David Lowell Evenson v. Winnebago Industries, Inc. and Sentry Insurance Company
2016 Iowa Sup. LEXIS 65
| Iowa | 2016Background
- David Evenson, an hourly Winnebago Industries employee, injured his left elbow at work in May 2010 and later underwent surgery and treatment; he reached MMI in late 2011.
- Winnebago paid various temporary partial disability (TPD) and some healing-period benefits; dispute arose over computation of weekly compensation rate and timing/amounts of healing-period and permanent partial disability (PPD) benefits.
- Primary wage calculation dispute: whether employer 401(k) matching contributions are "weekly spendable earnings" for workers’ compensation rate purposes.
- Medical testimony produced differing impairment ratings (3% and 4%); deputy commissioner found 20% permanent loss of use of left arm based on medical and lay testimony.
- Commissioner affirmed arbitration awards generally; district court affirmed; appellate court (Iowa Supreme Court) affirmed in part, reversed in part and remanded for recalculation of certain dates, penalties, and interest.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether employer 401(k) matching contributions are included in "weekly spendable earnings" for calculating workers’ compensation weekly benefits | Evenson argued match should be included to increase weekly rate | Winnebago/Sentry argued match is a fringe/welfare benefit and excluded from gross earnings | Match is not included; it is a welfare/fringe benefit and not "spendable weekly earnings" under Iowa Code §85.61(9) — affirmed commissioner on rate calculation |
| Extent of permanent disability (scheduled arm injury) | Evenson argued greater than agency’s finding (claimed 21–50% loss) | Employer relied on medical impairment ratings (3–4%) and agency credibility findings | Substantial evidence supported agency’s 20% permanent loss-of-use finding — affirmed |
| Commencement/termination dates for healing-period and PPD benefits (whether PPD begins when claimant first returned to work in Sept 2010 or at MMI Nov 2011) | Evenson argued healing period began Sept 3 (or 7) 2010 and PPD should commence Sept 20, 2010 (first return to work) | Employer and commissioner had used later dates (PPD commencing after MMI/Nov 29, 2011) and treated subsequent TPD as relevant | Court held the healing period ends (and PPD commences) when the employee first returned to work per §85.34(1); remanded to determine whether first healing period began Sept 3 or Sept 7 and to fix PPD commencement accordingly; reversed agency’s later PPD start date |
| Penalty for delayed/denied benefits under Iowa Code §86.13(4) | Evenson sought penalties for delays/underpayments | Employer argued payment history and calculations mitigated penalty | Twenty-five percent penalty was supported by substantial evidence and affirmed, but court remanded for recalculation of penalty and interest based on corrected healing period and PPD dates |
Key Cases Cited
- Morrison-Knudsen Constr. v. Director, Office of Workers’ Comp. Programs, 461 U.S. 624 (Sup. Ct.) (fringe benefits not wages where not readily convertible to cash)
- Coffey v. Mid Seven Transp. Co., 831 N.W.2d 81 (Iowa 2013) (standard for reversing commissioner on factual findings)
- Waldinger Corp. v. Mettler, 817 N.W.2d 1 (Iowa 2012) (multiple healing periods; limits on prior rule barring post‑MMI healing periods)
- Teel v. McCord, 394 N.W.2d 405 (Iowa 1986) (interest on PPD tied to first return to work amid intermittent healing periods)
- Presthus v. Barco, Inc., 531 N.W.2d 476 (Iowa Ct. App.) (discussed interplay of temporary partial and permanent partial benefits)
- Bell Brothers Heating & Air Conditioning v. Gwinn, 779 N.W.2d 193 (Iowa 2010) (discussion of distinction and timing between temporary and permanent benefits)