Interstate Scaffolding v. IWCC

Friday, February 5, 2010 | 0

By Bryce Downey & Lenkov

In 2003, a union carpenter sustained work-related  injuries to his head, neck and back. The employee received TTD benefits from 2003-2005 and then maintenance benefits to satisfy the difference between his pre-injury wage and his light-duty wage.

In 2005, while on light duty, the employee was fired for spray- painting company property. After the employee was terminated, his employer also stopped TTD benefits.

The arbitrator found that the employee was not entitled to temporary total disability benefits after being terminated for misconduct unrelated to his injury. The Illinois Workers’ Compensation Commission reversed the arbitrator’s findings, ruling that the employee was entitled to TTD benefits subsequent to the firing, ashis condition had not stabilized. The employer appealed and the Circuit Court affirmed the decision ofthe Commission.

The Appellate Court reversed the Circuit Court’s findings denial or termination of TTD benefits after terminating an employee. The Court found that the ultimate test for awarding TTD benefits is “whether the employee remains temporarily totally disabled as a result of a work-related injury and whether the employee is capable of returning to the workforce,” not whether the employee was terminated for cause.

The issue before the Supreme Court was whether an employer may terminate TTD benefits subsequent to terminating an employee for volitional acts of misconduct unrelated the work injury. This issue was a case of first impression in Illinois.

The employer argued that an award for benefits should be terminated “if the injured employee commits a volitional act of misconduct that serves as justification for his termination.” The employee argued that an award for benefits should be decided by a determination of whether the employee’s condition had stabilized.
 
The Supreme Court agreed with the employee, stating that it is a well-settled principle that one must determine whether the employee’s condition has stabilized when deciding to award TTD benefits. The Court reasoned that an employee’s right to TTD benefits is solely governed by the Workers’ Compensation Act, which does not contain any provisions providing for suspension, denial or termination of TTD benefits after terminating an employee.

The Court found that the ultimate test for awarding TTD benefits is “whether the employee remains temporarily totally disabled as a result of a work-related injury and whether the employee is capable of returning to the workforce,” not whether the employee was terminated for cause.

The Court held that an employee terminated for misconduct unrelated to his injuryis still entitled to benefits and reinstated the Commission’s award.

Practice Tip: An employee will be entitled to TTD benefits, even if he is terminated for misconduct, as long as the employee has not reached MMI. This is a dramatic ruling in favor of employees and represents the further erosion of business rights in Illinois. While you can still terminate an employee for cause, doing so now carries additional risk.

WorkCompCentral subscribers may download the Supreme Court's decision by clicking the case title in the sidebar at right.

Bryce Downey & Lenkov is a Chicago workers' compensation defense firm. This column was reprinted with the firm's permission from its client newsletter.