Rowell v. Security Steel Processing Co.

445 Mich. 347
CourtMichigan Supreme Court
DecidedJune 14, 1994
DocketDocket Nos. 94644, 95000
StatusPublished
Cited by54 cases

This text of 445 Mich. 347 (Rowell v. Security Steel Processing Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rowell v. Security Steel Processing Co., 445 Mich. 347 (Mich. 1994).

Opinions

Brickley, J.

The issue presented in this worker’s compensation case is a consideration of the proper treatment under MCL 418.371(3); MSA 17.237(371)(3) of partially worked weeks, specifically the week of hiring and the week of injury, in the computation of an employee’s average weekly wage where the employee has worked less than thirty-nine weeks.

We hold that in calculating the average weekly wage, the percentage or fraction of work performed in a partially worked week is to be included in the denominator where a week was partially worked becausé the day of hiring or the day of injury fell during the week. Such an interpretation is in accordance with the overriding purpose of the section, which is to provide for a computation of an average weekly wage that "fairly represents” the employee’s earning capacity as fixed at the time of injury.

[350]*350I

Ted Rowell was hired as a steel worker. He began his employment with defendant Security Steel Processing Company on Tuesday, April 5, 1983. After finishing out the first week, he then worked six full weeks. His last day of work was Tuesday, May 24, 1983, because of a work-related heart attack. The plaintiff earned $292.50 in his first week of employment, $360 regular pay during each of the intervening six weeks, overtime of $54 in each of two weeks, $67.50 in a third week, and $144 in the week in which he was injured, Rowell’s gross wages totaled $2,772.

The hearing referee in Rowell followed the approach suggested by the Court of Appeals in Tagliavia v Barton Malow Co, 185 Mich App 556; 463 NW2d 116 (1990). The partially worked weeks were treated as whole weeks and used to divide the total wage earned in the course of employment. The average weekly wage was determined to be $346.50. The Worker’s Compensation Appeal Board ruled that the "weeks 'actually worked’ ” were 7.4 weeks rather than 8 weeks and that the average weekly wage was $375.

Riggs was hired as a construction worker. He began his employment with defendant Mosser Construction, Incorporated on Tuesday, December 8, 1987. After finishing out his first week, he then worked one full week. His last day of work was Monday, December 21, 1987, because of a fall from a ladder and resultant back injury. Plaintiff worked twenty-four hours in his first week of employment and twenty-four hours in the following week, earning $399.36 each week. He was injured in the third week of employment, and was paid $149.76 for that week. Riggs’ gross wages totaled $948.48.

[351]*351In Riggs, the hearing referee applied the special circumstances exception provided by MCL 418.371(6); MSA 17.237(371)(6). On the basis of a forty hour week, the average weekly wage was $603.60. The Worker’s Compensation Appellate Commission, following Tagliavia, found that the average weekly wage was $316.16.

The Court of Appeals in Rowell v Security Steel Processing Co, 195 Mich App 578; 491 NW2d 265 (1992), adopted as a first-out opinion its earlier decision in Tagliavia. We granted leave to appeal, 442 Mich 861 (1993), limited to the issue of the proper interpretation of subsection 371(3) of the Worker’s Disability Compensation Act.

In Riggs v Mosser Construction, unpublished opinion per curiam, decided September 30, 1992 (Docket No. 151717), the Court of Appeals denied leave to appeal, citing Tagliavia. We consolidated and granted leave to appeal with Rowell, 442 Mich 903 (1993).

III

Resolution of the correct treatment of the week of hiring and the week of injury, in the context of an employee who has worked less than thirty-nine weeks requires application of MCL 418.371(3); MSA 17.237(371)(3).1

When applying any legislation, it must first be [352]*352determined whether the language of the statute is clear and unambiguous. Victorson v Dep’t of Treasury, 439 Mich 131, 138; 482 NW2d 685 (1992). [353]*353Where the language of the statute is clear and unambiguous, no judicial interpretation is warranted. Livonia v Dep’t of Social Services, 423 Mich 466, 487; 378 NW2d 402 (1985).

Contrary to the position taken by the dissent, the language of MCL 418.371(3); MSA 17.237(371)(3) is ambiguous in that the phrase, "the average weekly wage shall be based upon the total wages earned by the employee divided by the total number of weeks actually worked” is susceptible to several possible meanings. One possibility is that the gross wage is to be divided by a whole number that is rounded up whenever an employee performs any work in a week. Another possibility is that the number of weeks in the denominator only reflects weeks in which an employee has actually worked every day. Under this interpretation, partially worked weeks are to be disregarded in the calculation. Total wages are divided by fully worked weeks.

A third possible interpretation would not consider partially worked weeks in either the total wage figure or the number of weeks worked figure. Finally, the interpretation advanced by the plaintiffs suggests that when the Legislature employed the phrase "weeks actually worked,” it intended total wages earned to be divided by the whole number of full weeks worked plus a fractional number representing the partially worked weeks.

Where the language employed by the Legislature is susceptible to more than one interpretation, judicial construction is justified. State Treasurer v Wilson, 423 Mich 138, 144; 377 NW2d 703 (1985). The goal of statutory construction is to "ascertain and give effect to the intent of the Legislature in enacting the statute.” In re Forfeiture of $5,264, 432 Mich 242, 248; 439 NW2d 246 (1989). In determining legislative intent, individual [354]*354provisions should be considered in conjunction with the entire act. Arrowhead Development Co v Livingston Co Rd Comm, 413 Mich 505, 516; 322 NW2d 702 (1982). If the meaning of a statute is unclear, a court must consider the object of the statute and apply a reasonable construction that best accomplishes the Legislature’s purpose. Wilson, supra. Furthermore, literal constructions that produce unreasonable and unjust results that are inconsistent with the purpose of the act should be avoided. Salas v Clements, 399 Mich 103, 109; 247 NW2d 889 (1976).

Under the interpretation advanced by the dissent and the Court of Appeals in Tagliavia, supra, the gross wage would be divided by a whole number that rounds up whenever an employee performs any work in a week. In Tagliavia, the Court ruled that if wages are earned in any part of a week, that week shall be included as a whole week in determining the average weekly wage. In so concluding, the Court of Appeals reasoned that that result was required by the second sentence of subsection 371(3), which provides:

For purposes of this subsection, only those weeks in which work is performed shall be considered in computing the total wages earned and the number of weeks actually worked.

We disagree with and disapprove of Tagliavia. In directing that only those weeks in which work is performed shall be considered, the Legislature did not direct that every week in which work is performed shall be counted as a whole week without regard to whether the week was fully or partially worked.

Application of the construction suggested by

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Bluebook (online)
445 Mich. 347, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rowell-v-security-steel-processing-co-mich-1994.