Legal Update on Employer Liability

August 2003

 

 

Workers’ Compensation & Employment Law

 

 

 

In This Issue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

The Mere Presence of Pain

is not Necessarily Disabling

 

If Employee is Able to Function at Home, He is Able to Function at Work

 

The claimant here argued that his pain from work-related problems including reflex sympathetic dystrophy (“RSD”) prevented him from remaining at work in a light duty position.  The Court disagreed, and upheld the Judge’s suspension of the claimant’s wage loss benefits. 

 

The court focused on 2 issues:

(1)   Pain at home or work:  The employee would have felt pain from his RSD whether he performed the light duty position or stayed home. The employee did not show that the work would increase his pain, even though there was medical testimony that his pain would increase with fatigue.

(2)   Pain was not disabling:  The employee failed to prove that his RSD pain was so great that he was unable to function.

 

Brobst v. WCAB (Schuylkill Products, Inc.), 2003 WL 21206023 (Pa. Cmwlth. 2003)

 

 

 


Gender Stereotyping

 

The Third Circuit clarified in 2001 that although Title VII does not address harassment on the basis of sexual orientation, it does assign liability to an employer for harassment based on an employee’s perceived “noncompliance with gender stereotypes.[1]  Employers have been largely successful to date in dismissing these “gender stereotype” harassment claims since 2001 dismissed because the plaintiff’s alleged harassment was based on sexual orientation, and the plaintiff was unable to demonstrate any discrimination based on gender stereotyping.

 

The plaintiff in Kay v. Independence Blue Cross, 2003 WL 21197289 (E.D. Pa. 2003) is one of the first to prove a gender stereotyping harassment claim in Pennsylvania.  In this case, the plaintiff presented evidence of receiving from a co-worker a photocopy of an advertisement for a gay telephone chat line, on which was written “A real man in the corporate world would not come to work with an earing in his ear.  But I guess you will never be a ‘real man’.” The plaintiff also presented evidence of a comment made by a female co-worker after he refused to replace a water cooler bottle, and another male co-worker accomplished the task.  At that time, the female co-worker stated that she was “glad there was  a real man on the floor.”

 

The Court found that these incidents amounted to actionable harassment under Title VII because they were related to perceptions about the plaintiff’s masculinity, and were not based on the plaintiff’s sexual orientation.

 

Nevertheless, the plaintiff here was unable to establish that the harassment was pervasive and regular or that the employer failed to take appropriate remedial action to address the harassment.  Accordingly, as these two necessary elements of a hostile work environment could not be proven, the claim was dismissed under a Motion for Summary Judgment.

 

Kay v. Independence Blue Cross, 2003 WL 21197289 (E.D. Pa. 2003)

 

 

 


Court Upholds Termination of WC Benefits in Spite of Spine Surgery

 

Pa. Supreme Court Declines to Hear Wagner on Appeal

 

The Commonwealth Court had upheld a termination of wage and medical benefits based on a medical expert’s finding that a wc claimant had fully recovered from his work injury.  In spite of the vertebral surgical fusion to address the claimant’s work-injury, the Court upheld the termination as it found that the claimant was “functionally the same as before the injury.”[2] 

 

The Pennsylvania Supreme Court has now denied the claimant’s appeal from that Commonwealth Court Decision.  This action by the Supreme  Court strengthens the Commonwealth Court’s holding – that an employer can secure a termination of wc benefits, even post-surgery, as long as the claimant’s function has returned to its pre-injury level.

 

Wagner v. WCAB (O’Malley Wood Products, Inc.),  821 A.2d 589 (Pa. 2003)

 

 

 


Using an Employer’s Subrogation Lien to Reduce WC Medical Costs

 

Court Clarifies Calculation of Credit

 

When a wc employee is successful in a lawsuit against the party who caused his work-related injury, the employer has a subrogation lien against that “third party recovery.”  Where a claimant’s recovery is greater than the employer’s subrogation lien, the employer takes a credit against future wc wage and medical benefits.  With regard to medical costs, the employer is responsible for only a percentage of the adjusted medical bills. 

 

The Court here clarified how to calculate that percentage.  The percentage of each adjusted medical bill that an employer is responsible for is calculated as the “expenses of recovery” (plaintiff’s attorney’s fee, medical expert and other costs in the third party lawsuit) divided by the total third party recovery. This percentage will typically fall in the 40% range (plaintiff’s fee of 33%, plus costs).

 

Zacour v. WCAB (Mark Ann Industries), 2003 WL 21135454 (Pa. Cmwlth. 2003)

 

 

 

 

 

 


No Medical Benefits Available for WC Widows and Orphans

 

In a rather unique argument, a claimant’s attorney requested medical benefits for a deceased wc employee’s widow and orphans, for their “psychological treatment and grief counseling.”  The claimant’s attorney cited the ever-popular and expansively-used  “humanitarian purposes of the Act” in his request that the Court simply add these benefits to those explicitly enumerated in the Act. 

 

The Court declined to “read” these additional benefits into the Act, since “the plain language of Section 307 lists the benefits to be awarded the survivors of an employee whose death occurs in the course of employment, but it does not include medical benefits in that list.”  The Court accordingly upheld the lower court’s denial of  the request of the widow and orphans for medical care.

 

Village Auto Body v. WCAB (Eggert), 2003 WL 21402567 (Pa. Cmwlth. 2003)


 

 

 

 

 

Kunz & Associates defends employers and their insurance carriers against workers’ compensation and employment law claims throughout Pennsylvania.

 

 

 

Questions?  Please call or email.

 

 

David R. Kunz, Esq.

(215) 875-1400     dkunz@kunzlaw.com

 

Caroline H. Rieker, Esq.

(215) 875-1410     crieker@kunzlaw.com

 

 

 

This advisory is for general information and is not intended as legal advice or opinion.  The application of the laws discussed can vary depending on the specific facts or circumstances of a claim.  If you have a question as to a specific claim or situation, please call or email with the details of same, so that a complete review and analysis can be provided, allowing for a fully informed decision on the matter.


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[1] Bibby v. Phila. Coca Cola Bottling Co., 260 F.3d 257, 264 (3rd. Cir. 2001).

[2] Wagner v. WCAB (O’Malley Wood Products, Inc.), 805 A.2d 683 (Pa. Cmwlth. 2002)