CLIENT ADVISORY: Pennsylvania Supreme Court Update

On February 14, 2024, the Pennsylvania Supreme Court granted a Petition for Allowance of Appeal of Jackiw v. Soft Pretzel Franchise (WCAB).

On August 10, 2023, the Commonwealth Court held that a claimant’s benefit rate for specific loss benefits should be calculated in the same way as a claimant’s benefit rate for total disability benefits, which is detailed in Section 306(a) of the Workers’ Compensation Act (Act), 77 P.S. § 511. Under Section 306(a), a claimant is generally entitled to 2/3 of his or her average weekly wage (AWW), but this increases to 90% if the benefit calculated is less than 50% of the statewide AWW. Using Section 306(a) for both total disability and specific loss calculations would prevent specific loss and total disability claimants from being treated differently under the Act. The Claimant in this case argued that her specific loss benefits should instead be calculated under Section 306(c), which provides that where the standard calculation for compensation for disability relating to specific loss results in an amount less than 50% of the statewide AWW, the Act does not require that the employee receive 90 percent of his or her AWW.

The exact issue on appeal to the Supreme Court is if the Commonwealth Court erred in applying Section 306(a) rather than Section 306(c) to determine the benefit rate for the specific loss of a body part, based upon its decision in Walton v. Cooper Hosiery Co., 409 A.2d 518 (Pa. Cmwlth. 1980). It is worth noting that the Commonwealth Court’s Decision was by a majority of only 4 to 3. However, the Court based its Decision upon 40 years’ worth of precedent.

This case should be closely monitored for its potential to substantially impact valuation of specific loss claims. For instance, under current law, if a claimant with an AWW of $300.00 sustained a work injury in 2024 entitling him or her to 50 weeks of specific loss benefits, the claimant would be entitled to $270.00 per week (i.e. 90% of the AWW). If the Supreme Court changes the law, that claimant would be entitled to $662.50 per week. (See 2024 Department of Labor Statewide Average Weekly Wage schedule). Over 50 weeks, this translates to $13,500.00 compared to $33,125.00 for the same specific loss.

Questions about this case can be directed to Cailey Farinaro at (610) 332-7008 or cfarinaro@tthlaw.com.