This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.
Facts
A logger sustained a workplace injury on July 27, 1990, when a falling tree limb caused a vertebral disc herniation. The logger, who had a history of manual labor and limited education, was employed under a complex arrangement involving two entities: Leonard Jensen Logging and Payroll Express. The logger was paid partly as wages and partly as "saw rental," with deductions for workers' compensation insurance and taxes. The logger argued he was an employee, not an independent contractor, and sought workers' compensation benefits (paras 3-17).
Procedural History
- Workers' Compensation Administration: Found the logger to be an employee and awarded workers' compensation benefits, including a determination of permanent partial disability and average weekly wage (paras 1, 8-9).
Parties' Submissions
- Employer/Insurer-Appellants: Argued that the logger's average weekly wage was miscalculated by failing to deduct job-related expenses and account for the seasonal nature of logging. They also challenged the finding of fraud in the employment arrangement and the determination of the logger's permanent partial disability (para 1).
- Worker-Appellee: Contended that all payments received were wages, the employment arrangement was fraudulent, and the logger was permanently partially disabled due to his injury and limited vocational prospects (paras 8-18).
Legal Issues
- Was the logger's average weekly wage properly calculated, including whether job-related expenses should be deducted and whether logging is seasonal employment?
- Did the Workers' Compensation Judge err in finding fraud in the employment arrangement?
- Was the determination of the logger's permanent partial disability supported by substantial evidence?
Disposition
- The Court of Appeals affirmed the Workers' Compensation Judge's decision on all issues (para 1).
Reasons
Per Bustamante J. (Flores and Bosson JJ. concurring):
Average Weekly Wage: The Court upheld the calculation of the logger's average weekly wage on a gross basis, rejecting the employer's argument that job-related expenses should be deducted. The Court found that the payments labeled as "saw rental" were wages and that the employment arrangement was a sham designed to evade legal obligations. The Court also determined that logging was not seasonal employment, as it could occur year-round except for occasional interruptions by the Forest Service (paras 22-38).
Fraud in Employment Arrangement: The Court agreed with the Workers' Compensation Judge's finding that the arrangement between Payroll Express and Leonard Jensen Logging was fraudulent and intended to reduce the employer's obligations under workers' compensation laws (paras 9, 26).
Permanent Partial Disability: The Court found substantial evidence supporting the determination that the logger was 86% permanently partially disabled. The logger's age, limited education, lack of English proficiency, and physical restrictions significantly limited his employment prospects. The vocational evidence presented by the employer was insufficient to undermine this finding (paras 39-40).
The Court awarded the logger $3,500 in attorney's fees for the appeal (para 41).