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Mengel v. Workmen's Compensation Appeal Board

Commonwealth Court of Pennsylvania
Aug 16, 1988
545 A.2d 992 (Pa. Cmmw. Ct. 1988)

Opinion

August 16, 1988.

Workers' compensation — Termination petition — Burden of proof — Suspension of benefits — Earnings — Scope of appellate review — Violation of constitutional rights — Error of law — Findings of fact — Substantial evidence — Concurrent employment — The Pennsylvania Workmen's Compensation Act, Act of June 2, 1915, P.L. 736.

1. An employer seeking to suspend or terminate workers' benefits must prove that the compensable disability has ceased or that work is available to the claimant which she is capable of performing without loss of earnings. [585]

2. Workers' compensation benefits are properly suspended when post-injury earnings equal or exceed wages earned at the time of injury. [585]

3. In a workers' compensation case review by the Commonwealth Court of Pennsylvania is to determine whether constitutional rights were violated, an error of law was committed or findings of fact were unsupported by substantial evidence. [585]

4. To take advantage of concurrent employment provisions of The Pennsylvania Workmen's Compensation Act, Act of June 2, 1915, P.L. 736, a claimant must have two or more employers at the time of injury, and such provisions are inapplicable when the claimant was employed by only one employer at the time of injury and merely drawing unemployment compensation benefits at the time of injury as a result of loss of other employment by a firm no longer in business. [585-6]

Submitted on briefs April 21, 1988, to Judges MacPHAIL, SMITH, and Senior Judge BARBIERI, sitting as a panel of three.

Appeal No. 1613 C.D. 1987, from the Order of the Workmen's Compensation Appeal Board, in the case of Diane Mengel v. Boyer's IGA, Inc., No. A-92236.

Petition to the Department of Labor and Industry to terminate worker's compensation benefits. Petition dismissed. Employer appealed to the Workmen's Compensation Appeal Board. Compensation suspended. Employer appealed to the Commonwealth Court of Pennsylvania. Held: Affirmed.

Lester Krasno, for petitioner.

Paul J. Dufallo, Zimmerman, Lieberman Derenzo, for respondent, Boyer's IGA, Inc.


This is an appeal by Diane Mengel (Claimant) from a decision of the Workmen's Compensation Appeal Board (Board) which reversed the referee's order dismissing a termination petition and continuing benefits to Claimant. The issue presented is the effect of unemployment compensation benefits received by Claimant on the calculation of her average weekly wage for purposes of workmen's compensation.

Beginning in 1968, Claimant was employed as an office worker at the Foltz Trucking Company. In 1983, she was concurrently employed at the Boyer's IGA (Employer) store as a grocery bagger. In September of 1984, Foltz Trucking Company went out of business and Claimant was laid off whereupon she received unemployment compensation benefits at the rate of $136.00 per week. On February 1, 1985, Claimant suffered a work-related injury at Boyer's Supermarket. A notice of compensation payable was filed and Claimant began receiving workmen's compensation benefits at the rate of $112.00 per week.

On May 29, 1985, Claimant was employed by H.H. Fessler's Knitting Mills with average weekly earnings of $150.00 which were increased to $168.75 on September 1, 1985. Employer terminated Claimant's workmen's compensation benefits as of May 29, 1985, based upon Claimant's return to work at no loss of earnings.

On July 16, 1985, Employer filed a termination petition contending that Claimant had returned to work without any further disability or loss of earnings or earning power. After a hearing on September 5, 1985, the referee found that Claimant's disability continued; that she could not return to her work as a grocery bagger; and that her earning power remained diminished. Findings of Fact Nos. 8-9. The referee dismissed employer's termination petition, and directed the employer to pay workmen's compensation of $112.00 per week to Claimant. The Board reversed the referee and ordered that payment of compensation be suspended effective May 29, 1985. The Board held that where disability continues with a loss of earning power but Claimant earns more than before her injury, benefits must be suspended.

Claimant argues that the Board erred as a matter of law in holding that Claimant was not entitled to a compensation rate based upon Claimant's combined pre-injury wages from Foltz Trucking and Boyer's IGA. Claimant further argues that she was entitled to partial disability benefits since the combined average weekly wages from Foltz Trucking and Boyer's IGA were greater than earnings from Claimant's new job. In support of her contention, Claimant relies upon the fact that the referee awarded benefits greater than Claimant's weekly wages of $96.85 from Boyer's IGA and that Boyer's agreement to pay $112.00 per week benefits was an acknowledgment of concurrent employment. Further, Claimant asserts that receipt of unemployment compensation due to her lay-off from Foltz Trucking constitutes a continuation of her employment relationship with Foltz thereby requiring the referee to include her Foltz pre-injury wages in the computation of workmen's compensation benefits.

In seeking suspension or termination of workmen's compensation benefits, an employer must prove that the disability of Claimant has ceased or that work is available to Claimant which she is capable of performing without loss of earnings. Mickles v. Workmen's Compensation Appeal Board, 59 Pa. Commw. 109, 428 A.2d 1035 (1981). A claimant's compensation may be properly suspended when post-injury earnings equal or exceed wages previously earned since partial disability compensation is based upon the difference between the claimant's wages as an injured worker and his or her earning capacity as indicated by the pre-injury wages. Palmiere v. Workmen's Compensation Appeal Board (East End Trucking), 91 Pa. Commw. 137, 496 A.2d 918 (1985); Cannon Boiler Works, Inc. v. Workmen's Compensation Appeal Board, 58 Pa. Commw. 546, 428 A.2d 293 (1981).

Review by this Court, in a workmen's compensation case, is limited to determining whether constitutional rights were violated, an error of law was committed, or necessary findings of fact are supported by substantial evidence. Section 704 of the Administrative Agency Law, 2 Pa. C. S. § 704; Bailey v. Workmen's Compensation Appeal Board (Lawton Feed Supply, Inc.), 105 Pa. Commw. 106, 523 A.2d 415 (1987); Ortiz v. Workmen's Compensation Appeal Board (Fair Tex Mills, Inc.), 102 Pa. Commw. 493, 518 A.2d 1305 (1986).

Section 309(e) of The Pennsylvania Workmen's Compensation Act, pertaining to concurrent employment, provides in pertinent part:

Act of June 2, 1915, P.L. 736, as amended, 77 P. S. § 582(e).

Where the employe is working under concurrent contracts with two or more employers, his wages from all such employers shall be considered as if earned from the employer liable for compensation.

It is well established that the claimant must have two or more employers at the time of the injury in order to receive benefits based upon multiple employment. Freeman v. Workmen's Compensation Appeal Board (C. J. Langenfelder Son), 107 Pa. Commw. 138, 527 A.2d 1100 (1987). In this instance, at the time of the injury, Claimant was only employed by Boyer's IGA. Nowhere in the Act does it provide that receipt of unemployment compensation shall be deemed to constitute concurrent employment as Claimant urges upon this Court. Further, the referee in his Finding of Fact No. 7 states:

. . . The Referee finds that this is not a finding of concurrent compensation, but of consecutive compensation, and therefore Section 309(e) of the Workmen's Compensation Act which relates to concurrent employment is not applicable in the present situation.

Thus, Claimant's arguments regarding concurrent employment are clearly erroneous.

Section 306(a) of the Act permits the award of benefits greater than the weekly wage under the following circumstances:

If at the time of injury, the employe receives wages equal to or less than 50% of the statewide weekly wage, then he shall receive 90% of his average weekly wage as compensation but in no event less than thirty-three and one-third percent of the maximum weekly compensation payable.

Claimant received only the amount allowed by statute, and the referee's award therefore shall not be deemed an acknowledgment of concurrent employment.

Claimant is employed full-time earning wages greater than her pre-injury wages. Under the circumstances of this case, where disability continues but Claimant earns more than her pre-injury wages, compensation benefits must be suspended. See Johnson v. Workmen's Compensation Appeal Board, 36 Pa. Commw. 527, 388 A.2d 767 (1978). The Board therefore properly reversed the referee's decision that compensation benefits should continue.

Accordingly, the decision of the Board is affirmed.

ORDER

AND NOW, this 16th day of August, 1988, the order of the Workmen's Compensation Appeal Board dated June 5, 1987 is affirmed.


Summaries of

Mengel v. Workmen's Compensation Appeal Board

Commonwealth Court of Pennsylvania
Aug 16, 1988
545 A.2d 992 (Pa. Cmmw. Ct. 1988)
Case details for

Mengel v. Workmen's Compensation Appeal Board

Case Details

Full title:Diane Mengel, Petitioner v. Workmen's Compensation Appeal Board (Boyer's…

Court:Commonwealth Court of Pennsylvania

Date published: Aug 16, 1988

Citations

545 A.2d 992 (Pa. Cmmw. Ct. 1988)
545 A.2d 992

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