Kimberly Haller v. Champlain College

2017 VT 86, 177 A.3d 497
CourtSupreme Court of Vermont
DecidedSeptember 29, 2017
Docket2016-332
StatusPublished
Cited by5 cases

This text of 2017 VT 86 (Kimberly Haller v. Champlain College) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kimberly Haller v. Champlain College, 2017 VT 86, 177 A.3d 497 (Vt. 2017).

Opinions

ROBINSON, J.

*498¶ 1. The question in this workers' compensation case is whether employer Champlain College is obligated to include in claimant Kimberly Haller's average weekly wage calculation the value of tuition-free college credits she earned in accordance with employer's graduate tuition policy. On cross-motions for summary judgment, the Commissioner of the Department of Labor concluded that the tuition benefits provided by employer and used by claimant was an "other advantage" that constituted part of claimant's wages. 21 V.S.A. § 601(13). We agree and affirm.

¶ 2. The relevant facts here are undisputed. At all times relevant to these proceedings claimant was an employee of Champlain College for purposes of Vermont's workers' compensation laws. On March 10, 2014, claimant suffered a work-related injury, which employer has accepted. At the time of her injury, claimant was employed as employer's Recruitment Director.

¶ 3. Since May 2012, claimant had taken numerous courses at Champlain College pursuant to its "Tuition Benefits" policy. That policy allows college employees, their spouses, and eligible dependent children to take undergraduate and graduate courses on a space-available basis, tuition free. In relevant part, § 4.3.1 of employer's Tuition Benefits policy provides1 :

Employees of the College may normally take for-credit Graduate courses tuition-free on a "space-available" basis. If an individual is matriculating in a degree program every effort will be made to accommodate that student in the current term and if space prohibits then the student will be seated in the following terms for that course ....
Books, residency costs, labs, fees and other non-tuition expenses are not paid for by the College. IRS regulations determine the maximum amount of tuition value, per calendar year, that need not be reported as taxable wages. Note: IRS regulations stipulate that tuition benefits valued at over $5,250 per calendar year are to be reported as taxable wages on the employee's W-2 form unless the amount is excludable as a "working condition fringe."
Champlain College pays the employer FICA taxes on taxable wages. The employee is responsible for all other taxes. Employee taxes are deducted during normal payroll cycles. This benefit is not available to retirees.

¶ 4. During the twenty-six weeks prior to her work-related injury, claimant completed ten and one half credits of classwork at Champlain College. She paid no money for these course credits. Claimant considered the free tuition policy to be one of the benefits of working for employer as it allowed her to work toward, and earn, a graduate degree without paying any tuition. This free tuition was a substantial financial benefit to claimant and was one of the reasons she chose to work for employer.

*499¶ 5. The issue presented to the Commissioner on cross-motions for summary judgment was whether the value of these tuition benefits should be included in the calculation of claimant's average weekly wage for the purposes of her permanent partial disability benefit.2 "Wages" are defined to include "bonuses and the market value of board, lodging, fuel, and other advantages which can be estimated in money and which the employee receives from the employer as a part of his or her remuneration." 21 V.S.A. § 601(13). The specific issue in this case is whether claimant's tuition benefits fall within "other advantages which can be estimated in money and which the employee receives from the employer as part of his or her remuneration." Id.

¶ 6. In analyzing this question of first impression, the Commissioner first distinguished this Court's recent decision that the value of employer-provided health insurance benefits should not be included in the calculation of wages. See Lydy v. Trustaff, Inc., 2013 VT 44, 194 Vt. 165, 76 A.3d 150. In determining whether the tuition benefit should be included in the wage calculation, the Commissioner considered three questions gleaned from prior Department decisions: First, is the benefit a "significant part" of the compensation? Second, does the employee derive true value from the offered benefit or is it a benefit that means little to the employee except as an enhancement to an average weekly wage? And third, is the value of the benefit reasonably subject to objective valuation?

¶ 7. Noting the remedial nature of the workers' compensation laws, the Commissioner answered the above questions in the affirmative. The free tuition was a substantial benefit to claimant and was one of the reasons she worked at Champlain College. She derived true value from the program; she had taken advantage of it from 2012 until 2014 and was using it to acquire a master's degree. And, finally, the benefit was subject to simple valuation.3 The Commissioner explained that including the value of the free tuition in claimant's wage calculation would not upset the "delicate balance" struck between employees and employers in the workers' compensation setting and concluded that the free tuition benefit claimant received qualified as an "other advantage" that can be easily estimated and that was paid to her as remuneration for her work.

¶ 8. Employer appealed, and the Commissioner certified for our review the question of whether employer was obligated to include in claimant's average weekly wage calculation the value of tuition-free *500college credits earned by claimant in accordance with its employee tuition policy.

¶ 9. On appeal, employer argues first and foremost that this Court's recent ruling that employer-provided health insurance benefits are not "other advantages" included within the definition of wages dictates the outcome of this case. See Lydy, 2013 VT 44, 194 Vt. 165, 76 A.3d 150. Employer further argues that the benefit in question did not amount to "remuneration," 21 V.S.A. § 601(13), that the Commissioner's determination that the tuition benefit was capable of simple valuation was based on a mistake of fact, and that the Commissioner's decision will upset the "delicate balancing" between an injured worker's right to compensation and an employer's right to limited and determinate liability. Lydy, 2013 VT 44, ¶ 19, 194 Vt. 165, 76 A.3d 150.

¶ 10. In construing a statute, "[o]ur paramount goal ...

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Bluebook (online)
2017 VT 86, 177 A.3d 497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kimberly-haller-v-champlain-college-vt-2017.