Joseph Petitt v. Sause Brothers

The question presented is whether, under the Longshore and Harbor Workers’ Compensation Act (“LHWCA”), scheduled wage increases unrelated to the merits of a worker’s performance constitute an increase in the worker’s wage-earning capacity or merely a general increase in wages. We hold that they are a general increase.

I.

Joseph Petitt injured his back in 2003 while earning $15 per hour as a welder for Sause Brothers (“Sause”). After undergoing two surgeries, Petitt briefly returned to his job, but, physically unable to continue, left Sause at the end of 2004. Sause then began paying Petitt permanent total disability benefits under the LHWCA, 33 U.S.C. §§ 901-950 .

Three years later, Petitt began working as an electronics assembler at K & K Sound Systems (“K & K”), earning $7.80 per hour. K & K provides all production and clerical employees, including assemblers, an automatic $0.25 per hour raise every three months until their wages reach $13.50 per hour.

When Petitt began work at K & K, Sause began paying him only permanent partial disability benefits based on his starting salary. Sause periodically reduced those benefits to reflect each quarterly increase. Petitt…