Gendreau v. Tri-Community Recycling

1998 ME 19, 705 A.2d 1106, 1998 Me. LEXIS 21
CourtSupreme Judicial Court of Maine
DecidedJanuary 26, 1998
StatusPublished
Cited by7 cases

This text of 1998 ME 19 (Gendreau v. Tri-Community Recycling) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gendreau v. Tri-Community Recycling, 1998 ME 19, 705 A.2d 1106, 1998 Me. LEXIS 21 (Me. 1998).

Opinion

CLIFFORD, Justice.

[¶ 1] The employee, Alfred Gendreau, appeals from a decision of the Workers’ Compensation Board granting his petition for restoration, but permitting the employer a credit in the amount of sick leave payments received by the employee during his period of incapacity. Because we agree with the Board that the employer’s sick leave policy in this case constitutes a “wage continuation plan” that may be offset against workers’ compensation benefits, we affirm the decision of the Board.

[¶ 2] Gendreau suffered a work-related neck-injury on November 10,1991, while employed at Tri-Community Recycling. Gen-dreau subsequently suffered a stress-related injury in July 1994 that was related, in part, to his previous neck-injury and, in part, to work-related stresses that Gendreau experienced after the injury. Tri-Community paid Gendreau sick leave pay into September 1994. Gendreau has not returned to work. Gendreau filed a petition for restoration and the Board granted the petition, awarding short-term total benefits from the period beginning July 7, 1994 and ending September 15,1994.

[¶ 3] A dispute arose after the decree was issued concerning whether Tri-Community was entitled to an offset for the sick leave payments made during the period of total incapacity, and Gendreau filed a motion for findings of fact on this issue. Because the issue was not addressed at the original hearing, a conference was held to discuss resolution of the dispute. At the Board’s request, Tri-Community’s attorney submitted a letter to the Board that summarized the employer’s unwritten absentee and sick pay policy:

Tri-Community Recycling is an extremely small operation. At the time of Mr. Gendreau’s hiring, there were four employees. This employer has not *1107 adopted a personnel policy manual outlining the company’s policies. I have been told by Ken Hensler, who you will recall testified in this case, that there is a policy on absenteeism/extended absenteeism, but the policy has never been reduced to writing. Employees of Tri-Community Recycling are entitled to absenteeism benefits after working for the Company for six months. After six months, the employee is allowed to accrue one day per month up to 90 days or 720 hours. The policy applied to Mr. Gendreau, and it is the policy under which he collected benefits immediately after he left work.

Gendreau does not dispute that this is an accurate description of the company sick leave policy. The Board denied Gendreau’s motion, concluding that because there was no evidence that his sick pay could be “cashed out” when the employee terminates service, it was a “wage continuation plan” pursuant to 39-A M.R.S.A. § 221(1)(B) (Supp.1997), 1 and therefore, could be offset against workers’ compensation benefits pursuant to 39-A M.R.S.A. § 221 (3)(A)(2) (Supp.1997). We granted Gendreau’s petition for appellate review pursuant to 39-A M.R.S.A. § 322 (Supp. 1997).

Section 221 provides, in pertinent part:

§ 221. Coordination of benefit
1. Application. This section applies when either weekly or lump sum payments are made to an employee as a result of liability pursuant to section 212 or 213 with respect to the same time period for which the employee is also receiving or has received payments for:
B. Payments under a self-insurance plan, a wage continuation plan or a disability insurance policy provided by the employer....
3. Coordination of benefits. Benefit payments subject to this section must be reduced in accordance with the following provisions:
A. The employer’s obligation to pay or cause to be paid weekly benefits other than benefits under section 212 subsection 2 or 3 is reduced by the following amounts:
(2) The after-tax amount of the payments received or being received under a self-insurance plan or a wage continuation plan or under a disability insurance policy provided by the same employer from whom benefits under section 212 or 213 are received if the employee did not contribute directly to the plan or to the payment of premiums regarding the disability insurance policy....

39-A M.R.S.A. § 221. (emphasis added).

[¶ 4] Gendreau contends that because the sick leave payments were made pursuant to an informal, unwritten policy, they cannot be considered payments pursuant to a “wage continuation plan." We disagree. The statute does not require that the plan be in writing. Although Tri-Community did not have a written plan, Gendreau concedes that Tri-Community had a definite plan and that he received sick leave payments pursuant to that plan.

[¶ 5] Gendreau also contends that because the duration of sick leave pay was dependent on the length of the employees’ service, it was an “earned benefit,” and, therefore, must be treated as compensation for past service, not a wage continuation plan. This argument is based not on the plain statutory *1108 language, but on the theory that Gendreau contends underlies the offset. See 1C A. Larson, The Law of Workmen’s Compensation, § 57.46(e) (1993) (A “type of payment for which credit is usually disallowed is any kind of sick pay or vacation pay of which it can be said that the claimant’s entitlement to the payment is based on past service rather than on the injury as such” (footnotes omitted)). We are unpersuaded by Gendreau’s contention.

[¶ 6] Workers’ compensation statutes in some states have been narrowly interpreted to preclude a credit for sick leave benefits that are exhaustible, see e.g., Temple v. Department of Highways, 445 Pa. 539, 285 A.2d 137, 140 (1971); Peoples Natural Gas Co. v. Workmen’s Compensation Appeal Bd., 65 Pa.Cmwlth. 119, 441 A.2d 1364, 1367 (1982), or that are not limited to work-related injuries, but may be used for nonwork-related illnesses, see e.g., Tee-Pak, Inc. v. Industrial Comm’n of Illinois, 141 Ill.App.3d 520, 95 Ill.Dec. 697, 703-04, 490 N.E.2d 170, 176-77 (4th Dist.1986). Other jurisdictions, however, provide for such a set off, see e.g., Appleby v. Workers’ Compensation Appeals Bd., 27 Cal.App.4th 184, 32 Cal.Rptr.2d 375, 379-80 (2 Dist.1994); Morgan v. New York State Dev. Ctr., 166 A.D.2d 765, 563 N.Y.S.2d 125, 126 (3 Dept.1990).

[¶ 7] The plain language of section 221 of the Maine statute provides a credit to employers for payments made pursuant to a “wage continuation” plan. 2 The language led the Board to reasonably conclude that a “wage continuation plan” is a plan that is intended to replace an employee’s wages during a period of disability. Tri-County’s plan did exactly that. Decisions of the Board interpreting the Workers’ Compensation Act are entitled to deference unless the statute plainly compels a contrary result. Jordan v.

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Bluebook (online)
1998 ME 19, 705 A.2d 1106, 1998 Me. LEXIS 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gendreau-v-tri-community-recycling-me-1998.