Opinion ID: 1190943
Heading Depth: 3
Heading Rank: 1

Heading: the board erred when it found conlon was entitled to an increase in his temporary total disability benefits.

Text: Pioneer argues that the Board erred in granting Conlon TTD benefits. It asserts that the Board relied solely on medical evidence, ignoring Conlon's greater post-injury earnings in granting him TTD benefits. Pioneer argues that impaired earning capacity, not medical disability, provides the basis for finding a worker disabled. Reasoning that actual post-injury earnings are an indicator of earning capacity and because Conlon earned more after his injury, it concludes that he is not entitled to TTD benefits. Pioneer correctly observes that workers' compensation disability is based primarily on an impairment in earning capacity. Vetter v. Alaska Workmen's Compensation Bd., 524 P.2d 264, 266 (Alaska 1974). However, we need not decide whether Conlon's greater earnings after his injury preclude an award of TTD. Instead, we conclude that the Board erred in not treating this claim as one for temporary partial disability (TPD). TPD is awarded when the claimant is able to work but has suffered a decrease in wage earning capacity. AS 23.30.200; see London v. Fairbanks Mun. Utils., Employers Group, 473 P.2d 639, 641-42 (Alaska 1970). Here, it is clear that Conlon had wage earning capacity after his injury; he supervised Rolling Hills' employees and functioned as its manager after the injury. In determining Conlon's TPD benefits, the Board should keep in mind that it must reach a fair approximation of a claimant's probable future earnings capacity during the period ... benefits are to be paid. Deuser v. State, 697 P.2d 647, 649 (Alaska 1985) (citation omitted). However, earning capacity and post-injury earnings are not synonymous. 2 A. Larson, The Law of Workmen's Compensation § 57.21, 10-91 to 10-92 (1986). Actual post-injury earnings raise a presumption of actual earning capacity; the presumption may be rebutted with evidence showing that they are an unreliable indicator of earnings capacity. Hewing v. Peter Kiewit & Sons, 586 P.2d 182, 186 (Alaska 1978) (citations omitted); Larson, § 57.21(d) at 10-113 to 10-125. Actual post-injury earnings may be an unreliable indicator of earning capacity, especially where they are of a temporary or unpredictable character. Larson, § 57.21(d) at 10-126. On remand, the Board is instructed to take evidence with respect to the value of Conlon's management skills. Evidence should also be taken with respect to the cost Conlon incurred in performing the contract due to the additional employees he was forced to hire in order to complete the contract after his injury. Conlon is entitled to an offset for this cost.