqualify incarcerated claimants from receiving unemployment benefits , even if they were on work release:
The General Assembly had a legitimate reason not to want prisoners who were incarcerated and living at the taxpayers' expense to receive unemployment compensation just because they were eligible for work release. Moreover, it could have felt that while on work release, because of restrictions necessarily imposed under those programs, prisoners were not sufficiently available for work so as to permit them to have a full range of employment options that other claimants have in pursuing new employment. Finally, in denying a prisoner unemployment, the General Assembly could have sought to advance the valid legislative goal of deterrence of criminal activity .... Kroh ,711 A.2d at 1096 . Section 402.6 of the Law is very similar to Section 306(a)(2) of the Act, and thus the analysis in Kroh is highly relevant and persuasive here.
Accordingly, for all the above reasons, [the Court] conclude[d] that a claimant who is incarcerated, even though eligible for work release , is nevertheless disqualified under Section 306(a)(2) of the Act from receiving [WC] benefits.
Brinker's Intern., Inc. v. Workers' Comp. Appeal Bd. (Weissenstein)
,
The same analysis applies in the instant case. The 525 days that Claimant was imprisoned when he could not post bail, clearly did not come within the statutory ineligibility for WC payment suspension because it was
before
his
conviction
. Nor did Employer herein seek such relief. However,
after Claimant's conviction
, those 525 days came squarely within the statutory language of "
any period during which
the employe is incarcerated after a conviction ...[,]" 77 P.S. § 511.1 (emphasis added), and therefore, in accordance with the General Assembly's intent that no WC payment is required to be made for any period of incarceration. Accordingly, Employer was entitled to have Claimant's WC payments suspended therefor. To rule to the contrary, which is the Majority's position, is in complete derogation of the statute's plain words. Even if the Majority believes the words are ambiguous, the Dissent's interpretation of all of the section's words is also in accord with the General Assembly's intent, and the Statutory Construction Act's directive to consider: "[t]he occasion and necessity for the statute[;] [ ] [t]he circumstances under which it was enacted[;] [ ] [t]he mischief to be remedied[;] [ ] [t]he object to be attained[;] ... [and] [t]he consequences of [this] particular interpretation[;]" as well as case law that has held the General Assembly did not intend to require an employer to pay WC benefits where a claimant has been incarcerated because he violated the Pennsylvania Crimes Code.
Griffiths
,
Specifically,
Claimant was sentenced
to 525 days (nearly 1 and 1/2 years) of incarceration
after his conviction
. Notwithstanding that the time had already been served, suspending his WC benefits for that time period fulfills the following mandated legislative interpretation and purposes: (1) "a result that is [not] absurd, impossible of execution, or unreasonable,"
Griffiths
,
The Majority states that it relies upon
Harmon v. Unemployment Compensation Board of Review
, --- Pa. ----,
Correspondingly, the Pennsylvania Supreme Court has long since held in the WC context
because '[b]enefits under the Act will only be permitted where the disability, work related injury or disease results in a loss of earning power,' it is clear that [WC] benefits can be suspended under the Act when a claimant is incarcerated since his work-related injury is not the cause of the loss of earning power while a person is incarcerated.
Banic v. Workmen's Comp. Appeal Board (Trans-Bridge Lines, Inc.)
,
In addition, the Majority asserts that "the General Assembly included no corresponding provision in Section 306(a.1) [of the Act] that allows for time spent incarcerated before a conviction to be deemed as occurring after a conviction, although the General Assembly could have easily included such a provision." Majority Op. at 382. However, the General Assembly, being fully aware of the existing law, expressly included the words "any period" to encompass claimants who are convicted of crimes, thereby not requiring employers to pay WC benefits during any period of incarceration after conviction.
When Section 306(a.1) of the Act is read in its entirety, giving effect to all of the words, the provision fulfills the legislature's purpose of not requiring employers to pay WC benefits to a claimant "for any period during which the employe is incarcerated after a conviction," 71 P.S. § 511.1, while also upholding the intent of the criminal justice system that all persons are presumed innocent until proven guilty. Further, when giving effect to all of the words, the statute treats all convicted claimants the same and all employers equally, as employers will not be required to pay WC benefits to convicted claimants who are incarcerated in accordance with the plain reading of Section 306(a.1) of the Act. Accordingly, when Section 306(a.1) of the Act is read in its entirety, it fulfills the General Assembly's intent and public policy.
The Majority relies upon
Rogele v. Workers' Compensation Appeal Board (Mattson)
,
In the instant case, however, Employer did not file the Suspension Petition until after Claimant was convicted and once convicted, Claimant's incarcerated time was credited as time-served since it was the same amount of time he was required to serve after his conviction . Therefore, Claimant is not entitled to WC benefits for that time. Just as one is not to be penalized because he cannot afford bail, neither is one to gain a windfall because he did not post bail. It is this latter "result that is absurd [and] unreasonable" which the Majority espouses. 1 Pa.C.S. § 1922(1). Accordingly, Rogele is clearly distinguishable and inapposite to the current case.
In
Henkels & McCoy, Inc. v. Workers' Compensation Appeal Board (Hendrie)
,
Our Supreme Court has long held: "The canons of statutory construction require that a statute be read in a manner which
will effectuate its purpose
, a task which
compels consideration of more than the statute's literal words
."
Pa. Human Relations Comm'n v. Chester Sch. Dist.
,
The Majority states, "[a]s Claimant notes, it is uncertain whether, had he made bail, that the sentencing judge would have imposed the same sentence." Majority Op. at 383 n.21. In addition to Claimant's argument being speculative, the record belies his argument. The facts are undisputed as they are based on Claimant's attorney's stipulation. In order to avoid the prejudice attached to Claimant's guilty plea, Claimant's attorney stipulated to the relevant facts as follows:
[WCJ]: .... With regard to the issue of the court documents, [Claimant's counsel], you're stipulating to - well, say it again since I don't have the papers and you guys do.
[Claimant's counsel]: My client entered into a guilty plea on January [22], 2015. I will stipulate to that. The documents provided by counsel also indicated that [ Claimant ] was sentenced to five hundred twenty-five days with credit for time served up to five hundred twenty-five days as of that date. He was set free on January [22], 2015. I will stipulate to that.
[WCJ]: [Claimant's counsel], as I understand it, there was an incarceration based upon failure to obtain bail.
[Claimant's counsel]: Correct. [Claimant] was charged, a bail was set, and [Claimant] could not afford bail. He remained incarcerated until January [22], 2015.
[WCJ]: I think, [Employer's counsel], that based upon the stipulation, your burden is satisfied. I don't need the court documents to support that which [Claimant's counsel] stipulated to unless the court documents say something other than that.
[Employer's counsel]: If we can just stipulate to the date that he was incarcerated?
[WCJ]: The first date?
[Claimant's counsel]: The first date.
[WCJ]: When is that?
[Employer's counsel]: August [16]th, 2013.
C.R. at 157-158 (emphasis added).
The undisputed record evidence reveals that
Claimant was sentenced to 525 days for his conviction
, that is approximately 1 year, 5 months and 10 days. It is "absurd or unreasonable" and clearly contrary to the legislative intent, for a claimant who can afford bail to have his WC benefits suspended upon conviction, while a claimant who cannot, keeps his WC benefits.
Pa. Cyber Charter Sch.
,
Conclusion
Because the WCJ properly denied Claimant's Review Petition for incorrect AWW and granted Employer's Suspension Petition, I would affirm the Board's order affirming the WCJ's decision.
Related
Cite This Page — Counsel Stack
210 A.3d 372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/c-sadler-v-wcab-philadelphia-coca-cola-pacommwct-2019.