Lykins v. Workmen's Compensation Appeal Board

713 A.2d 77, 552 Pa. 1, 1998 Pa. LEXIS 1049

• Court: Supreme Court of Pennsylvania
• Decided: May 27, 1998
• Docket: 52 W.D. Appeal Docket 1996
• Status: Published

Opinions

OPINION

ZAPPALA, Justice.

Appellant, Hubert Lykins, appeals an order of the Commonwealth Court affirming an order of the Workers’ Compensation Appeal Board (Board) which reversed an order of the Workers’ Compensation Judge (WCJ). For the reasons that follow, we reverse.

On July 22, 1991, Appellant sustained a work-related injury to his neck and back while working for New Castle Foundry (Employer). Appellant received total disability benefits until returning to a light duty job in February of 1992, after which he then received partial disability benefits. On March 31, 1994, he again became totally disabled and received total disability benefits of $322.03 per week. On April 16, 1994, Appellant also began receiving unemployment compensation benefits of $239.00 per week.¹

Prior to amendment in July of 1993, Section 204(a) of the Workers’ Compensation Act² (Act) provided “that if the employee receives unemployment compensation benefits, such amount or amounts so received shall be credited as against the amount of the award made under the provisions of § 108.”³ 77 P.S. § 71(a). Act 44 of 1993⁴ amended this section to include, in addition to awards under Section 108, benefits under Sections 306 and 307, concerning total and partial disability benefits. Amended Section 204(a) states, “such [unemployment compensation] so received shall be credited as against the amount of the award or awards made under the provisions of §§ 108 and 306, except for benefits payable under § 306(c) or § 307”.⁵ Thus, prior to Act 44, an employee sustaining a work-related injury, excluding certain occupational diseases, could simultaneously recover both workers’ compensation and unemployment compensation benefits without his employer receiving any credit. After enactment of Act 44, an employer was entitled to a credit equal to the unemployment compensation benefits for those claimants receiving simultaneous benefits.

Employer filed a modification petition on April 15, 1994, seeking a credit against Appellant’s total disability benefits in the amount of unemployment compensation benefits he was receiving. Employer’s petition was predicated upon the 1993 amendments to the Act. At a hearing held on June 14, 1994, the WCJ denied Employer’s modification petition, finding that the pre-Act 44 version of Section 204(a) was controlling. The WCJ concluded that since Appellant was injured prior to the effective date of Act 44, amended Section 204 could not be applied retroactively since it affected Appellant’s substantive rights to benefits.

Employer appealed to the Board, which reversed. The Board determined that the controlling date for application of amended Section 204(a) is not the date of the work injury, but is the date the claimant qualifies to receive unemployment compensation. As Appellant qualified for unemployment compensation benefits in April of 1994, seven months after the effective date of Act 44, the Board found Employer was entitled to a credit of $239.00 per week beginning April 16, 1994.

The Commonwealth Court affirmed. Lykins v. Workmen’s Compensation Appeal Board (New Castle Foundry), 671 A.2d 253 (Pa.Cmwlth.1996). Following the Board’s rationale, the Commonwealth Court found that since Appellant did not file for or begin to receive unemployment compensation until after the effective date of Section 204(a) as amended, Appellant’s substantive right to unemployment benefits was not fixed prior to Act 44.

The scope of appellate review in workers’ compensation proceedings is limited to a determination of whether constitutional rights have been violated, an error of law has been committed, or the findings of fact are supported by substantial evidence. Hershey Chocolate Co. v. Workmen’s Compensation Appeal Board (Tania L. Lasher), 546 Pa. 27, 682 A.2d 1257 (1996).

Appellant asserts that he accrued a substantive right to workers’ compensation benefits when he sustained a work injury on July 22, 1991. Therefore, his rights were governed by the law in effect at the time of his injury, which provided for concurrent recovery. Employer argues that Appellant’s right to receive unemployment compensation did not arise until after the effective date of Act 44. Accordingly, Employer claims it is entitled to a credit based on the law in effect at the time Appellant obtained a right to receive unemployment compensation in April of 1994.

However, whether or when Appellant accrued a substantive right to receive workers’ compensation and unemployment compensation benefits is of no moment in this case because the amended Section 204(a) is not applicable to Appellant. Section 26 of Act 44 specifically limits the class of workers’ compensation claimants to whom the amendments of Act 44 are applicable. Section 26 states that “no changes in indemnity compensation payable by this Act shall affect payments of indemnity compensation for injuries sustained prior to the effective date of this section.”

The amended Section 204(a) constitutes a “change in indemnity compensation payable” when compared to the preamendment Section 204(a). Prior to Act 44, the indemnity compensation payable to an employee sustaining a work-related injury, excluding certain occupational diseases, and receiving simultaneous unemployment compensation benefits was the claimant’s full workers’ compensation benefits. The claimant’s employer received no credit. With the enactment of Act 44, however, the indemnity compensation payable to an employee receiving simultaneous unemployment compensation benefits became the claimant’s full workers’ compensation benefits minus the amount of the claimant’s unemployment compensation benefits (i.e., the employer’s credit).

Appellant suffered a work-related injury in July of 1991, two years before the effective date of Act 44. Therefore, Section 26 exempts him from the class of workers’ compensation claimants to whom the change in indemnity compensation payable under the amended Section 204(a) is applicable. Since Section 204(a) is not applicable to Appellant, retroactivity is not an issue in this case.

The parties’ rights and obligations are governed by the preamendment Section 204(a) of the Act and Employer is therefore not entitled to a credit against the amount of the workers’ compensation benefits. Accordingly, the order of the Commonwealth Court is reversed.

NEWMAN, J., did not participate in the consideration or decision of this case. NIGRO, J., files a concurring opinion.

1 . An employee may be entitled to unemployment compensation while simultaneously receiving workers’ compensation benefits. See 43 P.S. §§ 751-914. This unique circumstance occurs where an employee is receiving total disability benefits or has returned to work under a suspension status and is laid off for some reason other than lost earning power through no fault of his own. Under those facts, the employee is entitled to receive workers’ compensation and unemployment compensation benefits. See Fells v. Workmen’s Compensation Appeal Board (Caterpillar Tractor Co.), 122 Pa.Cmwlth. 399, 552 A.2d 334 (1988) (claimant received workers’ compensation for partial disability and unemployment compensation while on suspension status where claimant was laid off from his pre-injury job due to economic conditions and was unable to secure employment within his physical limitations).

Instantly, the record is unclear as to what facts gave rise to Appellant's eligibility for unemployment compensation. However, Employer does not dispute Appellant’s eligibility to receive unemployment compensation benefits concurrent with his workers’ compensation benefits, it merely seeks a credit under Act 44.

2 . Act of June 2, 1915, P.L. 736, as amended.

3 . Section 108 of the Act, 77 P.S. § 27.1, concerns benefits for certain occupational diseases.

4 . Act of July 2, 1993, P.L. 190, effective in 60 days.

5 . Section 306(a), 77 P.S. § 511, concerns total disability benefits, while Section 306(b), 77 P.S. § 512, concerns partial disability benefits. Section 306(c), 77 P.S. § 513, pertains to benefit rates for specific loss injuries and Section 307, 77 P.S. § 561, concerns compensation to certain individuals upon the death of an employee.