Lead Opinion
delivered the Opinion of the Court.
We consolidated these workers’ compensation cases, for purposes of this appeal, to decide what factors may be considered in determining whether a claimant is permanently and totally disabled. Specifically, we granted certiorari to decide whether access to or availability of employment in a claimant’s commutable labor market may be considered in determining if a claimant’s injury renders the claimant “unable to earn any wages in the same or other employment,” pursuant to section 8-40-201(16.5)(a) of the Workers’ Compensation Act (the “Act”). See §§ 8-40-201 to 8-47-209, 3 C.R.S. (1997). We hold that these factors may be considered in determining a claimant’s eligibility for permanent total disability benefits. Therefore, we affirm the judgments of the court of appeals in Weld County School District RE-12 v. Bymer, No. 96CA0041 (Colo. App. Oct. 31, 1996) (not selected for publication), and Brush Greenhouse Partners v. Go-dinez,
I.
A.
In 1992, -Deborah Bymer worked as a custodian for Weld County School District RE-12 in Grover, Colorado. In October of that year, she sustained a compensable injury to her left wrist and hand. She reached maximum medical improvement (“MMI”) in December of 1994. An administrative law judge (“ALJ”) determined that, as a result of the injury, Bymer could not use her left upper extremity for grasping, and she experienced pain and loss of sensitivity in that area. The ALJ found that, given her medical impairment, Bymer was unable to find employment in Grover, a rural community in northeastern Colorado. The ALJ also found that the nearest community where Bymer could find employment was Greeley, Colorado, 60 to 65 miles from Grover. The ALJ determined, however, that Bymer was unable to commute to Greeley because her injury prevents her from driving such a long distance. Thus, the ALJ found that Greeley was not within Bymer’s “commutable labor market.”
The ALJ stated that, because of her injury, geographic residence and limited ability to drive, Bymer was unable to “obtain wages or employment.” Consequently, the ALJ concluded that Bymer was entitled to permanent total disability (“PTD”) benefits under the Workers’ Compensation Act. See § 8-40-201(16.5)(a). The insurer, the Colorado Compensation Insurance Authority (“CCIA”), and the employer appealed the ALJ’s order on the grounds that the proper test for determining PTD benefits is whether the claimant can earn wages in any labor market, not solely the claimant’s commutable labor market.
The Industrial Claim Appeals Office (“ICAO”) affirmed the ALJ’s award, finding that the ability to earn any wages is a factual determination for the ALJ, and an ALJ may consider the claimant’s commutable labor market in reaching this determination. In affirming the ICAO’s order, the court of appeals held that an ALJ may consider various “human factors,” such as mental training, ability, education, former employment and the community where the claimant resides. See Weld County Sch. Dist. RE-12 v. Bymer, No. 96CA0041, slip op. at 2 (Colo.App. Oct. 31, 1996) (“Bymer ”); see also Best-Way Concrete Co. v. Baumgartner,
In February of 1994, Ernesto Godinez sustained a compensable back injury while working as a laborer for Brush Greenhouse Partners in Brush, Colorado. He reached MMI on August 18, 1994. The ALJ found that, as a result of his injury, Godinez suffered continued back pain and had problems with sitting, standing, bending and other routine activities. Thus, the ALJ found that Godinez was physically capable of performing only “light” duty category employment. The ALJ also found that Godinez had: (1) completed only the fourth grade in Mexico, (2) very limited language and mathematics skills, (3) worked primarily as a laborer for his entire life, and (4) no driver’s license. The ALJ concluded that Godinez lacked the language and training skills to perform the light duty jobs (e.g., cashier and clerical work) available in the Fort Morgan/Brush area, his reasonable commutable distance from home.
Thus, the ALJ determined that Godinez’s physical impairment, lack of education, and limited language and mathematics skills prevented Godinez from accessing “the labor market in the Fort Morgan/Brush area.” Because Godinez was unable to secure any employment, the ALJ ruled that he was permanently and totally disabled. Brush Greenhouse Partners and the CCIA appealed, asserting that the proper legal standard to apply to a PTD determination is whether the claimant can earn wages in any employment “anywhere in the United States.” Both the ICAO and the court of appeals affirmed the ALJ’s order. See Brush Greenhouse Partners v. Godinez,
C.
On July 15,1992, Martin Pasillas-Carmona suffered a compensable back injury while working as a farm laborer in Las Animas, Colorado, a rural community two hours from Pueblo. He reached MMI on March 1, 1994. The ALJ found that, because his injury restricted him to sedentary and light level work, Pasillas could not return to his pre-injury employment. The ALJ further found that Pasillas: (1) completed only the fourth grade in Mexico, (2) could speak and understand little English, and (3) was illiterate in English. Because of Pasillas’s injury, educational and language barriers, the ALJ found that Pasillas was not employable in his “local labor market” (Las Animas and other locations within a commuting distance of Las Animas). Thus, the ALJ determined that Pasillas was permanently and totally disabled.
The ICAO affirmed the award of PTD benefits to Pasillas, ruling that the ALJ did not err in considering evidence of Pasillas’s education, linguistic ability, transferable skills, physical limitations and local labor market. The court of appeals reversed, stating that “disability is a function of impairment, not geography or job availability.” Spady Bros. v. Industrial Claim Appeals Office,
II.
A.
Prior to 1991, the Act did not define PTD; instead, our case law supplied the prevailing PTD standard. In Byouk v. Industrial Commission,
In 1991, the General Assembly added a definition of PTD to the Act in section 8^10-201(16.5)(a). See ch. 219, sec. 4, § 8^0-201(16.5)(a), 1991 Colo. Sess. Laws 1291, 1293. This section of the Act states that PTD means “the employee is unable to earn any wages in the same or other employment.” § 8-40-201(16.5)(a). The 1991 amendments to the Act, in combination with 1990 amendments, also repealed the statutory human factors related to the PPD determination and replaced them with a schedule of injuries and system of medical impairment ratings upon which to base the PPD finding. See ch. 219, sec. 15, § 8-42-107, 1991 Colo. Sess. Laws 1291,1306; ch. 62, sec. 77, title 8, arts. 48-54, 65-66,1990 Colo. Sess. Laws 468, 576. This consolidated appeal raises the issue of which of these human factors, if any, remain appropriate considerations in a PTD determination in light of the 1991 amendments to the Act.
B.
In construing a statute, the principal duty of a court is to determine and to effect the intent of the legislature. See State Eng’r v. Castle Meadows, Inc.,
Section 8-40-201(16.5)(a) does not describe the manner in which a claimant may show that he or she is “unable to earn any wages in the same or other employment.” Thus, it is not clear from the statutory language which factors may be considered in a PTD determination. It is appropriate, therefore, to look to relevant sources of legislative intent with respect to PTD eligibility.
The legislative history of this amendment indicates that the new definition of PTD was intended to tighten and restrict eligibility for PTD benefits. See Hearings on S. 91-218 Before the Conference Committee, 58th Gen. Assembly, 1st Reg. Sess. (May 3-5, 1991); House Floor Debate on S. 91-218, 58th Gen. Assembly, 1st Reg. Sess. (Apr. 18,1991); see also Christie II,
Another important source of legislative intent is the context in which the legislation was adopted. We presume that, when the General Assembly adopts legislation, it is cognizant of judicial precedent relating to the subject matter under inquiry. See Vaughan v. McMinn,
A legislative policy declaration at the outset of legislation also serves as a guide to legislative intent. See Mountain City Meat Co. v. Oqueda,
be interpreted so as to assure the quick and efficient delivery of disability and medical benefits to injured workers at a reasonable cost to employers, without the necessity of any litigation, recognizing that the workers’ compensation system in Colorado is based on a mutual renunciation of common law rights and defenses by employers and employees alike.
§ 8-40-102(1), 3 C.R.S. (1997); see ch. 218, sec. 3, § 8-40-102, 1991 Colo. Sess. Laws 1291, 1291. It is within this context of statutory language, legislative intent and case law that the CCIA and the employers in these consolidated cases (collectively, the “Employers”) assert that consideration of a claimant’s accessible labor market is inappropriate in determining the claimant’s PTD eligibility.
C.
No party to these consolidated cases argues that the 1991 amendments to the Act foreclose consideration of all of the human factors relevant to a PTD determination pri- or to 1991. Rather, the Employers argue that: (1) the claimant’s accessible labor market was never an appropriate consideration in pre-1991 PTD determinations, and (2) in either event, the 1991 amendments now prohibit this particular consideration.
The Employers’ first argument is not persuasive. As discussed above, pre-1991 PTD determinations unquestionably included consideration of the availability of employment in a claimant’s local or commutable labor market. See Prestige Painting,
The Employers assert that, because the legislature intended to tighten PTD eligibility in 1991, the legislature intended to abolish consideration of the claimant’s accessible labor market. However, a thorough examination of the legislative history behind section 8-40-201(16.5)(a) belies that conclusion. This history displays the legislature’s particular interest in limiting PTD benefits to those unable to earn “any wages,” to the exclusion of those who could earn a small amount of wages. On at least two occasions, the legislature explicitly declined to adopt a PTD definition based on the claimant’s inability to earn a certain amount of wages, in favor of the stricter “any wages” definition eventually adopted in section 8-40-201(16.5)(a). See House Journal, 58th Gen. Assembly, 1st Reg. Sess., Vol. 2 at 1518 (Apr. 18, 1991); Hearing on S. 91-218 Before the Conference Committee, 58th Gen. Assembly, 1st Reg. Sess. (May 3,1991).
This strict “any wages” definition substantially changed the pre-1991 standard for PTD. .Prior to 1991:
The ability of a claimant to earn occasional wages or perform certain kinds of gainful work [did] not necessarily rule out a finding of disability nor require that total disability be reduced to partial.
Hobbs v. Industrial Claim Appeals Office,
Therefore, the legislature’s purpose to restrict eligibility for PTD benefits was served by the adoption and application of the strict “any wages” definition in section 8^40-201(16.5)(a). There is no evidence that the legislature intended to go further by abolishing consideration of a claimant’s accessible labor market in a PTD determination. In fact, there is reason to believe that the legislature lacked such a sweeping intent. In regards to PPD, the legislature clearly intended to preclude the consideration of various human factors, including the availability of employment. We know this because the legislature explicitly repealed these factors with respect to PPD and replaced them with a specific disability scheme based on a schedule of injuries and medical impairment. See ch. 219, sec. 15, § 8^42-107, 1991 Colo. Sess. Laws 1291, 1306; ch. 62, sec. 77, title 8, arts. 48-54, 65-66,1990 Colo. Sess. Laws 468, 576. As discussed above, we presume that the legislature was aware that the human factors were also being used in PTD determinations. See generally Vaughan,
After concluding that the legislature did not intend to abrogate consideration of the human factors in a PTD case because the legislature did not do so clearly, we find the Employers’ additional arguments unpersuasive. As noted, the Employers argue that the 1991 amendments to the Act prohibit consideration of a claimant’s accessible labor market, while permitting consideration of the other human factors. We find no support for this new distinction among the recognized human factors.
First, contrary to the Employers’ claims, the decision in McKinney does not support this distinction. In that case, the claimant argued that the term “wages” in section 8-40-201(16.5)(a) means the pre-injury wage rate described in section 8^40-201(19)(a), 3 C.R.S. (1997). See McKinney,
Secondly, allowing this consideration does not lead to unreasonable results contrary to the rules of statutory interpretation. See generally Woodsmall,
Although the legislature intended the Act to be interpreted so as to assure the “quick and efficient delivery” of benefits “at a reasonable cost to employers,” § 8-40-102(1), the 1991 amendments did not alter the benevolent purpose of the Act. The Act remains “ ‘remedial and beneficent in purpose, and should be liberally construed to accomplish its humanitarian purpose of assisting injured workers and their families.’ ” Mountain City Meat Co.,
The Employers also contend that the concept of a claimant’s access to employment is unworkable. See also Spady Bros.,
In addition, the fact that ALJs have been applying this concept for some time undermines the Employers’ claim that this concept is unworkable. The concept of reasonably available employment has been employed in PTD determinations, in some form or another, since at least 1986. See Gruntmeir,
ALJ’s are fully capable of making reasoned judgments concerning a claimant’s employability based on the physical restrictions, the claimant’s capacity to travel, the availability of transportation, and the scope of the labor market in the claimant’s community.
Jones v. S & B Stagelines, Inc., W.C. No. 4-209 265, Colorado Workers’ Compensation Journal 22, 23 (July 1997). Moreover, we find it significant that the ICAO does not believe that section 8-40-201(16.5)(a) precludes consideration of whether employment is reasonably available to the claimant. See id. In construing a statute, “deference should be given to the interpretation given the statute by the officer or agency charged with its administration.” Lucero v. Climax Molybdenum Co.,
Finally, we find no reason to believe that consideration of reasonably available employment will frustrate the legislature’s stated goal of “quick, efficient delivery of [PTD] benefits.” § 8-40-102(1). As the records in these consolidated cases demonstrate, vocational experts routinely include this kind of information in their reports to ALJs. The Employers supply no support for the bare assertion that continued use of this information will compromise the efficient delivery of PTD benefits. Accordingly, we decline to adopt the interpretation of section 8^40-201(16.5)(a) advocated by the Employers.
In each of these workers’ compensation proceedings, the ICAO upheld and adopted the ALJ’s findings and conclusions. A reviewing court may set aside an order of the ICAO only upon certain grounds. See § 8-43-308, 3 C.R.S. (1997). These grounds include, inter alia, “that the findings of fact do not support the order,” or “that the award or denial of benefits is not supported by applicable law.” Id. Where the findings of fact are supported by substantial evidence, they may not be disturbed on appeal. See id. The substantial evidence test requires courts to defer to the resolution of conflicts in the evidence, the credibility determinations, and the plausible inferences drawn from the evidence by the ALJ when those findings have been accepted by the ICAO. See Christie I,
We conclude that applicable law supports an award of PTD benefits based, in part, upon consideration of that employment which is reasonably available to the claimant. See discussion supra Part II.C. Thus, the award of PTD benefits to claimants Bymer, Godinez and Pasillas may be set aside only if the factual findings in each case are unsupported by substantial evidence. In none of these consolidated cases do the Employers maintain that the factual findings are unsupported. Each of the PTD awards was based upon competent evidence, including reports by vocational experts, that the claimant, due to his or her particular circumstances, was unable to secure employment. See Bymer, No. 96CA0041, slip op. at 2; Brush Greenhouse,
III.
We hold that, in determining eligibility for PTD benefits, it is appropriate to consider various, well-settled human factors related to the claimant’s ability to earn wages. These factors may include consideration of the claimant’s commutable labor market or other analogous concept which depends upon the existence of employment that is reasonably available to the claimant under his or her particular circumstances. The court of appeals in Bymer and Brush Greenhouse correctly upheld PTD awards that were based upon these factors. Therefore, we affirm those judgments. The court of appeals in Spady Bros, set aside the PTD award in that case because the court erroneously held that the award was based on an inappropriate consideration. Therefore, we reverse the judgment of the court in Spady Bros., and remand the case with directions to reinstate the PTD award.
Notes
. For example, in the case of respondent Ernesto Godinez, the AU determined that Godinez's injuries and limited vocational abilities prevented him from accessing "the labor market in the Fort Morgan/Brush area." See discussion supra Part I.B. Given Godinez’s educational and linguistic limitations, however, it is unclear whether Godi-nez could find light duty employment in any community. The crucial determination, therefore, was that no employment was reasonably available to Godinez given his particular circumstances.
Dissenting Opinion
dissenting:
These cases deal with the determination of whether a worker can be classified as permanently and totally disabled not on the basis of injury or incapacity, but rather on the basis of whether the worker is unable to find work within his or her locality of residence. Because I believe that access to employment within the labor market where a claimant resides is not an appropriate factor to consider in awarding permanent total disability benefits, I respectfully dissent.
I.
Under workers’ compensation law, disability of a claimant is traditionally measured by two components: medical (or functional) incapacity and earning impairment. See Byouk v. Industrial Comm’n of Colo.,
Prior to the 1991 amendments to our Workers’ Compensation Act, the legislature defined certain “human” factors appropriate to a consideration of permanent partial disability. See § 8-51-108, 3B C.R.S. (1986). In Casa Bonita Restaurant v. Industrial Comm’n,
Under the old law, the court of appeals decided one case in which it specifically held that a claimant who was unable to find suitable employment in his local community was permanently totally disabled. See Gruntmeir v. Tempel & Esgar, Inc.,
In the 1991 amendments to the Worker’s Compensation Act, the General Assembly provided a statutory definition of permanent total disability:
“ Permanent total disability” means the employee is unable to earn any wages in the same or other employment.
§ 8^0-201(16.5)(a), 3 C.R.S. (1997).
The question before the court today is whether that new definition directs or permits consideration of a claimant’s commutable labor market in determining PTD. I agree with the Majority that the statutory language is ambiguous. I do not agree, however, that the legislative history provides support for the Majority’s position. To the contrary, I believe that the legislative history clearly reflects otherwise.
II.
To begin with, the 1991 amendments restrict PTD benefits to those unable to earn “any wage,” and persons employable outside their commutable labor markets are, in fact, capable of earning a wage.
The legislative history of the 1991 amendments “indicates that the definition of PTD in [the 1991 amendments] was intended to ‘tighten’ and restrict eligibility for PTD benefits.” McKinney v. Industrial Claim Appeals Office,
The Majority cites two eases which contrast the old PTD determination with the new one under the 1991 amendments. See Maj. op. at 556 (citing Christie v. Coors Transp. Co.,
Exclusion of labor market considerations certainly better serves the purpose of assuring that individuals who are physically capable of working are not declared PTD. Inclusion of labor market considerations can lead to the anomalous result of declaring a claimant permanently totally disabled when, if he or she moved to another area, he or she would be readily employable. Accordingly, I believe that the legislative history indicating an intent to restrict benefits to those incapable of earning “any wage” militates against allowing PTD for those capable of earning wages outside their labor markets.
III.
Finally, it simply does not make sense to describe market conditions as a “human” factor, nor does it make sense to incorporate market considerations into an analysis of an individual’s capabilities to earn any wage.
In considering whether a claimant may find suitable employment, we do not, for example, ask whether the potential employer or employers will remain financially sound in order to sustain the claimant’s employment. Cf. Lucero v. Climax Molybdenum Co.,
In Lucero, this court discussed the underlying theory of workers’ compensation law:
[We have recognized] the fundamental principle that the workers’ compensation laws were designed to compensate for diminishment of a worker’s earning capacity due to specified physical or mental injuries. See, e.g., §§ 8-51-108(1), 8-52-102(1), 3B C.R.S. (1986). The laws are not intended to protect against diminishment of a worker’s earning capacity due to mass layoffs and other external fluctuations in economic conditions. Workers’ compensation should not become, by way of strained construction, unemployment insurance. See Industrial Comm’n v. Baldwin,139 Colo. 268 , 273,338 P.2d 103 , 105 (1959) (although Workmen’s Compensation Act is to be liberally construed, “its provisions must not be pushed beyond the limits of their purpose, nor its funds diverted to those not clearly entitled thereto.... ”).
Lucero,
It is not the function of workers’ compensation law to forever insulate workers from all consequences of a work-related injury. It may be inconvenient for certain workers to move to a new market in order to find work, but such an inconvenience is suffered by most workers at some time in their careers for any of a variety of reasons. The workers’ compensation law is not designed to alleviate all inconveniences. If a claimant who lives in a rural community is injured, that claimant may have to move to find work, just as
The 1991 amendments to the Act were intended to limit awards of permanent total disability to individuals unable to earn any wage. The focus should be upon the characteristics of the individual applying for benefits and his or her capacity to obtain employment in the future, not upon the market conditions in an industry or locality. Because the Majority’s conclusion disserves the legislative policy of encouraging reemployment, I would reverse the court of appeals’ decisions in Bymer and Brush Greenhouse and would affirm in Spady Brothers, thereby dissenting from the Majority.
I am authorized to state that VOLLACK, C.J., joins in this dissent.
. Additionally, the Majority’s analysis does disproportionately and unfairly impact rural employers, who must bear the costs of permanent disability benefits awarded to individuals who would be employable in a larger community.
