Legal Update on Employer Liability

July 2003

 

 

Workers’ Compensation & Employment Law

 

 

 

In This Issue:

 

 

 

 

 

 

 


 

 

 


2 Lingering Kisses are not Enough to Cut off Widow’s Benefits

in PA WC

 

An Employer Needs Harder Evidence of a Carnal Relationship to Stop

a Widow’s Benefits.

 

The only events other than settlement  that will end an employer’s liability for widow’s benefits under PA WC is the widow’s death, remarriage, prostitution, or “meretricious relationship.” 

 

Here, the employer presented evidence of a “meretricious relationship”: a videotape of the widow embracing a man who lived with her, with her hand and arm around his neck, lingering over two kisses directly on the lips.  The widow presented evidence that the man in the video, with whom she lived, suffered from permanent erectile dysfunction, and argued that she had not had sex since her husband died.  She stated that the man lived with her only because his furnace broke, and he was remodeling his house.

 

The Judge terminated the widow’s benefits, finding that the kiss is not the type of kiss the majority of Pennsylvanians would give to their platonic friends.

 

The Commonwealth Court reversed, and reinstated the widow’s benefits.  It held that the kiss video was not enough to establish a sexual relationship.  The Court gave no indication of how a “meretricious relationship” could be proved, other than by the widow’s admission or by proof of the widow conceiving a child.

 

Anthony v. WCAB (Anderson Box Co., Inc.) 2003 WL 1786996 (Pa. Cmwlth. 2003)

 

 

 


30 Day Payment Deadline on PA WC Decisions is Not Extended by Request for Supersedeas on Appeal

 

·  The Contradiction

 

The WC Act and the WC Regulations are contradictory on when an employer must pay wc benefits following an Order/Decision of a Judge or Appeal Board. 

 

The statute requires payment within 30 days of an Order.  The Regulations allow for a Request for Supersedeas on appeal, allowing the claimant 10 days to Answer the Request, and the Board 20 days to rule on the Request.  Accordingly, unless the request is filed on the same date of the Judge’s Decision/Order, the deadline for the Board’s ruling on the Request is after the deadline for payment.  The implication of the Regulations is that a Request for Supersedeas on appeal would extend the payment deadline at least to 30 days after the filing of the Supersedeas Request.

 

·  Commonwealth Court Decision

 

The Commonwealth Court acknowledged the inconsistency in the Regulations and the Act, but held that the Employer must make payment 30 days after an Order of a Judge or Appeal Board.  The only exception would be where the Board or Commonwealth Court granted supersedeas before the 30 days had elapsed.  The employer here was assessed a penalty and attorney’s fees for not paying within the 30 day deadline.

 

·  Recommended Pre-emptive Strategy

 

Accordingly, where an employer wants to appeal a Decision that grants benefits to a claimant, the determination to appeal must be made immediately following receipt of the Decision.  The employer does not have the luxury of filing the Appeal and Supersedeas Request at the end of the statutory deadline of 20 days, but must file as soon as practically possible in order to increase the chance that Supersedeas will be granted before the payment deadline arrives.  The Board is permitted to take up to 30 days to rule on Supersedeas, but often takes less time to do so.

 

Hoover v. WCAB (ABF Freight Systems) 2003 WL 1738500 (Pa. Cmwlth. 2003)

 

 

 


Vocational Interviews can be Compelled on all PA WC Claims, Regardless of Date of Injury

 

The PA Supreme Court Denies Claimant’s Appeal in Rauch

 

When the WC Act was amended in 1996, employers were permitted for the very first time to file a Petition to Compel a vocational interview, when a claimant refused to attend the interview.  This legal tool aided employers in more effectively pursuing vocational evidence to prove an earning capacity and thereby reduce the claimant’s wage benefits through a Modification Petition. 

 

In 2002, the Commonwealth Court in Rauch v. WCAB (Kids Wear Services, Inc.), 2001 WL 31119443 (Pa. Cmwlth. 2002) determined that the employer was permitted to use this Petition to Compel, even on cases with a date of injury prior to the passage of the 1996 amendments. 

 

The claimant in Rauch appealed that Decision to the Pennsylvania Supreme Court.  The Supreme Court has denied the appeal, thereby strengthening the prior Rauch decision.

 

 

Rauch v. WCAB (Kids Wear Services, Inc.) 816 A.2d 1103 (Table) (Pa. 2003)

 

 

 


Blondes are Not a Protected Group under Title VII

 

A Caucasian Moldavian blond brought a hostile work environment claim and other claims under Title VII and the PHRA alleging discrimination on the basis of race, sex, religion and national origin.  She alleged that her supervisor commented on her hair color, the only way to tell a natural blond, and what people say about blondes, among other comments. 

 

A necessary element of a hostile work environment claim is intentional discrimination.  The Court found that the alleged comments may be viewed as offensive, disparaging and in poor taste, but they were insufficient to prove that any action was motivated by gender, race, religion or national origin.  The court noted specifically that being blonde is not a protected group under Title VII. 

 

Based on this and other deficiencies in the plaintiff’s case, the Court granted the employer’s Motion for Summary Judgment, and the plaintiff’s complaint was dismissed.

 

Shramban v. Aetna, 2003 WL 21195439 (E.D.Pa. 2003)

 

 

 


Who is an “Employee” for ADA

 

The US Supreme Court Adopts a Common-Law Definition Focusing on the Employer’s Control

 

 

An employer defended an ADA claim, arguing that it did not have 15 or more employees, and was therefore not covered by the ADA.  In short, if the 4 physician-shareholders of the employer medical clinic were counted as employees, then the number of employees would be greater than 15 and the employer would be subject to the ADA.

 

The ADA definition of “employee” was no help at all in the Court’s determination.[1]  The US Supreme Court accordingly held that the common-law definition of employer should be applied.  That definition focuses on the employer’s level of control over the individual, and includes the following 6 factors:

1)      Whether the organization can hire or fire the individual or set the rules and regulations of the individual’s work;

2)      Whether, and if so, to what extent the organization supervises the individual’s work;

3)      Whether the individual reports to someone higher in the organization;

4)      Whether and, if so, to what extent the individual is able to influence the organization;

5)      Whether the parties intended that the individual be an employee, as expressed in written agreements or contracts;

6)      Whether the individual shares in the profits, losses, and liabilities of the organization.

 

The Court accordingly remanded the case back to the Court of Appeals to use this standard to determine whether the physician-shareholders were employees for the purposes of the ADA.

 

Clackamas Gastoenterology Associates v. Wells, 2003 WL 1906297 (U.S. 2003)

 

 

 


 


Refusal of an Employee’s Request for Transfer is not Necessarily an Adverse Employment Action

 

No Basis for a Title VII Claim

 

Soon after an employee accepted an INS position in New York City, he moved to Northeast Philadelphia, and commuted to New York daily.  When he heard of an INS opening in Philadelphia 4 years later, looking for “experienced INS attorneys,” he applied for the position.  The position was filled by an attorney under the age of 40 with no prior experience in immigration law.  The 48 year old New York commuting employee with 4 years experience and excellent performance reviews was not even given an interview.

 

The 48 year old employee sued in part, under the Age Discrimination in Employment  Act (“ADEA”), alleging discrimination based on his age.  Part of his evidence included an email from one INS official stating in part “I am particularly concerned that some of your older [trial attorneys] may not be able to meet the physical fitness standards . . .” and suggested that the plaintiff and another attorney be denied use of the elevator, and be placed on a physical fitness regimen.

 

The critical issue in this case was whether the refusal to transfer the plaintiff to Philadelphia could be a “materially adverse employment decision,” necessary for a successful ADEA claim.  Here, the pay, duties and benefits of the Philadelphia job would be the same as the New York position.  The only difference between the two positions was the claimant’s commute.  The Court found that this adverse effect  arose solely from the employee’s individual preference, and was not job-related.  The reason the employee had such a long commute was solely due to claimant's choice to move to Philadelphia in the first place.  An employer has no control over the distance of an employee’s commute.

 

Accordingly, the Court held that the refusal to transfer the employee to Philadelphia was not an “adverse employment action within the meaning of the ADEA.  The employee’s case was dismissed by Summary Judgment.

 

Fallon v. Meissner, 2003 WL 1984696 (3rd. Cir. 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] . The ADA defines “employee” as “an individual employed by an employer.”