Donahue v. Workers' Compensation Appeal Board

856 A.2d 230, 2004 Pa. Commw. LEXIS 557
CourtCommonwealth Court of Pennsylvania
DecidedJuly 22, 2004
StatusPublished
Cited by5 cases

This text of 856 A.2d 230 (Donahue v. Workers' Compensation Appeal Board) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Donahue v. Workers' Compensation Appeal Board, 856 A.2d 230, 2004 Pa. Commw. LEXIS 557 (Pa. Ct. App. 2004).

Opinion

OPINION BY

Judge LEAVITT.

Joseph Donahue (Claimant) petitions for review of an adjudication of the Workers’ Compensation Appeal Board (Board) refusing to reinstate Claimant’s suspended benefits or to impose penalties on Claimant’s employer for suspending benefits. In so adjudicating, the Board affirmed the decision of a Workers’ Compensation Judge (WCJ) that the suspension was appropriate because otherwise Claimant would have been compensated at a higher level than employees doing the work he was doing at the time of his injury.

On December 19, 1999, Claimant sustained a left shoulder and lower back strain in the course and scope of employment with Philadelphia Gas Works (Employer). Pursuant to a Notice of Compensation Payable (NCP), Claimant received weekly indemnity benefits at the rate of $588 based upon an average weekly wage of $1,133.30. On November 20, 2001, Claimant returned to employment at his *232 pre-injury position. On November 27, 2001, Claimant received a notice that, effective November 20, 2001, his disability benefits were suspended because he had returned to work on that date at earnings equal to or greater than his time-of-injury earnings. 1 In response, on December 13, 2001, Claimant filed a Petition to Challenge the Notification of Suspension 2 and in connection therewith requested a super-sedeas. On May 3, 2002, Claimant filed a Penalty Petition alleging that Employer had terminated Claimant’s indemnity benefits improperly and had filed a fraudulent notification of suspension, in violation of the Pennsylvania Workers’ Compensation Act (Act). 3

At a hearing before the WCJ, Jane Elizabeth Lewis, Employer’s Director of Risk Management, testified. She explained Employer’s procedures for recalculating partial disability benefits, which include giving notice to employees of the changes and an opportunity to challenge the calculation. Employer developed this adjustment procedure to eliminate disparities in compensation between employees doing the same work. Department, heads were reluctant to offer light duty employment to employees on disability because the combination of wages and partial disability often resulted in total compensation in excess of that earned by fellow employees, thereby causing resentment. Lewis testified that “a lot of people were bringing home up to $200, $300, $400 more money ... for doing the same work, as the guys next to them.” Reproduced Record 16a (R.R.-). ■

To address this problem, Employer developed a weekly report to document the earnings of each employee for each week in each job classification. This report produced an average weekly wage for all employees in the same job classification. In any case that partial disability benefits plus actual earnings do not coincide with the average weekly wage earned by others with the same job classification, adjustments are made. Specifically, if wages alone are less than the average per classification, an employee is paid the difference between the average and actual earnings, tax free. If wages plus partial disability benefits are less than the average per classification, the employee is paid two-thirds of the difference between the average weekly wage and actual wages. In a week where wages alone exceed the average compensation per classification, partial disability benefits will be suspended.

This adjustment procedure was applied to Claimant when he returned to work on November 20, 2001. Because Claimant’s actual wages that week exceeded the average wage for his job classification, his partial disability benefits were suspended. 4 Thereafter, Employer issued weekly notices as the calculations under its procedure changed. 5

*233 On cross-examination, Lewis acknowledged that with the exception of the week of January 28, 2002, Claimant did not earn a weekly wage equal to or greater than his weekly wage at the time of his injury. Lewis conceded that Claimant had not returned to work at his pre-injury wages, stating

[B]y suspension ... what was meant [was] that his entitlement to a partial was suspended. We recognized that the form was not exact but ... in lack of a better form, that’s the one we used.

R.R. 38a. She explained that the Bureau of Worker’s Compensation (Bureau) Form LIBC-751, which must be issued when a claimant is no longer entitled to total disability benefits, was not large enough to explain Employer’s adjustment procedures. However, Employer sent a letter to Claimant with each paycheck for the week in question, explaining the calculation. Further, Employer’s adjustment procedure had been reviewed by and discussed with the Bureau, the union, including the union president, and with employees.

After conclusion of hearings, the WCJ issued a decision denying Claimant’s Challenge Petition and Penalty Petition. Consistent with these holdings, the WCJ denied Claimant’s request for a supersedeas. The WCJ concluded that Employer’s procedure, designed to eliminate disparities in wages for the same work, was authorized by Section 306(b)(1) of the Act. 6 Thus, she concluded that Claimant had failed to show that his benefits had been improperly suspended or that the suspension notice was fraudulent. The Board affirmed the WCJ, and Claimant petitioned for our review.

On appeal, Claimant presents three arguments for our consideration. 7 First, he argues that the Board erred by failing to reinstate Claimant’s compensation after the WCJ did not enter an order within 14 days of the special supersedeas hearing. Second, the Board erred by not setting aside the Notice of Suspension as void because it contained false statements. Third, the Board erred by concluding the Employer properly calculated Claimant’s partial disability payments without reference to Claimant’s overtime.

Claimant first argues that he is entitled to reinstatement of his total disability benefits of $588 per week, which he was paid prior to receiving his suspension notice, because the WCJ failed to issue a written order by January 29, 2002, approving the suspension or modification. 8 He contends that he is owed this benefit through April *234 25, 2003, without diminution by reason of his earnings. Claimant asserts that a regulation of the Department of Labor and Industry mandates continued disability whenever a WCJ fails to meet the deadlines for deciding a Claimant’s supersedeas request.

In 1996, the Act was amended to streamline procedures in those cases where there is no dispute that a claimant has returned to work. Hinkle v. Workers’ Compensation Appeal Board (General Elec. Co.), 808 A.2d 1036 (Pa.Cmwlth. 2002). These amendments authorize’ an employer to suspend or modify benefits unilaterally, i.e.,

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856 A.2d 230, 2004 Pa. Commw. LEXIS 557, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donahue-v-workers-compensation-appeal-board-pacommwct-2004.