Workers’ Compensation · Primary-source case analysis

Hernandez: Using Accrued Leave Did Not Satisfy the CHP Salary-Continuation Duty

Decision: California Court of Appeal, B268700; WCAB No. ADJ1646469, decided August 15, 2016. Document: Published California Court of Appeal opinion.

Hernandez explains why receiving the same gross paycheck does not establish compliance when an employer finances statutory salary-continuation benefits by depleting the worker's earned leave.

A CHP officer used annual leave during disability

Sergeant Andrew Hernandez was temporarily totally disabled from July through November 2011. Although his monthly pay continued, part of it was charged against annual vacation leave after section 4800.5 benefits stopped. The leave was not restored when he retired.

The later enforcement claim was not barred

The earlier award established temporary disability but did not adjudicate whether the CHP satisfied its resulting salary-continuation duty by restoring leave. The court rejected the WCAB's res judicata ruling because enforcement of the statutory benefit and the alleged delay had not been resolved in the original decision.

Accrued leave has economic value

Section 4800.5 required leave without loss of salary. Depleting already-earned annual leave shifted part of the statutory benefit's cost to the employee and violated the prohibition against employee contributions toward compensation. The WCAB had jurisdiction to enforce the obligation.

Disposition

The court annulled the Board's decision and directed an award equal to the value of the leave used. It also required the Board to decide the fact-specific claims for section 5814 penalties and interest rather than assuming full pay ended the inquiry.

Key takeaways

Discuss the procedural record

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