Court Opinion

ID: 9847417
Source: CourtListenerOpinion
Date Created: 2023-09-24 03:59:20.923415+00
Date Added: 2024-06-11T09:17:10.350118
License: Public Domain

BERMAN, Judge,
dissenting.
I disagree with the majority’s ruling that the payments made to claimant during the year after her accident were “disability benefits,” and therefore, I dissent.
I do not agree with the majority’s conclusion that the issue of whether the payments made to the claimant were “wages” or “disability benefits” is a question of law. Here, there was conflicting evidence as to whether the payments were wages or disability benefits. Thus, the issue was one of fact. See Rahder v. Industrial Commission, 105 Colo. 594, 100 P.2d 1043 (1940).
The referee made a factual determination based on the evidence that the money paid to claimant was salary and not disability compensation. Upon review, the Industrial Commission affirmed and adopted the referee’s findings of fact. Hence, if there is substantial evidence in the record to justify the Commission’s findings and conclusions, we should not disturb its determination on appeal. Olsgard v. Industrial Commission, 190 Colo. 472, 548 P.2d 910 (1976).
In the instant case, I believe there is substantial evidence that the payments made to claimant following her accident were wages, and therefore, I would not disturb the Commission’s findings.
The Denver City Charter § C5.41-1 provides:
“Any member of the Denver police department in the classified service, who shall become so physically or mentally disabled by reason of bodily injuries received in the discharge of the duties of said member in said department that he is rendered unable to perform his duties in said department, shall be granted any necessary leave or leaves of absence not to exceed one year at his full salary for the rank which he holds in said department, and shall be compensated from the regular police department payroll.” (emphasis supplied)
This provision does not use the words “accident disability” or “disability benefits,” but rather provides for leave of absence with full salary, payable from the regular police department payroll.
The majority concludes that § C5.41-1 cannot provide for wages because the officer is not being remunerated for personal services. I do not agree that this conclusion is inevitable.
Payments made to an employee can be considered remuneration for past personal services even though the employee is not rendering personal services at the time he is receiving wages. Karamanian v. Unemployment Compensation Board of Review, 46 Pa.Commw. 163, 405 A.2d 1364 *1011(1979); see Industrial Commission v. Sirokman, 134 Colo. 481, 306 P.2d 669 (1957).
Here, the referee made a factual determination that the payments the claimant received pursuant to § C5.41-1 of the City Charter were made in consideration of and as compensation for her position and services to the police department, rather than as compensation for the injury itself. Thus, merely because § C5.41-1 may allow an officer to receive his full salary without performing personal services during this time, does not necessarily mean that he is not being remunerated for personal services, and therefore, not receiving wages.
Moreover, the actions of the police department itself support the Commission’s finding that the payments received by claimant were in fact wages. First, the Denver Police Department personnel officer, in response to the referee’s questions, admitted that there was no formal documentation in the police department personnel files which placed claimant on disability leave, and that any officer on 365-day leave is considered to be on active duty and not disability because such an officer is given one full year to recuperate from his disability. Moreover, the payroll clerk testified that claimant was paid for all fringe benefits, including holidays, overtime, and gun and equipment allowance.
Second, and perhaps more importantly, the City withheld and reported all federal, state, and local taxes from payments made to claimant between March 28, 1981, and March 29, 1982. Disability benefits, however, are excluded from gross income, and taxes are not withheld therefrom. See 26 U.S.C. § 104(a)(1) (1982). The City states that it corrected this “error” when it was discovered. That belated change in the treatment of the payments does not, however, alter the fact that the City itself treated the payments as wages for a full year.
For these reasons, I would affirm the order of the Industrial Commission upholding claimant’s award of unemployment compensation benefits.