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Ohio Supreme Court Clarifies Temporary Total Compensation and the Status of the Voluntary Abandonment Doctrine
Prior to September 15, 2020, the voluntary abandonment doctrine was a long-standing recognized principle as it relates to the workers’ compensation system. The voluntary abandonment doctrine was a defense available to employers when injured employees sought temporary total compensation benefits but the employee had been terminated for workplace misconduct which was the cause of the loss of wages – not the workplace injury. On September 15, 2020, the Ohio Legislature passed Ohio Revised Code 4123.56(F), which provides, in pertinent part, as follows:
“If an employee is not working or has suffered a wage loss as the direct result of reasons unrelated to the allowed injury or occupational disease, the employee is not eligible to receive [temporary total disability] compensation. It is the intent of the general assembly to supersede any previous judicial decision that applied the doctrine of voluntary abandonment to a claim brought under this section.”
On March 2, 2023, the Ohio Tenth District Court of Appeals decided State ex rel. AutoZone Stores, Inc., v. Industrial Commission which provided a new analysis for the application of O.R.C. 4123.56(F), which was much more employee friendly. For a more detailed analysis on this decision, please see Eastman & Smith’s previous article.
On November 26, 2024, the Ohio Supreme Court overturned State ex rel. AutoZone Stores, Inc., v. Industrial Commission and found that the Tenth District Court of Appeals failed to give independent effect to the entirety of O.R.C. 4123.56(F) and ignored the historical purpose of temporary total compensation. The Ohio Supreme Court held “the purpose of temporary-disability payments is to compensate for an employee’s loss of earnings while the allowed injury heals” and, as a result, “a person must be employed to be eligible to receive compensation for loss of earnings” as such employment is “a fundamental tenant of TTD compensation that predates and transcends the voluntary-abandonment doctrine.”
Applying O.R.C. 4123.56(F) moving forward, injured employees who have not been working as the direct result of reasons unrelated to the allowed injury are not entitled to temporary total compensation, even if an allowed injury gives rise to later disability after the termination occurred.
If you have any questions regarding this article or any other workers’ compensation issue, please contact Mr. Shaw or Ms. Robinson.
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Disclaimer: This alert has been prepared by Eastman & Smith Ltd. for informational purposes only and should not be considered legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney/client relationship.
