Case Studies to reduce your Workers Compensation Insurance Rates.

Workers Compensation Case Studies

Here is a sample case.

I. Assault - Victim of racially motivated name-calling retaliates by
assaulting coworker who said he was only joking.


Redman Industries Inc. v. Lang, 943 P2d 208 (Oregon) 1997
Lang worked for a manufacturing plant operated by Redman Industries Inc., installing windows on manufactured homes. He was white and worked closely with Frazier, an African-American man.

One day, Frazier got mad when Lang jokingly called him a derogatory racial name. The next day, Frazier warned Lang not to repeat such comments, but Lang persisted. Although Frazier knew Lang was trying to joke with him, he became very upset. A few minutes later, another coworker called Frazier a Spanish name that Frazier believed to be a racial slur. Frazier hit the coworker. Seeing Lang talking to a supervisor, Frazier thought he would lose his job for hitting the coworker. Thinking he "had nothing to lose," Frazier punched Lang several times.

Lang filed for benefits, but the employer denied the claim. After a hearing, the administrative law judge awarded benefits, ruling Lang's injuries arose out of and in the course of his employment. The Workers' Compensation
Appeals Board reversed, ruling that although Lang was hurt in the course of employment, his injuries did not arise out of employment. The court said that Lang's injuries weren't the result of a risk connected with his employment. Even though day-to-day friction may provide the necessary connection between employment and a coworker's assault, their dispute was not about work.
Decision: reversed, benefits granted.

Case Notes:
To be compensable, an assault victim's injuries didn't have to be the result of a dispute about work: "The most direct cause of an assault by a coworker may be criticism of another employee's work, lack of hygiene or fashion sense. However, in any such case, the criticism may be but the last of many straws precipitating the assault... The risk of assault by a coworker in the workplace is a risk to which the work environment exposes an employee."


II. Carpal Tunnel Syndrome
Worker claims disability after one day on the job
Doctors attribute carpet tunnel injury to single day of work
North River Insurance Co. v. Manpower Temporary Services, 568 N. W.2d 15 (Wisconsin) 1997


Buczko worked for Manpower Temporary Services. In November 1992, the temporary agency sent him to work at Freedom Plastics Inc., where he was assigned to operate a deburring machine. He allegedly experienced pain in his right wrist, but didn't mention it or lose any time from work.

On Dec. 31, Buczko stopped working for Manpower to become a Freedom employee. His first day of work was Jan. 4, 1993. At the end of that workday, he went to the human resources department to report numbness in his hand and fingers. The company assigned him to do non-repetitive work the next day, but he continued to complain of pain. The next day, Buczko went to work, but couldn't perform his duties. The company doctor diagnosed carpal tunnel syndrome.

Another doctor confirmed Buczko had carpal tunnel syndrome and performed surgery on Jan. 21. The doctor reported Buczko's work on Jan. 4 was a substantial factor contributing to his disability. The doctor later changed his opinion somewhat - he said Buczko's work exposure from Nov.
13 (when he worked for Manpower) to Jan. 4 (when he worked for Freedom) was the major contributing cause of his disability. He said the additional day of working on the machine wasn't a large enough factor in the onset or progression of Buczko's carpal tunnel syndrome.

At Freedom's request, a professor of occupational medicine viewed a videotape of the deburring activity. The professor concluded Buczko's work during a single day was unlikely to have aggravated or caused his condition.
After a hearing, the administrative law judge concluded Buczko was entitled to compensation. Because Buczko didn't have any disability (inability to work) before Jan. 4, that was the date of injury and Freedom was solely liable to pay benefits. On appeal, the Labor and Industry Review Commission affirmed.


On appeal, the court reversed, ruling Manpower was liable because Buczko's work in November and December while employed by Manpower, not the
single day as a Freedom employee, was the materially contributing cause of his condition.

Buczko appealed.

DECISION: Reversed.
Even though Buczko worked there only one day, Freedom was responsible for paying benefits.

Freedom was the employer "at the time of injury." As defined by state law, the time of injury meant the date on which the claimant was disabled. Even if his work while employed by the temporary agency contributed to his condition, 

Buczko didn't become disabled until Jan. 4, when he was a Freedom employee. Before that, he neither complained about his condition nor lost any work time. Although the medical evidence was in conflict, enough evidence showed 

Buczko's disability occurred during his employment with Freedom.

CASE NOTES: "At first blush, it may appear unfair to obligate Freedom for Buczko's workers' compensation benefits in light of Buczko's single day of work as a Freedom employee." But, the court observed, "the rule [that the employer at the time of disability must pay benefits] will work no injustice to any individual carrier or employer because the law of averages will equalize burdens imposed by this act among the employers and compensation insurers of this state."


III. Suspension of Benefits Employee declines light-duty job offer

Worker wants to keep lower-paying job

Royal v. Workers' Compensation Appeal Board (Mayfield Foundry Inc.), Pennsylvania Commonwealth Court No. 3460 C.D. 1997 (1999)
Royal was a foundry supervisor at Mayfield Foundry Inc. He hurt his shoulder and finger in 1993. During his treatment and recuperation through the end of the year, the foundry paid him temporary total disability benefits.

Royal's doctor released him to light-duty work in March 1994, but the foundry didn't have a light-duty job available. Royal found and accepted a lower-paying light-duty job at another employer. The foundry paid him partial disability benefits.

In April 1995, the foundry offered Royal his pre-injury job, modified to meet his medical restrictions, with his pre-injury wages, benefits, and work schedule. Royal turned down the offer. He said he was worried about job security - he thought the foundry might go out of business within two years.
The employer asked for suspension of Royal's benefits, alleging he did not act in good faith when he declined the foundry's offer of the light-duty job at his pre-injury wage. After a hearing, the workers' comp judge agreed, suspending Royal's benefits. On appeal, the Workers' Compensation Appeal Board affirmed. Royal appealed.

DECISION: Affirmed, benefits suspended.
Royal could no longer receive benefits after rejecting the foundry's job offer.
The foundry offered Royal a job that was both at his pre-injury wage and within his medical restrictions. Royal was obligated to accept the offer or suffer the consequences. "Disability is synonymous with earning power; thus, where the employer shows the claimant can earn his pre-injury wages, the claimant is no longer disabled in the legal sense, and benefits will be
suspended. " .


Royal didn't act in good faith when he rejected the job because of his subjective concerns about job security. Lack of good faith didn't mean "overt malfeasance" on the employee's part, but rather his rejection of the job without a good reason. His personal preference for the lower-paying job was not enough - and he had no proof to back up his job-security worries.

CASE NOTES:
"The claimant has the responsibility to seek work that provides earnings that are substantially similar to his time of injury wages."
Note: California requires that it be not less than 85% of what the employee's earnings were at the time of the injury.


IV. Course of Employment

Recreational Activities

Accountant has fatal heart attack during bowling match
Dorosz was a senior accountant at Green & Seifter, a private accounting firm. Every Monday night, he bowled on a team sponsored by a friend, who was a long-standing client. According to Dorosz's family, he did so for business reasons - Dorosz and the client discussed the client's business concerns before and after bowling.

One night, Dorosz and the client discussed business and bowled three games. Minutes later, Dorosz collapsed and died of a heart attack.
Dorosz's family filed for benefits. After a hearing, a workers' comp law judge awarded benefits. On appeal, however, the Workers' Compensation Board reversed, ruling Dorosz's voluntary participation in an off-duty athletic activity was not part of his work related duties.
New York law barred benefits when an employee was hurt while voluntarily participating in off-duty athletic activities that weren't part of the employee's work-related duties. There was an exception when the employer required the employee to participate, paid the employee to participate, or otherwise sponsored the event.

After the appeals court affirmed the denial of benefits, the family appealed to New York's highest court. The family contended that Dorosz's participation on the bowling team substantially benefited the employer, so it was part of his work-related duties.

DECISION: Affirmed, benefits denied.
Dorosz's family was not entitled to benefits.

Even if the employer benefited from Dorosz's participation on the bowling team, the law barred benefits for his death. As a threshold matter, the law required that the activity be part of the employee's work-related duties. It's obvious that the accountant was not engaged in work -related duties while bowling.


None of the law's exceptions applied. The employer didn't require or pay Dorosz to bowl. Nor did the employer "otherwise sponsor the activity." The employer may have known about the weekly game, but didn't overtly encourage his participation.

Case Notes: New York's highest court affirmed the decision of the appeals court to deny benefits. The court reviewed the law's legislative history, which showed "the Legislature narrowed the standards for what constitutes a compensable work-related sports injury, so that an award would not be based upon insufficient employer involvement."

Copyright ©2004-2005 www.ReduceWorkersComp.com - All rights reserved.