WORKERS COMPENSATION WAGES: FORD MOTOR CO. V. PENDYGRAFT (COA 8/10/2007)

FORD MOTOR CO. V. PENDYGRAFT
WORKERS COMP:
Average Weekly Wage
2007-CA-000613
PUBLISHED: REVERSING AND REMANDING
PANEL: DIXON PRESIDING; VANMETER AND GRAVES CONCURS
LOWER COURT: WCB
DATE RENDERED: 8/10/2007

The Administrative Law Judge ruled that the employee’s wages included profit sharing, because these were part of "money payments for services rendered". Reversing, the Court of Appeals relied on a Minnesota case (also against Ford) which held that because profit sharing does not reflect earning power, it is not included as part of the average wage of the employee. This makes sense in the context of the triple and double multipliers, since a higher wage post-injury should reflect a lesser occupational disability, not increased company profits.

Digested by Peter Naake

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