Department of Rehabilitation v. Workers' Compensation Appeals Board

70 P.3d 1076, 135 Cal. Rptr. 2d 665, 30 Cal. 4th 1281, 20 I.E.R. Cas. (BNA) 110, 2003 Cal. Daily Op. Serv. 5614, 68 Cal. Comp. Cases 831, 2003 Daily Journal DAR 7051, 2003 Cal. LEXIS 4198
CourtCalifornia Supreme Court
DecidedJune 26, 2003
DocketS100557
StatusPublished
Cited by54 cases

This text of 70 P.3d 1076 (Department of Rehabilitation v. Workers' Compensation Appeals Board) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Department of Rehabilitation v. Workers' Compensation Appeals Board, 70 P.3d 1076, 135 Cal. Rptr. 2d 665, 30 Cal. 4th 1281, 20 I.E.R. Cas. (BNA) 110, 2003 Cal. Daily Op. Serv. 5614, 68 Cal. Comp. Cases 831, 2003 Daily Journal DAR 7051, 2003 Cal. LEXIS 4198 (Cal. 2003).

Opinion

Opinion

WERDEGAR, J.

We address in this case two issues concerning the administration of the workers’ compensation scheme in this state that have escaped definitive resolution. First, when an employee who has suffered an industrial injury returns to work following a determination the injury has become permanent and stationary, is the employee entitled to temporary disability indemnity (TDI) to compensate him for time off from work while pursuing continuing medical treatment for that permanent injury? Second, does an employer discriminate against the injured employee within the meaning of Labor Code 1 section 132a if it requires the employee to use sick and vacation leave when away from the workplace seeking treatment for his permanent injury? We answer both questions in the negative. 2

Facts

Applicant Ronald Lauher had worked as a rehabilitation counselor for petitioner Department of Rehabilitation (employer) for 25 years when he *1287 submitted a claim for workers’ compensation benefits based on work-related stress and depression. Dr. Donald Houts submitted a report stating Lauher suffered from Gerstmann’s Syndrome, i.e., a brain lesion causing Lauher to experience learning disabilities, but that he had responded to a number of medications, and his condition was permanent and stationary. Based on this medical report, Lauher entered into a stipulation with his employer and the employer’s adjusting agency, State Compensation Insurance Fund (SCIF), concluding he had suffered a compensable industrial injury to his psyche causing temporary disability, and that this injury produced a permanent disability of 23 percent, compensable at $140 per week, to a total of $11,970. The stipulation further stated that “[tjhere IS a need for medical treatment to cure or relieve from the effects of said injury. As specified in the report of Donald Houts, M.D., dated 05/12/97.”

The workers’ compensation judge (WCJ) thereafter accepted the stipulation and denied Lauher’s additional claims for penalties under section 132a based on allegations that his supervisor had made harassing telephone calls to Lauher and his family, and that employer, before agreeing to the stipulation, had discriminated against Lauher by requiring that he use accrued sick and vacation time for absences to attend medical appointments. The WCJ denied a petition for reconsideration, as did the Workers’ Compensation Appeals Board (WCAB or the Board).

After agreeing to the stipulation, Lauher returned to work. He also continued to see Dr. Houts for treatment. Dr. Houts was available for appointments only during regular business hours. Lauher’s round-trip journey from his office to Dr. Houts’s office is 58 miles. Depending on the traffic, it took Lauher between two and one-half hours to four hours to drive to Dr. Houts’s office, have a session with him, and return to Lauher’s place of employment. Employer informed Lauher he would not be paid his full salary unless he took sick leave or vacation time for time spent away from his office seeing Dr. Houts. Lauher used close to 200 hours of either sick leave or vacation time to cover his medical appointments with Dr. Houts.

Lauher then filed the petition that forms the basis of this case, seeking reimbursement for the sick and vacation leave his employer docked him for time he spent seeing Dr. Houts for poststipulation treatment, as well as penalties for discrimination pursuant to section 132a. SCIF responded and explained that it had paid Lauher industrial disability leave and TDI for- his period of temporary disability, but that he was not entitled to receive either benefit in the future because his industrial injury had become permanent and stationary. Because, according to the stipulation, Lauher was entitled to *1288 “future medical treatment,” SCIF alleged that employer “continues to provide” for such treatment and denied any discrimination: “[Employer] has not discriminated against the applicant regarding non-reinstatement/reimbursement of leave time. The Employer’s policy in this regard is based on good faith business necessity and has been universally applied in industrial and non-industrial injuries.”

The WCJ ruled that Lauher “established a nexus between his industrial injury and [his employer’s] conduct of requiring him to take sick leave to attend doctor’s appointments.” Specifically, citing section 4600, the WCJ ruled that Lauher was “entitled to workers’ compensation benefits in the form of medical treatment” and that includes “ ‘all reasonable expenses of transportation, meals and lodging’ and ‘one day of temporary disability indemnity for each day of wages lost. . . .’ The worker’s permanent and stationary status has no bearing on his entitlement to receive treatment. Labor Code § 4600 does not say that the worker will be considered temporarily disabled on the day that he goes for treatment, but it says that the worker will be entitled to receive temporary disability indemnity for each day of lost wages. If a worker goes for treatment and must miss time from work, the worker should not be assessed sick leave but, rather, should be paid at the temporary disability rate for the time lost.” Further, the WCJ held employer had not established that a good faith business necessity justified docking Lauher’s sick leave under these circumstances and concluded employer had unlawfully discriminated against Lauher. Accordingly, the WCJ ordered employer to pay a penalty of 10 percent “of the cost of all past, present and future medical treatment in this case” and also ordered employer to pay Lauher $10,000 for violating section 132a. The WCJ thereafter denied a petition for reconsideration; the WCAB, over one dissent, affirmed.

The Court of Appeal disagreed with the WCAB, finding Lauher had not met his burden of presenting a prima facie case of discrimination under section 132a. Accordingly, the appellate court annulled the WCAB’s decision. We granted Lauher’s petition for review.

Discussion

A. Background

More than 90 years ago, our Legislature was directed to “create and enforce a liability on the part of all employers to compensate their employees for any injury incurred by the said employees in the course of their employment irrespective of the fault of either party.” (Cal. Const., former art. XX, §21, added Oct. 10, 1911.) This language was modified by an *1289 amendment adopted on November 5, 1918, 3 which is in the current state Constitution, as renumbered, without substantive change. (Cal. Const., art. XIV, § 4.) The Legislature complied with this directive by enacting various provisions of the Labor Code. This statutory scheme “rest[s] on the underlying notion that the common-law remedy [for industrial injuries to workers], with the requirements of proof incident to that remedy, involves intolerable delay and great economic waste, gives inadequate relief for loss and suffering, operates unequally as between different individuals in like circumstances, and that, whether viewed from the standpoint of the employer or that of the employee, it is inequitable and unsuited to the conditions of modem industry.” (Western Indemnity Co. v. Pillsbury

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Bluebook (online)
70 P.3d 1076, 135 Cal. Rptr. 2d 665, 30 Cal. 4th 1281, 20 I.E.R. Cas. (BNA) 110, 2003 Cal. Daily Op. Serv. 5614, 68 Cal. Comp. Cases 831, 2003 Daily Journal DAR 7051, 2003 Cal. LEXIS 4198, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-rehabilitation-v-workers-compensation-appeals-board-cal-2003.