The REINFORCED EARTH COMPANY, v. WORKERS’ COMPENSATION APPEAL BOARD (ASTUDILLO), Appeal of the REINFORCED EARTH COMPANY AND STATE WORKERS’ INSURANCE FUND.
No. 124 MAP 2000.
Supreme Court of Pennsylvania.
Decided Nov. 6, 2002.
Resubmitted June 3, 2002.
810 A.2d 99
Argued Nov. 13, 2001.
John J. Stanzione, Downingtown, for appellee, Juan Carlos Astidillo
James A. Holzman, Harrisburg, Amber M. Kenger, Mechanicsburg, for appellee, W.C.A.B.
Before ZAPPALA, C.J., and CAPPY, CASTILLE, NIGRO, NEWMAN, SAYLOR and EAKIN, JJ.
OPINION ANNOUNCING THE JUDGMENT OF THE COURT
Justice CAPPY.
In this appeal of The Reinforced Earth Company and its insurer, the State Workers’ Insurance Fund (collectively, “Reinforced Earth“) we consider (1) whether the Commonwealth Court erred in holding that public policy does not exclude the appellee, Juan Carlos S. Astudillo (“Claimant“), an unauthorized alien, from receiving relief under the Pennsylvania Workers’ Compensation Act1; and (2) assuming Claimant‘s eligibility to receive benefits in the first instance, whether the Commonwealth Court‘s decision that Reinforced Earth failed to establish that it is entitled to a suspension of the benefits awarded him is contrary our holding in Banic v. Workmen‘s Compensation Appeal Bd. (Trans-Bridge Lines, Inc), 550 Pa.276, 705 A.2d 432 (1997). We conclude that Claimant is not barred from the Act‘s relief for reasons of public policy and
Claimant filed a Claim Petition under the Act, alleging that he had been injured in the course of his employment with Reinforced Earth. Reinforced Earth filed an Answer to the Claim Petition, denying Claimant‘s allegations.
The WCJ held hearings in January and September 1995. Claimant‘s evidence included his testimony before the WCJ, his own deposition, and the deposition testimony of his treating physician, James B. Stephenson, M.D. Reinforced Earth countered Claimant‘s medical evidence with the deposition testimony of Armando A. Mendez, M.D., who examined Claimant on one occasion.2 With Claimant‘s agreement, Reinforced Earth also submitted the Affidavit of M. Frances Holmes, the Assistant District Director Examinations, for the United States Department of Justice, Immigration and Naturalization Service (“INS“), Philadelphia District, which stated that “[a]ccording to our records Alien number A90 237 990 on the copy of the Alien Registration Card ... does not relate to J. Carlos S. Astudillo. After a complete name search on our computer, we have no record of Mr. Astudillo.” (R. 192a-193a).
Based on the foregoing evidence, the WCJ found the following facts. Claimant initially immigrated to the United States of America in 1988, entering California from Mexico, and moved to Pennsylvania in 1990. The documents Claimant obtained and presented to Reinforced Earth in order to secure employment were invalid, not having been issued by the INS.
Claimant worked for Reinforced Earth as a maintenance helper. In this capacity, he cut and welded iron and repaired motors, and was required to climb scaffolds and ladders and
The conclusions of law the WCJ reached were as follows. First, the WCJ concluded that even “[a]ccepting that Claimant as an alien did not have proper [INS] documentation to work for [Reinforced Earth], such illegal alien status at the time of injury does not bar relief to the Claimant under the [Act].” (R. 199a).3 Second, the WCJ concluded that Claimant met his
Accordingly, the WCJ circulated an order on November 26, 1997, granting Claimant‘s Claim Petition, and ordering Reinforced Earth to pay Claimant compensation for total disability at the rate of $384.86 per week commencing as of May 21, 1994 and continuing thereafter until liability is altered pursuant to law; to pay all of Claimant‘s related reasonable and necessary medical expenses, including those Claimant had submitted, subject to the Act‘s limitations; to remain responsible for Claimant‘s medical expenses; and to pay the litigation costs.
Reinforced Earth appealed to the Workers’ Compensation Appeal Board (“Board“), objecting to the WCJ‘s first and second conclusions of law. Without taking additional evidence, the Board affirmed the WCJ‘s decision and order. With respect to Reinforced Earth‘s argument that Claimant‘s status as an unauthorized alien barred him from the Act‘s coverage, the Board determined that Reinforced Earth failed to prove that Claimant‘s alleged violation of the law—the use of invalid documents to secure employment—was causally related to his injury.4 In addition, the Board stated that any determination that Claimant‘s immigration status alone would
Reinforced Earth appealed to the Commonwealth Court. Reinforced Earth argued, inter alia, that the Board‘s ruling that Claimant‘s status as an unauthorized alien does not bar him from receipt of the Act‘s relief is inconsistent with the Commonwealth Court‘s decision to refuse workers’ compensation to an escaped prisoner in Graves v. Workmen‘s Compensation Appeal Bd. (Newman), 668 A.2d 606 (Pa.Cmwlth.1995), and that assuming arguendo that Claimant may be awarded workers’ compensation benefits, due to Claimant‘s immigration status which renders him unemployable, it is entitled to a suspension of the benefits.
A unanimous panel of the Commonwealth Court affirmed the Board‘s order. The Reinforced Earth Company v. Workers’ Compensation Appeal Bd. (Astudillo), 749 A.2d 1036 (Pa.Cmwlth.2000).
After rejecting Reinforced Earth‘s assertion that the IRCA forecloses the grant of workers’ compensation benefits,5 the
In [Graves], we held that a claimant who was an escaped prisoner was not entitled to workers’ compensation benefits because to grant him benefits would have been to reward him for his prison escape, and was an absurd and unreasonable result and contrary to the General Assembly‘s intention to provide compensation for work-related injuries. In so holding, however, we expressly limited that holding to escaped prisoners stating that:
[W]e expressly limit our holding to the proposition that an escape from official detention renders a claimant ineligible for benefits under the Act. We do not hold that any other violation of law committed prior to employment leads to a similar result. This holding balances the legitimate needs of employees with society‘s interest in ensuring that the workmen‘s compensation system is not used to the advantage of prison escapees.
Id. at 1038-39 (quoting, Graves, 668 A.2d at 609) (footnote omitted).
The court then declined to extend the holding in Graves to unauthorized aliens, explaining that “we specifically limited the Graves holding to escaped convicted criminals only, not illegal aliens who upon detection would normally be deported from the United States.” Id. at 1039. Moreover, the court also disagreed with Reinforced Earth‘s position that it would serve ” ‘public policy” to deny workers’ compensation benefits to unauthorized aliens merely because of their immigration status. Id. The court reasoned that “all that would do is
In a footnote to this passage, the court “not[ed] that [Reinforced Earth] did not produce any evidence of its investigation into Claimant‘s immigration status at the time he was hired.” Id. at n. 4.
Turning to Reinforced Earth‘s contention that Claimant‘s benefits should be immediately suspended because he is unavailable for employment due to his immigration status, the court stated that before a suspension may be effected, Reinforced Earth must establish Claimant‘s earning power by showing that he can perform other work. The court determined that because it would be useless to require Claimant to interview for jobs that he may not accept due to his immigration status, Reinforced Earth did not have to produce proof of actual job referrals to establish Claimant‘s earning power, as is mandated by Kachinski v. Workmen‘s Compensation Appeal Bd. (Vepco Constr. Co.), 516 Pa. 240, 532 A.2d 374 (1987). Reinforced Earth, 749 A.2d at 1040. Rather, the court modified Kachinski to accommodate the facts in this case and decided that “all that needs to be shown is evidence of earning power similar to Act 57.” Id. & n. 5.6 Finding that Reinforced Earth presented no evidence as to the type of work that did not involve climbing or heavy lifting that Claimant could perform, the court held that Reinforced Earth failed to establish its right to a suspension of Claimant‘s benefits. Id. at
This court granted Reinforced Earth‘s Petition for Allowance of Appeal. In workers’ compensation cases, we must affirm the adjudication below, unless we find that an error of law was committed, that constitutional rights were violated, that a practice or procedure of a Commonwealth agency was not followed or that any necessary finding of fact is not supported by substantial evidence of record.
Reinforced Earth argues that the Commonwealth Court erred in refusing to apply to unauthorized aliens “the public policy exception” from the Act‘s coverage that Graves announced. We begin our consideration of this particular argument with several observations about the issue that Reinforced Earth raises. First, Reinforced Earth does not refer to the Act, but looks to this Court for an exception to coverage in Claimant‘s case. Second, notwithstanding statements made by Reinforced Earth about Graves holding, we emphasize that in that case, the Commonwealth Court did not use the phrase “public policy exception” or discuss the issue before it in terms of the legal principles that are relevant to a public policy analysis. Rather, in interpreting and applying Section 301 of the Act,
We also emphasize that in asking that Claimant be excluded from the Act because of public policy, Reinforced Earth does not point to a section therein that Claimant fails to meet nor does it argue that Claimant‘s award violates the legislative
While we have recognized that the courts have the independent authority to discern public policy, we have repeatedly acknowledged that this authority exists in the absence of legislation. Shick v. Shirey, 552 Pa. 590, 716 A.2d 1231, 1237 (1998). In Lurie v. Republican Alliance, 412 Pa. 61, 192 A.2d 367 (1963), when we refused to expand on provisions of the Election Code regarding accounting procedures for political committees and allow taxpayers to challenge accountings in equity court, and not in the court of quarter sessions as the Code provided, we stated:
While the courts may in a proper case, in the absence of legislative pronouncement, determine what is against public policy, as stated in [Mamlin]: ‘It is only when a given policy is so obviously for or against the public health, safety, morals or welfare that there is a virtual unanimity of opinion in regard to it, that a court may constitute itself the voice of the community in so declaring.’ This is not such a case. More importantly, the legislature has spoken and provided the remedy for resolving such matters and specifically designated the tribunal for such determination. If it intended to give jurisdictional power to a court of equity, such could easily have been expressed.... ‘It is not for us to legislate or by interpretation to add to legislation matters which the legislature saw fit not to include.’
Id. at 370 (quoting Mamlin v. Genoe, 340 Pa. 320, 17 A.2d 407, 409 (1941), and Commonwealth ex rel. Fox v. Swing, 409 Pa. 241, 186 A.2d 24, 27 (1962)) (citations omitted).
Thus, we can conclude that the Commonwealth Court was correct not to deny Claimant benefits as Reinforced Earth requested.8
Because we have rejected the basis for Reinforced Earth‘s challenge to Claimant‘s award, we can also conclude that Claimant is entitled to the benefits granted him9 and turn to Reinforced Earth‘s contention that it is entitled to a suspension of those benefits under Section 413 of the Act. Section 413 provides in relevant part:
A workers’ compensation judge designated by the department may, at any time, modify, reinstate, suspend, or terminate a notice of compensation payable, an original or supplemental agreement or an award of the department or its workers’ compensation judge, upon petition filed by either party with the department, upon proof that the disability of an injured employe has increased, decreased, recurred, or has temporarily or finally ceased, or that the status of any dependent has changed. Such modification, reinstatement, suspension, or termination shall be made as of the date upon which it is shown that the disability of the injured employe has increased, decreased, recurred, or has temporarily or finally ceased, or upon which it is shown that the status of any dependent has changed....
Reinforced Earth asserts that Claimant‘s disability is not due to his work-related injury, but is caused by his inability to work lawfully which arises out of his unauthorized alien status. Accordingly, Reinforced Earth asserts, it is entitled to a suspension without having to meet the evidentiary test we announced in Kachinski for an employer who seeks to modify benefits. More specifically, Reinforced Earth focuses on what is commonly referred to as the “job availability prong” of the Kachinski test, and contends that proof of job availability is not necessary. In this regard, Reinforced Earth contends that our decision in Banic, 705 A.2d at 432, is controlling. Claimant, on the other hand, urges us to adopt the Commonwealth Court‘s solution to Reinforced Earth‘s request for a suspension of benefits and require Reinforced Earth to establish job availability without proof of actual job referrals.
Our analysis of this issue begins with the concept of disability that is embodied in the Act. Under Pennsylvania law, disability is synonymous with the loss of earning power that is attributable to the work-related injury. Landmark Constructors, Inc. v. Workers’ Compensation Appeal Bd. (Costello), 560 Pa.618, 747 A.2d 850, 854 (2000). Consequently, we have recognized that “[b]oth capacity to work and availability of work affect the extent of an injured employee‘s disability (loss of earning power)....” Dillon v. Workmen‘s Compensation Appeal Bd. (Greenwich Collieries), 536 Pa.490, 640 A.2d 386, 392 (1994). Thus, when in Kachinski, we delineated the elements that an employer who seeks modification of benefits must prove, we announced a four prong analysis that incorporates both the medical and economic aspects of a disability claim. Kachinski requires that:
- The employer who seeks to modify a claimant‘s benefits on the basis that he has recovered some or all his ability must produce medical evidence of a change in condition.
- 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 demonstrate that he has in good faith followed through on the job referral(s). - If the referral fails to result in a job the claimant‘s benefits should continue.
History has shown, however, that the four prong analysis of Kachinski is not to be rigidly applied to situations in which an employer seeks to suspend or terminate a claimant‘s benefits because the claimant‘s loss of earning power is no longer caused by the work-related injury. Banic, 705 A.2d at 436. That is to say, in such situations, we have allowed a modification of benefits without requiring proof on all of Kachinski‘s prongs. Id. at 436-37. Our decisions show that both the facts and the basis upon which the modification of benefits is sought determine which prong or prongs of Kachinski need not be met.
By way of example, in Dillon, we recognized that the first prong of Kachinski requiring medical evidence of a change in condition does not apply if a modification of benefits is not premised on the assertion that the injured employee has recovered some or all of his ability. Dillon, 640 A.2d at 392. In Southeastern Pennsylvania Transp. Auth. v. Workmen‘s Compensation Appeal Bd. (Henderson), 543 Pa.74, 669 A.2d 911 (1995), we upheld the referee‘s decision to suspend the partial disability payments a claimant was receiving based on his testimony that he had voluntarily retired from the labor market. In Schneider, Inc. v. Workers’ Compensation Appeal Bd., 560 Pa. 608, 747 A.2d 845 (2000), we concluded that proof of job availability under Kachinski‘s second prong would be pointless and inconsistent with the Act‘s purpose where a claimant, who regained the capacity for sedentary employment, could never return to work because of a subsequent, non-work related injury. Id. at 847.
And finally, in Banic, where the employer petitioned for an order suspending the claimant‘s benefits based on his imprisonment, rather than on any change in the work-related injury he sustained, we determined that the employer would have
Here, Employer was not seeking to suspend appellant‘s benefits because of a change in his medical condition. Rather, Employer sought to suspend appellant‘s benefits because his incarceration, rather than any change in his work-related injury, was the cause of appellant‘s loss of earning power.... [D]isability under the Act has long been synonymous with a loss of earning power. Thus, the Act never would have mandated Employer to prove the first prong of Kachinski requiring the production of medical evidence showing a change in condition. Also, Employer was not required to present evidence of available jobs being referred to appellant while he was in prison. Similar to voluntary retirement cases, to require Employer to show available work would be an exercise in futility since appellant‘s incarceration would have prevented appellant from ever applying for any of the referred positions. Thus, Employer, under the Act as it existed prior to the amendment to Section 306(a)(2), would have been relieved from the second prong of Kachinski requiring it to make a showing that jobs were available within appellant‘s medical clearance and that these jobs were referred to appellant.
Banic, 705 A.2d at 436-37 (footnote omitted).
With these principles in mind, we turn to the present case. There is no dispute that Claimant as an unauthorized alien cannot apply for or accept lawful employment. We, therefore, agree with Reinforced Earth that Claimant‘s loss of earning power is caused by his immigration status, not his work-related injury, and that there would be no point in requiring Reinforced Earth to show for purposes of suspension that jobs were referred to or are available to Claimant. Consequently, we conclude that Reinforced Earth does not need to satisfy Kachinski‘s job availability prong in order to prove its entitlement to a suspension of Claimant‘s benefits, and that the Commonwealth Court erred in imposing upon
That said, however, we cannot further consider whether Reinforced Earth is entitled to the suspension it requests. Although the parties, as well as the Board and the Commonwealth Court fail to mention it, the WCJ did not address Reinforced Earth‘s contention that Claimant‘s benefits must be suspended. We have no way of knowing, and therefore, no way of evaluating on review the basis for the WCJ‘s refusal to grant Reinforced Earth a suspension. Simply stated, without an adjudication of record on the matter by the WCJ, meaningful appellate review is impossible. Accordingly, this case must be remanded to the WCJ for a determination on Reinforced Earth‘s request that Claimant‘s benefits be suspended and for a reasoned decision on the issue as
For all of the foregoing reasons, we affirm the order of the Commonwealth Court, which affirmed the Board‘s order to affirm the WCJ‘s decision and order granting Claimant‘s Claim Petition and ordering Reinforced Earth to pay Claimant for total disability and all reasonable and necessary medical expenses. In view of the record, this case is remanded to the WCJ for further proceedings consistent with this opinion on Reinforced Earth‘s request for a suspension of benefits.12
Justice NIGRO files a concurring opinion in which Justice SAYLOR joins.
Justice NEWMAN files a dissenting opinion in which Justice EAKIN joins.
Justice NIGRO concurring.
I agree with the majority that Claimant may receive benefits as an illegal alien, that Reinforced Earth does not need to establish that it referred available jobs to Claimant in order for Claimant‘s benefits to be suspended, and that this case should be remanded to the WCJ for a determination as to whether Claimant‘s benefits should be suspended. Unlike the majority, however, I believe that the Commonwealth Court properly addressed and considered Reinforced Earth‘s argument that the court should create a rule barring illegal aliens from receiving benefits based on a public policy against illegal immigration.
Justice SAYLOR joins in the concurring opinion.
Justice NEWMAN.
I respectfully dissent. The Opinion Announcing the Judgment of the Court concludes that it is improper for courts to consider arguments for the creation of an exception, based on public policy, to the General Assembly‘s statutory scheme for workers’ compensation benefits. Relying on this Court‘s decision in Shick v. Shirey, 552 Pa. 590, 716 A.2d 1231 (1998), the Opinion Announcing the Judgment of the Court acknowledges the general rule of judicial self-restraint that is based on traditional notions of the separation of powers: “[w]here the legislature has spoken ... we will not interpret statutory provisions to advance matters of supposed public interest.” Id. at 1237. That self-imposed caution, however, is inappropriate in the present case, where Appellant bases its public policy argument on the clear Congressional mandate against employment of unauthorized aliens. See
The decision of the United States Supreme Court in Hoffman Plastic Compounds, Inc. v. NLRB, 535 U.S. 137, 122 S.Ct. 1275, 152 L.Ed.2d 271 (2002), illustrates that where two legislative schemes apply to the same situation, one may have to yield to the higher policy interests served by the other. In Hoffman Plastic Compounds, an employer fired employees who were engaged in union organizing activities that were protected by Section 8(a)(3) of the National Labor Relations Act (NLRA),
Of particular importance presently, the Hoffman Plastic Compounds Court noted, “Under the IRCA regime, it is impossible for an undocumented alien to obtain employment in the United States without some party directly contravening2 explicit congressional policies.” Id. at 1283. The Court further stated that it could not “overlook this fact and allow [the NLRB] to award backpay to an illegal alien for years of work
Our present question, therefore, is whether the policy of the Pennsylvania General Assembly to afford workers’ compensation benefits to employees injured in work-related accidents should yield to the injunction of Congressional policy against employment of unauthorized aliens. I believe that it should. The primary function3 of Pennsylvania‘s workers’ compensation system is to serve as a form of social insurance, so that a person injured on the job, who thereby loses “earning power” (i.e., the ability to work), receives income until the person recovers that lost earning power. See Hankee v. Wilkes-Barre/Scranton International Airport, 532 Pa. 494, 616 A.2d 614 (1992). In effect, benefits under the WCA stand in the place of the employee‘s present earning power, which has been diminished by the work-related injury. An unauthorized alien, however, by operation of IRCA, has no legal earning power.
The preferable course is to announce, as a matter of public policy consistent with federal immigration law, that unauthorized aliens are not eligible for workers’ compensation benefits. One who obtains employment in a manner contrary to federal law should not benefit from that illegal employment relationship.4 As the author of the Commonwealth Court‘s opinion in Graves v. Workmen‘s Compensation Appeal Board (Newman), 668 A.2d 606 (Pa.Cmwlth.1995), I opined that the General Assembly could not have intended that escaped convicts be eligible for workers’ compensation benefits because the creation of that employment relationship results from illegal conduct (i.e., an escape from prison). I believe the rationale of Graves applies here, and that we should assume that the legislature did not intend to reward those who violate federal law in obtaining employment by allowing them to participate in a social insurance scheme for Pennsylvania workers. Consequently, notwithstanding the absence of an express prohibition, I would interpret Pennsylvania‘s Workers’ Compensation Act in a manner consistent with federal immigration policy and follow our rules of statutory construction that direct us to avoid absurd results. See
For these reasons, I dissent.
Justice EAKIN joins this dissenting opinion.
