Workers’ Compensation – Reduced Earnings (2007)
Our client was injured while employed as a sanitation worker. He later started his own business, and had both wages and profits from the company. The insurance company took the position that the corporate profits – in addition to his wages – should be counted as earnings. A WCL Judge agreed with the insurance company, and we appealed. The Workers’ Compensation Board agreed with our position, and the insurance company appealed that decision.
The Appellate Division, Third Department agreed with our position (which the Board had adopted), finding that “profits from a business venture are not earnings for the purposes” of calculating workers’ compensation benefits for loss of wages. This resulted in an ongoing weekly award to our client.