Lead Opinion
OPINION
This dispute presents the question of whether a prior disability that does not affect an employee’s ability to secure employment may be considered when determining whether the employee is eligible for permanent-total-disability benefits under Minn.Stat. § 176.101, subd. 5(2) (2014). The Workers’ Compensation Court of Appeals (WCCA) concluded that, when determining eligibility for permanent-total-disability benefits, any disability may contribute to the employee’s permanent-partial-disability rating, regardless of whether that disability causes the employee to be unable to secure employment. We reverse and rеmand for proceedings consistent with this opinion.
Respondent Todd C. Allan sustained a work-related injury to his lower back on September 28, 2010, while he was employed by relator R.D. Offutt Co. The steering rod broke on Allan’s conveyor belt, which caused him to fly backwards,
Allan fled a petition seeking permanent-total-disability benefits in March 2013. Based on his age at the time of the injury, Allan was required to demonstrate “at least a 17 percent permanent-partial-disability rating of the whole body” in order to qualify for permanent-total-disability benefits. Minn.Stat. § 176.101, subd. 5(2)(i). To support his petition for benefits, Allan first relied on the September 28, 2010, back injury, which is assigned a permanent-partial-disability rating of 10 percent. See Minn. R. 5223.0390, subp. 3 (2013). Allan also relied on his non-work-related complete loss of teeth, which also is assigned a 10-percent rating. See Minn. R. 5223.0320, subp. 7 (2013). Relying on these two conditions, Allan claimed a permanent-partial-disability rating of 20 percent. Offutt opposed the petition for permanent-total-disability benefits, arguing that Allan’s non-work-related loss of teeth cannot be considered in determining whether he has satisfied the 17-percent threshold in subdivision 5(2)(i).
The compensation judge concluded that Allan established a 10-percent permanent-partial-disability rating based on his September 2010 back injury. The judge did not consider Allan’s complete loss of teeth in assessing his permanent-partial-disability whole-body rating, however, because the loss of teeth was fully corrected with dentures. Allan therefore did not satisfy the 17-percent threshold, and the compensation judge denied his pеtition for permanent-total-disability benefits.
Allan appealed and the WCCA reversed and remanded. Allan v. RD Offutt Co.,
I.
The question рresented here requires interpretation of the Workers’ Compensation Act, and therefore presents a question of law that we review de novo. Alcozer v. N. Country Food Bank,
A.
We begin by summarizing the statutory framework for permanent-total-
(1) the total and permanent loss of the sight of both eyes, the loss of both arms at the shoulder, the loss of both legs so close to the hips that no effective artificial members can be used, complete and permanent paralysis, total and permanent loss of mental faculties; or
(2) any other injury which totally and permanently incapacitates the employee from working at an occupation which brings the employee an income....
Minn.Stat. § 176.101, subd. 5. Subdivision 5(1), which contains a group of injuries that presumptively establish a permаnent total disability, is not at issue here. Allan relies instead on subdivision 5(2), which requires that an employee demonstrate a permanent-partial-disability rating of 13, 15, or 17 percent, depending on the employee’s age and education at the time of the injury.
For purposes of [subdivision 5(2)], “totally and permanently incapacitated” means that the employee’s physical disability in combination with any one of item (i), (ii), or (Hi) causes the employee to be unable to secure anything more than sporadic employment resulting in an insubstantial income. Other factors not specified in item (i), (ii), or (iii), including the employee’s age, education, training and experience, may only be considered in determining whether an employee is totally and permanently incapacitated after the employee meets the threshold criteria of item (i), (ii), or (hi).
Id., subd. 5. The meaning of this final paragraph is the subject of this appeal.
B.
We hold that Minn.Stat. § 176.101, subd. 5(2), unambiguously requires that disabilities that contribute to an employee’s permanent-partial-disability rating must affect employability. Subdivision 5(2) provides that an employee is totally and permanently incapacitated if “the employee’s physical disability in combination with [the applicable permanent-partial-disability rating] causes the employee to be unable to secure anything more than sporadic employment resulting in an insubstantial income.” We construe words and phrases “according to rules of grammar and according to their most natural and common usage.... ” ILHC of Eagan, LLC v. Cty. of Dakota,
Our conclusion is consistent with the overall context of the statute. Subdivision 5(2) contains two references to employability, both of which must be given effect. See Schroedl,
In addition, our conclusion conforms with the Legislature’s consistency in tying the provision of permanent-total-disability benefits to employability. See, e.g., Holland v. Indep. Sch. Dist. No. 332,
Yureko, of course, considered a previous version of Minn.Stat. § 176.101, subd. 5, that did not require the employee to establish a permanent-partial-disability rating. See Act of May 25, 1995, ch. 231, art. 1, § 21, 1995 Minn. Laws 1977, 1990-91 (codified as amended at Minn.Stat. § 176.101, subd. 5(2) (2014)) (adding the permanent-partial-disability rating requirement for obtaining permanent-total-disability benefits). But, our case law demonstrates that we have consistently tied the award of permanent-total-disability benefits to an inability to earn an income. It is therefore not surprising that the Legislature, upon creаting an additional requirement for obtaining permanent-total-disability benefits, would tie that requirement to employability as well.
II.
Relying heavily on the WCCA’s decision in Metzger v. Turck, Inc., 59 Minn. Workers’ Comp. Dec. 229 (WCCA 1999), Allan argues that subsequent amendments to the Workers’ Compensation Act render our statutory interpretation in Yureko inapplicable to the current version of Minn. Stat. § 176.101, subd. 5(2). He notes that, in 1974, the Legislature amended Minn. Stat. § 176.021, subd. 3, to distinguish permanent-partial-disability benefits from other forms of compensation. The amendment provided that “[pjermanent partial disability is payable for functional loss of use or impairment of function, permanent in nature, and payment therefore shall be separate, distinct, and in addition to payment for any other compensation.” See Act of April 12, 1974, ch. 486, § 1, 1974 Minn. Laws 1230, 1231 (codified as amended at MinmStat. § 176.021, subd. 3 (2014)); see also Tracy v. Streater/Litton Indus.,
The interpretation of MinmStat. § 176.101, subd. 5(2) advanced by Allan and the dissent is unreasonable for several reasons. First, MinmStat. § 176.021, subd. 3, makes clear that only permanent-parimi-disability benefits are “payablе for functional loss of use or impairment of function.” Compensation for any other disability, including permanent total disability, is contingent on the employee’s inability to earn an income. See id. (“Liability ... for disability of a temporary total, temporary partial, and permanent total nature shall be considered as a com-
Second, both Allan and the dissent ignore the primary purpose of the Workers’ Compensation Act, which is to “pay compensation in every case of personal injury or death of an employee arising out of and in the course of employment.” Minn. Stat. § 176.021, subd. 1 (emphasis added); see also 1 Larson, supra, at 1-1 (“Workеrs’ compensation is a mechanism for providing cash-wage benefits and medical care to victims of work-connected injuries .... ”). Allan’s proffered rule, which the dissent adopts, would require the workers’ compensation judge — when determining eligibility for permanent-total-disability benefits — to consider disabilities that are wholly unconnected to employment and for which the employee is ineligible to receive workers’ compensation. Surely the Legislature did not intend such an expansive interpretation of the Workers’ Compensation Act.
Finally, regardless of whether the prоvision of permanent-partial-disability benefits is tied to wage loss, the Legislature provided a different test for determining eligibility for permanent-total-disability benefits under Minn.Stat. § 176.101, subd. 5(2). That test clearly requires that any injury contributing to the employee’s permanent partial disability rating must “cause[] the employee to be unable to secure anything more than sporadic employment resulting in an insubstantial income.” Id. The Legislature gives no indication that the provision of permanent-total-disability benefits should be contingent upon mere “functional loss of use or impairment of function.” We therefоre reject Allan’s argument, as well as the WCCA’s reasoning in Metzger.
III.
We conclude that, for the purpose of determining whether an employee is eligible for permanent-total-disability benefits under Minn.Stat. ■ § 176.101, subd. 5(2), a disability that contributes to the employee’s permanent-partial-disability rating must affect the employee’s ability “to secure anything more than sporadic employment resulting in an insubstantial income.”
Reversed and remanded.
Notes
. The WCCA has held that non-work-relаted disabilities may contribute to the permanent-partial-disability rating. Frankhauser v. Fabcon, Inc., 57 Minn. Workers’ Comp. Dec. 250-51 (WCCA), aff'd without opinion,
. Although each of the disabilities must contribute to the inability to work, none must do so independently. The inquiry is whether, considered together in whatever measure, the disabilities cause the employee to be unable to work.
. At the time we decided Yureko, Minn.Stat. § 176.101, subd. 5 (1961), provided: “The
. The dissent argues that we should give special deference to the long-standing decisions of the WCCA when, as here, those decisions are accompanied by legislative silence. Because we conclude that Minn.Stat. § 176.101, subd. 5(2) is clear and unambiguous, we need not address this issue. Whatever the level of deference, if any, that should be afforded to a long-standing regulatory decision coupled with legislative silence, it cannot overcome the clear and unambiguous text of the statute. ,
. Because we reverse the decision of the WCCA, we need not decide whether the WCCA's interpretation of ' Minn.Stat. § 176.101, subd. 5, violated the Fourteenth Amendment to the U.S. Constitution or Article I, Section 2, of the Minnesota Constitution.
Dissenting Opinion
(dissenting).
The majority concludes that the language of MinmStat. § 176.101, subd. 6 (2014), not only requires that an employee seeking permanent-total-disability benefits meet the permanent-partial-disability rating threshold described in the statute, but also requires that the employee demonstrate that the permanent-partial-disability rating arise from conditions that affect employability. In reaching this conclusion, the majority ignores multiple reasonable interpretations of the statutory language оf section 176.101, subdivision 5. In addition, the majority fails to consider the fundamental purpose of workers’ compensation benefits, which is to provide compensation to workers injured on the job. Finally, the majority disregards past administrative interpretations of this statutory provision as well as the harmful effect of its chosen interpretation. For these reasons, I respectfully dissent.
I would affirm the WCCA’s decision that the conditions giving rise to an employee’s permanent-partial-disability rating need not affect the employee’s ability to work in order to establish permanent total disability undеr Minn.Stat. § 176.101, subd. 5(2). And because Allan has met the applicable threshold requirement in subdivision 5(2), I would remand this matter to the compensation judge to determine whether Allan is permanently and totally disabled.
I.
Section 176.101, subdivision 5(2), is ambiguous. When interpreting a statute, we give words and phrases their plain and ordinary meaning. Premier Bank v, Becker Dev., LLC,
Subdivision 5(2) first defines “permanent total disability” as an injury that “totally and permanently incapacitates the employee from working at an occupation which brings the employee an income, provided that the employee must also meet the [applicable permanent-partial-disability rating threshold].” Minn. Stat. § 176.101, subd. 5(2). The statute then defines the phrase “totally and permanently incapacitated” to mean “that the employee’s physical disability in combination with the [employee’s permanent-partial-disability rating] causes the employee to be unable to secure anything more than sporadic employment resulting in. an insubstantial income.” Id. The majority concludes that the phrase “in combination with” requires the employee’s physical disability and the employee’s permanent-partial-disability rating each to cause, or contribute to, the employee’s inability to secure more than sporadic employment. According to the majority’s interpretation, both the physical disability and the employee’s permanent-partial-disability rating must contribute to the employee’s inability to secure employment. Indеed, this may be one plausible interpretation of “in combination with.”
An equally reasonable interpretation of the phrase, however, is that the totality of the employee’s physical disability and the employee’s permanent-partial-disability
Our conclusion in Gluba ex rel. Gluba v. Bitzan & Ohren Masonry also recognized that the permanent-partial-disability rating thresholds in subdivision 5(2) are not directly related to employability.
Moreover, a “rating,” as opposed to a condition, can neither cause nor contribute to an inability to secure employment. The rating simply demonstrates the degree of overall (“whole body”) disability represented by the employee’s condition, as assigned by the permanent-partial-disability schedule. Simply put, the rating is a number. The rating does not, as the majority forces it to do, cause an inability to secure employment.
The language of section 176.101, subdivision 5(2) — in particular the absence of clarity attributable to the phrase “in combination with” and the word “rating” — lends itself to two reasonable and plausible interpretations. Accordingly, I conclude, as did the WCCA in Metzger v. Turck, Inc., 59 Minn.- Workers’ Comp. Dec. 229, 237 (WCCA 1999), that the stаtute is ambiguous.
II.
Because section 176.101, subdivision 5(2), is ambiguous, I consider sources in addition to the plain text, such as the canons of statutory construction, to determine its meaning. See Staab v. Diocese of St. Cloud,
We have described the “fundamental purpose” of the workers’ compensation statute as “provid[ing] compensation to [workers] injured by accident while performing their work.” Corcoran v. P.G. Corcoran Co.,
The majority’s interpretation of the statute defeats this purpose. The majority asserts that its interpretation is consistent with the Legislature’s decision to connect permanent-total-disability benefits to wage loss, citing Holland v. Independent School District No. 332,
The construction of subdivision 5(2) advanced here, as well as the holding of the WCCA, ensures that an employee who both is unable to secure employment because of a workplace injury and can demonstrate the requisite permanent-partial-disability rating, receives the intended compensation. It creаtes no additional risk that an employee who meets the permanent-partial-disability rating threshold but is able to secure employment will receive permanent-total-disability benefits in error. This is because an injured employee still must establish an inability “to secure anything more than sporadic employment resulting in an insubstantial income,” based on the injury or based on the injury and the condition underlying the permanent-partial-disability rating relied on to demonstrate the requisite whole-body rating threshold. Id. Merely meeting the permanent-partial-disability rating threshold is not enough for an employеe to be permanently and totally disabled. Here, for example, Allan still would need to establish that he is unable to secure employment because of his back injury after meeting the permanent-partial-disability rating threshold. This reasonable and plausible interpretation of the statute preserves the purpose of the workers’ com
The WCCA’s longstanding application of section 176.101, subdivision 6, when viewed against a backdrop оf legislative silence, also supports my interpretation. Of course, the WCCA’s decisions are not binding authority for us. Kloss v. E & H Earthmovers,
For more than 15 years, the WCCA has interpreted section 176.101 to permit an employee to demonstrate permanent-total-disability status by relying on a permanent-partial-disability rating, regardless of whether the conditions underlying that rating affected the employee’s employability. Metzger, 59 Minn. Workers’ Comp. Dec. at 237. Although the majority contends that the Legislature did not intend “such аn expansive interpretation” of the statute, the Legislature’s 15-year silence speaks volumes. Since the WCCA decided Metzger in 1999, the Legislature has made no amendments that contradict Metzger’s holding. During this same period, however, the Legislature has amended other parts of section 176.101 four times.
III.
In sum, the majority ignores the manifest ambiguity of section 176.101, subdivision 5, when it concludes that a perma-' nent-partial-disability rating must affect employability. In doing so, the majority avoids considering our canons of construction that support the opposite conclusion. Because Allan has met the threshold requirement under subdivision 5(2), the WCCA’s decision should be affirmed. Therefore, I respectfully dissent.
. The Legislature amended section 176.101, subdivisions 1 (temporary total disability), 2a (permanent partial disability), and 8 (cessation of benefits) in 2000. Act of Apr. 27, 2000, ch. 447, §§ 10-12, 2000 Minn. Laws 1042, 1051-55 (codified at Minn.Stat. § 176.101 (2000)). It amended subdivision 1 again in 2008 and in 2013. Act of Apr. 30, 2008, ch. 250, § 3, 2008 Minn. Laws 666-68 (codified at Minn.Stat. § 176.101 (2008)); Act of May 16, 2013, ch. 70, § 5, 2013 Minn. Laws 362, 371-73 (codified at Minn.Stat. § 176.101 (2014)). And the Legislature amended subdivision 2a in 2009. Act of May 12, 2009, ch. 75, § 1, 2009 Minn. Laws 529, 530-31 (codified at Minn.Stat. § 176.101 (2014)).
Dissenting Opinion
(dissenting).
I join in the dissent of Justice Wright.
Dissenting Opinion
(dissenting).
I join in the dissent of Justice Wright.
