Ohio Supreme Court Clarifies That Certain Retirements Limit Rights of an Employee to Payment of Workers’ Compensation Disability Benefits

In a recent ruling, the Ohio Supreme Court clarified the standard as to when a claimant’s retirement would bar recovery of future workers’ compensation disability benefits. Ice Miller obtained a favorable decision from the Court which denied an injured worker the right to disability compensation benefits after the employee accepted a voluntary retirement of employment from the company.

In the case of State ex. Rel. Lackey v. Industrial Commission, the Court was asked to award temporary total disability benefits to Mr. Lackey, even though he had voluntarily retired from the company prior to seeking the disability benefits. Lackey requested the benefits after undergoing a knee replacement surgery performed after his retirement. In denying the benefits, the Court conceded that an injured worker could still be eligible for compensation benefits where the retirement was related to the allowed conditions in the claim. However, the Court confirmed that Lackey’s request for disability benefits were barred due to the “voluntary” nature of his decision. The Supreme Court found that at the time of his retirement there was no medical evidence indicating that Lackey was unable to perform his regular job duties as a truck driver. In fact, the Court found that Lackey was working full time for nearly a year before pursuing his retirement.

In a recent article authored by Supreme Court Justice Paul Pfeifer, he summarized the 7-0 ruling and stated that the Court’s conclusion was that Lackey “could receive post-retirement temporary total disability compensation only if he were gainfully employed elsewhere and was prevented from doing that job by his industrial injury.” In denying the compensation benefits, the Supreme Court found that when Lackey retired from the company, “he retired from the larger labor market as well.”

This decision affirms and clarified the prior rulings of the Court. In reviewing the retirement scenario, Ohio employers should understand the important distinction between a disability related retirement (which would leave open the possibility of future disability awards) and a voluntary retirement (which bars future disability awards). If you need further advice in this area or have a question about Ohio workers’ compensation law, please contact Bob Robenalt at (614) 462-2294 or Jennifer McDaniel at (614) 462-5009 or any member of Ice Miller’s Workers’ Compensation Group.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.