Case Law Update January 2022

Case Law Updates

Updated 1-28-22

Noa v. City of Aventura/Fla. League of Cities, (Fla. 1st DCA 1/25/22)
AWW Calculation/Inclusion of Annual Merit Bonus

The DCA reversed the JCC’s decision not to include a portion of the claimant’s pro rata share of an annual merit bonus in her AWW calculation. Following claimant’s 2/27/20 work accident, she continued working and on 8/6/20 received a merit bonus for the period 7/24/19 to 7/19/20.  The E/C declined to include these amounts in the AWW calculation, asserting the bonus was not earned until her 7/24/20 anniversary date. The parties agreed the city’s pay plan governed merit bonuses.  Although the plan did not discuss wages “earned or paid,” payment of the merit bonus was based on satisfactory performance over the prior 52-week period.  The DCA found the bonus was similar to profits earned in prior AWW cases and noted that her performance within the 13 weeks contributed to her 52-week satisfactory performance. They held this holding comports with the intent of the AWW law to value an employee’s lost ability to earn future wages and to approximate probable future earning capacity.  The dissent (B.L. Thomas), noted the opinion conflicted with Wal-Mart v. Campbell, 714 So. 2d 436 (Fla. 1998), which noted the legislature’s intent to provide a fixed method of AWW calculation.  The dissent pointed out the opinion allowed for consideration of an amount of money earned as a bonus that did not accrue until after the 13-week period.   The majority discounted this analysis, finding the analysis in Campbell dealt with concurrent employment and contained no similar dispute over what constituted wages or when they were earned.    Click here to view Opinion