GENERAL ELECTRIC COMPANY, Appellant v. WORKERS’ COMPENSATION APPEAL BOARD (MYERS), Appellees.
unknown
Supreme Court of Pennsylvania.
May 27, 2004
849 A.2d 1166
Argued March 3, 2003.
Former Justice LAMB did not participate in the decision of this case.
Justice NIGRO files a concurring opinion.
CONCURRING OPINION
Justice NIGRO.
I agree with the majority that the trial court properly admitted parol evidence in the instant case to clarify the meaning of the term “cohabitate” in the parties’ property settlement agreement. I write separately solely to state that as a former trial judge, I am troubled that Appellee did not appear before the trial court during either of the scheduled hearings concerning her contempt petition and thus, did not even attempt to offer her own testimony regarding the parties’ intended meaning of the term cohabitate. Indeed, had Appellee offered her own testimony concerning the term, the trial court may have credited that testimony and rejected Appellant‘s contrary testimony as incredible. Instead, Appellee simply did not appear in court, making it particularly difficult to now accept her argument that the trial court should have construed the term differently.
849 A.2d 1166
Supreme Court of Pennsylvania.
Argued March 3, 2003.
Decided May 27, 2004.
Amber Marie Kenger, Richard C. Lengler, Mechanicsburg, for Workers’ Compensation Appeal Board.
Lisa J. Buday, Washington, Joseph Scott Leckie, for James Myers.
Samuel H. Pond, Philadelphia, for Pennsylvania Trial Lawyers Association.
Before CAPPY, C.J., CASTILLE, NIGRO, NEWMAN, SAYLOR, EAKIN, LAMB, JJ.
OPINION ANNOUNCING THE JUDGMENT OF THE COURT
Justice NIGRO.
We granted allowance of appeal in this workers’ compensation case to decide whether the workers’ compensation judge (“WCJ“) properly found that a light-duty position offered to
On September 21, 1995, Claimant injured his head while working for Appellant General Electric Company (“Employer“) as a welder and an assembler.1 Employer subsequently issued a notice of compensation payable, acknowledging Claimant‘s injury and agreeing to pay him total disability benefits of $509.00 per week. Claimant eventually returned to work with Employer in a light-duty position and his benefits were suspended. See Meyers Dep., 4/20/1998, at 5-6. In April 1996, however, Claimant was laid off from that position and his total disability benefits were reinstated. See id.
On November 13, 1997, Employer filed a petition to modify Claimant‘s benefits, alleging that he had acted in bad faith in failing to follow through with several referrals to open jobs within his medical limitations. After Claimant filed an answer denying Employer‘s allegations, however, Employer amended its petition to allege only that Claimant had acted in bad faith in refusing two specific job offers, both of which were with a telemarketing company called Smart Telecommunications, Inc. (“Smart“). In support of its petition, Employer presented the deposition testimony of (1) Janet Winschel, the general manager of Expediter Corporation (“Expediter“), an employment consulting firm that Employer‘s insurance carrier hired to find Claimant a job; (2) Stacey Marchione, the owner and president of Smart; and (3) two doctors who had examined Claimant.
According to the testimony of Ms. Winschel and Ms. Marchione, Smart interviewed Claimant on July 24, 1997, and thereafter offered him a position as a customer service surveyor for forty hours a week at a rate of $9.00 per hour. In that position, Claimant would be required to contact various businesses by telephone to verify their names and addresses so that Smart‘s clients could send the businesses information about products. Claimant was expected to work in his home,
A short time after he received the offer, however, Claimant informed Smart that he could not work in his home because he lived in an area zoned for agricultural use only.3 Thereafter, Ms. Winschel notified Claimant that office space had been rented for him to perform the surveyor position and that training would begin on August 15, 1997. In spite of the resolution of this issue, on the day before the training was to begin, Claimant notified Ms. Winschel that he was declining the Smart position based on his family doctor‘s advice. Two months later, Employer sought an independent medical examination of Claimant, following which the examining doctor concluded that Claimant was medically capable of performing the Smart position. Expediter therefore re-offered Claimant the surveyor position on Smart‘s behalf. Nevertheless, Claimant declined the position again.
On cross-examination at their depositions, both Ms. Winschel and Ms. Marchione revealed that the surveyor position was to have been fully subsidized by Employer‘s insurance carrier. See Winschel Dep., 2/12/98, at 76-77; Marchione Dep., 4/29/98, at 34. That is, Employer‘s insurance carrier was to have paid for all of Claimant‘s wages, insurance, taxes, equipment, and training, as well as for the rent on the facility where he would have worked.4 See Winschel Dep., at 47, 77, 88; Marchione Dep., at 34, 43, 76, 89, 99. However, both Ms.
Ms. Marchione added that under the subsidization program, if subsidized employees meet Smart‘s productivity standards by the end of their subsidy periods, Smart will continue to employ them and will place them on its own payroll. See Marchione Dep., at 85-86; see also Winschel Dep. at 78 (“If they are productive employees they will be hired on Smart‘s employment payroll.“). However, Ms. Marchione also acknowledged that when a formerly subsidized employee is officially placed on Smart‘s payroll, his job may change, his hours may be reduced, and his wages may decrease as the subsidy rate is higher than the rate at which Smart normally
Meanwhile, the two doctors who testified on behalf of Employer both opined that Claimant was capable of performing the surveyor position.9 In defending his refusal to accept the position, Claimant offered his own testimony as well as the deposition testimony from three different doctors. Notably, Claimant testified that he thought that he could perform the surveyor position, but expressed a concern that he might have trouble with the writing component of the job. Claimant nevertheless stated that he refused the position based on his family doctor‘s recommendation. In fact, two of the doctors produced by Claimant, one of whom was his family doctor, testified that they did not believe that Claimant could perform
After reviewing all of the evidence, on June 14, 2000, the WCJ issued a decision granting Employer‘s modification petition in part and denying it in part. In particular, the WCJ determined that Claimant could perform the surveyor position offered to him and that his refusal of that position was improper.10 Nevertheless, the WCJ also found that the position was only temporarily available to Claimant for ninety days. As she explained:
[I]nasmuch as said position was a funded position, only guaranteed for a period of ninety (90) days, and there was no assurance or obligation on behalf of Smart Telecommunications, Inc. to hire the Claimant after the period of funding ran out, said job is found to only have been temporarily available to the Claimant for those ninety (90) days. In fact, under these circumstances, the Claimant‘s employer for this temporary position was, in fact, the date of injury Employer, who, through its agent, Expediter, created a job for the Claimant, by agreeing to pay the Claimant‘s wages and pay the cost of training the Claimant and renting the facility out of which the Claimant would have performed work for Smart Telecommunications, Inc. This is similar to the Employer having a short-term light-duty program.
WCJ Op., 6/14/00, at 11. The WCJ therefore ordered that Claimant‘s total disability benefits be modified to partial disability benefits pursuant to
Employer‘s challenge to the WCJ‘s decision involves allegations both that the WCJ erred as a matter of law and that she made improper findings of fact. With regard to the WCJ‘s legal findings, our review is plenary. Daniels v. Workers’ Comp. Appeal Bd., (Tristate Transport), 574 Pa. 61, 828 A.2d 1043, 1046-47 (2003). On the other hand, with respect to the challenged findings of fact, it is well-established that the workers’ compensation judge is the ultimate finder of fact and as such, she decides which witnesses are credible and how much weight should be placed on each piece of evidence. See Bethenergy Mines, Inc. v. Workers’ Comp. Appeal Bd. (Skirpan), 531 Pa. 287, 612 A.2d 434, 436 (1992). Given this broad fact-finding power, this Court may only disturb a workers’ compensation judge‘s findings of fact if they are not based on substantial evidence. see also
Section 413 of the Act grants the workers’ compensation judge the authority to “modify, reinstate, suspend, or terminate” a claimant‘s benefits “upon petition filed by either party with the department, upon proof that the disability of [the claimant] has increased, decreased, recurred, or has temporarily or finally ceased....”
Once an employer has met the above requirements, the burden falls on the claimant to demonstrate that he followed through with the employer‘s job referral in good faith. See id. at 380. If he did, but the referral nevertheless failed to result in a job offer, the claimant‘s benefits may not be modified.13 See id. On the other hand, if the claimant failed to follow up on the referral without good cause, willfully sabotaged the interview, or refused a valid job offer, the
Notably, in Kachinski, this Court did not address what occurs when an employer refers a claimant to a temporary job. However, we have since tangentially addressed this issue in St. Joe Container Co. v. Workers’ Comp. Appeal Bd. (Staroschuck), 534 Pa. 347, 633 A.2d 128 (1993). In that case, the employer offered the claimant a non-union light-duty position, which the claimant rejected due to the fact that if he stayed at the position for more than six months, he would have had to forfeit the union benefits he had attained prior to his disability. Consequently, the employer re-offered the claimant the position, stating that it would return him to union status if he was dissatisfied after six months. The claimant nevertheless again refused the position. The workers’ compensation referee determined that the claimant‘s second refusal was improper and modified his benefits indefinitely.14 On appeal, the workers’ compensation appeal board reversed in part and affirmed in part. According to the board, the position was only available to claimant for six months because at that point he would have had to forego his union benefits, which it viewed as an unacceptable penalty for accepting the job. Thus, the board only modified the claimant‘s benefits for six months. On appeal, both the Commonwealth Court and this Court affirmed. As this Court explained, the light-duty position “was acceptable alternative employment available to Claimant for the six month period commencing May 1, 1986, and ... upon expiration of this six month period the position of shipping clerk became unacceptable alternative employment unavailable to Claimant for purposes of Employer‘s Petition to Modify Compensation.” Id. at 132. Thus, we affirmed the board‘s decision to temporarily modify the claimant‘s benefits for six months. See id.
As noted above, Employer argues that the WCJ‘s decision to temporarily modify Claimant‘s benefits here was erroneous because a subsidy arrangement should not impact whether a light-duty job is deemed to be temporary or permanent. We do not agree, however, that a workers’ compensation judge abuses her discretion in considering the subsidized nature of a proffered job and its effect on the temporal length of the job. Clearly, in circumstances in which the new light-duty employer that is receiving the subsidies (the “New Employer“) has no interest in employing the claimant beyond the subsidy period and the claimant is therefore bound to lose the job when the subsidy is terminated, the workers’ compensation judge should be free to consider this fact when assessing whether the position constitutes a mere short-term fix to the claimant‘s lack of productive employment. Moreover, even where the New Employer has expressed a willingness to employ the claimant once the subsidies have stopped, the workers’ compensation judge may justifiably consider a subsidized job arrangement to be temporary if, for instance, the
In reviewing the evidence presented here, we find that it, and all of the reasonable inferences that may be drawn from it, were more than sufficient for the WCJ to find that Claimant‘s job with Smart would have either ended or significantly changed at the conclusion of the subsidy period. As detailed above, the turnover rate for employees who worked at Smart based on Expediter referrals was “very high,” and very few subsidized employees actually continued to work for Smart after their time-of-injury employers stopped subsidizing their positions. See Marchione Dep., at 49-53; Winschel Dep., at 81-82. In addition, Ms. Marchione, the owner and president of Smart, confirmed that if Claimant stayed at Smart after the subsidy period, his position could change, his hours could be reduced, and his wages were sure to decrease.17
In Bennett, the employer referred the claimant, Richard Bennett, to a light-duty job at Sunn Corporation‘s Radon Division. The Radon Division subsequently offered Bennett the job, but he refused it, citing three doctors’ reports that allegedly indicated that the job was not within his medical limitations. Approximately two months later, the Radon Division was sold and the position that Bennett had been offered was apparently eliminated. Sometime thereafter, the employer filed a modification petition seeking to reduce Bennett‘s benefits based on his refusal to accept the Radon Division light-duty job. Bennett contested the petition, arguing that he had been physically unable to perform the position, but that even if he had been capable of performing the job and thus, rejected it in bad faith, his benefits could only be modified for the limited time period that the job had been actually available. The workers’ compensation referee rejected Bennett‘s arguments, however, finding both that Bennett had improperly refused the Radon Division position and that his benefits should be modified indefinitely, in spite of the fact that the position had subsequently become unavailable. See 632 A.2d at 597-98. The workers’ compensation appeal board and the Commonwealth Court affirmed.
In reviewing the referee‘s decision, the Commonwealth Court noted that because Bennett had improperly refused the light-duty position, he was not entitled to the same treatment as a claimant who accepts a light-duty position only to lose it later when the job becomes unavailable. See id. at 598 (citing Smith v. Workers’ Comp. Appeal Bd. (Futura Industries), 80 Pa.Cmwlth. 508, 471 A.2d 1304, 1306-07 (1984), for proposition that claimant is entitled to reinstatement of benefits if after he accepts a light-duty job, he loses it through no fault of his own). As the court explained:
In the case of an employee who has accepted and performed the light-duty job [and later lost it], the focus of the inquiry is on the employee‘s reason for losing the job, i.e., whether the loss of earnings was through “no fault of his own.” Where, however, the employee has not even accepted the proffered light-duty job at the outset, this same principle does not apply because the employee, being at that time unemployed as a result of his rejection of acceptable employment, has no earnings to lose.
Id.
Citing several of its earlier decisions, the court elaborated that when a claimant refuses a light-duty job in bad faith, his benefits will generally be modified indefinitely “because otherwise, a claimant could cure her bad faith refusal at any time, no matter how far in the distant future, by returning at a later date and applying for the position previously offered, or by demonstrating that the employer moved the plant to a distant state ... and such employment is no longer available.”20 Id. at 600. While the court acknowledged that it had permitted only a temporary modification of benefits in St. Joe Container Co. v. Workers’ Comp. Appeal Bd. (Staroschuck), 141 Pa.Cmwlth. 672, 596 A.2d 1193 (1991), aff‘d, 534 Pa. 347, 633 A.2d 128 (1993), when the claimant in that case had refused a light-duty position in bad faith, it distinguished that case from the others on which it relied by noting that the employer in St. Joe Container Co. had explicitly presented the non-union light-duty job to the claimant as a temporary position.
[W]here a claimant acts in bad faith in refusing suitable and available work, permanent at the time it is offered, the claimant‘s benefits are reduced for an indefinite period by the amount of earnings the job would have produced. Where a claimant acts in bad faith in refusing a position which is only a temporary job when offered, benefits will be modified for a period equal to the length of time the job was actually available. The determination of the duration of the position, either temporary or permanent, is to be made at the time of the referral and is to be based upon the information available to the employer and claimant at the time of the referral.
Id. at 600. Applying this test to the facts before it, the Commonwealth Court concluded that it had been proper to modify Bennett‘s benefits indefinitely because the evidence established that the Radon Division was expected to be permanent at the time that it was offered to Bennett.21 See id.
On appeal, this Court reversed, finding that Dillon did not have to establish that his physical condition had changed for the worse in order to establish that he was entitled to total disability benefits. See id. at 391-93. Rather, we stated that Dillon only needed to prove that “through no fault of his own his earning power is once again adversely affected’ by the injury which gave rise to his original claim.” Id. at 393 (quoting Pieper v. Ametek-Thermox Instruments, 526 Pa. 25, 584 A.2d 301, 305 (1990)). Moreover, we found that Dillon met that burden by showing that the light-duty work that he was expected to perform was currently unavailable for reasons unrelated to him. See id.
Unfortunately, there is no record of what took place in Bennett following our remand and thus we do not know how the referee resolved Bennett in light of Dillon. Nevertheless, according to Claimant, the mere fact that we remanded Ben-
We agree with Claimant that by remanding Bennett to be decided in accordance with Dillon, we indicated that we expected courts deciding whether to restore a claimant‘s total disability benefits following the claimant‘s bad faith refusal of a job offer to apply Dillon‘s directive that benefits be restored if the claimant establishes that the light-duty job to which he was referred has subsequently become unavailable to him through no fault of his own. See Dillon, 640 A.2d at 393. Moreover, this is wholly consistent with our conclusion in St. Joe Container Co. that if the evidence establishes that the employer has referred the claimant to a light-duty job that is only temporarily available from the outset, meaning that the claimant is bound to lose the job through no fault of his own at a definitive point in the future, a workers’ compensation judge may temporarily modify the claimant‘s benefits from the outset. See St. Joe Container Co., 633 A.2d at 132.
In sum, we hold that the WCJ did not err in finding, on the record presented here, that the subsidized Smart position was temporary, and therefore also did not err in modifying Claimant‘s benefits for the 90 days that the position was available to Claimant. The Commonwealth Court‘s decision is affirmed.
Former Justice LAMB did not participate in the decision of this case.
Justice SAYLOR files a concurring opinion.
Justice NEWMAN files a dissenting opinion in which Mr. Justice Eakin joins.
CONCURRING OPINION
Justice SAYLOR.
I join the majority opinion, except for its treatment of the Commonwealth Court‘s decision in Bennett v. WCAB (Hartz Mountain Corp.), 158 Pa.Cmwlth. 547, 632 A.2d 596 (1993).
With regard to Bennett, I read the order crafted by this Court on appellate review, not as a per curiam reversal (which would reflect a directive from this Court in terms of the actual merits disposition for the case, thus embodying a holding having the effect of precedent), but as in the nature of a grant, vacate, and remand order (which merely requires reconsideration by the intermediate appellate court of its prior decision to assess the import of some principle or authority identified by this Court). See Bennett v. WCAB (Hartz Mountain Corp.), 537 Pa. 433, 644 A.2d 729 (1994). In the face of new decisions that clarify relevant, underlying legal principles, this Court occasionally will remand an appeal to the intermediate appellate court so that it can ensure that its reasoning fully comports with the law as clarified. The clarification may affect the disposition of the case in some circumstances, but in others it will not—this is, in the first instance, a matter to be determined by the intermediate appellate court in the remand proceedings. Such understanding of this Court‘s decision to remand Bennett in light of Dillon v. WCAB (Greenwich Collieries), 536 Pa. 490, 640 A.2d 386 (1994), seems particularly apt, not only because the Court chose not to reverse the Commonwealth Court‘s existing decision, but also since Dillon embodied a clarification of some fundamental concepts at work in Bennett, but did not address itself to Bennett‘s central question, namely, the effect of a claimant‘s bad-faith refusal of an offer of permanent employment.
As the majority notes, the offer of permanent employment at issue in Bennett, see Bennett, 158 Pa.Cmwlth. at 554, 632 A.2d at 600, is also materially different from the circumstances under review here, where the fact-finder determined, based on substantial evidence, that the relevant offer involved temporary employment. Moreover, it seems to me that the employer‘s position, as concerns bad-faith refusal of an offer of permanent employment, is materially stronger than in the scenario in which the employment can be deemed to have been temporary from the outset. Thus, I would leave the matter of the validity of Bennett‘s holding (“[W]here a claimant acts in bad faith in refusing suitable and available work, permanent at the time it is offered, the claimant‘s benefits are reduced for an indefinite period by the amount of the earnings the job would have produced.“), id. at 555, 632 A.2d at 600, for a future case involving salient facts.
DISSENTING OPINION
Justice NEWMAN.
Because I believe that the Workers’ Compensation Judge (WCJ) erroneously concluded that the position offered to
Where an employer presents a claimant with an offer of available work within the claimant‘s physical limitations, and the claimant refuses to accept such an offer, the claimant‘s benefits may be modified. Kachinski v. Workers’ Compensation Appeal Bd. (Vepco Constr. Co.), 516 Pa. 240, 532 A.2d 374 (1987). This Court established the following four-pronged test to be applied in this type of case
- The employer who seeks to modify a claimant‘s benefits on the basis that he has recovered some or all of his ability must first produce medical evidence of a change in condition.1
- The employer must then produce evidence of a referral (or referrals) to a then open job (or jobs), which fits in the occupational category for which the claimant has been given medical clearance, e.g., light work, sedentary work, etc.
The claimant must then demonstrate that he has in good faith followed through on the job referral(s). - If the referral fails to result in a job then claimant‘s benefits should continue.
Id. at 380. We further emphasized that:
Obviously, the viability of this system depends on the good faith of the participants. The referrals by the employer must be tailored to the claimant‘s abilities . . . and be made in a good faith attempt to return the injured employee to productive employment, rather than a mere attempt to avoid paying compensation. By the same token, employees must make a good faith effort to return to the work force when they are able, and their benefits can be modified for failure to follow up on referrals or for willfully sabotaging referrals. If an employee refuses a valid job offer[,] his benefits can also be modified if it is found he had no basis upon which to do so.
Id. (emphasis added). Notably, this Court did not limit the modification of an employee‘s benefits to those instances in which the employer offers the employee only permanent work. In the instant matter, General Electric Co. (Employer) met the first two Kachinski prongs, but the Claimant failed to meet the latter two prongs. Accordingly, I believe that Employer is entitled to an indefinite modification of benefits where Claimant failed to pursue the Smart position in good faith. This is also applicable on the basis that Claimant refused a valid offer of employment.
From the record evidence, the WCJ found that the telephone survey position offered to Claimant would have been available to him for only ninety days and, on that basis, concluded that the reduction of Claimant‘s workers’ compensation benefits required by his refusal of the position without good cause must be limited in effect to the same period. Employer contends first, that the Commonwealth Court erred as a matter of law in equating a limited period of employer subsidization with temporary employment and, in any event, that each of the tribunals below misread the record as supporting such a limitation on the term of the position offered to
I agree with Employer that this record contains inadequate evidentiary support for the necessary finding below that the position offered to Claimant would have been available for only ninety days. The testimonial evidence is of usual cases, common practices, and typical ranges of the term of subsidization. There is simply no evidence that a ninety-day period of subsidization was preset at the outset for the telephone survey position offered to Claimant. Evidence that a five-hundred hour or ninety-day subsidization period is “common“; that there is “usually” an end point to subsidization; that “typically” the Smart Telecommunication‘s job referrals from Expediter are subsidized for an “indefinite period of time,” “anywhere from a week to three months,” and that the longest period of subsidization in the experience of the witness was “about six months” is, irrespective of the assessment of the credibility of the witnesses and the weight to be accorded to the evidence, simply inadequate to support the WCJ‘s pivotal finding: that the telephone survey “position was a funded position only guaranteed for a period of ninety (90) days.”
The Majority discerns from the deposition testimony that, after the period of subsidization, the position, pay, and hours of Claimant would change rendering this a completely different job. However, just as there is no evidence that the subsidy was to end after five hundred hours or ninety days, there is also no evidence of record that the position, pay, and hours would change following the termination of the subsidy period.
In applying Kachinski, the Commonwealth Court imposed a fairly strict application of the good faith requirement. Where a claimant is offered suitable employment, the claimant cannot decide that he does not like the position,2 resign and accept
Employer here relies on Bennett v. Workmen‘s Compensation Appeal Bd. (Hartz Mountain Corp.), 158 Pa.Cmwlth. 547, 632 A.2d 596 (1993). In Bennett, the claimant followed up on numerous referrals produced by the employer. However, when he was offered a permanent, light-duty position at a lower wage than his pre-injury job, he refused the offer, and sabotaged the interview by giving the interviewer three reports stating that he was totally disabled. Three months later, the light-duty position was eliminated for economic reasons. The employer sought a modification of benefits and
[W]here a claimant acts in bad faith in refusing suitable and available work, permanent at the time it is offered, the claimant‘s benefits are reduced for an indefinite period by the amount of earnings the job would have produced. Where a claimant acts in bad faith in refusing a position[,] which is only a temporary job when offered, benefits will be modified for a period equal to the length of time the job was actually available. The determination of the duration of the position, either temporary or permanent, is to be made at the time of the referral and is to be based upon the information available to the employer and claimant at the time of the referral.
Id. at 600 (footnote omitted) (emphasis added). In the instant matter, there is no evidence that the position offered was temporary; that it had an end date; and neither Claimant nor Employer considered it temporary.
This Court remanded Bennett for a decision in accordance with Dillon v. Workmen‘s Compensation Appeal Bd. (Greenwich Collieries), 536 Pa. 490, 640 A.2d 386 (1994). I believe that our concern in Bennett was the requirement imposed by the Commonwealth Court that a finding of bad faith on the part of a claimant justifies a reduction of temporary total disability benefits for an indefinite period. Thus, we remanded Bennett so that the Commonwealth Court could consider whether Bennett‘s loss of earning capacity was due to a lack of
Inasmuch as both capacity to work and availability of work affect the extent of an injured employee‘s disability (loss of earning power), it follows that disability, for compensation purposes, may change from partial to total or vice versa based on a change in one with or without a change in the other. [The] Commonwealth Court correctly recognized this in Lukens, Inc. v. Workmen‘s Compensation Appeal Bd., 130 Pa.Cmwlth. 479, 568 A.2d 981 (1989) when it held that the “medical evidence of a change in condition” criterion recognized in Kachinski applies only when the employer “seeks to modify a claimant‘s benefits on the basis that he has recovered some or all of his ability,” and such proof “is not required when that is not the basis for seeking a decrease in benefits.”
Dillon, 640 A.2d at 392 (emphasis added). In Dillon, a claimant sought modification of his award for partial disability to one for total disability on the basis that no jobs within his physical restrictions were available. Based on this showing, this Court found that his loss of earning power was not his fault and awarded total disability compensation. I believe that this was the examination that we directed the Commonwealth Court to undertake in the remand of Bennett.
We have said that, where an increase in existing benefits is sought, the inability to return to light-duty work may be offered to establish the impact on earning power and the burden shifts to the employer to demonstrate that the claimant has the ability to generate earnings consistent with his physical limitations. Stanek v. Workers’ Compensation Appeal Board (Greenwich Collieries), 562 Pa. 411, 756 A.2d 661 (2000). Relying on Dillon, this Court went on to state in Stanek that:
Where, however, as here, the claimant has not engaged in the light-duty work which was found to be available and consistent with his physical limitations in connection with the award of compensation for partial disability, his burden
will be greater. First, depending upon the circumstances, the claim may be vulnerable to denial on the basis of voluntary retirement. Second, the claimant will not be afforded the benefit of the presumption of total disability from an inability to perform an existing light-duty job. Rather, the claimant is in the position of having to prove a negative (i.e., that there are no jobs available in which he could work consistent with his physical limitations). In this setting, medical testimony which concedes that a claimant retains the physical ability to accomplish light-duty work, with no vocational or other form of assessment as to why such work is not available, will be deemed fatal to the claim.
Id. at 669 (internal citations omitted) (emphasis added and in original). In the matter sub judice, medical testimony was admitted to the effect that Claimant was cleared for the Smart position. Moreover, Claimant did not introduce any evidence that, despite his failure to accept this position, there were no other light-duty jobs available within his medical restrictions. After Employer adduced evidence that Claimant refused an offer of employment within his medical restrictions, the burden shifted to Claimant, pursuant to Stanek and Dillon, to demonstrate that there were no light-duty jobs available to him.
Critically, Bennett holds that the distinction between temporary and permanent employment is made at the time that the job is proffered. If a claimant rejects a position that is considered permanent at the time it is offered, then the claimant has exhibited bad faith. It is beyond cavil that Kachinski makes no distinction between temporary and permanent employment. Pursuant to Kachinski, within the context of bad faith and with certain exceptions not relevant to the instant matter,6 a claimant must at least attempt a position offered that complies with his medical restrictions, regardless of whether the position is temporary or permanent, or face modification of benefits. Where Bennett continues and holds
Further support for the proposition that benefits are suspended where a claimant exhibits bad faith in pursuing available work is provided by the decision of this Court in Harle v. Workmen‘s Compensation Appeal Bd. (Telegraph Press, Inc.), 540 Pa. 482, 658 A.2d 766 (1995). In Harle, we determined that, when a claimant with a residual disability returned to work with a different employer without any loss in earning power, and subsequently lost that job due to the closing of the business, the claimant was not entitled to a reinstatement of total disability benefits because the loss of earning power was unrelated to the disability. As in the instant matter, Claimant‘s loss of earning power is not due to his physical limitations, but to his failure to pursue employment offered to him that fit within his medical and occupational restrictions. There was no discussion in Harle as to whether the employment became temporary because of the business closure.
In Inglis House v. Workmen‘s Compensation Appeal Bd. (Reedy), 535 Pa. 135, 634 A.2d 592 (1993), a claimant filed a claim petition alleging an injury and entitlement to total disability benefits from her original employer, even after she returned to work with another employer without a loss of earning power but with some residual disability. She voluntarily quit that job and filed for reinstatement of total disability benefits because her original employer did not prove work was available to her within her limitations. This Court explained that the employer did not have to prove work availability because the claimant‘s loss of earning power was not related to her disability.
In the instant matter, Employer made a position available to Claimant, which he refused. At the hearing before the WCJ, Claimant agreed that he had medical clearance and was capable of doing the job. The WCJ determined that Claimant
I do believe that one viable principle emerged from the decision of the Commonwealth Court in Bennett, which is that the determination of the permanent or temporary nature of the position should be decided at the time that the position is offered. The Majority concludes that, even if Smart hired Claimant at the end of the subsidization period, that the job, the hours, and the pay would change, virtually rendering the position offered a temporary one. I believe that subsidized employment only becomes temporary employment where there is no intent on the part of the employer receiving the wage subsidies to assimilate the employee into its work force. In the instant matter, the testimony indicated that both Employer and Smart intended that Claimant be assimilated as a regular employee on Smart‘s payroll and, in fact, Smart had hired at least four such previous employees. Accordingly, I believe that the WCJ erred in concluding that subsidized employment and temporary employment were the same for purposes of determining that disability benefits should be awarded only for a closed period. It was further error on the part of the WCJ to reinstate total disability benefits after a finding of bad faith where the Claimant did not demonstrate that there were no jobs within his medical restrictions available to him.
Based on established workers’ compensation jurisprudence in this Commonwealth, Claimant‘s benefits should be modified indefinitely, following a finding of bad faith, until Claimant demonstrates that there is no work available to him within his medical restrictions. If Claimant had accepted the position
It is my belief that, on this record, Employer clearly demonstrated that work was available to Claimant within his medical restrictions and that Claimant acted in “bad faith” in refusing employment. Therefore, Claimant‘s loss of earning power resulted from his refusal to return to gainful employment. At that point, Claimant was required to show that the work was “unavailable” to him9 or that there were no jobs available that he could perform within his work restrictions to effect a reinstatement. Claimant failed to carry his burden of proof that he was deserving of reinstatement by proving the negative required by Stanek, and the WCJ erred in reinstating Claimant‘s benefits at the end of a closed period. The fact that Employer was subsidizing the employment does not make it temporary in nature where the owner of Smart testified that, if Claimant met the qualifications for regular, full-time employment, Claimant would be placed on its regular payroll. Claimant should have attempted the position and, at the close of the subsidization period, if the position terminated through no fault of his own, he should have pursued the options available to him pursuant to the Act. As observed by the
Justice EAKIN joins this dissenting opinion.
Notes
Q: Suppose Mr. Myers had agreed to accept this position with Smart Telecommunication, if he had done that and started to work for them, who would have paid him?
A: Initially his salary would have been subsidized by [Employer‘s insurance carrier]....
Q: And how long would that situation continue?
A: Commonly the subsidized pay goes up to five hundred hours or ninety days.
Q: Or ninety days?
A: Which is [sic] very similar.
Q: That‘s two ways of saying the same thing?
A: That‘s correct.
Winschel Dep., at 76-77. Similarly, Ms Marchione stated:Q: When you say that the job is subsidized, to what extent?
A: 100 percent.
Q: For how long?
A: Indefinite period of time. Anywhere from a week to typically three months.
Marchione Dep., at 34-35. Prior to the 1993 amendments to the Workers’ Compensation Act (Act), Act of June 2, 1915, P.L. 736, as amended,