Lydy v. Trustaff, Inc./Wausau Insurance Company
76 A.3d 150
Vt.2013Background
- Claimant, a nurse, was injured on the job and covered by Vermont’s Workers’ Compensation Act.
- Employer-paid health insurance premiums for claimant’s subsequent employment were not included in the average weekly wage calculation at issue.
- Commissioner of the Vermont Department of Labor had long held that such premiums were not wages and thus not part of the wage computation.
- Claimant appealed the Commissioner's interpretation, arguing health insurance premiums should be included as part of wages.
- The Vermont Supreme Court affirmed the Commissioner’s interpretation, preserving the exclusion of employer-paid health insurance from the wage base.
- The dissent would include health insurance as a wage, citing legislative history and modern economic realities.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether employer-paid health insurance premiums are wages | Claimant argues premiums are an ‘other advantage’ and part of remuneration. | Trustaff/Commissioner argues premiums are fringe benefits not included in wages. | Premiums are not wages under 21 V.S.A. § 601(13). |
Key Cases Cited
- Morrison-Knudsen Construction Co. v. Dir., OWCP, 461 U.S. 624 (U.S. (1983)) (health-insurance trust funds not part of wages under LHWCA)
- Cockle v. Dep’t of Labor & Indus., 16 P.3d 583 (Wash. 2001) (core health benefits can be wages in Washington context)
- Murphy v. Ampex Corp., 703 P.2d 632 (Colo. App. 1985) (health insurance included in wage calculation in Colorado context)