In Massachusetts, workers’ compensation is designed to provide financial relief for employees injured on the job. However, as a recent Massachusetts case illustrates, disputes regarding earning capacity assessments can arise during the claims process; as such, it is important that judges take a reasoned approach to such determinations. If you were injured at work and have concerns about your workers’ compensation claim, it is wise to meet with a Massachusetts workers’ compensation attorney to explore your options.
History of the Case
It is reported that the claimant, an ironworker, suffered a back injury while working for his employer. Following his injury, the insurer initially provided temporary total disability benefits pursuant to the Massachusetts Workers’ Compensation Act. Later, the insurer sought to modify or discontinue these benefits, leading to a dispute over the claimant’s earning capacity.
Allegedly, an administrative judge found the claimant to be partially disabled and awarded him partial disability benefits based on an assigned earning capacity of $975 per week. The judge determined that the claimant could perform “light duty” work but provided no explanation of what such employment might entail or the basis for the $975 figure. The Industrial Accident Reviewing Board summarily affirmed this decision, and the claimant appealed.
Judicial Review of Earning Capacity Determinations
On appeal, the court scrutinized the administrative judge’s method of assigning the claimant’s earning capacity. Massachusetts law requires that such decisions be grounded in specific, factual findings that are detailed and rationally explained. The court emphasized that monetary figures cannot “emerge from thin air” and must be supported by evidence or a logical source.
As such, a decision regarding a claimant’s earning capacity that does not cite a factual source as well as a reasoned explanation will be deemed arbitrary under the meaning of the act which governs judicial review of agency decisions.
In cases where the parties fail to submit any evidence regarding the claimant’s vocation or earning capacity, however, the court explained that the administrative judge can rely on their own knowledge and judgment when determining the claimant’s earning capacity.
Here, the court found that while the administrative judge referred to the claimant’s physical restrictions and employment capabilities, no evidence or analysis supported the $975 figure. The judge’s vague reference to “light duty employment” and the absence of a factual basis for the earning capacity rendered the decision arbitrary.
Consequently, the court vacated the earning capacity determination and remanded the case for a more reasoned computation. It noted that reliable labor market data, existing case file information, or additional evidence could serve as valid sources for reassessment.
Meet with an Experienced Massachusetts Workers’ Compensation Lawyer
Disputes over workers’ compensation awards can have significant financial implications. If you believe an award is unfair or unsupported, it is crucial to understand your rights and seek legal guidance. Attorney James K. Meehan is an experienced Massachusetts workers’ compensation lawyer who can help you navigate complex legal challenges and advocate for your interests. You can contact Attorney Meehan at 508-822-6600 or reach out through the online form to schedule a confidential consultation.