Opinion

Marshall, Tara v. Mueller Company

  • 2016 TN WC App. 30
Court
Tennessee Workers' Compensation Appeals Board
Filed
Jul 11, 2016
Status
Published
On the bench
Marshall L. Davidson III, David F. Hensley, Timothy W. Conner
Cited by
0 cases
Authority
More cited than 12.5%

The opinion

TENNESSEE BUREAU OF WORKERS' COMPENSATION

WORKERS' COMPENSATION APPEALS BOARD

Tara Marshall ) Docket No. 2015 ... 01-0147

)

v. )

) State File No. 63950-2014

Mueller Company, et al. )

)

)

Appeal from the Court of Workers' )

Compensation Claims )

Audrey A. Headrick, Judge )

Affirmed and Certified as Final- Filed July 11, 2016

In this appeal of the trial court's compensation hearing order, the employee challenges

the trial court's denial of an increase in the employee's permanent partial disability

benefits following a court-approved settlement agreement. At all relevant times, the

employee continued to work for the employer. At the time of her injury, the employee's

hourly wage included a summer hours' bonus. However, when the period of

compensation set out in the settlement agreement ended in October 2015, the employee's

hourly rate of pay no longer included the bonus. Relying on Tennessee Code Annotated

section 50-6-207(3)(B) (2015), the employee contends the wages she received at the end

of the period of compensation reflected in the settlement agreement were less than her

wages at the time of her injury, entitling her to increased benefits. The trial court found

the employee was not entitled tb increased benefits, and the employee has appealed.

Having carefully reviewed the record, we affirm the trial court's decision and certify the

order as final.

Judge David F. Hensley delivered the opinion of the Appeals Board, in which Judge

Marshall L. Davidson, III, and Judge Timothy W. Conner joined.

Jeffrey W. Rufolo, Chattanooga, Tennessee, for the employee-appellant, Tara Marshall

Joseph R. White, Chattanooga, Tennessee, for the employer-appellee, Mueller Company

1

Factual and Procedural Background

This case involved a single issue in the trial court, which is now the issue on

appeal, namely, whether Tara Marshall ("Employee") is entitled to increased permanent

partial disability benefits beyond the benefits she received pursuant to a court-approved

settlement. The facts are undisputed. Employee sustained a work-related left leg fracture

on August 4, 2014 while in the course and scope of her employment with Mueller

Company ("Employer"), which Employer accepted as compensable and for which

benefits were voluntarily provided. Employee returned to work for Employer on

February 3, 2015. The parties ultimately entered into an agreement resolving Employee's

claim, which the trial court approved on July 31, 2015. The parties acknowledged that

the 31.5 week period represented by the .initial award of permanent partial disability

benefits would end on October 13, 2015. Because the settlement agreement was

approved prior to that date, the parties included language in the agreement stating "[t]he

determination as to whether Employee will be entitled to any additional [permanent

disability] benefits cannot be made until the initial compensation period exptres on

October 13, 2015, per Tennessee Code Annotated section 50-6-207(3)."

On October 13, 2015, Employee's hourly rate of pay, excluding overtime, was

$18.16. At the time of her August 14, 2014 injury, she was earning $19.56 per hour,

which included a base rate of $17.86 per hour, a "summer hours' bonus" of $1.50 per

hour, and a "shift differential" of $.20 per hour. The "summer hours' bonus" was part of

a collective bargaining agreement entered into between Employer and the union in which

1

Employee was a member, which provided, in part, as follows:

The Company and the Union (USW) have mutually agreed that the current

business environment is in a recession and for the Company to take full

advantage of the lowest energy rates offered by [TVA] we are adopting, on

a non-precedent setting basis, irregular shift hours. Beginning on Sunday

June 2nd, 2013 at 8:00 PM and ending October 4, 2013 for the Iron Melt,

Foam Molding, Cleaning Room, General Foundry Labor and No-Bake Iron

Departments.

Employees working in the [a]ffected departments will receive a $1.00 per

hour shift premium on top of their contractual shift premium during the

irregular shift schedule.

1

Although the collective bargaining agreement provided for employees working in the affected

departments to receive a $1 .00 per hour shift premium, the parties stipulated that Employee's rate of pay

at the time of her injury "included a summer hours bonus of $1.50 per hour and a $0.20 shift differential

increase in comparison to [Employee's] base rate of pay ($17.86)."

2

The parties stipulated that the collective bargaining agreement remained in effect

and applied to Employee. The parties also agreed that in 2015, the "summer hours'

bonus" ended on September 30, 2015, at which time all affected employees returned to

their regular base rate of pay.

On November 10, 2015, Employee filed a petition for benefit determination

relying on Tennessee Code Annotated section 50-6-207(3)(B) (2015), seeking increased

permanent partial disability benefits. The relevant portion of section 50-6-207(3)(B)

states:

If at the time the period of compensation provided by subdivision (3)(A)

ends, the employee has not returned to work with any employer or has

returned to work and is receiving wages or a salary that is less than one

hundred percent ( 100%) of the wages or salary the employee received from

his pre-injury employer on the date of injury, the injured employee may file

a claim for increased benefits. If appropriate, the injured employee's award

as determined under subdivision (3)(A) shall be increased by multiplying

the award by a factor of one and thirty-five one hundredths (1.35).

Tenn. Code Ann. § 50-6-207(3)(B). 2 In addition to increased benefits resulting from an

employee's loss of employment or reduced wages after a work-related injury, an injured

worker's award may also be affected by additional factors identified in subdivisions 50-6-

207(3)(B)(i)-(iii) concerning the employee's education level, age, and the unemployment

rate in the county in which the employee was employed on the date of the work-related

injury. · Tenn. Code Ann. § 50-6-207(3)(B)(i)-(iii). The parties stipulated that, in the

event Employee is entitled to increased benefits, the amount of that increase would be

$14,634.28, which contemplates applying the 1.35 multiplier as well as a multiplier of 1.2

based upon Employee's age at the time the original period of compensation ended. See

Tenn. Code Ann. § 50-6-207(3)(B)(ii).

The trial court determined that, at the time the original period of compensation

ended, Employee's "hourly pay had returned to her normal base rate of pay of $17 .86" as

provided in the collective bargaining agreement, which was not less than her base rate of

pay at the time of her injury. 3 Concluding that the phrase "if appropriate" in section 50-

2

Effective April 14, 2016, Tennessee Code Annotated section 50-6-207(3)(A) was amended to identify

the period of compensation determined by multiplying the employee's impairment rating by 450 weeks as

the "original award." Section 50-6-207(3)(8) was amended to identify an increased original award

resulting from modification of the original award by applying any of the relevant factors set out in that

section as the "resulting award." Hereinafter we have used the terms as defined in the 2016 amendment.

3

The pai1ies' Pre-Hearing Statements and briefs on appeal state that, at the expiration of the 31.5 week

compensation period, Employee's hourly rate was $18.16. This is an increase of $.30 over her hourly

base rate at the time of her injury.

3

6-207(3)(B) "indicates an employee is only entitled to increased benefits if the Court

finds that the statute's preceding sentence is satisfied," the trial court found that increased

benefits "are not appropriate" and denied Employee's request for increased permanent

partial disability benefits. Employee has appealed, contending that under a plain reading

of section 50-6-207(3), she is entitled to the stipulated amount of increased permanent

partial disability benefits.

Standard of Review

The standard we apply in reviewing a trial court's decision is statutorily mandated

and limited in scope. Specifically, "[t]here shall be a presumption that the findings and

conclusions of the workers' compensation judge are correct, unless the preponderance of

the evidence is otherwise." Tenn. Code Ann. § 50-6-239(c)(7) (2015). The trial court's

decision must be upheld unless the rights of a party "have been prejudiced because

findings, inferences, conclusions, or decisions of a workers' compensation judge:

(A) Violate constitutional or statutory provisions;

(B) Exceed the statutory authority of the workers' compensation judge;

(C) Do not comply with lawful procedure;

(D) Are arbitrary, capricious, characterized by abuse of discretion, or

clearly an unwarranted exercise of discretion;

(E) Are not supported by evidence that is both substantial and material

in the light of the entire record."

Tenn. Code Ann. § 50-6-217(a)(3) (2015). Like other courts applying the standards

embodied in section 50-6-217(a)(3), we will not disturb the decision of the trial court

absent the limited circumstances identified in the statute. "The interpretation of a statute

and its application to undisputed facts involve questions of law," which we review de

nova with no presumption of correctness. Seiber v. Reeves Logging, 284 S.W.3d 294,

298 (Tenn. 2009). See also Cunningham v. Williamson Cnty. Hosp. Dist., 405 S.W.3d

41, 43 (Tenn. 2013); Payne v. D and D Electric, No. 2014-01-0023, 2016 TN Wrk.

Comp. App. Bd. LEXIS 21, at *6 (Tenn. Workers' Comp. App. Bd. May 4, 2016).

Analysis

This case presents an issue of first impression involving the application of

Tennessee Code Annotated section 50-6-207(3)(B) (2015). Analysis of the issue is aided

by considering the historical context within which Employee makes her request for

increased benefits.

Section 50-6-207(3)(B) has as its genesis the 1992 reforms to the Workers'

Compensation Act. An important element of those reforms was that, for injuries arising

on or after August 1, 1992, an injured worker's permanent partial disability was limited

4

to 2.5 times the employee's permanent medical impairment rating if the employee had

returned to work for the pre-injury employer at a wage equal to or greater than the wage

the employee was receiving at the time of the injury. See Tenn. Code Ann. § 50-6-

24l(a)(l) (1992). Additionally, the 1992 reforms provided for "reconsideration" of an

employee's industrial disability in cases where the employee subsequently lost his or her

employment with the pre-injury employer within the time period provided by statute.

Tenn. Code Ann. § 50-6.,24l(a)(2) (1992). The amount by which a reconsidered award

could be enlarged was governed by section 50-6-241(b) (1992).

Section 50-6-241 was further amended in 2004 to reduce the cap on the multiple

of an award of permanent partial disability from 2.5 times the impairment rating to 1.5

times the impairment rating for injuries occurring after on or after July 1, 2004, where the

employee returned to work for the pre-injury employer earning the pre-injury wage.

Tenn. Code Ann. § 50-6-24l(d)(l)(A) (2005). 4 The 2004 amendments extended

reconsideration rights to employees who, within the number of weeks applicable pursuant

to statute, either lost their employment with the pre-injury employer or suffered a

reduction in wages to a level less than the wage the employee was earning at the time of

the injury. See Tenn. Code Ann. § 50-6-24l(d)(l)(B)(i) and (ii) (2005).

Thus, after the effective date of the 2004 reforms, section 50-6-241 provided for

an employee to receive permanent partial disability benefits in excess of the 1.5 cap

under two circumstances: (1) where the employee had not returned to work for the pre-

injury employer at the pre-injury wage at the time the employee's claim was resolved, or

(2) where the employee, after returning to work for the pre-injury employer, suffered a

loss of employment or experienced a reduction in wages to a wage less than what the

employee was earning at the time of the injury, provided that such loss of employment or

reduction in wages occurred within a specified time. In 2010, statutory provisions

governing reconsideration claims were amended to provide that a reduction of

employees' hourly rate of pay or number of hours "due to economic conditions" did not

entitle the employees to "reconsideration of their claims under this section if the

reduction in pay or reduction in hours affected at least fifty percent (50%) of all hourly

employees operating at or out of the same location." Tenn. Code Ann. § 50-6-

241(d)(l)(B)(i) and (ii) (2010).

The Workers' Compensation Reform Act of 2013 significantly altered an

employee's potential award of permanent partial disability benefits. Among some of the

most significant changes was the deletion of subsections 50-6-24l(a) and (b) for injuries

occurring on or after July 1, 2014. See 2013 Tenn. Pub. Acts 289, § 89. Permanent

partial disability benefits under. section 50-6-207(3) were restructured to provide that an

4

The 2004 amendments also provided limitations to the recovery for injuries to certain "scheduled

members." Because this distinction is no longer relevant, we omit discussion of the specific provisions

regarding these scheduled members.

5

employee shall be paid specified benefits "at the time the injured employee reaches

maximum medical improvement . . . for the period of compensation, which shall be

determined by multiplying the employee's impairment rating by four hundred fifty (450)

weeks." Tenn. Code Ann. § 50-6-207(3)(A) (2014). Further, the employee "shall receive

these benefits ... whether the employee has returned to work or not." Id. Subdivision

50-6-207(3)(B) was also added, enabling an employee to file a claim for increased

permanent partial disability benefits "[i]f at the time the period of compensation provided

in subdivision (3)(A) ends, the employee has not returned to work with any employer or

has returned to work and is receiving wages or a salary that is less than one hundred

percent (100%) of the wages or salary the employee received from his pre-injury

employer on the date of injury." Tenn. Code Ann. § 50-6-207(3)(B) (emphasis added).

An employee's request for increased benefits under section 50-6-207(3)(B) is initiated

"by filing a new petition for benefit determination ... no more than one ( 1) year after the

period of compensation provided in subdivision (3)(A) ends." Tenn. Code Ann. § 50-6-

207(3)(D).

The 2013 Reform Act does not define "wages" as used in section 50-6-207(3)(B)

(2015), nor did earlier provisions of the Tennessee Workers' Compensation Act define

"wages." The Tennessee Supreme Court first addressed the term "wage" in the context

of temporary disability benefits, holding that the terms "wage" and "average weekly

wage" are not synonymous. Wilkins v. The Kellogg Co., 48 S.W.3d 148, 152-53 (Tenn.

2001). Based on the holding in Wilkins, the Supreme Court subsequently determined that

the term "wage" as used in section 50-6-24l(a)(l) did not mean "average weekly wage";

rather, it "means the hourly rate of pay for an employee who is compensated on an hourly

basis." Powell v. Blalock Plumbing & Elec. & HVAC, 78 S.W.3d 893, 898 (Tenn. 2002).

The Supreme Court's Special Workers' Compensation Panel has considered

whether an employee was entitled to an increase in permanent partial disability benefits

under section 50-06-24l(d)(l) following a layoff, during which time the employee

continued to receive employment benefits based on a collective bargaining agreement

that resulted in "take home compensation reduced by five percent." Edwards v. Saturn

Corp., No. M2007-01955-WC-R3-WC, 2008 Tenn. LEXIS 617, at *7 (Tenn. Workers'

Comp. Panel Sept. 25, 2008). Addressing whether the "wage" the employee received

during his layoff was equal to or less than the "wage" he was receiving at the time of his

injury, the Panel concluded that the legislature did not intend for the statutory cap on

permanent partial disability benefits to be removed under the circumstances of the case.

Finding the reduction in the employee's take-home pay to be analogous to an employer's

deciding to reduce the wages of its entire workforce, the Panel stated "[i]t does not appear

to this Panel that this is the type of situation that the General Assembly envisioned when

it drafted the workers' compensation laws." Id. at *29.

Two years later, in Blake v. Nissan N. Am., Inc., No. M2009-02173-WC, 2010

Tenn. LEXIS 1022 (Tenn. Workers' Comp. Panel Nov. 10, 2010), the Panel addressed

6

whether a reduction in a worker's hours was a sufficient basis to permit the trial court to

make an award in excess of the cap provided in section 50-6-24l(a)(l). The Panel

observed that Blake "falls into a middle ground" between Edwards and Powell, noting

that the employee "clearly sustained a loss of income after making a meaningful return to

work." Id. at * 12. However, the loss of income was not related to the employee's work

injury, "but instead was part of a plant-wide reduction in hours" intended to save jobs.

Id. In contrast to the 5% reduction in compensation in Edwards that was the result of a

collective bargaining agreement, Blake involved a 20% income reduction with no

connection to a collective bargaining agreement. While the appeal in Blake was pending,

the General Assembly amended section 50-6-24l(d)(l)(B) to provide that "[e]mployees

who continue in their employment after a reduction in pay or a reduction in hours due to

economic conditions shall not be entitled to reconsideration of their claims . . . if the

reduction ... affected at least 50% of all hourly employees operating at or out of the

5

same location." Tenn. Code Ann. § 50-6-24l(d)(l)(B) (2010). The Panel in Blake

found the amendment to be consistent with the Panel's analysis in Edwards and its

determination that a general reduction in wages "caused by economic conditions and

undertaken for the purpose of saving jobs, will not automatically open previously

'capped' settlements to reconsideration." Id. at *13. Noting that the 2010 amendment

became effective after the appeal in Blake was heard and therefore was not controlling,

the Panel stated that it did, however, "inform as to the legislative intent related to how

reduction in force should impact a determination of whether or not there has been a

meaningful return to work." Id. at *13-14. The Panel determined that the amendment

supported "the application of Edwards and the lower cap, rather than Powell and the

higher cap," and concluded "that the trial court erred by finding that Employee did not

have a meaningful return to work as a result of Employer's plant-wide reduction of

working hours." Id. at* 14.

In 2012, the Panel addressed a reconsideration claim filed after a 2009 collective

bargaining agreement that resulted in a $2.50 per hour wage reduction for all union

employees. Robinson v. Bridgestone Ams. Tire Operations, LLC, No. M2011-02238-

WC-R3-WC, 2012 Tenn. LEXIS 840 (Tenn. Workers' Comp. Panel Nov. 21, 2012).

Because of the reduction, the employee's hourly rate was $0.98 less than it was at the

time of his 2005 work-related injury. The employee asserted that "the across-the-board

reduction in wages in 2009 triggered his right to a reconsideration of his 2006

settlement." Id at *3. Relying on Edwards and Blake, the Panel stated that the purpose

of the two-tiered benefit system created in section 50-6-241 "is to protect the interests of

several categories of employees, including ( 1) those who are unable to return to work for

their employer because of their injuries, (2) those who are able to return, but at a lesser

wage because of the effects of their injuries, and (3) those who, for reasons outside their

control, are placed into the job market to compete against unimpaired applicants." Id. at

5

The amendment to subdivisions 50-6-241 ( d)(l )(B)(i) and (ii) applied to reconsideration of claims that

were approved or adjudicated on or after July 1, 2010. 2010 Tenn. Pub. Acts 1034, § 3.

7

* 11. The Panel found no basis in the statute or in the case law "to conelude that the

General Assembly intended to grant a windfall to employees who returned to work at

their pre-injury wage and continued to work for their pre-injury employer, but who, at

some later time, are affected by an across-the-board reduction of pay as part of the

employer's even-handed attempts to address deteriorating market conditions such as

those that affected the automotive industry beginning in 2008." Id. at* 12.

Lastly, the most recent appellate opinion addressing the effect of a reduction in an

employee's wage on the right to increased benefits pursuant to section 50-6-241 is Young

v. Bridgestone Ams. Tire Operations, LLC, No. M2011-02551-WC-R3-WC, 2013 Tenn.

LEXIS 10 (Tenn. Workers' Comp. Panel Jan. 10, 2013). Unlike the Edwards and

Robinson cases, which involved reconsideration claims, the issue in Young concerned

whether the 1.5 multiplier in section 50-6-241 applied to the employee's permanent

partial disability award. The employee contended that, because his hourly wage was

reduced to a rate less than he earned at the time of his injury due to a collective

bargaining agreement, his permanent partial disability benefits should not be capped by

the 1.5 multiplier in section 50-6-24l(d)(l)(A). The trial court found the wage reduction

"was not as a result of his being injured or unable to work," and that the award of

permanent partial disability benefits was capped at 1.5 times his medical impairment

rating. Id. at *4. Discussing Edwards, Blake, and Robinson, the Panel adopted

Robinson's analysis, citing in particular the rationale behind the two-tiered system

created in section 50-6-241. Id. at * 11. The Panel concluded that the trial court correctly

applied section 50-6-24l(d)(l)(A) to limit the employee's award of permanent disability

benefits. Id. at *12.

Having reviewed the statutes and the case law existing prior to the 2013 Reform

Act, we tum to the instant case. Employee asserts the trial court "relied heavily" on

Edwards, Robinson, and Young "to deny an award of increased benefits," contending the

employees in those cases were "denied an increase in additional permanent benefits due

to the state of the economy" and that "the basis for these decisions was found in the 2010

[a]mendment" to section 50-6-24l(d)(l)(B)(i). Employee's assertion that the basis for

these decisions is found in the 2010 amendment is incorrect, as the 2010 amendment was

not applicable to any of these cases. Young and Edwards were decided prior to the 2010

amendment, and Robinson involved reconsideration of a settlement approved prior to the

July 1, 2010 effective date of the 2010 amendment.

Employee contends section 50-6-207 of the 2013 Reform Act is controlling and

that the deletion of the language from the 2010 amendment concerning "economic

conditions" confirms that the General Assembly did not intend economic considerations

to affect a request to enlarge benefits. Advocating a "plain reading of the statute,"

Employee concludes that she "is entitled to her stipulated amount of increased benefits"

because, while she was employed by Employer on the date the original period of

compensation ended, she was "receiving wages or a salary that is less than one hundred

8

percent ( 100%) of the wages or salary [she] received from [the] pre-injury employer on

the date of the injury." Tenn. Code Ann. § 50-6-207(3)(B) (2015). We disagree with

Employee's conclusion.

The 2013 Reform Act replaced what the Panel described in Robinson as the "two-

tiered benefit system created in [Tennessee Code Annotated section] 50-6-241" with

section 50-6-207(3)(B), which includes provisions ·designed to protect the interests of

several categories of employees, including those who are unable to return to work

because of the effect of their work injuries as well as those who are able to return to

work, but at a lesser wage or salary than they were receiving at the time of their injury.

Section 50-6-207(3)(B) addresses the second of these categories by providing that "[i]f

appropriate, the injured employee's. award as determined under subdivision (3)(A) shall

be increased by multiplying the award by a factor of one and thirty-five one hundredths

(1.35)." Id. (emphasis added). In addition to the provision authorizing an increased

award as a result of reduced wages or loss of employment, section 50-6-207(3)(B)

contains subdivisions that provide for a permanent partial disability award to be further

increased where the employee is earning reduced wages or has suffered a loss of

employment ifthe employee meets additional factors related to the employee's education,

age, and unemployment rate in the county in which the pre-injury employer is located.

See Tenn. Code Ann. § 50-6-207(3)(B)(i)-(iii).

Employer contends that when the original period of compensation expired on

October 13, 2015, Employee's base rate of pay was $18.16, which was $0.30 greater than

her base pay rate of $17 .86 on the date of her injury. Employer notes that, as in

"Edwards, Young, and Robinson, the decrease in [Employee's] hourly rate was

completely unrelated to her injury," and that "[a]ll employees in the Melt Department

received the same reduction in pay, regardless whether they had workers' compensation

claims." Employer emphasizes that Employee's "hourly rate had decreased beginning in

October for the two years prior to her injury," and that Employee "and all other similarly

situated employees will go back to the summer hours' pay later this year when it is

applicable."

Employer contends that if Employee's argument is accepted, she will "be in a

better position than she would have been if she ... had been injured during spring, fall or

winter," and that if she had been injured in the spring, fall, or winter, there would be no

argument whether she would be entitled to any additional compensation because her base

rate of pay at the end of the original compensation period would have been higher than

when she was injured. Employer notes that Employee's hourly rate of pay returns to her

base rate each October regardless of whether she has suffered any injuries. Employer

. argues that Employee "should not receive increased compensation just because she was

injured during the summer months when her pay was temporarily increased," and that

Employer "should not be unfairly penalized, and [Employee] should not receive an

unearned windfall."

9

In contemplating the unusual set of circumstances with which we are presented in

this case, we have considered pre-2013 Reform Act statutory provisions and case law

concerning the meaning of "wage." We have also considered the 2013 Reform Act's

deletion of sections 50-6-241(a) and (b), the revised method of calculating permanent

partial disability benefits in the 2013 Reform Act, and the Reform Act's conditioning an

employee's entitlement to increased benefits at the end of the original compensation

period upon the employee's "receiving wages or a salary that is less than one hundred

percent (100%) of" the wages or salary the employee received from the pre-injury

employer." In view of the historical context in which "wages" came to be defined, we

find it significant that the General Assembly did not define "wages" as used in section

50-6-207(3) or otherwise indicate a different meaning of "wages" than has been

established in prior opinions. Moreover, the rules and regulations adopted by the Bureau

of Workers' Compensation both before and after the effective date of the 2013 Reform

Act do not define the term. Accordingly, we find no basis in the language of section 50-

6-207 to conclude that the General Assembly intended that an employee receiving a

"summer hours' bonus" or a "shift differential" at the time the employee suffers a work

injury to be entitled to increased benefits under the facts and circumstances presented in

this case. Rather, the General Assembly's failure to provide a definition of "wages"

under these circumstances suggests that the interpretation applied under pre-reform law

would continue to be applicable to post-reform cases.

Additionally, it would be inconsistent for similarly-situated employees to be

entitled to increased permanent disability benefits depending on when the injury

occurred, when an employee's original period of compensation ended, or what shift an

employee was working when the injury occurred versus when the original period of

compensation ended. Were it otherwise, an employee injured while working overtime

hours could be entitled to increased benefits if, at the time such employee's original

period of compensation ends, the employee is no longer working overtime. Even when

the workers' compensation statutes were remedially construed, the courts determined that

such an interpretation was inconsistent with legislative intent. See King v. Gerdau

Ameristeel US, Inc., No. W2011-01414-Wc-R3-WC, 2012 Tenn. LEXIS 488, at *7

(Tenn. Workers' Comp. Panel July 30, 2012) ("Although [the employee] has work

restrictions that reduce the amount of overtime pay he receives, overtime pay contributes

to his average weekly wage, not his hourly rate of pay. We conclude that [the employee]

has returned to work on a full-time basis at the same hourly rate of pay and has made a

meaningful return to work."). In this case, Employee's "reduction" in wages was the

result of the end of a summer hours' bonus that is effective every year. It applies to all

employees working in certain departments, and is directly related to economic conditions

and a collective bargaining agreement designed to alleviate the effects of those

conditions. Moreover, and most importantly, the elimination of the bonus does not affect

Employee's base rate of pay, that is, her hourly wage, which was higher at the time the

original compensation period ended than at the time of her injury. Applying a fair and

impartial interpretation of the 2013 Reform Act "in accordance with basic principles of

10

statutory construction," as mandated by section 50-6-116 (2015), we conclude that

Employee is not entitled to increased benefits.

Conclusion

For the above reasons, we conclude that the trial court correctly determined that

Employee was not entitled to increased permanent partial disability benefits.

Additionally, we find that the trial court's decision does not violate any of the standards

set forth in Tennessee Code Annotated section 50-6-217(a)(3). Accordingly, the trial

court's order is affirmed and certified as final.

~ Workers' Compensation Appeals Board

11

TENNESSEE BUREAU OF WORKERS’ COMPENSATION

WORKERS’ COMPENSATION APPEALS BOARD

Tara Marshall ) Docket No. 2015-01-0147

)

v. )

) State File No. 63950-2014

Mueller Company, et al. )

CERTIFICATE OF SERVICE

I hereby certify that a true and correct copy of the Appeals Board’s decision in the

referenced case was sent to the following recipients by the following methods of service

on this the 11th day of July, 2016.

Name Certified First Class Via Fax Via Email Address

Mail Mail Fax Number Email

Jeffrey W. Rufolo X jrufolo@summersfirm.com

Joseph R. White X jrw@smrw.com

Audrey A. Headrick, X Via Electronic Mail

Judge

Kenneth M. Switzer, X Via Electronic Mail

Chief Judge

Penny Shrum, Clerk, X Penny.Patterson-Shrum@tn.gov

Court of Workers’

Compensation Claims

Matthew Salyer

Clerk, Workers’ Compensation Appeals Board

220 French Landing Dr., Ste. 1-B

Nashville, TN 37243

Telephone: 615-253-1606

Electronic Mail: Matthew.Salyer@tn.gov

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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