Valley Stairs & Rails v. Workers' Comp. Appeal Bd.

202 A.3d 904
CourtCommonwealth Court of Pennsylvania
DecidedJanuary 24, 2019
Docket1100 C.D. 2017
StatusPublished

This text of 202 A.3d 904 (Valley Stairs & Rails v. Workers' Comp. Appeal Bd.) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Valley Stairs & Rails v. Workers' Comp. Appeal Bd., 202 A.3d 904 (Pa. Ct. App. 2019).

Opinion

OPINION BY JUDGE McCULLOUGH

By permission, Valley Stairs and Rails (Employer) petitions for review of the May 16, 2017 order of the Workers' Compensation Appeal Board (Board), which reversed the order of a Workers' Compensation Judge (WCJ) denying the penalty petition of Gary Parsons (Claimant). The issue we address is on what date did Claimant's workers' compensation benefits become payable under section 406.1(d)(6) of the Workers' Compensation Act (Act). 1

Facts and Procedural History

Claimant alleged that he sustained a low back strain while working for Employer on March 27, 2015, and was transported to the hospital by ambulance. Claimant did not return to work that day or any day thereafter. Claimant received full pay from Employer on the date of the injury; however, his final pay stub stated that Claimant was paid seven hours of "COMP TM" at his regular pay rate. (Reproduced Record (R.R.) at 39a.) On April 13, 2015, Employer sent a notice of temporary compensation payable (NTCP), which stated that the injury, a low back strain, occurred on March 27, 2015, and noted that the 90-day period under section 406.1(d)(6) of the Act ran from March 30, 2015, through June 27, 2015. (Finding of Fact (F.F.) No. 1; R.R. at 32a.)

On June 27, 2015, Employer filed a notice of workers' compensation denial, alleging that Claimant failed to give proper notice of his injury and had not suffered any wage loss. On June 28, 2015, Employer filed a notice stopping temporary compensation payable and a notice of worker's compensation denial. 2 The following day, the Bureau of Workers' Compensation (Bureau) issued a notice of conversion of temporary compensation payable pursuant to section 406.1(d)(6) of the Act, effective June 29, 2015. On July 13, 2015, Claimant filed a penalty petition, alleging that Employer violated the Act by stopping payment of compensation benefits after the NTCP had converted to a notice of compensation payable (NCP). (R.R. at 4a, 36a, 37a; F.F. Nos. 3, 4.)

At a hearing before a WCJ, Claimant testified that, at some point on the morning of Friday, March 27, 2015, he injured his lower back while sliding a stair across the floor. (F.F. No. 5.) Claimant stated that he went to the hospital by ambulance and did not return to work after the injury. ( Id. ; R.R. at 14a-15a.) That same day, Claimant indicated that he received paperwork stating he could not return to work, which he presented to Employer by handing it to a coworker, who took it into the building and returned with Claimant's lunch box. 3 (R.R. at 14a-16a.) At a subsequent hearing, Claimant submitted his final pay stub, which reflected payment for 64.85 "Regular" hours and 7 hours of "COMP TM." (R.R. at 39a.) Additionally, Claimant's first indemnity benefits check was submitted, which showed the first payment covered the period from Monday, March 30, 2015, through Sunday, April 12, 2016. (F.F. No. 7; R.R. at 40a.)

In her opinion, the WCJ noted that for purposes of the Act, disability is defined as wage loss. See Landmark Constructors, Inc. v. Workers' Compensation Appeal Board (Costello) , 560 Pa. 618 , 747 A.2d 850 , 854 (2000) (Disability is defined as "the loss of earning power attributable to the work-related injury.") Because Claimant received his full pay for the date of injury on Friday, March 27, 2015, the WCJ determined that Claimant's disability commenced on Monday, March 30, 2015, the day he began receiving indemnity benefits. Thus, the WCJ found that Employer's June 29, 2015 notice stopping temporary compensation was filed on the 90th day of Claimant's disability 4 and, as such, the notice of conversion was improperly issued by the Bureau and thus void. Based upon those findings, the WCJ concluded that Claimant failed to prove a violation of the Act and denied Claimant's penalty petition. (F.F. Nos. 4, 6-11; Conclusion of Law at 2.)

Claimant appealed to the Board, asserting that the WCJ erred in finding that the first date of disability was March 30, 2015, since his injury rendered him unable to return to work on March 27, 2015. Claimant further argued that the WCJ erred in finding that Employer timely issued the notice stopping temporary compensation, since it was issued on the 93rd day of disability and, accordingly, the Bureau properly issued the notice of conversion.

The Board reversed and, citing this Court's holding in Galizia v. Workers' Compensation Appeal Board (Woodloch Pines, Inc.) , 933 A.2d 146 (Pa. Cmwlth. 2007), stated that "the date the 90[-]day period begins on is [sic] the first date that Claimant was entitled to receive disability benefits as a result of the work injury." (Board's op. at 4.) As such, the Board held, "While the WCJ found that Claimant received his full pay from [Employer] for March 27, 2015, the fact [Employer] may have paid Claimant his full wages in lieu of workers' compensation benefits for that day is irrelevant, as he clearly sustained a loss of earning power and did not complete his work day." Id. at 6. The Board thus determined that Claimant was eligible for benefits as of March 27, 2015, and the 90-day period ended on June 25, 2015. The Board further found that the NTCP converted to an NCP by operation of law, since Employer did not issue a notice stopping temporary compensation payable or a denial until June 28, 2015. Consequently, the Board reversed the WCJ's decision and remanded for a determination of the appropriate penalty amount, if any, that should be awarded based upon Employer's violation of the Act.

Employer filed an emergency motion for appellate certification of the Board's order, as well as a request for an immediate stay of the order, which the Board denied by order dated July 13, 2017. The Board also refused to certify its order under 42 Pa.C.S. § 702(b) (related to interlocutory appeals by permission). This Court granted Employer's petition for review filed pursuant to the note to Pa. R.A.P. 1311. 5

Discussion

We first note the relevant provisions of the Act, which are sections 306(a)(2) and 406.1(d). Section 306(a)(2) states, "Nothing in this act shall require payment of total disability compensation benefits under this clause for any period during which the employe is employed or receiving wages." 77 P.S. § 511(2).

Section 406.1 of the Act states,

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Gereyes v. Workers' Compensation Appeal Board
793 A.2d 1017 (Commonwealth Court of Pennsylvania, 2002)
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Gardner v. Workers' Compensation Appeal Board
888 A.2d 758 (Supreme Court of Pennsylvania, 2005)
Galizia v. Workers' Compensation Appeal Board
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Bluebook (online)
202 A.3d 904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/valley-stairs-rails-v-workers-comp-appeal-bd-pacommwct-2019.