LWDN Quick Flash ~ Dec 2011
Tennessee Appeals Court Affirms Authority of Tennessee Department of Labor
In two recent decisions, the Tennessee Court of Appeals has quelled efforts by employers to challenge the authority of Tennessee Department of Labor ("TDOL") Specialists to compel payment of benefits in workers' compensation cases. In Tyson Foods (Re: Sandra Gibson) v. Tennessee Department of Labor and Workforce Development, No. E2010-002277-COA-R3-CV (Tenn. Ct. App. Oct. 10, 2011), the TDOL Specialist had ordered the employer, Tyson Foods, to commence payment of temporary disability benefits and medical benefits. In pursuing reversal of this Order through a common law writ of certiorari filed in Davidson County Chancery Court, Tyson Foods made three arguments: (1) that the TDOL Specialist had improperly engaged in ex parte communications with the employee's physicians; (2) that the TDOL had acted "arbitrarily and capriciously" by ordering benefits; and (3) that its due process rights had been violated because it had no adequate appeal opportunity from a TDOL Order. The trial judge had dismissed the employer's petition for lack of subject matter jurisdiction.
In a similar case, Randstad North America, L.P. v. Tennessee Department of Labor and Workforce Development, No. M2011-00070-COA-R3-CV (Tenn. Ct. App, Nov. 1, 2011), the TDOL Specialist had ordered, among other things, that certain temporary benefits be paid at the maximum possible weekly compensation rate, even though the Employer provided a wage statement showing a significantly lower average weekly wage. The employer filed both a writ of certiorari as well as a petition for relief pursuant to the Uniform Administrative Procedures Act in Davidson County Chancery Court. The Chancellor in Randstad agreed with the Employer that part of the statute was unconstitutional because there was no meaningful review of the TDOL Order, which violated the Employer's procedural due process rights.
The Tennessee Court of Appeals rejected the argument that the Employer was denied an adequate remedy, because the Act provides the potential for a refund from the Second Injury Fund if a Court later determines that an Order from the Tennessee Department of Labor compelling the payment of benefits was improper. It further held that there was no violation of procedural due process and the statute was not unconstitutional. It therefore affirmed the decision of the lower Court in Tyson Foods dismissing the employer's petition and reversed the decision of the Chancellor in Randstad.
In sum, unless the Tennessee Supreme Court addresses these issues in one of these cases or a future case, then employers have little hope of challenging an Order issued by the TDOL compelling the payment of temporary disability benefits or medical benefits until after the employee has reached MMI, a BRC has reached impasse, and the case is filed in Court.
