Wal-Mart Stores, Inc. v. Switch

1994 OK 59, 878 P.2d 357, 65 O.B.A.J. 1833, 1994 Okla. LEXIS 69, 1994 WL 231629
CourtSupreme Court of Oklahoma
DecidedMay 31, 1994
Docket81567
StatusPublished
Cited by19 cases

This text of 1994 OK 59 (Wal-Mart Stores, Inc. v. Switch) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wal-Mart Stores, Inc. v. Switch, 1994 OK 59, 878 P.2d 357, 65 O.B.A.J. 1833, 1994 Okla. LEXIS 69, 1994 WL 231629 (Okla. 1994).

Opinion

WATT, Justice:

SUMMARY OF FACTS AND PROCEDURAL HISTORY

Respondent Jennie Switch sustained an injury while working for petitioner Wal-Mart Stores, Inc., and filed a claim for workers’ compensation benefits. At the hearing, the parties stipulated that Switch had worked at her job an average of seven hours per day, five days a week for approximately two years. They also stipulated that during the year preceding her injury, Switch was paid at the rate of $4.65 per hour for the first 36 weeks, $4.85 per hour for the next six weeks and $5.35 per hour for the last ten weeks. The trial court computed Switch’s compensation rate based upon her hourly wage on the date of her injury — $5.35 per hour. On appeal, the Court of Appeals ruled that the compensation rate should be computed by averaging Switch’s daily wages paid during the year preceding her injury. This Court granted the employee’s petition for certiorari on December 16, 1993.

ISSUE

The sole issue to be decided in this proceeding is whether the “average weekly wages” used in calculating an injured worker’s compensation rate under 85 O.S. 1991 § 21 should be determined by averaging the daily wages paid to the worker during the year preceding her injury or should be based upon the worker’s daily wage at the time of her injury. We hold that the average weekly wages are to be calculated based upon the daily wages of the worker at the time of her injury. Accordingly, we vacate the opinion of the Court of Appeals and affirm the order of the Workers’ Compensation Court.

DISCUSSION

Title 85 O.S. 1991 § 21 provides the exclusive method for calculating a claimant’s compensation rate. Friendship Farmer’s Co-Operative Gin v. Allred, 196 Okla. 462, 165 P.2d 838, 848 (1945); State Insurance Fund v. Smith, 184 Okla. 552, 88 P.2d 895, 897 (1939). Section 21 provides in relevant part:

Except as otherwise provided in this act, the average weekly wages of the injured employee at the time of the injury shall be taken as the basis upon which to compute compensation and shall be determined as follows:
1. If the injured employee shall have worked in the employment in which he was working at the time of the accident whether for the same employer or not, during substantially the whole of the year immediately preceding his injury, his average annual earnings shall consist of three hundred times the average daily wage or salary which he shall have earned in such employment during the days when so employed.
⅛ ⅝ ⅝ ⅜ 5¡í ⅜
4. The average weekly wages of an employee shall be one fifty-second (⅛) part of his average annual earnings.

(emphasis added). 1 Under this statutory scheme, a claimant’s average weekly wages are computed by multiplying her average daily wage by 300 (subsection (1)) and dividing that amount by 52 (subsection (4)). City of Norman v. Bowers, 154 Okla. 200, 7 P.2d 482, 483-84 (1932). Before such a calculation can be made, however, the claimant’s “average daily wage” must be determined.

The question presented in this case apparently has never been precisely addressed by this Court. Both the employer and the Court of Appeals relied upon W.E. Shepherd & Son v. Hood, 185 Okla. 635, 95 P.2d 619 (1939), for the proposition that respondent’s wages in the year preceding her injury *359 should be averaged to determine her average daily wage. In Hood, the claimant drove a truck for his employer three to five days per week and was paid a weekly salary which ranged from $14.00 to $18.00. This Court held that the claimant’s average daily wage should be calculated by dividing the total sum paid him by the number of days during which he was employed. However, that ruling was based upon the fact that “there [was] no direct evidence as to how much [claimant’s] salary amounted to per day.” Id. 95 P.2d at 622. There is no such factual deficiency in the present case. The parties stipulated to the exact amount respondent earned per hour and to the average number of hours she worked per day at the time of her injury. The method of calculation utilized in Hood is inapplicable where, as here, there exists direct evidence of the claimant’s average daily wages at the time of her injury.

The fundamental rule of statutory construction is to ascertain and, if possible, give effect to the intention and purpose of the Legislature as expressed in a statute. Public Service Co. of Oklahoma v. State ex rel. Corp. Comm’n, 842 P.2d 750, 752 (Okla.1992). In construing a statute, “relevant provisions must be considered together, where possible, to give force and effect to each other.” Id., quoting Ledbetter v. Oklahoma Alcoholic Bev. Laws Enforcement Comm’n, 764 P.2d 172, 179 (Okla.1988). Furthermore, this Court has repeatedly held that workers’ compensation laws must be liberally construed in favor of injured employees. Special Indemnity Fund v. Treadwell, 693 P.2d 608, 610 (Okla.1984); Burger v. Lickliter, 319 P.2d 594, 598 (Okla.1957); In re Hughes, 273 P.2d 450, 454 (Okla.1954); Henly v. Oklahoma Union Ry. Co., 81 Okla. 224, 197 P. 488, 490 (1921).

The Court of Appeals based its decision upon a narrow construction of the language appearing at the end of 85 O.S. § 21(1). That language provides that a worker’s average annual earnings shall consist of 300 times the “average daily wage or salary which he shall have earned in such employment during the days when so employed.” The appellate court’s restrictive interpretation — that average daily wages are computed by averaging hourly wages paid during the year preceding injury — does not comport with the initial sentence of § 21 that refers to average weekly wages “at. the time of the injury.”

The appellate court’s ruling also contravenes the purpose of the Workers’ Compensation Act. This Court has held that the purpose of the Act is to compensate injured workers for loss of earning power and disability to work. Special Indemnity Fund v. Treadwell, 693 P.2d 608, 610 (Okla.1984); Service Pipe Line Co. v. Cargill, 289 P.2d 961, 962 (Okla.1955). In the present case, respondent lost an “earning power” of $5.35 per hour, the wage rate which she was then being paid, when she suffered her injury. To award her compensation based upon some other rate would defeat the purpose of the Act.

Examining other relevant provisions of the Act, we first note that the term “wages” has been statutorily defined as “the money rate at which the service rendered is recompensed under the contract of hiring in force at the time of the injury....’’ 85 O.S. 1991 § 3(8) (emphasis added). See also Knott v. Halliburton Services, 752 P.2d 812, 813 (Okla.1988) (the right of an employee to compensation arises from the contractual relationship existing between the employee and the employer on the date of the injury).

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Bluebook (online)
1994 OK 59, 878 P.2d 357, 65 O.B.A.J. 1833, 1994 Okla. LEXIS 69, 1994 WL 231629, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wal-mart-stores-inc-v-switch-okla-1994.