’

.

**OFFICE OF**  **THE ATTORNEY**  **GENERAL OF**  **TEXAS AUSTIN** 

nimble 0:P. Lool&art,&alma ord of InsulwloeColmleslQnem still, Texar

3r sir:

and aooiaent

please crdviae

me vhether ouch an an inaurunoeoontraat~' The exoe~ts frois the contractrsfemed to end vhlab enclose ere es Pollws: "ARTICTBXI
"(Aooident aud SialmeseBenefita) YSeotlon 1. Effectivea8 of tho date of this agreement nn employeewho haa thereafteroompleted

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I1 H0h 0. P. Lockhart,Page 2

sFt months 0r oontlnuous~ aomioe shall be l

ntttlad to nlok leave benefit8 in aooordanoetith the follovlng tsoheduler
upon Colsplotlon

of contl.nuoua Smvioe ofr Rariioum BenefitsAUwed~ 9l.x months to three yedira Three yeax.93 Four years Five years six yearn Seven years Eight yews Nine year5 Ten yorws or mars Four veoka Five veoktsix voeks Seven vooka Eight veeks Iiine voeks 'Ten veaks Eleven woaka Twelve vaeks "Yection2. Exoeptlon?J: (a) An etiployeo

shall not be ehtltled to aiak leave benefits under this Article if his Illnes? QF injury ven due **tor** (1) zotg;ful intentionto injurehlmaalf or 2 Venerealdlaeaso 3 Intoxication
II 4 Uae of habit **fomlng** drugs 0 5 **Mllloonduot** (b) An aqloyoe shall not be entitledto sick leave benefit8under this Artlole ?f an Ill~as or aooldent ooow?svhiler 1 The employee1s on leave of ebeenoe
II 2 The employee la abaett due to 8 lap.orr 3 AA employee 18 on a suepension

"ARTICLEXI "gec~~ouycciaent and S3?ikness Benefits) **Computation of**  Benefits 8 The omount’of weekly sick leave benefit shall be oomputedby multlplylngthe enployoe'ereatabllshed straighttime hourly rate of pay time8 tha number of hours in the employcotsestablished work week. Fraotlons of the work vo8k shall be coq@utod on the basis that the nunbor of days of siok leaveHon. 0. P. Lockhart, Page 3

benefit be&s to the number of days In the employeo'r establishedwork veek times the amount determined above. Slak leave benefits shall be paid in occotd* anoe with the established pay periods. *Seation4. Rvery eligibleemployoovho 1s absent from duty on aooount of sicknessor injury shall immediatelynotify the IndustrialRelation3 Department,and the employeeulli not reoaivebenefits as,provldedln this plan for the the lost previous to suoh notioe. "Section5. Llmltation3 (a) par the first three 3ohoduledwo;rkir;j days after proper notice has been given Ln aoccdsnos vtlth Section 4 of'

thts Artlole, there shall be no sick benefit gold unless the olckne3s extends Lnto the fourth scheduledworking day, in vhich aose peyment shall !.nclude the first three scheduledvorklng days. (b) Ao employeevi11 be entitled to benefits during any annivervaryyear greater th3n the total number of week3 ahovn by the schedule in Section I. Unused benefit3 during any annlveroaryyear m2y not be oarried over from one year to another. (c) If an employee entitled to benefit3 ~23 provided in this Article is abecnt 83 a result. of an occupational llln83s or un lndustriolaccident 011 the sick benefit provLslon3 in thla artiole vlil opply. Provided, hovever, t&it the Company shall be credited with the coqmsstion insurancepaymnt to nn employee subject to this Artiole in diach3rgingthe Comp&iny~o obligationto on employee under this Article. (d) If 3ny law La orm!cted that piovlde3 for any or a11 of the benefits coveredby this Article, then the Compn~- shall be credited, with tile

amsuzt of such benefLt,s

in discharging the Compoxiy'3 obiQ:&tiw to an czployeaa3 provldcd for Ln thi.3 11r~iclc.

__--. --.:'

gan. 0.~

P. LOOldmrt,Page 4



### : !. “seaticm 6. RoooMa *~a the agpllaationof thl8 Article, the rwavds of'the Cf2zago4

ahall be OcuaclUslve in UetenaL~ the ecrpl~yeo*s l,eqth of servloe, aalory# wages and amomt or benefita to whloh he lo entitled. =900t1on7. Caaoolletl~ of BezU5ritrr
%n 6t~loyes shell lose all btumfita by t&la Artlole for the follovlngcesByozuiB provided
ReJlpp Dlsohar@d for 08~86 Acae Pt4 other emgloymmt during a leave of except aa expreasPfapprcwedby the Compeny). overetdys his leave of abeonco Absent ulthout 18nYe for three oomeautlm work- (?j %%qj beCA bl~id Off OKidhsY~hexsf3fter beOA oftered en@ognent by the Compmy d ot13 or by notioe to the mloa, and he does not vithLn five (5) vorld~g days thereafter give notloe of eooeptance of such imploymnt, mid **WithiA** enotber five (5) worldAg daya after giving such notice faila to appear a$ the Plent reedy far vorlc. (g) Is laid off for oraehundred elghty~ (180) oelerrdm
Ia off duty for one oalmdar year or more **due** to AOA-OOOU~tlonnl Ok&W5a oF tAjW.'y.
"Seotlon a. It ln.~agreed tlmt my abuse oi this Artlole by an ezuploywe eh011 mclJn

his InaPeclleto

dlb**ohfwge.**

“Seation 9.- An employaeh¬ collect the bwnefits of this Article end the bemf~to of nrtlcle IX et the ama time. "Seotion10. **Ati** employeewho lo Ez~Jumd in the refineryand is sent home bemuse of such inju.~y shnll receivepay ot hla regular hourly rstr~ for t!m trolonce OS the ezployew'ssoheduledvor&&~;~, on vhlch the lnjury ocourr(b3.” Article 4716 of \ielFAOA'E ~nnotete!~

Rovlaed C$vLl Stetuteo is in part 61s

follows:HOL 0. P. Lookhart, Page 5

I An aooldent lnsurm-~os ocmpmy shell

. be deeAd &be 6 oorparatlondoing business under

**eny charter**  **involving&** the payment of money ox other **thing of**  **value,** oaadltioned **upon** the lnjuxy,disablement **or** death of persons resulting from travelingOF general aooidentsby lend or vater,~A health insuranoe oompany shall be 'deemed to be a oorporetion doing business under any oharter inyolvi.ng the payI Pent oi any amount of money oa? other thing of value, oondltlonedu on loss by reason of dfsabilitpdue to slokness or 1 l-health.

P
. . ." The word ~"lnsuranoe" is deflnwd In 24 Tex. Jurls,; P. 650, as follows t

**“ ~Insuranoe** * is a vord of comprehensive end varied meaning. In .a general sense, the tmm slgnlfies an iigreement, for a oonsideratlor., to pay a **SLIOI OS**  **money** upon the hnpponlng **of ’**  **a pertiouler**  **event or**  **oontingency, or**  lnchdfying **for** loss In respect of a spealfledsubjeot by speoifiwdperils; in other vords, an undertakingby one party, ,uauollr aalled the Insurer,to proteot the otherparty, generally designatedas the insured **or** the essured, from loss arising from named risks, for the oonslderetlon and upon the terms and under the oonditlms reoited." The vord "lnsuranos"is defined in 32 Corpus Juris., P. 975, as follOwa:

%madly d8fined, insuranoe is B oontraotby vhloh one party, for a ooapensatloncalled the premium, assumespartioularrisks of the other party and promises to pay to him or l& nomlnoe a certain ~~.. or escerteinsblesum of money on a spooifiedoontlngenoy. As.

regerds property and litibllftginsurance, it la e oontraotby whioh one party promises on a consideration to compensateor relmburee the other If he shal.1 **suffer loss**  **from** a npeoified bause, or to guarantee or indert@fyor 'secure him against loss from that muse. With some ?%$;pElgr, partloulsrlgIs a contraot of indemnity. insumnoe denotes also the act of'inaurlng by the oontraothere,

d.ofined,

as veil 8s the system of business of HNch such oontraotsare the chnmotoriatic and vital Oloment.n. .

Hon. 0. P. Lockhart, Page 7

"In one form or another the practice In hosry,wlthage. The fermer knows that the promiso to hls.hlrednan of gultting early and the loon of a horse and buggy for the evening off rill produae e big deyis work long before the early quitting tine. The teacher knows that the prospect of Q half holiday, if there are no **ca8es** of tardiness, vi11 insure the early arrival et sahool of every pupil, upon pain of the displeasureof his fsllov students. So It is In industry. An expeotedbqnua based upon results tends to discourageand expose employeesvho are lncllned to be lazy, thoughtless, inefficient,and vasteful. Experiencehas demonstrated that the psyment of a bonus vorka to the benefit of employer and employee alike and, within reasonablebounds, is advantageousto stoc~oldera of corporationsemploglng labor. Courts hove reoognlzed this kid have given their sinction to the practloe.

. .' 39 Corpus Jurirr.',

Sec. 192, pp. 143-144, lays down the follovlngrulesi

"The right of an e.zrployee to compeasetlon rests In genera1 upon the performance of services, under an agreement, express or implied, that oompensatlon shall be had therofoll, elthough there need be no definite agreementas to the &mount

agreement 83 to compensation,it3 terns control." (emphasisadd,ed) ,,' And Sectlsn 196, pages 147-148 thereof is in part 33 follous:

"An employee is not entitled to recover for lost time where there 1s no agreement to that effect, or where the contract of employmentallow compensatinonly for the days the employeeworks. Where the employee is given 8 vacationwith pay, or s leave of nbaeti@lsgranted,

. . . the employee is entitled to his vages for the time off."

# I xoa. o. P. Lookhart,Page 8

In the case of Missiwrl,K. & T. Ry~i co. of Texas v. Bryant, 1.78

# 3.

W. 685, vrlt refused, the Court had ursle~ oonslderation

the right of an assistantgeneralmana ralluny-ocmpony

to reoover the balance of salary ala for of the med to be due for time spent on leave of absunoo due to slokness. In effirming judgmenttherefor,the Court of Civil Appeals h&Q that, since the ebsenaewas outhoritedand granted In good faith by an officervho had authority so to do, and the authori&aticm of said leevehaving expresslyprovided that suoh ralary shouldbe dravn du%la the period of leave, the WiSiStSKLt 8SlNl'Ed IllSIlSgeP was entitledto psy for the time oovaredby such leave of absence.

Under the rules of law above referred to, the question of pay during time off duty by reason of sickness or aooldent under the terms and aondltionsexpressed in the exoerptsset out would, in our opinion,not be a nattar of lnowams, suoh excerpts showingno more than an agreementto pay extxa compensation for oontlnuousservices. It is our cplnlon,therefore,that your question shouldbe answered in the necntive.

Trustins that this sntlsfnotorlly onsnersgou3?

inquiry, we remaln

‘is; Yoyx vcxy truly ATTORNEY GENXRAL OF TEXAS 

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Asaistsnt