Opinion ID: 2158885
Heading Depth: 1
Heading Rank: 4

Heading: Industrial Disability.

Text: Relying on this court's decision in Bearce v. FMC Corp., 465 N.W.2d 531 (Iowa 1991), the employer argues there is no industrial disability from an injury that results in permanent functional impairment when the employee is able to return back to work at his or her regular occupation. Because Craddock returned to her former job after her injury, subsequently found another position as a CNA, and eventually switched to a higher-paying occupation, Keystone argues the claimant sustained no industrial disability as a matter of law. Craddock responds that the determination of industrial disability is a multi-faceted analysis and an injured employee's ability to return to work or to earn a higher income is not determinative. Industrial disability measures an employee's lost earning capacity. Second Injury Fund v. Nelson, 544 N.W.2d 258, 265 (Iowa 1995). Several factors are considered in determining such a loss. These considerations include the employee's functional impairment, age, education, intelligence, work experience, qualifications, ability to engage in similar employment, and adaptability to retraining. Myers v. F.C.A. Servs., Inc., 592 N.W.2d 354, 356 (Iowa 1999). Although the employee's functional impairment is important, industrial disability does not rest solely on this factor. Id. The focus is on the ability of the worker to be gainfully employed. Id. Obviously, then, a comparison of actual earnings before and after the injury is also significant. See Second Injury Fund, 544 N.W.2d at 266. But as with functional impairment, an employee's post-injury earnings are not determinative. A reduction in earning capacity can be shown even though the employee's actual earnings have increased. St. Luke's Hosp. v. Gray, 604 N.W.2d 646, 653 (Iowa 2000). The agency clearly had these factors in mind when it determined that although Craddock had an industrial disability, it was not substantial: The claimant has significant permanent impairment as a result of the work injury, but the injury had little impact upon the claimant's earnings. The claimant continued to work in the same job with some accommodation and was able to secure better work as a CNA without accommodation.... Considering all factors of industrial disability it is concluded that the claimant has sustained a 15 percent industrial disability.... In addition, the commissioner viewed Craddock's restriction from bathing residents as significant because she was unable to perform the full range of duties customarily performed by CNAs. Consequently, the commissioner concluded one could not presume this restriction, which was a manifestation of her functional disability, would never be detrimental to [her] ability to obtain or hold employment. There was substantial evidence in the record to support the agency's finding that Craddock had a functional impairment and that this impairment restricted her ability to perform certain customary job duties. These facts support the commissioner's determination that the claimant sustained an industrial disability, notwithstanding the fact that her functional impairment had not yet affected her earnings. Contrary to the employer's argument, we do not think our decision in Bearce requires a different result. Bearce does not stand for the proposition that there can be no industrial disability when the employee has returned to the same job. Bearce concerned the apportionment of industrial disability between a work-related injury and a prior non-work-related injury. 465 N.W.2d at 536. That factual scenario is simply not present here. In addition, the employee in Bearce returned to full-time employment after his first injury, earned full-time wages, and had no physical restrictions. Id. We held there was not substantial evidence that the first injury was in any way disabling to [the worker] in his employment. Id. at 537. In view of the absence of such evidence, we concluded, it was inappropriate to assign any industrial disability to the first injury. Id. at 536. In the present case, the commissioner determined Craddock did have a physical restriction after her first injury. While the evidence on this issue was conflicting, there was substantial evidence to support the commissioner's finding that such a restriction existed. Because the agency considered the proper factors in assessing the claimant's industrial disability and because the agency's findings with respect to those factors are supported by substantial evidence, there is no basis to reverse the commissioner's award of permanent partial disability benefits to the claimant. We turn now to a consideration of the employer's challenge to the award of penalty benefits.