Legal Document

461 U.S. 624 103 S.Ct. 2045 76 L.Ed.2d 194 MORRISON-KNUDSEN CONSTRUCTION COMPANY, et al., Petitionersv.DIRECTOR, OFFICE OF WORKERS' COMPENSATION PROGRAMS, UNITED STATES DEPARTMENT LABOR, al. No. 81-1891. Argued March 21, 1983. Decided May 24, Syllabus Section 2(13) of the Longshoremen's and Harbor Workers' Compensation Act (LHWCA) defines "wages" for purpose computing compensation benefits under as meaning "the money rate at which service rendered is recompensed contract hiring in force time injury, including reasonable value board, rent, housing, lodging, or similar advantage received from employer, gratuities course employment others than employer." An employee petitioner construction company (employer) was fatally injured while working on District Columbia Metrorail System. At his death, covered by Workmen's Act, incorporates LHWCA, he also a beneficiary collective-bargaining agreement between employer union. The began to pay 66 2/3% employee's "average weekly wage" death widow minor children pursuant LHWCA. disputed amount benefits, claiming that her husband's average wage included not only take-home but 68¢ per hour contributions required make union trust funds health welfare, pensions, training. Administrative Law Judge rejected widow's claim Benefits Review Board affirmed, holding values are readily identifiable calculable may be determination wages rights were too speculative meet this definition. Court Appeals reversed, employer's measurement employee. Held: Employer term defined § 2(13). Pp. 629-637. (a) "money . recompensed" "gratuities others" nor they "similar advantage" "board, housing [or] lodging." Board, lodging with present can converted into cash equivalent basis their market values, whereas so easily equivalent. cost maintaining irrelevant context, since it measures neither benefit compensation. Nor measured expectation interest them, best speculative. 630-632. (b) legislative history its structure, consistent policies agency charged enforcement, all show Congress did intend include statutory definition "wages." 632-635. (c) A comprehensive statute such LHWCA judicially expanded because "recent trends." To expand would significantly alter balance achieved concerns longshoremen harbor workers one hand, employers other. Such an undermine goal providing prompt survivors. 635.637. SC2Q!]] 216 U.S.App.D.C. 50, 670 F.2d 208, reversed. Arthur Larson, Durham, N.C., petitioners. Alan I. Horowitz, Washington, D.C., federal respondent supporting Geo. Stephen Leonard, Hilyer. Chief Justice BURGER delivered opinion Court. 1 question presented whether training 33 U.S.C. 902(13) (the Act). 2 * James Hilyer, Morrison-Knudsen Construction Company, D.C. Hilyer 36 D.C.Code 301, provisions Act. He collective bargaining union, Local 456 Laborers' Council Vicinity (AFL-CIO). 3 Immediately upon Hilyer's petitioner1 wife two 909(b).2 Respondent paid, claiming, among other things, pay, contended, terms agreement.3 Mrs. contention affirmed. reasoned wages. It clear record pension had vested, even if had, Pension Disability Fund depended continued petitioner, health, contingent need these benefits. notion could computed amounts contributed noting family likelihood have been able purchase protection same cost. 4 Hilyer4 sought review Board's decision Circuit, reiterating made funds.5 agreed includes calculable, held issue here met court intended workers, trustees viewed "no more channel; means provides life insurance, retirement career employees." v. Morrison-Knudsen, 211 (CADC 1981). Although conceded use contribution value, relied United States ex rel. Sherman Carter, 353 210, 77 793, 776 (1957), proposition employees. 5 We granted certiorari, --- ----, 49, 74 56 (1982), we reverse. II 6 This case involves 902(13), definitional section part 1927, when became law, has remained unchanged through 10 revisions Act.6 provides: 7 " 'Wages' 8 begin plain language Since undisputed employers' others," narrow hold not. values. 9 not, however, urges us calculate reference interests do believe either approach workable. context; does measure take 64¢ earned Mr. open private offering group administered union's trustees. tie petitioner's costs workers' labors. contrary, enjoys full Training Health Welfare Funds soon becomes agreement. App. 37-38 40. derives according "pension credits" earns. These credits correlated contribution; pays every works, earns first 1,600 hours work given year. Furthermore, although never refunded contributed, lose credit works less 200 year fails earn four years. Significantly, loses leaves before attains age 40 accumulates credits.7 49-68. Employees no voice administration plans thus control over level funding provided. each fund depends factors unpredictable. services provides; see note 7, supra. And Fund, established insure "adequate trained manpower," 3, supra, individual amorphous. 11 contrary. That concerned Miller 270a seq., requires contractor furnish surety bond payment "sums justly due" When failed contribute employees' agreement, sued bond. allowed maintain action, reasoning "contributions done [the] U.S., 217-218, S.Ct., 797. base conclusion Indeed specifically noted "does limit recovery 'wages .' Id., 217, far different situation obtains here, where limits worker's See Embassy Restaurant, Inc., 359 29, 35, 79 554, 557, 601 (1959). B 12 aided our interpretation enforcement. abundant indication within concept 13 In enacted, employer-funded fringe virtually unknown, Bureau Labor Statistics, Beneficial Activities American Trade Unions, Bul. 465 3-4 (Sept. 1928); cf. S.Rep. 963, 88th Cong., 2d Sess. 1-2 (1964), U.S.Code Cong. & Admin.News 1964, p. 2339. amended several times ensuing years, substantial revision 1972, there evidence indicating seriously considered possibility should taken account determining Act.8 comparison, acted occasions schemes, see, e.g., Davis-Bacon 276a, 1964 bring States' practices "into conformity modern practices." 1, 2340.9 From aware significant changes practices, willingness amend enact legislation view changes, failure manner, conclude "wages."10 14 structure lends further support conclusion; uses ways: determine disability survivors' actual §§ 908 909, minimum maximum 909(e) (survivors' benefits), 906(b) (disability benefits). latter sense, "national wage." often stated word presumed subsections statute, Mohasco Corp. Silver, 447 807, 826, 100 2486, 2497, 65 532 (1980), expect throughout Accordingly, accept respondent's argument, national wage, Secretary evaluate agreements nation. Any attempt involve deciding include, subject branches government differ, Chen, Growth Fringe Benefits: Implications Social Security, 104 Monthly n. (1981).11 require how evaluated. Evaluating simple "defined contribution" involved case; benefit" plans, actuarially determined provide certain services, calculation infinitely harder. See, General Motors Auto Workers, cited Brief National Self-Insurers Amicus Curiae 16a. Without attendant problems required, decline adopt it. 15 Finally, that, exception instant case, Director consistently position includible wages, Duncanson-Harrelson Co., letters filed Department Levis Farmers Export 81-4258 (appeal pending CA5) Waters 81-4273 (same). Dep't LS/HW Program Memorandum 32, June 17, 1968, reprinted Insurance Association 1a-4a. Prior Appeals' uniformly argument pressed respondent. BRBS 102 (1981); Freer 888 (1979), rev'd sub nom. Co. Director, OWCP, supra; Lawson Atlantic Gulf Grain Stevedores 770 (1977); Collins Todd Shipyards Corp., 334 (1977). controlling, practice agencies enforcement entitled deference. NLRB Hendricks County Rural Electric Membership 454 170, 189-190, 216, 228, 70 323 E.I. duPont de Nemours Collins, 432 46, 54-55, 97 2229, 2234, 53 discern nothing suggest phrase used plans. III 16 argues despite indications remedial underlying authorize reflect practices. argued advantageous both worker, who receives tax-free otherwise buy after-tax dollars, reduces payroll own dollars. contends incentive trade salary diluted failing consider survivorship rights. 17 There Potomac Power 449 268, 279, 101 509, 515, 446 (1980). recognized workers. Rather, designed strike harborworkers Employers relinquished defenses tort actions exchange limited predictable liability. receive relief without expense, uncertainty, delay entail. 282 516 24; H.R.Rep. 1767, 69th 19-20 (1927); 1125, 92d (1972). 18 Against background, reinterpretation Congress. As above, unknown 1927; result, long calculated payroll. proportion attributable increased significantly. 1950, comprised five percent costs; 10% 1970 15% presently. 5.12 According some projections, comprise one-third labor middle next century, ibid. shift relative versus dramatically alters insurers ordering affairs. If expectations altered, task Congress, J.W. Bateson Trustees, 434 586, 593, 98 873, 877, 55 50 (1978). 19 Under presently interpreted, 95% lost-time injuries immediately compensated recourse administrative process. 0.1% cases, delays averaged months. Report Comptroller States, Harborworkers' Needs Amending 31 41 (April 1982).13 well change drastically worker challenge manner wage.14 20 Congress's common amended, longstanding it, combine Act's judgment 21 Reversed. MARSHALL, dissenting. 22 On April 19, 1974, H. run cement truck Company. dispute paid children. appropriate 902(13). training.1 Because I agree lower court, respectfully dissent. 23 Legislative enactments framed general prospective operation construed apply subjects falling purview though coming existence after passage. recognized, 24 "Old laws changed situations. reach [an] act sustained opposed fact new situations terms. While speaks enactment, criminal embraces everything subsequently falls scope." Browder 312 335, 339-340, 61 599, 602, 85 L.Ed. 862 (1941). 25 interpreting old enactments, focus statute. "Legislative words inert, derive vitality obvious purposes aimed ." Griffiths Commissioner, 308 355, 358, 60 277, 278, 84 319 (1939). Holmes explained, "The Legislature power decide what policy law shall be, intimated will, however indirectly, will obeyed. major premise expressed induces set out terms, adequate discharge duty courts say: you driving at, said therefore go before." Johnson 163 F. 30, 32 (1908) (Circuit Justice), quoted Hutcheson, 219, 235, 463, 467, 788 (1941).2 26 enacted pertinent 1927. "Wages" 4, ch. 2(13), 44 Stat. 1424. payments employees, deemed majority notes, "virtually unknown." Ante, 632. address matter directly, must interpret carry congressional 27 1927 direct response decisions authority maritime Southern Pacific Jensen, 244 205, 37 524, 1086 (1917); Knickerbocker Ice Stewart, 253 149, 438, 64 834 (1920); Washington W.C. Dawson 264 302, 68 646 (1924). order fill void created those decisions, adopted scheme patterned existing state laws. 973, 1st (1926); (1927). particular, derived New York State most progressive country. ibid.; 1190, (1926). incorporated lifted almost verbatim Compare N.Y. 201.12 (McKinney). 28 acted, aim compensate loss earning incurred enterprise, irrespective negligence." Central R. White, 243 188, 204, 247, 253, L.Ed 667 (1917) (emphasis added). describing modeled, "compensation awarded recoverable rules damages applicable founded negligence. based Winfield Hudson River 284, 289, 110 N.E. 614 (1915) Accord, Marhoffer Marhoffer, 220 543, 547, 116 379 ("The award power.") like focused capacity result occupational injury. 8(c)(21), (e), 10(c), (d), 1424; Vogler Ontario Knife 223 App.Div. 550, 229 N.Y.S. (1928); Berenowski Anchor Window Cleaning 221 155, 73 29 Viewed against encompass indisputably represent portion power. Union members various collectively bargained clearly greater employees equal For power, principled distinction plan fixed who, turn, funds, satisfy majority's "a [its] valu[e]." 630. my view, simply agrees eliminate unnecessary transaction paying directly funds. bargain strictly arrange forego concluding differ depending arrangement chosen. 30 now costs, constitute century. ante, 636. provided agreements. explicitly [and] time, items known non-cash components functionally treated manner.3 initial objection problem valuation. identifiable: Yet rejects measure, asserting "irrelevant context." disagree. better roughly right totally wrong. obviously exclude them consideration hardly uncertainty about precise value. addition, itself calls inclusion value" items, understate true agreement,4 nonetheless surrogate "advantage" received. accepted expressly 276a. relies heavily Congress' "failure amend" 633. Inferring intent silence easy task. inferences special circumstances, well-established judicial brought attention legislature respects. Rutherford, 442 544, 10, 99 2470, 2476, (1979). attention. Similarly, until below, apparently concedes during 1972 amendments emphasizes "Congress schemes." points historically contained "wages,"5 632-633. then states light "we 'wages.' Ibid. However, "wage" 1,200 separate Code. revised few controls vast number subsections. systematically examined sections wherever sheer fiction. 34 "consistent" 635. diminished least considerations. First, recently begun appreciable reason become serious past example, addressed six years ago. agency's deserves "great weight," Bell Aerospace 416 267, 275, 94 1757, 1762, 134 (1974), certainly contemporaneous 55, Second, very Office submitted lengthy brief contending "clearly erred" excluded decedent's Br., 9. switched sides. Of course, mistakes disavow prior positions, call deference expertise circumstances rather hollow ring. 35 calculating "drastically" 2052.6 concern unfounded. previously noted, "requires making called days receiving notice injury awaiting resolution permits withholding extent any dispute." Intercounty Walter, 422 95 2016, 2018, 643 (1975), citing 914. lead litigation valued amount, marginal increase gained challenging small enough warrant resort event, recognizes, already whole host statutes, 632-633 9, yet administratively cumbersome.7 Notably, covers projects party, applied project death. requires, inter alia, contractors subcontractors accordance prevailing determinations Labor, post scale site work. 276a(a). All 276a(b), smoothly fashion nearly Thus, deceased's wages—including contributions—was available. Shortly stressed "should liberally furtherance and, possible, avoid incongruous harsh results." Baltimore Philadelphia Steamboat Norton, 284 408, 414, 52 187, 189, 366 (1932). allow rise corresponding event ignore fundamentally odds enacting scheme, Morrison-Knudsen's insurer, Argonaut here. Both parties referred "petitioner." 909(b) surviving husband 50% deceased spouse's child (in excess one) parent's payable exceed establishes 909(e), wage. relevant part, "Section 5. hereto continue operate Trust twenty-eight cents ($.28) worked Agreement. ". Subway Rapid Transit Laborers, families dependents, medical, dental, and/or hospital care, injuries, illness resulting activity, unemployment insurance covering accidental accident hospitalization, surgical, medical sickness 6. Parties 3. thirty-five ($.35) families, cover discretion upon. establish insuring manpower perform ($0.05) 37-40. Programs joined petition decision. has, readopted understanding 686 1336, 1343 (CA9 1982). Court, Federal petitioner. accounted substantially remainder contended wages; claimed 910(b), fellow "of class" "substantially whole" preceding upheld favor attorney's fees 928 insurer's cross-appeal consolidated appeal adverse affirmed applicability 910(b) remanded redetermination fees. Petitioner seek issue. us. 1934, 1938, 1948, 1956, 1960, 1961, 1969 revise 1958 reasonably safe place. 1959, third-party actions. comprehensively revised. 498, 97th (1982). year, probable vest. insignificant Senate accompanying Amendment, raised specific sum multiple stated: "Today private, nonagriculture $135 week." figure comes earnings statistics Handbook Statistics 1978 321 (1979) (listing data 1972). determines "earnings" "dividing payrolls hours. total following excluded: welfare 4. (Emphasis added.) also, 46 814 seq. (enacted 1980); 39 1004 (1980); 38 2003A 45 836 (1976); 4114 (1973); 351 (1965). Recent Committee Human Resources suggestive. Committee, reviewing to, "reduce incentives fraud abuse assure immediate compensation," recommended changing "to confirm reaffirm settled rule 41. read: 'wages' compensated. retirement, pension, dependent's benefit. asked Her appears imply, evaluated seem diverse elements savings thrift Christmas parties, outings gold watches. 388-393. Chen figures obtained Commerce. identical Chen's because, discussed Departments Commerce views cases judge, 4-4.5 months, appealed id., 5, resolved Only Courts Appeals, standard living decrease disability, themselves. context survivor benefits; relevance. she (had vested) necessary just think double "recovery." once ends, survivors forced complex interpreted single factor. 208 reached conclusion. Programs, 1336 1880 invention automobile might "carriages." Suppose "carriages" come stop entering crosswalk near schoolyard. safety, automobiles. suppose "carriage" above weight public road unless being drawn horses. horses great strain, follows enactment purposes. Hart A. Sacks, Legal Process 1214-1215 (Tent. ed. 1958). suggests injured. "[U]pon relevance." 637, 14. employer-provided room Indeed, none normal expenses dies. ignoring point (It remembered two-thirds "wages," 909(b), little danger improve significantly.) 629, 630-631. arises respect "board." free meals economies associated feeding large numbers undoubtedly price individually market. 1931, c. 411, 1494; August 1935, 825, 49 1011; 15, 1940, 373, 54 399; July 12, P.L. 86-624, 26, 418. hints caused watches." 634, 11. answer statute's express recompense "under hiring" guide statutes Inclusion calculations proved quite feasible contexts 8101(12); Crystal, F.Supp. (ND Ohio 1941), Hite Evart Products 191 N.W.2d 136 (Mich.Ct.App.1971). Even valuation overtime, Gray Dynamics 279 (1976), vacation Baldwin 579 (1977), furnished Harris Lambros, App.D.C. 16, 488 (1932), exotic parts, Carter Elevator 90 (1981).

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