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Murillo v. Payroll Express

Citations: 901 P.2d 751; 120 N.M. 333Docket: 15740

Court: New Mexico Court of Appeals; May 24, 1995; New Mexico; State Appellate Court

Narrative Opinion Summary

In the case of a worker's compensation dispute, the New Mexico Court of Appeals examined several key issues raised by the employer concerning the calculation of the worker's average weekly wage, allegations of fraud in employment agreements, and the assessment of permanent partial disability. The worker, employed in the logging industry, was injured and claimed compensation. The employer argued that the worker's average weekly wage was incorrectly calculated, failing to account for the seasonal nature of logging and alleged reimbursement for saw rental. The Workers' Compensation Judge (WCJ) found the worker to be an employee, not an independent contractor, and ruled that all payments were wages, not reimbursements. Additionally, the WCJ determined the worker's permanent partial disability to be 86%, a decision upheld by the court despite employer objections. The court affirmed the WCJ's decisions using a 'whole record' standard of review, emphasizing that substantial evidence supported the rulings. The court rejected the employer's arguments regarding seasonal employment and found no error in the WCJ's legal conclusions. Consequently, the worker was awarded attorney's fees, and the employer's appeals were denied, reinforcing the WCJ's determinations on all counts.

Legal Issues Addressed

Burden of Proof in Wage Disputes

Application: The court decided that the burden of proof should not shift to the worker to demonstrate that payments are wages unless specific conditions are met.

Reasoning: The court concluded that the burden of proof should not shift to the Worker to demonstrate that payments are wages unless specific conditions are met.

Calculation of Average Weekly Wage in Workers' Compensation

Application: The Workers' Compensation Judge determined the worker's wages from both Jensen Logging and Payroll to be gross earnings, concluding that the worker was an employee rather than an independent contractor, leading to an average weekly wage calculation of $474.41.

Reasoning: The WCJ determined Worker’s wages from both Jensen Logging and Payroll to be gross earnings, concluding that Worker was an employee rather than an independent contractor, leading to an average weekly wage calculation of $474.41 based on total compensation divided by the weeks worked in 1990.

Determination of Permanent Partial Disability

Application: The Workers' Compensation Judge assessed the worker's permanent partial disability at 86%, rejecting the employer's claim of only 20% disability based on the worker's age, education, and vocational history.

Reasoning: The WCJ determined the Worker sustained an 86% permanent partial disability, rejecting the Employer's claim that the Worker is only 20% disabled.

Fraud in Employment Agreements

Application: The Workers' Compensation Judge found that the arrangement between Payroll Express and Leonard Jensen Logging was a sham to defraud the worker, and all payments were considered wages.

Reasoning: Testimony indicated that arrangements between Payroll and Jensen Logging were considered a sham to defraud Worker.

Interpretation of Seasonal Employment

Application: The court ruled that logging is not seasonal employment, thus justifying the use of Section 52-1-20(B) for wage determination.

Reasoning: The WCJ correctly ruled that logging is not seasonal employment, justifying the use of Section 52-1-20(B) for wage determination.