Warren v. Industrial Commission

39 P.3d 534, 202 Ariz. 10, 366 Ariz. Adv. Rep. 5, 2002 Ariz. App. LEXIS 11
CourtCourt of Appeals of Arizona
DecidedJanuary 31, 2002
DocketNo. 1 CA-IC 00-0113
StatusPublished
Cited by8 cases

This text of 39 P.3d 534 (Warren v. Industrial Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warren v. Industrial Commission, 39 P.3d 534, 202 Ariz. 10, 366 Ariz. Adv. Rep. 5, 2002 Ariz. App. LEXIS 11 (Ark. Ct. App. 2002).

Opinion

THOMPSON, Judge.

¶ 1 This is a review of an Industrial Commission of Arizona (ICA) award and decision upon review for no loss of earning capacity. The dispositive issue is whether post-injury raises related to the general labor market rather than to individual merit must be excluded when assessing an injured worker’s residual earning capacity. Concluding that the administrative law judge erroneously included these salary increases to find no loss of earning capacity, we set aside the award and decision upon review.

BACKGROUND

¶ 2 When injured in October 1996, petitioner employee (claimant) was employed by respondent employer (ASU) full-time as a “custodial area supervisor” and part-time as a special events barricader. Based on earnings from both employments, it was determined that claimant had an average monthly wage of $2,100.00, which was the statutory maximum wage allowance under Arizona Revised Statutes Annotated (A.R.S.) § 23-1041(D)(4) (1995 & Supp.2000) for the period at issue.1

¶ 3 While claimant was temporarily totally disabled, ASU increased the salary of all similarly employed workers in April 1997 and again in January 1998. The first increase simply changed the salary class for area supervisors and was clearly motivated by the fact that ASU had been paying at the low end of the salary range for comparable positions in the Maricopa County labor market.2

¶ 4 The second increase was more complicated. ASU added administrative duties to claimant’s date of injury job, renamed the position, and increased the salary to $27,400.00 a year. But even with this cumulative increase of 25.5% over claimant’s date of injury salary, ASU still was paying 10% less than the salary for comparable positions in the Maricopa County labor market.

¶ 5 Claimant’s industrial injury subsequently became stationary with permanent impairments and functional limitations. These impairments disabled claimant from returning to work as a barricader, but he did return to work for ASU as a custodial services assistant supervisor earning $27,400.00 a year.

¶ 6 The ICA issued a no loss award based on claimant’s current earnings as a custodial supervisor at ASU. Claimant timely protested this no loss award.

¶7 Hearings ensued. We focus on two material conflicts. First, conflicting evidence was presented concerning the nature of claimant’s work. According to ASU, the duties of a custodial services assistant supervisor were essentially administrative and consistent with claimant’s limitations with only minor modifications. However, ASU’s witness acknowledged that the duties of an assistant supervisor and of an area supervisor were essentially the same and that she lacked first hand knowledge of the functional requirements of claimant’s date of injury job. In contrast, claimant testified that his date of injury job required substantial walking, climbing, and lifting and that fundamental modifications were necessary for him to return to work.3

[12]*12¶8 Second, conflicting evidence was presented concerning whether claimant’s post-injury salary reasonably represented his earning capacity. According to ASU’s labor market consultant, because claimant would not have received the pay increases if he had inadequately performed his job, both increases were based on merit and therefore represented claimant’s current earning capacity. Also, ASU’s consultant testified that the Consumer Price Index (CPI) appropriately applied to this case to adjust for inflation between claimant’s date of injury and current salaries and that because the adjusted salary exceeded the statutory maximum average monthly wage, claimant did not have a loss of earning capacity.4

¶ 9 According to claimant’s labor market consultant, claimant had a loss of earning capacity for three reasons. First, claimant was able to work two jobs before his injury but was unable to work at one of the jobs after it. Second, because State of Arizona employees have received little or no raises over the years, a rollback calculation based on the CPI was inappropriate. Third, because all employees in the same class as claimant received the same increases in salary, the increases were not merit increases and therefore should not be included to calculate claimant’s post-injury earning capacity.

¶ 10 After receiving post-hearing memoranda, the administrative law judge issued an award for no loss of earning capacity. He found that claimant was unable to return to work as a barricader but “did return to work [with accommodations] as a custodial area supervisor, although the specific job title for that work had changed” and was earning approximately $27,000.00 annually. Noting that post-injury earnings raise a rebuttable presumption of commensurate earning capacity, the administrative law judge found that claimant had not rebutted the presumption by proving that his actual earnings did not represent his earning capacity as a result of factors such as employer sympathy, sheltered or transitory employment, or that continuing to work would aggravate his industrially related condition. The administrative law judge also accepted ASU’s consultant’s opinion that the CPI appropriately applied to claimant’s post-injury earnings and that his rolled-back salary exceeded the statutory maximum average monthly wage.

¶ 11 The administrative law judge affirmed this award on administrative review.5 Claimant then timely filed this Rule 10 special action.

¶ 12 This court has jurisdiction under A.R.S. § 12-120.21(A)(2) (1992), A.R.S. § 23-951(A) (1995), and Rule 10, A.R.C.P. We deferentially review reasonably supported factual findings but independently review legal conclusions. PFS v. Indus. Comm’n, 191 Ariz. 274, 277, 955 P.2d 30, 33 (App.1997).

DISCUSSION

A. DISABILITY TO WORK AS BARRI-CADER

¶ 13 On review, claimant concedes that his post-injury salary rebuttably established his earning capacity. See, e.g., Laker v. Indus. Comm’n, 139 Ariz. 459, 462, 679 P.2d 105, 108 (App.1984) (citation omitted). However, claimant asserts that because concurrent earnings contributed to his average monthly wage and the industrial injury has disabled him from one of the contributing employments, he rebutted the presumption. To conclude otherwise, the argument continues, would violate the equal measure rule.

¶ 14 We disagree. To satisfy the equal measure rule, the average monthly wage and post-injury earning capacity must be measured by the same “yardstick.” Whyte v. Indus. Comm’n, 71 Ariz. 338, 344, 227 P.2d 230, 233-34 (1951); see also, e.g., Reavis v. Indus. Comm’n, 196 Ariz. 280, 284, ¶ 20, 995 P.2d 716, 720 (App.1999). For ex[13]*13ample, if an average monthly wage is based on part-time employment, post-injury earning capacity may not be based on full-time employment. See Elias v. Indus. Comm’n,

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Cite This Page — Counsel Stack

Bluebook (online)
39 P.3d 534, 202 Ariz. 10, 366 Ariz. Adv. Rep. 5, 2002 Ariz. App. LEXIS 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warren-v-industrial-commission-arizctapp-2002.