Joanne Williams vs. Denny’s Corporation; American Home Assurance, Administered By Gallagher Bassett Services

In this case, Joanne Williams, an employee of Denny's Corporation, was injured while working as a restaurant manager. The Workers' Compensation Appeals Board granted reconsideration and amended the decision to reflect that the issues of credit for temporary disability indemnity overpayments, a Labor Code section 5814 penalty based on any unpaid temporary disability, and attorney's fees based on the penalty for any unpaid temporary disability indemnity were deferred. The Board found that the administrative law judge acted within his discretion in utilizing the agreed anticipated restaurant management salary of $36,000.00 per year to determine applicant's earnings and temporary disability rate. The case was returned to the trial level for further proceedings and decision.

Denny’S Corporation; American Home Assurance, Administered By Gallagher Bassett Services Joanne Williams WORKERS-COMPENSATION APPEALS BOARDSTATE OF CALIFORNIAJOANNE WILLIAMS, Applicant,vs.DENNY’S CORPORATION; AMERICAN HOME ASSURANCE, Administered by GALLAGHER BASSETT SERVICES, Defendant(s).Case No. GRO 0034142OPINION AND ORDER GRANTING RECONSIDERATION AND DECISION AFTER RECONSIDERATION            Defendant, American Home Assurance, seeks reconsideration of the October 31. 2007 Findings, Award and Order wherein it was found, inter alia, that applicant, bom April 24, 1974, while employed as a restaurant manager sustained industrial injury to her psyche; that applicant’s earnings were sufficient to produce a temporary disability indemnity rate of $460.30; that a penalty of 25% of the unpaid temporary disability indemnity is assessed; and that applicant’s attorney is entitled to 15% of the penalty and 12% of the accrued amount as attorney’s fees.            Defendant contends that the workers’ compensation administrative law judge (WCJ) erred 1) in calculating applicant’s temporary disability indemnity without considering her earnings during a 12-week training period, paid at a lower rate; 2) in failing to award defendant a credit for temporary disability payments made at the higher rate; and 3) in awarding a penalty against temporary disability and attorney’s fees based on the penalty.            Based on our review of the record and for the reasons stated herein, wc will grant reconsideration and amend the WCJ’s decision to reflect that we arc deferring the issues of credit for temporary disability indemnity overpayments, on a Labor Code section 5814 penalty based on , IJ any unpaid temporary disability, and regarding attorney’s fees based on the penalty for any unpau temporary disability indemnity. In all other respects, we affirm the WCJ’s decision.            With respect to defendant’s contention on earnings and calculating the rate of temporar disability in

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