Last year, we reported on the Tenth District Court of Appeals’ decision limiting employers’ defenses to temporary total disability compensation following the termination of an employee. Recently, the Supreme Court of Ohio reversed the lower court decision and issued a decision favorable for Ohio employers. In State ex rel. AutoZone Stores, Inc. v. Indus. Comm., 2024-Ohio-5519, the Supreme Court clarified when employers may contest an employee’s request for temporary total disability compensation. 

Case overview: Injury, termination and compensation request

In June 2020, Autozone’s employee was injured at work and thereafter worked in a light duty capacity until his termination for cause in Sept. 2020 after being involved in an argument with a coworker. In Oct. 2020, the employee requested temporary total disability compensation and underwent an approved shoulder surgery in the claim in Nov. 2020. The Tenth District Court of Appeals ruled that the employee was entitled to temporary total disability compensation even after being terminated for cause.

The ruling: Establishing a “direct result” of work-related injuries for temporary total disability compensation

Now, the Supreme Court has ruled that the employee, who was terminated for violation of employment policies before his surgery, was not “unable to work” as a “direct result of an impairment arising from an injury or occupational disease” and therefore was not entitled to temporary total disability compensation. The Supreme Court outlined that the relevant inquiry must be whether the employee’s inability to work or wage loss is a direct result of an impairment from a work injury. Conversely, when an employee is not working due to reasons unrelated to a work injury, like being terminated for misconduct or a policy violation, the employee is not entitled to compensation. 

Going forward, employees will have to establish that their loss of wages was the “direct result” of their work-related injury in order to receive temporary total disability compensation. Employers may argue that an employee is out of the workforce due to reasons unrelated to their work-related injury and therefore barred from receiving compensation. 

Key takeaway: What this ruling means for Ohio employers

The Supreme Court’s decision provides an opportunity for employers to contest compensation when the employee is not employed at the time of a request for compensation, whether due to a termination of employment, retirement or other employee choices that led to the abandonment of employment. Employers who terminate employees for violation of written employment policies will now have viable challenges to requests for temporary total disability compensation. 

For any questions, please contact Becca Levine, the firm’s Workplace Safety Practice Group Chair.