Dominquez v. Industrial Commission

529 P.2d 732, 22 Ariz. App. 578, 1974 Ariz. App. LEXIS 541
CourtCourt of Appeals of Arizona
DecidedDecember 19, 1974
Docket1 CA-IC 1094
StatusPublished
Cited by9 cases

This text of 529 P.2d 732 (Dominquez v. Industrial Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dominquez v. Industrial Commission, 529 P.2d 732, 22 Ariz. App. 578, 1974 Ariz. App. LEXIS 541 (Ark. Ct. App. 1974).

Opinion

OPINION

OGG, Judge.

This appeal squarely places at issue the proper method of determining the average monthly wage of an injured seasonal worker. Moreover, this court must determine whether the hearing officer of the Industrial Commission erred by using a twelve month period as the divisor in his calculations of average monthly wage when the worker was only afforded a five month employment period.

Reynaldo Dominquez is a fruit picker. On February 3, 1973, Dominquez was injured while picking fruit when an aluminum ladder upon which he was standing came in contact with electrical wires. This event occurred on Dominquez’ first day of work. On April 6, 1973, the Commission approved the respondent carrier’s average monthly wage calculation. The method used by the hearing officer is reflected in Finding Fourteen (14) of the Decision Upon Review:

“Wage pattern of other employees of the defendant employer for the period from January 7, 1973 through February 7, 1973: Employee number one, $408.00; employee number two, $412.00; total earnings of both other employees equaling $820.00 divided by 64 (the total number of days both employees worked) resulting in a daily rate of $12.81 multiplied by 30.416 (the number of days in a month) which would result in a monthly wage of $389.63.
However, because work was available to the applicant and to the similar employees for no more than 5 months out of the year, the sum of $389.63 must be multiplied by 5 which would result in yearly earnings of $1,948.15 divided by 12 months, resulting in an average monthly wage of $162.35.”

Petitioner contends that the method used was correct in arriving at a monthly wage of $389.63; however, he also contends that the hearing officer should have stopped at that point rather than multiplying the $389.63 by the number of months in which work was available (5) and then dividing by the number of months in a year (12) to arrive at an average monthly wage of $162.35.

*580 We find that the monthly wage of $389.63 was properly calculated. Vinyard v. Industrial Commission, 106 Ariz. 164, 472 P.2d 33 (1970). This finding does not resolve the issue of whether the use of 12 months as the denominator in the calculation of average monthly wage was proper. Section 23-1041 (B), ARS, provides that:

“B. If the injured or killed employee has not been continuously employed for the period of thirty days immediately preceding the injury or death, the average monthly wage shall be such amount as, having regard to the previous wage of the injured employee or of other employees of the same or most similar class working in the same or most similar employment in the same or neighboring locality, reasonably represents the monthly earning capacity of the injured employee in the employment in which he is working at the time of the accident.”

Since petitioner was injured during his first day of employment, subsection B is the cornerstone upon which a compensation determination is made. Subsection B does not distinguish between the fulltime employee and the seasonal worker. There is no indication that different methods are to be used, depending upon the employment period. The only requirement that must prevail to fall within subsection B is that the “employee has not been continuously employed for the period of thirty days immediately preceding the injury . . . ” From this observation we can only conclude that if variations of average wage calculations exist, they arise from an inherent discretion in the Industrial Commission which has been sustained by the courts of this State. Indeed, it has been continuously noted that the Arizona statute is devoid of formulas to which the Commission must adhere and that the intent of the legislature was to vest the Commission with discretion and flexibility in arriving at a proper award. Gene Autry Productions v. Industrial Commission, 67 Ariz. 290, 195 P.2d 143 (1948); Floyd Hartshorn Plastering Co. v. Industrial Commission, 16 Ariz.App. 498, 504, 494 P.2d 398, 404 (1972).

The scope of this discretion is unclear in light of Arizona case law. In a discussion of § 23-1041 (B), the Arizona Supreme Court observed that:

“[t]he mandate of the statute is clear. If an employee has not worked- for one full month, his average monthly wage for the purpose of computing his compensation is that of similar employees in the same or neighboring locality . . There is, therefore, no need to go back one year ... or five years . to ascertain the employee’s average monthly wage.” Vinyard v. Industrial Commission, 106 Ariz. 164, 165, 472 P.2d 33, 34 (1970).

If the discretion of the Commission is limited in this determination, then when does it exist? We conclude that it exists in determining the “average monthly wage [which] reasonably represents the monthly earning capacity of the employee.”

It must be noted that the phrase “average monthly wage” has two very different meanings. Section 23-1041 (B) says that an amount which represents the monthly earning capacity of the employee on the job in which he is engaged at the time of injury must be determined. For the purpose of this analysis that amount will be labeled “monthly wage.” The hearing officer, in this case, determined that the “monthly wage” was $389.63. This figure was computed by comparison of the wages of persons in a similar employment in the same locality. This method was correct and in accordance with § 23-1041(B). It is clear that this calculation is not the end of the process. In the case of the seasonal worker the hearing officer must then decide whether the $389.63 “monthly wage” should be awarded as the average monthly wage or whether further calculation is necessary to arrive at a different average monthly wage. Dominquez, if not injured, could have worked for a total of 5 months. The hearing officer multiplied the “monthly wage” ($389.63) by the *581 potential duration of employment (5 months). He then divided the product by 12 months, arriving at an “average monthly wage” of $162.35. There is a substantial difference between these figures, yet each potentially represents an “average monthly wage.”

It appears, therefore, that there are actually two determinations made in the case of the seasonal worker; the “monthly wage” and the “average monthly wage.” This distinction is elusive; however, this court has attempted to delineate the distinction in Floyd Hartshorn Plastering Co. v. Industrial Commission, supra. While Hartshorn does not explicitly address the distinction between monthly wage and average monthly wage in the context of the seasonal worker, the underlying concept embraced is clear:

“[t]his Court recognizes that there might exist circumstances which would require the Commission to base a claimant’s average monthly wage upon what he might have earned rather than upon his actual earnings. A good example of such circumstances are those described in subsection B of A.R.S.

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Bluebook (online)
529 P.2d 732, 22 Ariz. App. 578, 1974 Ariz. App. LEXIS 541, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dominquez-v-industrial-commission-arizctapp-1974.