Tran v. Petroleum Helicopters

771 So. 2d 673, 2000 La.App. 3 Cir. 0051
CourtLouisiana Court of Appeal
DecidedJune 28, 2000
Docket00-0051
StatusPublished
Cited by5 cases

This text of 771 So. 2d 673 (Tran v. Petroleum Helicopters) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tran v. Petroleum Helicopters, 771 So. 2d 673, 2000 La.App. 3 Cir. 0051 (La. Ct. App. 2000).

Opinion

771 So.2d 673 (2000)

Tho Tan TRAN
v.
PETROLEUM HELICOPTERS.

No. 00-0051.

Court of Appeal of Louisiana, Third Circuit.

June 28, 2000.
Rehearing Denied September 27, 2000.
Writ Denied December 8, 2000.

*674 Michael G. Hodgkins, Lake Charles, LA, Counsel for Plaintiff/Appellant.

Stephen Roppolo, Fisher & Phillips, LLP, New Orleans, LA, Counsel for Defendant/Appellee.

(Court composed of Judge JIMMIE C. PETERS, Judge GLENN B. GREMILLION, and Judge ELIZABETH A. PICKETT).

GREMILLION, Judge.

This case arises out of an appeal by plaintiff, Tho Tan Tran, claiming that the use of his accrued sick leave by his employer, Petroleum Helicopters, Incorporated (PHI), to supplement his workers' compensation benefits denied him the full benefit of his sick leave under his employment contract. For the following reasons, we affirm.

FACTS

Tran started work with PHI in 1977. As per company policy, employees were allowed to accumulate unutilized sick leave days from year to year up to a maximum of 273 days. As of January 1997, Tran had accumulated 270 sick leave days. On January 17, 1997, he suffered an on-the-job injury which resulted in an award of workers' compensation benefits. Tran was placed on paid leave of absence from January 17, 1997 through July, 20, 1997. He returned to light-duty work on July 21, 1997, and remained on light-duty until May 26, 1998, when his original injury necessitated a return to paid leave. During this period, Tran acquired another fifteen days of sick leave. On October 26, 1998, Tran exhausted his last day of accrued sick leave and his status was changed to unpaid leave. Tran remained on unpaid leave until July 26, 1999, when he was terminated for reaching his 273rd day maximum leave of absence.

Tran's weekly base salary was $689.38 and, in addition, he received a 25% bonus for working a "5 and 2" schedule; thus, his average weekly salary was $861.73 or $172.35 per day.[1] PHI's workers' compensation insurer paid Tran $349.00 per week or $69.80 per work day. To compensate Tran as per its sick leave policy, PHI took his daily rate of $172.35 and subtracted the sum paid by workers' compensation of $69.80, to reach $102.55. Thus, Tran was paid $102.55 per work day in sick leave compensation.

The trial court held that "sick leave" was a conditional benefit that was not vested until an employee was unable to work because of illness and, therefore, did not fall under the term "wages" as contemplated by La.R.S. 23:631 et seq. The trial court further held that PHI's policy neither permitted employees to "cash in" their unused sick days, nor allowed employees to use sick days for reasons other than personal *675 illness. Additionally, the trial court held that PHI's contract of employment with Tran made clear that unused sick days would not be paid in cash at termination of employment. As the trial court's reasoning made the issue of PHI's supplementation of workers' compensation with sick leave benefits moot, the issue was not addressed.

Tran appeals claiming:

(1) the trial court committed error as a matter of law in finding that earned and accrued sick leave is not an earned "wage" and therefore an amount due to an employee upon termination under La. R.S. 23:631 and 23:634;
(2) the trial court committed manifest error in failing to find that forcing an employee injured on the job to forfeit his accrued sick leave in an amount equal to the amount received as workers' compensation benefits constitutes a violation of La.R.S. 23:1163 prohibiting an employer from directly or indirectly collecting back from injured employees, workers' compensation premiums;
(3) the trial court committed manifest error in failing to find that Tran was not covered by the company policy in effect at the time of hire, or, in the alternative, that the new company policy of PHI was violated in that PHI did not pay Tran all of his sick leave prior to termination as mandated by company policy; and
(4) the trial court erred in not finding that forfeiture of accrued sick leave violates Public Policy under Lewis v. Malone & Hyde, Inc., 626 So.2d 531 (La. App. 3 Cir.1993).

STANDARD OF REVIEW

A court of appeal may not set aside a trial court's factual findings unless they are clearly wrong or manifestly erroneous. Rosell v. ESCO, 549 So.2d 840 (La.1989). An appellate review is generally concerned with two considerations: 1) whether there exists a reasonable factual basis in the record for the finding of the trial court, and 2) whether the record establishes that the finding is not manifestly erroneous. Mart v. Hill, 505 So.2d 1120 (La.1987). After reviewing the record in its entirety, an appellate court may set aside a trial court's factual finding only if it determines the finding was clearly wrong. Stobart v. State, Through Dep't of Transp., 617 So.2d 880 (La.1993).

ASSIGNMENT OF ERROR NUMBER ONE

Tran claims that the trial court committed error in finding that "sick leave" was not encompassed by the term "wage" and, therefore, an amount due pursuant to La. R.S. 631 et seq. La.R.S. 23:631 and 23:634 read, in pertinent part, as follows:

§ 631. Discharge or resignation of employees; payment after termination of employment
A. (1)(a) Upon the discharge of any laborer or other employee of any kind whatever, it shall be the duty of the person employing such laborer or other employee to pay the amount then due under the terms of employment, whether the employment is by the hour, day, week, or month, not later than three days following the date of discharge.
(b) Upon the resignation of any laborer or other employee of any kind whatever, it shall be the duty of the person employing such laborer or other employee to pay the amount then due under the terms of employment, whether the employment is by the hour, day, week, or month, on or before the next regular payday or no later than fifteen days following the date of resignation, whichever occurs first.
§ 634. Contract forfeiting wages on discharge unlawful
A. No person, acting either for himself or as agent or otherwise, shall require any of his employees to sign contracts by which the employees shall forfeit their wages if discharged before the contract is completed or if the employees resign their employment before *676 the contract is completed; but in all such cases the employees shall be entitled to the wages actually earned up to the time of their discharge or resignation.

These statutes are designed to assure prompt payment of wages upon an employee's discharge or resignation. Boudreaux v. Hamilton Med. Group, Inc., 94-0879 (La.10/17/94); 644 So.2d 619. La. R.S. 23:631(A)(1)(a) states: "[I]t shall be the duty of the [employer] to pay the amount then due under the terms of employment." A contract as a whole must be considered in interpreting each provision of the contract. La.Civ.Code art.2050. "When the words of a contract are clear and explicit and lead to no absurd consequences, no further interpretation may be made in search of the parties' intent." La. Civ.Code art. 2046.

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Bluebook (online)
771 So. 2d 673, 2000 La.App. 3 Cir. 0051, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tran-v-petroleum-helicopters-lactapp-2000.