SARA PENDYGRAFT V. FORD MOTOR CO.
WORKERS COMP:  Computation of wages in profit-sharing
2007-SC-000658-WC.pdf
PUBLISHED: AFFIRMING
OPINION OF THE COURT; VENTERS NOT SITTING
DATE RENDERED: 8/21/2008; 9/17/2008

The injured workers’ compensation claimant sought review of decision from Workers’ Compensation Board, in which the Board included profit-sharing bonuses in the claimants pre-injury and post-injury average weekly wage and, on that basis, the WCB had found the claimant was not eligible for a double income benefit. The Court of Appeals affirmed, and the SC affirmed affirmed on different ground the COA, holding that the claimant’s profit-sharing bonuses were not includable as claimant’s “average weekly wage” for purposes of determining basic income benefits.

Affirmed, on different grounds.

To the extent that an employee works for profit-sharing in lieu of wages, the employee’s actual hourly wage is not fixed or cannot be determined. The average weekly wage of such an individual is determined under KRS 342.140(1)(f), based on the usual wage of employees who perform similar work.

To the extent that an employee works in exchange for profit .the employee’s actual hourly wage is not fixed or cannot be determined. KFRS 342 .140(1)y) bases such an individual’s average weekly wage on the usual wage for similar services when rendered by a paid employee, a basis that is independent of a particular employer’s profits and that is consistent with the purposes of KIRS 342 .730(1)(b) and /1\(C)2 .
Briefs:

Appellant’s Brief

Appellee’s Brief

Appellant’s Brief

COA DECISION: 2007CA000613

Digested by Michael Stevens