RICHARD ROBERGE v. ASRC CONSTRUCTION HOLDING COMPANY and ARCTIC SLOPE REGIONAL CORPORATION
Supreme Court No. S-17897
THE SUPREME COURT OF THE STATE OF ALASKA
February 4, 2022
Opinion No. 7584
WINFREE, Chief Justice.
Alaska Workers’ Compensation Appeals Commission No. 20-010
Notice: This opinion is subject to correction before publication in the PACIFIC REPORTER. Readers are requested to bring errors to the attention of the Clerk of the Appellate Courts, 303 K Street, Anchorage, Alaska 99501, phone (907) 264-0608, fax (907) 264-0878, email corrections@akcourts.gov.
OPINION
Appeal from the Alaska Workers’ Compensation Appeals Commission.
Appearances: Eric Croft, The Croft Law Office, Anchorage, for Appellant. Matthew T. Findley, Ashburn & Mason, P.C., for Appellees. Kimberly D. Rodgers, Assistant Attorney General, Anchorage, and Clyde “Ed” Sniffen, Jr., Acting Attorney General, Juneau, for Amicus Curiae State of Alaska.
Before: Winfree, Chief Justice, Maassen, Carney, Borghesan, and Henderson, Justices.
I. INTRODUCTION
An Alaska Workers’ Compensation Act provision sets maximum compensation rates for injured employees; another provision applies a cost-of-living ratio only to out-of-state recipients. The parties to this appeal dispute the sequence for applying the provisions when calculating compensation. We conclude that the Act requires first applying the cost-of-living ratio and then applying the maximum rate.
II. FACTS AND PROCEEDINGS
Richard Roberge injured his shoulder in May 2014 while working for ASRC Construction Holding Company; he continued working with accommodations until the job ended in November. Roberge then returned to his Idaho residence. ASRC paid him $834.85 weekly in temporary total disability compensation through mid-August 2015, calculated by adjusting the maximum weekly compensation rate by the prevailing cost-of-living adjustment (COLA) percentage for his residence.1
Roberge filed a written workers’ compensation claim in November 2015, seeking the maximum allowable compensation rate of $1,143 weekly.2 He later filed a compensation rate adjustment claim seeking the same relief. In November 2019 Roberge was released to work. The following month ASRC and Roberge settled all disputes except the maximum compensation rate adjustment claim through November 2019.
The parties stipulated to relevant facts and asked the Alaska Workers’ Compensation Board to hear the rate adjustment claim on the written record.3 The parties agreed that Northern Construction v. James, an earlier Alaska Workers’ Compensation Appeals Commission decision,4 “constrained” the Board; they asked the Board to apply James and deny Roberge‘s claim, allowing him to appeal to the Commission. The Board accepted the stipulated facts, noted James was precedential for the Board, noted ASRC had paid compensation in accordance with James, and denied Roberge‘s rate adjustment claim.
Roberge appealed to the Commission. The parties agreed James was “dispositive” and asked the Commission either to reconsider James or apply James and issue a final decision denying Roberge‘s claim, allowing
III. STANDARD OF REVIEW
In an appeal from the Commission, we review the Commission‘s decision and not the Board‘s.5 “We apply our independent judgment to questions of ‘statutory interpretation requiring the application and analysis of various canons of statutory construction.’ ”6
IV. DISCUSSION
Commission decisions are binding precedent for the Board;7 the Board acknowledged this, then applied James. Roberge contends that the Commission incorrectly construed the Act and that James thus is an erroneous decision. ASRC makes a novel statutory construction argument rather than asking us to construe the Act‘s provisions in accordance with James. The parties agreed that if Roberge‘s argument prevailed we should both overrule James and reverse the Commission‘s decision in Roberge‘s case. We are persuaded by Roberge‘s argument.
A. Statutory Construction Principles And Relevant Statutory Provisions
“We construe statutes according to reason, practicality, and common sense, considering the meaning of the statute‘s language, its legislative history, and its purpose.”8 “The goal of statutory construction is to give effect to the legislature‘s intent, with due regard for the meaning the statutory language conveys to others.”9 “We give unambiguous statutory language its ordinary and common meaning, but the ‘plain meaning rule’ is not an exclusionary rule; we will look to legislative history as a guide to construing a statute‘s words.”10 “[W]e must, whenever possible, interpret each part or section of a statute with every other part or section, so as to create a harmonious whole.”11 We also “must presume ‘that the legislature intended every word, sentence, or provision of a statute to have some purpose, force, and effect, and that no words or provisions are superfluous.’ ”12
Calculating an injured employee‘s compensation rate involves considering several statutory sections. “Computation of compensation ... shall be on the basis of an employee‘s spendable weekly wage at the time of injury.”13 Spendable weekly wage is derived from an employee‘s gross weekly earnings.14 The legislature delegated to the Commissioner of Labor and Workforce Development the task of “annually prepar[ing] formulas that shall be used to calculate an employee‘s spendable weekly wage on the basis of gross weekly earnings, number of dependents, marital status, and payroll tax deductions.”15 The Board currently uses an online benefit calculator to determine spendable weekly wage.16 Most
Roberge‘s case involves only temporary total disability benefits, generally calculated at 80% of the spendable weekly wage.20 But as a high-wage earner Roberge falls under the maximum compensation rate provision, setting the rate at 120% of the statewide average weekly wage.21 Based on a statewide average weekly wage of $952.15, the 2014 maximum compensation rate is $1,143.22 But Roberge did not reside in Alaska, and additional “rules apply to benefits payable to recipients not residing in the state at the time compensation benefits are payable,” including a COLA.23
B. Northern Construction v. James
James presented a fact situation similar to this case. James was injured while working in Alaska, returned to his Idaho residence, and received compensation.24 His employer contended his compensation rate should be his Alaska compensation rate—the maximum rate—multiplied by the applicable COLA, but James argued he should receive the maximum rate, using the same calculation method Roberge uses here.25
The Commission began its James analysis by stating that
In the Commission‘s view, under
The Commission next considered
Under the Commission‘s analysis,
The Board applied James to Roberge‘s case because Commission decisions are binding precedent for the Board and the Commission.39 The Department of Labor and Workforce Development published revised COLA information in 2019, and it also required applying the COLA in accordance with James.40
C. Under AS 23.30.175(b) The COLA Ratio Applies Before The AS 23.30.175(a) Maximum Rate.
The parties agree on a number of facts as well as some steps in the compensation rate calculation. They agree that the first step in calculating the compensation rate is determining the spendable weekly wage under
Roberge contends that the next step is multiplying $1,752.78 by the applicable COLA, and he quotes
ASRC agrees that
1. Statutory language
The instructions in
ASRC maintains that
a. 1980s amendments
Since statehood the Act has set a maximum compensation rate on temporary total disability,41 but the Act has not always provided different rates for out-of-state recipients. In 1976 the legislature first authorized different compensation rate calculations for out-of-state recipients;42 it set an out-of-state resident‘s rate at “the weekly grant he would have received if he resided in Alaska times the ratio of the average weekly wage of the state in which he resides and the average weekly wage of Alaska.”43 The 1976 statute had a maximum rate for recipients residing in Alaska.44
Taken together, the 1976 statutory language suggests that the maximum rate then applied before any adjustment for living out of state.
In 1982 the Act was amended to require that an out-of-state recipient‘s compensation rate “be calculated by multiplying the recipient‘s weekly compensation rate calculated in accordance with
ASRC contends that the 1982 amendment replacing the phrase “the weekly grant he would have received if he resided in Alaska” by listing the indemnity benefit statutory sections did not change the law‘s substance. ASRC asserts that the list in the current statute “is synonymous with” the replaced phrase and asks: “Where else would these named statutes apply?” But this argument is contrary to the basic statutory construction principle that statutory amendments change the law47 unless they can be shown to be
a calculation of the rate the employee would receive as an Alaska resident, was ambiguous. And if in 1982 the legislature thought the phrase “the weekly grant he would have received if he resided in Alaska” needed clarification, not including the statutory maximum rate in a clarifying amendment would indicate a legislative understanding that the calculation did not include imposing the cap. If in 1982 the legislature thought the phrase “the weekly grant he would have received if he resided in Alaska” was not ambiguous and encompassed applying the maximum rate, then substituting the statutory list of indemnity benefit types without the maximum rate would indicate an intent to change the substantive law.
ASRC‘s argument about the 1982 amendments also fails to account for the legislature retaining a maximum rate applicable to in-state recipients.49 We “presume the legislature is aware of other statutory sections on the same subject when enacting legislation.”50 The legislature presumably was aware that previous statutory language included a maximum compensation rate and that the subsection setting that maximum rate was not part of the statutory list included in the amendment. Considered together, these statutory construction principles and the legislature‘s actions support a conclusion that in 1982 the legislature intended to exclude the maximum compensation rate subsection from the list of statutes applied before adjusting for out-of-state recipients.
After we held unconstitutional the use of a wage-based COLA ratio,51 in 1988 the legislature repealed and reenacted
sections list used when calculating out-of-state compensation rates.52 The legislature also made the statutory maximum benefit applicable to all workers’ compensation recipients, not just those living in Alaska.53
Roberge points to the 1988 legislative history showing that the committee amending the bill to apply the maximum rate to all compensation recipients had information about the difference in cost savings when applying the COLA before and after the maximum.54 In other words, although the committee considering the statutory language knew there might be ambiguity about when the maximum rate would apply, the committee did not amend the bill to include
b. Application of expressio unius est exclusio alterius
As part of Roberge‘s plain language argument, he invokes the statutory construction principle expressio unius est exclusio alterius, which “is essentially an application of common sense and logic”55 and “establishes the inference that, where certain things are
ASRC repeats its assertion that calculation under any listed section “inherently includes application” of
“Where a statute expressly enumerates the things or persons to which it applies, we often invoke ... expressio unius est exclusio alterius.”57 We have stated that this principle “is particularly compelling” when interpreting the Act, which is “purely statutory and without a basis in the common law.”58 Consistent with this principle, leaving
include
2. Purpose and legislative history
Under our sliding scale approach to statutory interpretation, “the plainer the statutory language is, the more convincing the evidence of contrary legislative purpose or intent must be” to guide our understanding of the statute.61
a. AS 23.30.175(a)
In 1988 the legislature repealed and reenacted
workers.64 Legislative history indicates that the legislature anticipated minimal impact; one representative stated that only 11 “cases” exceeded the new maximum amount.65
In 2000 the legislature amended
compensation benefits if the cost of living increased independently of wages. Legislative history from 2000 thus indicates an intent that the weekly compensation rate continue to correspond to employee income.
b. AS 23.30.175(b)(1)-(4)
The only cost-of-living adjustment for compensation rates is in
We recognized in Brown that “the State has important interests in avoiding disincentives to rehabilitation and in creating incentives for injured workers to go back to work” and acknowledged that paying the full Alaska rate to an employee residing in a location with a much lower cost of living might “discourage a return to work” because the “unadjusted compensation benefits may in terms of real income be in excess of the actual wage” the employee could earn.71 We decided that a COLA reduction based on
the average wage “imposes a substantial penalty” on an employee‘s right to travel72 and suggested that an adjustment that “equalize[d] the buying power of benefit dollars in each state” would more likely meet the means-to-end part of our equal protection test.73
The legislature relied on Brown in 1988 when rewriting
(1) recognize the levels of workers’ compensation benefits brought about by the high cost of living that exists in the state as compared to other localities;
(2) increase the incentive to return to work; and
(3) remove obstacles to the utilization of vocational rehabilitation that may be brought about by the payment of workers’ compensation benefits at the high levels provided by the Alaska workers’ compensation law to individuals residing in localities with living costs lower than those in Alaska.75
to have some relationship to the cost of living where the recipient resided to ensure the compensation rate was not so generous that the employee would decide not to work.77 But the legislature still based compensation on an employee‘s spendable weekly wage at the time of injury; high-wage earners thus would be paid higher workers’ compensation benefits—up to the maximum amount—than lower-wage earners.
ASRC argues that its proposed interpretation better fulfills the legislative purpose in circumstances like Roberge‘s, implying that the relationship between the amount of compensation and the cost of living is the appropriate way to gauge whether an employee has adequate incentive to return to work. Roberge argues that under the Commission‘s calculation method he receives only about 38% of his spendable weekly wage and that the maximum compensation rate is about 52% of his spendable weekly wage; under either scenario, he receives far less than the 80% rate the legislature deemed generally an adequate incentive for employees to return to work.
The Act is to be construed so that compensation coverage is not unduly costly to employers,78 but it also balances the goals of “replacing enough income with enough money that an injured worker‘s standard of living [will] not be dramatically reduced [and] keeping benefits low enough to provide an incentive to return to work.”79 It seems unlikely that paying only about 38% of spendable wages rather than 52% fulfills
the legislature‘s intent that the Act be construed to ensure the fair and predictable delivery of compensation benefits to injured workers.80
c. AS 23.30.175(b)(5)
In 2005 the legislature added
Currently . . . there‘s a cost of living adjustment in the Workers’ Compensation Act and it only applies outside the state. So, people who are injured within the State of Alaska get a unified rate, and it‘s based on a blended assessment of the cost of living in Anchorage, Fairbanks, and Juneau . . . . So, no matter where you reside in Alaska, no matter how expensive or inexpensive, you get the same rate. However, if you are a non-resident worker at the time of your injury working in Alaska or if you move out after you get injured and you go to someplace that has an arguably higher cost of living, my division is tasked by the current statute to do a cost of living analysis and . . . allow you to receive a higher compensation rate than you could have anywhere in the state. I don‘t really think that that‘s appropriate to pay people who are non-resident injured workers more than we pay our own injured workers. So, section 32 would preclude that and cap the rate that can be paid to a non-resident at the same amount that would be paid someone who was residing in Alaska.81
Lisankie expressed concern that people living in high-cost areas of Alaska, like Bethel, could not receive an adjustment for their high living costs, although people residing in
areas like Orange County, California could.82 The proposed solution was to cap a recipient‘s rate at the Alaska rate.
Neither
The 2005 legislative history of
3. Policy arguments
ASRC contends that Roberge‘s proposed construction of the Act “means that any high[-]wage earner whose benefits are subject to the cap in Section .175(a) are exempt from the Act‘s COLA provisions.” But Roberge‘s analysis applies the COLA provision in all cases before considering
ASRC relatedly asserts that Roberge‘s analysis would lead to absurd results, positing a hypothetical employee with an unadjusted (or Alaska) compensation rate of $1,100. Using Roberge‘s analysis, an employee with this unadjusted compensation rate who moved to the same area as Roberge would have a COLA-adjusted compensation rate of $792.44. ASRC contrasts these facts with Roberge‘s: under Roberge‘s analysis he would receive $1,143, the same compensation rate as if he resided in Alaska, which ASRC contends is an absurd result privileging high-wage earners. But ASRC‘s argument does not take into account the statutory provisions relating the employee compensation rate to wages.92 A hypothetical employee with an
unadjusted compensation rate of $1,100 would have a spendable weekly wage of $1,375,93 and $792.44 is 57.632% of $1,375. ASRC does not dispute that the $1,143 maximum compensation rate is about 52% of Roberge‘s spendable weekly wage; under Roberge‘s analysis he receives a lower percentage of his wages than ASRC‘s hypothetical employee under any scenario. Nor does ASRC dispute that its calculation method gives Roberge only about 38% of his spendable weekly wage. Roberge‘s interpretation of the statute brings the percentage of spendable weekly wage available to high-wage earners closer to that of medium- or low-wage earners, minimizing the risk that the reduction could be interpreted as a penalty.
A final hypothetical involving a move to McAllen, Texas, with 2019‘s lowest COLA at 59.36%, illustrates a potential weakness in ASRC‘s analysis.94 Under Roberge‘s calculation method, his weekly compensation rate would be $1,040.45, equal to 47.488% of his spendable weekly wage and less than the maximum rate. And 47.488% is the same wage percentage for any other McAllen recipient whose unadjusted compensation rate is less than
We reject ASRC‘s arguments that
D. The Commission Incorrectly Interpreted AS 23.30.220 And Consequently Misconstrued AS 23.30.175 .
James presented the same legal issue about applying the statutory maximum and the COLA, but the Commission did not focus on
We agree that James failed to give appropriate weight to the statute‘s text. The Commission‘s error appears to be based on a misunderstanding of
calculations given certain inputs.97 Because
The Commission implied that the benefit calculator displaced other statutory provisions about calculating compensation, writing about
a reasonable goal—creating the benefit calculator cannot alter statutory language. The Commission essentially decided that the calculator removed or modified
The Commission was concerned that applying the COLA before the maximum rate cap would render parts of the Act meaningless; it said this construction of the statute “ignored”
We agree with Roberge that in James the Commission inappropriately relied on 2005 legislative history to construe all parts of
Roberge finally objects to the Commission‘s consideration of the number of calculations required when the COLA is applied first. This issue appears to be related to the Commission‘s misconstruing
Considering how
As previously discussed, we conclude that the statutory language supports Roberge‘s calculation method. James‘s reasoning does not provide a comprehensive alternative construction.
E. Constitutional Issues
The parties have provided briefing about constitutional issues, and ASRC contends that Roberge‘s arguments amount to a constitutional challenge to the statutory COLA provision. But Roberge did not ask us to declare the COLA provision unconstitutional; he seeks an order that he be paid compensation consistent with his construction of the statute. We thus see no need to consider the constitutional issues the parties briefed.
V. CONCLUSION
We OVERRULE the Commission‘s decision in Northern Construction v. James, REVERSE its decision in this case, and REMAND this case to the Commission with instructions to remand to the Board to award Roberge compensation accordingly.
WINFREE, Chief Justice.
Notes
(1) the weekly rate of compensation shall be calculated by multiplying the recipient‘s weekly compensation rate calculated under
(5) application of . . . this subsection may not result in raising a recipient‘s weekly compensation rate to an amount that exceeds the weekly compensation rate that the recipient would have received if the recipient had been residing in the state.
The location where a recipient lives also can determine whether the cap applies. If Roberge resided in Joplin, Missouri, under his proposed method his adjusted rate would be $1,104.78 per week, less than the $1,143 applicable maximum rate; $1,104.78 is the product of Roberge‘s spendable weekly wage ($2,190.98) times 80% times the 2017-19 COLA for Joplin, Missouri (63.03%). ALASKA WORKERS’ COMP. DIV., BULL. NO. 19-09 (Dec. 10, 2019), https://labor.alaska.gov/wc/bulletins/19-09.pdf.
