Jensen v. Atlantic Refining Co.

105 A. 545, 262 Pa. 374, 1918 Pa. LEXIS 654
CourtSupreme Court of Pennsylvania
DecidedOctober 7, 1918
DocketAppeal, No. 57
StatusPublished
Cited by8 cases

This text of 105 A. 545 (Jensen v. Atlantic Refining Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jensen v. Atlantic Refining Co., 105 A. 545, 262 Pa. 374, 1918 Pa. LEXIS 654 (Pa. 1918).

Opinion

Opinion by

Mr. Justice Moschzisker,

In accordance with Sec. 410, Act of June 2,1915, P. L. 736, 751, plaintiff, widow of Charles Jensen, entered into a compensation agreement with the Atlantic Refining Company, in whose service her husband had been accidentally killed, whereby the weekly payments due her, as a dependent, were ascertained in a stipulated manner. Subsequently, plaintiff sought to have the agreement in question revised, alleging that “the computation [of compensation] was based upon an incorrect standard of wages of deceased.” The board revised the agreement accordingly; and, on appeal, the court below affirmed. Defendant has appealed to this court.

[376]*376The right of the board to make the revision is not challenged; but the legality of the rule, or method, of computation, which was applied in so doing, is vigorously attacked.

Section 309 (P. L. 745) of the Act of June 2,1915, P. L. 736, supra, provides, inter alia, “In [cases of] continuous employments, if immediately prior to the accident the rate of wages was fixed by the day or hour, or by the output of the employee, his weekly wages shall be taken to be five and one-half times his average earnings at such rate for a working-day of ordinary length, excluding earnings from overtime, and using as a basis of calculation his earnings during so much of the preceding six months as he worked for the same employer.” This provisiofi applies to the present case.

Deceased began work for defendant December 15, 1916, and continued in the latter’s employ until the date of the accident, January 22,1917, a period of thirty-eight calendar days, in which there were six Sundays, two holidays, and six half-holidays, aggregating eleven days. In accordance with the relevant provisions of the agreement in this case, the last-mentioned eleven days were deducted from 38, leaving 27, which was used as the divisor in determining the average daily earnings, for the purpose of calculating the weekly wage, in order to ascertain the compensation payable to claimant.

At the hearing for revision, it appeared, and the board found as a fact, that deceased was sick eight days out of the thirty-eight of his employment with defendant, “and was thus prevented from working those days through no fault of his own”; the board ruled that these eight days also, should be deducted, to find the proper divisor for use in determining Jensen’s average daily earnings — in other words, that the proper divisor for this purpose was 19, and not 27. The correctness of this decision is challenged on the present appeal.

The total earnings of deceased for the period of his employment were $64.45, which, divided by 27, gives a daily [377]*377average of $2.39, and, when this is multiplied by 5y2, a weekly wage of $13.14; 45% whereof, the compensation allowed by the act, is $5.92. If, however, 19 is used for the divisor, instead of 27, the daily average becomes $3.39, the weekly wage $18.65, and the compensation $8.39.

The rule applied in this case reads as follows: “1. Take total earnings for six months preceding the accident, or so much thereof as employee has worked for the same employer. 2. Subtract from said ‘Total Earnings’ all earnings for overtime, if any. 3. Divide remainder thus obtained by number of ‘Working-days.’ 4. For ‘Average Weekly Wage’ multiply above result by five and one-half. Note: ‘Working-days’ shall be construed to mean total number of days in the period of employment covered, according to the calendar, less: (a) Sundays; (b) Legal holidays; (c) Half holiday for each week; (d) Days employee was prevented from working through no fault of his own.” This is one of several general rules adopted by the compensation board as a guide in classes of cases likely to arise, to facilitate the determination of the weekly wage upon which (under Sec. 306, Act of 1915, supra, P. L. 742) the allowance of proportionate compensation is based.

Appellant contends that the phrase, “working-day,”. used in the Act of 1915, supra, must be limited to mean “any day on which work is ordinarily performed, as distinguished from Sundays and holidays”; and, while appellant “freely concedes the power of the Workmen’s Compensation Board to formulate rules and regulations governing the administration of the act,” it contends the above-quoted rule, in its broader construction of the phrase in question, goes beyond “the legal contemplation of the act,” and, therefore, is an unlawful extension thereof or departure therefrom, “under the guise” of an “administrative rule.” These contentions cannot be sustained.

[378]*378The employee might not work every day during the period under investigation, and he might not receive the same daily wage each day he works; recognizing this, the Act of 1915, supra, makes it the duty of the referee or compensation board, in each case, to find the average daily earning, and, by use of the latter in the manner provided by the statute, arithmetically to determine the average weekly wage received by the injured or deceased person, such finding and computation being for the purpose of assistance in fixing the compensation which the claimant is to receive.

That there are several methods by which the average daily earning may be determined, is apparent. First, the actual earnings received during the period must be added together, then, after making such deductions therefrom as are required by the act, the remainder must be divided by the number of “working-days” in the period, in order to find the average wage for a working-day of ordinary length; the statute, in effect, so provides. In determining the required divisor, however, the inquiry arises: What is meant by the phrase, “working-day,” as used in the act? Must the divisor be confined to the number of days the person in question actually worked, or shall it include all days that an opportunity was open so to do, or, again, ought it- to be arrived at by subtracting from such last-mentioned days those on which he failed to work through no fault of his own; ci-r, finally, must some other method be pursued, and, if so, what?

After considering all the suggested questions, and others, we are convinced it was not the legislative purpose to give any fixed, definite meaning to the phrase, “working-day”; but believe it was the intention to leave open, for the compensation board to determine, what, between the parties in interest, under the circumstances of the various kinds of cases likely to arise, should properly be accounted a “working-day.” Of course, with that fact determined, there will be no difficulty as to the divisor required in any given case.

[379]*379Evidently, the compensation board viewed the act as we have just construed it, and, seeing that, because the meaning of the term “working-day” is not defined in the statute, disputes might arise as to how an average daily earning should be computed, that body early adopted rules of computation to fit the various classes of cases which were likely to come before it for determination, including the rule applied at bar, the legality of which is attacked by appellant.

It was the purpose of the legislature to vest those who administer the Workmen’s Compensation Law with broad discretion in the ascertainment of facts: McCauley v. Imperial Woolen Company, 261 Pa. 312.

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Cite This Page — Counsel Stack

Bluebook (online)
105 A. 545, 262 Pa. 374, 1918 Pa. LEXIS 654, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jensen-v-atlantic-refining-co-pa-1918.