Nesco v. Haddix

339 S.W.3d 465, 2011 Ky. LEXIS 83, 2011 WL 2118755
CourtKentucky Supreme Court
DecidedMay 19, 2011
Docket2010-SC-000216-WC, 2010-SC-000247-WC
StatusPublished
Cited by7 cases

This text of 339 S.W.3d 465 (Nesco v. Haddix) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nesco v. Haddix, 339 S.W.3d 465, 2011 Ky. LEXIS 83, 2011 WL 2118755 (Ky. 2011).

Opinion

OPINION OF THE COURT

An Administrative Law Judge (ALJ) found that the claimant’s work for the defendant-employer’s temporary employment agency was sporadic but failed to specify whether KRS 342.140(l)(d) or (l)(e) was used to calculate her average weekly wage. The Workers’ Compensation Board reversed and remanded the claim for further proceedings to include the taking of additional proof and an analysis of the evidence under KRS 342.140(l)(e). This appeal and cross-appeal are taken from a decision by the Court of Appeals to affirm.

Appealing, the employer argues that which subsection of KRS 342.140(1) applies is a factual determination to be made by the ALJ; that the ALJ committed harmless error by failing to specify the subsection of KRS 342.140(1) used in the average weekly wage calculation; and that additional proof should not be permitted on remand. The claimant defends the Court of Appeals’ decision but also argues in a cross-appeal that the record compels a finding under KRS 342.140(l)(e) that her average weekly wage was $320.00.

We affirm in part and reverse in part. Whether KRS 342.140(l)(d) or (l)(e) controls the facts as found is a legal question. The ALJ did not commit harmless error by failing to specify the subsection relied upon and must analyze the evidence under KRS 342.140(l)(e) on remand. We reverse with respect to the decision to reopen proof because the claimant has argued from the outset that KRS 342.140(l)(e) controls the calculation. The record contains adequate evidence to apply the statute under the present circumstances and does not compel the finding that either party seeks.

The claimant was born in 1960. She completed high school, after which she worked for various employers and government programs as a food service worker, nurse’s aide, day care worker, and assembly line worker. Much of the work was temporary. In 2005 she began working for Nesco, a staffing service. Nesco placed her with several different businesses at which she performed various types of work for various periods of time. The employment was not continuous. Nesco placed her on “availability call” between assignments and called her near the end of an assignment to inform her if another placement was available. Sometimes she declined available jobs.

Nesco placed the claimant at Star Manufacturing on April 24, 2007. She worked there for about four weeks. Nesco then placed her at another business briefly. She declined Nesco’s next placement offer. On August 6, 2007 Nesco sent her back to Star to perform the same work that she had done previously. Two days later, on August 8, 2007, she slipped in some oil, fell, and injured her neck. Nesco placed her on light duty for a while but eventually terminated her, after which she sought workers’ compensation benefits. She testified that she was the only employee Star requested in August 2007 and later characterized the position as being “temp-to-hire,” which meant that Star would hire *468 her as its permanent employee when a position became available.

Julie Gammon, an area manager for Nesco, testified at the hearing that the company placed individuals in jobs under various types of arrangements such as temp-to-hire, temporary services, direct placements, and temporary work. She stated that sometimes Nesco hires an individual directly; whereas, sometimes it finds a worker for a business in exchange for 20% of the base salary and the business takes the worker onto its payroll. She explained that individuals sent to a business on a temp-to-hire basis have the potential to be hired by the business if they meet its standards and a position is available. She stated that she would have to check company records to determine' whether any position in which the claimant worked was temp-to-hire. Gammon testified that Nesco did not pay workers when they were on availability call between job placements and did not consider them to be employees at such times.

Amy Ward, a staffing specialist at Nes-co, testified at the hearing that the claimant’s position at Star was temporary rather than temp-to-hire. She stated that all of the positions that Nesco filled for Star were temporary; that Star had never hired an employee whom Nesco referred; and that Star did not ask for a replacement employee after the claimant’s injury. She testified that the position the claimant held at Star paid $8.00 per hour for a forty-hour week and that it was temporary, ie., for as long as Star needed her.

Kelly Rogers, the Nesco employee who recruited workers for Star, testified that Star offered temporary jobs but no temp-to-hire jobs. She stated that the jobs were of indefinite duration but that Star expressed no intent to put a temporary employee on its payroll. To her knowledge no employee she placed at Star was ever hired.

Nesco submitted the claimant’s wage records for 2006 and 2007. They indicated that she worked continuously from January 1, 2006 through May 20, 2006 for between 8 and 48.25 hours per week. The claimant testified that she worked for another temporary employment agency for a while in October 2006. She did not work for Nesco again until the week ending April 27, 2007, when she was sent to Star for the first time. Nesco’s records indicated that she worked 20 hours that week; 36 hours during the week ending May 4, 2007; and 40 hours during the week ending May 11, 2007, for a total of $768.00 or a weekly average of $59.08. In the 13-week period immediately preceding her injury she worked 13 hours during the week ending May 18, 2007; 15.3 hours during the week ending June 15, 2007; and 24 hours during the week ending August 10, 2007, for a total of $587.40 or a weekly average of $45.18.

The claimant maintained that she worked at Star in a temp-to-hire job of indefinite duration. She had done so for only three days when injured. Thus, her average weekly wage should be calculated using KRS 342.140(l)(e) because she had been employed for less than 13 weeks when the injury occurred. The calculation she proposed yielded an average weekly wage of $320.00 based on working 40 hours per week at $8.00 per hour. She offered no alternative calculation.

Nesco asserted that most of the claimant’s work history consisted of sporadic temporary employment. Moreover, although she worked for Nesco for more than 13 weeks before the injury, the character of her work included periods when she did not work and received no wages. It advocated calculating her average weekly wage by averaging her earnings during *469

Free access — add to your briefcase to read the full text and ask questions with AI

Related

General Motors v. Brandi Woods
Court of Appeals of Kentucky, 2024
Dart Container Company, Inc. v. Justin Bailey
Court of Appeals of Kentucky, 2024
Sunz Insurance Company v. Henry J. Decker
Kentucky Supreme Court, 2018
Belcher v. Manpower of Indiana
492 S.W.3d 156 (Court of Appeals of Kentucky, 2016)
Commonwealth, Uninsured Employers' Fund v. Rogers
396 S.W.3d 292 (Kentucky Supreme Court, 2012)
Abel Verdon Construction v. Rivera
348 S.W.3d 749 (Kentucky Supreme Court, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
339 S.W.3d 465, 2011 Ky. LEXIS 83, 2011 WL 2118755, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nesco-v-haddix-ky-2011.