Can workers receive permanent disability benefits while employed? Wasatch Electric v. Labor Commission Explained

In Wasatch Electric v. Labor Commission, the Utah Court of Appeals addressed whether an employee who lost both feet in a workplace accident could receive permanent total disability benefits while continuing to work. The court’s decision clarifies an important distinction in Utah’s workers’ compensation law between general disability claims and catastrophic limb loss cases.

Background and Facts

Wendell Benward was electrocuted while maintaining power lines for Wasatch Electric, resulting in the amputation of both feet. Despite his severe injuries, Benward eventually returned to work as a safety manager, initially part-time and later full-time. Wasatch argued it should not pay permanent total disability benefits during periods when Benward was gainfully employed, contending that his ability to work negated his disability status.

Key Legal Issues

The central issue was whether Utah Code section 34A-2-413(9) creates a conclusive presumption of permanent total disability for workers who lose limbs, regardless of their subsequent ability to work. This provision differs significantly from the general permanent total disability test under subsection (1), which requires proving inability to work among other elements.

Court’s Analysis and Holding

The court relied heavily on its precedent in Intermountain Slurry Seal v. Labor Commission, which established that section 34A-2-413(9) creates two separate avenues for proving permanent total disability. For workers who lose both feet, hands, arms, legs, eyes, or any combination thereof, the statute creates a conclusive presumption of permanent total disability that is “final” and not subject to rehabilitation provisions. The court emphasized that subsection (9) claimants need only prove the qualifying injury occurred in the workplace—no showing of actual disability or inability to work is required.

Practice Implications

This decision reinforces that Utah’s workers’ compensation system provides enhanced protection for workers with catastrophic limb loss injuries. Practitioners should recognize that section 34A-2-413(9) creates an alternative pathway that bypasses traditional disability analysis. Employers cannot offset wages paid to such employees against their permanent total disability obligations, as the statute’s conclusive presumption operates independently of the worker’s actual capacity for employment.