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USDOL/OALJ Reporter
Priest v. Baldwin Associates, 84-ERA-30 (Sec'y July 27, 1988)


U.S. Department of Labor
Office of Administrative Law Judges
1111 20th Street, N.W.
Washington, D.C. 20036

CASE NO. 84-ERA-30

In the Matter of

JACK D. PRIEST,
    Claimant,

    v.

BALDWIN ASSOCIATES,
    Respondent.

RECOMMENDED ORDER ON REMAND GRANTING BACK PAY

    This case was remanded to this Office by the Secretary of Labor for a determination of damages to which Claimant is entitled.1 Priest v. Baldwin Associates, 84-ERA-30 (june 11, 1986). A hearing on damages was held on November 30 and December 1, 1987, in Chicago, Illinois. Post-hearing briefs have been submitted by both parties and have been considered.

    The facts of the case are set forth in the Recommended Decision and Order. Priest v. Baldwin Associates, 84-ERA-30 (Aug. 22, 1984). Briefly, Mr. Priest, the Claimant, was found by the Secretary to have been illegally discharged from his position at the Clinton Nuclear Power Plant by Baldwin Associates, the


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Respondent, when he reported, to the proper authorities, certain safety concerns about the power plant. Such activity is protected under the controlling law, the Energy Reorganization Act (ERA), 42 U.S.C. § 5851 (1982).

    The relevant facts of record are as follows. Mr. Priest's employment was terminated by Baldwin Associates on April 23, 1984. (Transcript (Tr.) 38) From April 24, 1984 until September 9, 1984, Mr. Priest remained unemployed. (Tr. 19) He stated that he received about $2,000.00 of unemployment insurance during this time. (Tr. 43) On September 10, 1984, Mr. Priest began working at Egizii Electric and continued until he was injured on October 15, 1984, while lifting a generator. (Tr. 21) He then received workers' compensation benefits during the course of his injury until November 5, 1984. He returned to Egizii briefly from November 6, 1984 until November 13, 1984, but could not maintain his employment due to the injury. He received additional workers' compensation benefits from November 14, 1984 until May 11, 1986. (Affidavit of Jack Priest Regarding Wages and Benefits Due.)

    The issues involved in calculating the back pay award are:

1) Whether Mr. Priest voluntarily removed himself from the work force at any time after termination, precluding entitlement to back pay;

2) Whether Mr. Priest's subsequent employment with Egizii Electric tolls his entitlement to back pay;

3) Whether unemployment insurance and workers' compensation benefits received by Mr. Priest after his termination by Baldwin should be deducted from the award;

4) The time periods during which Mr. Priest is entitled to back pay;

5) The amount of back pay;

6) Whether interest should be added to the award; and

7) Whether attorney's fees should be awarded to Mr. Priest.

Voluntary Removal from the Workforce

    There is a question of whether Mr. Priest voluntarily removed himself from the work force between the date of his discharge, April 24, 1984, and the date he began work for Egizii


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Electric, September 10, 1984, either by refusing employment, or by placing himself "on hold" at the union hiring hall so that he would not have to accept available work.2 Such action would preclude his entitlement to back pay during this period because of a failure to mitigate damages caused by the termination.

    It appears from the record that Mr. Priest did turn down a job with Hatfield Electric on May 3, 1984, shortly after being terminated by Baldwin Associates, but for legitimate reasons. (Tr. 80) First, he expected to be reinstated by Baldwin and did not want to become obligated to another company. Second, there was no car pool between his home and the Hatfield job, which was one and one-half to two hours away, and twenty miles farther than the Baldwin job. His commute would have been very burdensome, especially if he were to work overtime, which the evidence showed to be common for electricians working at large projects.

    Mr. Priest also turned down work with Bisco on August 24, 1984. (Tr. 82) Mr. Priest testified that he was concerned about a labor dispute between Bisco and its electricians regarding electrical work being done by insulators. (Tr. 150) It appears that Mr. Priest did not want to become involved in a second labor dispute as he was already embroiled in a dispute with Baldwin and the union. Moreover, the Bisco job was at the same power plant as the Baldwin job, which may have created a potentially difficult situation for Mr. Priest. Mr. Priest was therefore justified in turning down the position with Bisco.

    The evidence is contradictory as to whether Mr. Priest placed himself on hold at the union hiring hall. The assistant business manager at the hall, Robert Brilley, testified that Mr. Priest placed himself on hold on May 3, 1984 and continued that status until August 22, 1984. (Tr. 82) Mr. Priest testified that he never requested hold status and knew nothing of it until August, 1984 when he received a letter from the union stating that he was being taken off hold. (Tr. 146-47, 151) Moreover, Mr. Priest stated that he signed the union work register every month as is the procedure when a union member wants to be notified of available work.

    Mr. Priest's testimony is supported by the deposition of Eugene O'Dell, a co-worker at Baldwin's project. Mr. O'Dell stated that he accompanied Mr. Priest to the union hall in May and that Mr. Priest never requested to be placed on hold. (Deposition of Eugene O'Dell at 17-19.)


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    There appears to have been friction between Mr. Priest, Mr. O'Dell, and the union. Mr. Priest and Mr. O'Dell had grievances filed against Baldwin Associates at a time when the union earned between one and one-half to two million dollars in fees from Baldwin's work. Mr. Brilley refused to proceed with Mr. Priest's grievance and Mr. O'Dell suggested that both he and Mr. Priest may have been placed on hold by the union managers in retaliation for their actions against Baldwin.

    In any case, I find the evidence to support Mr. Priest's claim that he never requested to be placed on hold. It appears that Mr. Priest took the proper steps to gain employment and did indeed accept employment with Egizii Electric on September 10, 1984, four and one-half months after his discharge from Baldwin. Mr. Priest, therefore, did not remove himself from the work force and has not jeopardized his back pay award in that regard.

Subsequent Employment with Egizii Electric

    Baldwin Associates contends that Mr. Priest's entitlement to back pay terminated when he accepted employment with Egizii Electric. The crux of Baldwin's argument is that Mr. Priest found employment at Egizii which was substantially similar to his job at Baldwin, and therefore effectively replaced it, just as if Mr. Priest had shifted from one job to another. (Respondent's Post-Hearing Brief Regarding Back Pay Issues at 16.) I disagree with Baldwin.

    The two jobs are not as similar as Baldwin asserts. The Egizii position consisted of much heavier labor than the Baldwin job, was outdoors as opposed to the indoor Baldwin job, was seasonal and not year-round, and did not offer overtime work which was plentiful at Baldwin.

    By accepting work with Egizii, Mr. Priest fulfilled his duty to mitigate damages. But taking this job did not preclude his right to payment for the income he has lost by virtue of being forced into a situation where he would not earn as much as he would have earned had he remained with Baldwin. Thus, the Egizii position did not serve to toll Mr. Priest's entitlement to back pay.

Unemployment Insurance and Workers' Compensation

    Baldwin Associates originally argued at


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the hearing that unemployment insurance received by Mr. Priest should be deducted from the back pay award. (Tr. 6) Baldwin did not make this argument in its Post-Hearing Brief, though, and does not appear to have deducted unemployment insurance payments from the recommended amount of back pay contained in its brief.

    Case law supports the position that back pay should not be offset by the amount of unemployment insurance received by a claimant. E.g., NLRB v. Gullett Gin Co., 340 U.S. 361 (1951); Hunter v. Allis-Chalmers Corp., 797 F.2d 1417 (7th Cir. 1986); McDowell v. Autex Fibers, Inc., 740 F.2d 214 (3rd Cir. 1984); Darnell v. City of Jasper, 730 F.2d 653 (11th Cir. 1984); Boich v. Federal Mine Safety and Health Rev. Comm'n, 704 F.2d 275 (6th Cir 1983); NLRB v. Pan Scape Corp., 607 F.2d 198 (7th Cir. 1979). Therefore, unemployment insurance received by Mr. Priest will not be deducted from his back pay award.

    Baldwin Associates also contends that workers' compensation benefits received by Mr. Priest from Egizii Electric should be set off against any back pay which Mr. Priest is awarded. Mr. Priest responds by arguing that those benefits are nondeductible collateral source payments because they do not emanate either directly or indirectly from Baldwin Associates.

    I agree with Baldwin Associates. I believe that workers' compensation is distinguishable from unemployment compensation and is deductible. It is not improper for Baldwin to receive credit for the workers' compensation payments received by Mr. Priest. Had Mr. Priest's workers' compensation been paid by Baldwin or its insurer, Baldwin could offset the amount paid against back pay because the compensation would have flowed from Baldwin. Although paid by Egizii Electric, workers' compensation retains the same characteristics as if it had been paid by Baldwin. It is in the nature of a salary substitute, it is calculated according to a formula based on the average weekly wage of the injured employee, and it replaces earnings which would have been offset against a back pay award. The unfortunate fact that an injury befell Mr. Priest does not alter the character of these payments. The injury caused Mr. Priest to receive compensation payments rather than wages for work performed.


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    Moreover, to disallow deduction of the workers' compensation from back pay would be to give Mr. Priest his salary and his salary substitute; a double recovery which is highly unusual in workers' compensation cases. For these reasons, the amount of workers' compensation received by Mr. Priest will be offset against his back pay award.

    Based on Mr. Priest's evidence, with which Baldwin agrees, I find the amount of deductible workers' compensation to be $38,440.98, as follows:3

October 15, 1984 - November 5, 1984: ,423.74
November 13, 1984 - December 31, 1984: $3,322.06
January 1, 1985 - December 31, 1985: $24,678.16
January 1, 1986 - May 11, 1986: $9,0117.02

Duration of Back Pay

    The purpose of a back pay award is to make the victim of discrimination whole, so that he or she receives the income which would have accrued had there been no illegal action by respondent. Cram v. Pullman-Higgins, 84-ERA-17 (1985). Thus, Mr. Priest is entitled to the income which he lost by virtue of the wrongful discharge.

    As a necessary corollary, Mr. Priest may not receive damages for any period after the time when his position with Baldwin would have ended legally, had he remained with the company. Hunter v. Allis-Chalmers Corp., 797 F.2d 1417 (7th Cir. 1986); Francis v. Bogan, Inc., 86-ERA-8 (1988); Walt Disney Productions, 48 NLRB No. 892 (1944), enf'd as modified, 146 F.2d 44 (9th Cir. 1944). Otherwise, Mr. Priest would be receiving income beyond that which was denied him by virtue of the illegal action taken by Baldwin.

    The evidence shows that the Baldwin project at the Clinton Nuclear Power Plant, from which Mr. Priest was wrongfully discharged on April 23, 1984, came to an end on June 14, 1986. (Statement of Baldwin Associates Regarding Back Pay.) This is the date on which Baldwin completed its reduction in work force at the project. Thus, Mr. Priest is entitled to back pay from the time of his discharge, April 23, 1984, until June 14, 1986.

    It should be noted that Baldwin contends


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that it has been unfairly penalized because the Secretary of Labor did not issue the Final Decision in this case within the ninety day period prescribed by statute, but rather took two years to issue the Decision. Baldwin asserts that it should not be liable for damages beyond the ninety day period (plus two weeks which would have been needed to reinstate Mr. Priest) because it would have complied with an order to furnish back pay, and would have reinstated Mr. Priest, at that time, had the order been timely entered.

    I will not speculate as to what actions Baldwin or Mr. Priest would have taken had the Secretary's Final Decision and Order been timely issued. It would be inappropriate, in any event, for this office to disregard the Secretary's directives on remand and penalize Mr. Priest by reducing the amount of compensation due him because of delays in the decision making process.

Amount of Back Pay Award

    The first inquiry is whether Mr. Priest should be compensated at the rate of an electrician (journeyman wireman), and not a foreman, because he was demoted from his foreman position and made an electrician only eleven days before his termination and after he reported his safety concerns. I find that Mr. Priest should be compensated at the rate of an electrician, and not a foreman, for the following reasons.

    Although Mr. Priest's demotion came amidst his sparring with Baldwin management, and shortly before he was discharged, it nevertheless was a legitimate personnel move by Baldwin. On April 10, 1984, the general electrical superintendent, Mr. Kammerzind, reorganized the project's electrical department by transferring Mr. Kracht, who was Mr. Priest's supervisor, and replacing him with Mr. Beach. Mr. Beach then transferred ten electricians who were demoted to staff electricians because their supervisory activities were rendered unnecessary by their transfer. Two days later, Mr. Beach directed that Mr. Priest move his desk to a different level of the building in order to be closer to the men under his supervision. Mr. Priest was unwilling to comply stating that he would rather give up his foreman's position than move. Whereupon, Mr. Priest was demoted to electrician. There is no evidence of retaliatory motivation in Mr. Beach's actions. Thus, Mr. Priest, who was an electrician at the time of his dismissal, has been wrongfully denied an electrician's wage because of the dismissal, and should be compensated at that rate.4


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    Second is the question of whether Mr. Priest is entitled to have prospective overtime included in the back pay award. The evidence establishes that overtime was available to the electricians employed by Baldwin. I find that overtime wages (paid at double the regular hourly wage) should be included in the back pay award.

    Mr. Priest testified that he regularly worked at least ten hours per day, six days per week, for a total of forty regular and twenty overtime hours. Pat Slaughter, who worked at the project until its completion, stated that such overtime was available for electricians, and Terry Lankow, a foreman, stated that there was more overtime available than could be handled. David Becker, a general foreman at the project, also stated that the men could work as much overtime as desired, and Phillip Green, another general foreman, echoed that statement.

    Although it is clear that overtime was available, it has not been proven that Mr. Priest actually worked twenty overtime hours per week as he stated. Rather, the pay stubs in evidence show that Mr. Priest worked an average of 7.3 overtime hours per week from the week of January 3, 1984 until the week of April 17, 1984.5 (Affidavit of Jack Priest Regarding Wages and Benefits Due.) I find Mr. Priest's actual hours to be the best barometer of the overtime he would have worked had he remained at Baldwin. I therefore credit him with 7.3 hours of overtime per week.

    Mr. Priest is entitled to have a monetary substitute for his fringe benefits included in the back pay award. Because the object of back pay is to compensate a claimant for all income which has been denied, it only follows that fringe benefits, a source of such income, should be included in back pay.6

    It should also be noted that the back pay award should be reduced by the amount of compensation received by Mr. Priest while working at Egizii Electric after his discharge from Baldwin. It remains, then, to ascertain the exact dollar amount of back pay due Mr. Priest.

    As discussed above, Mr. Priest is entitled to back pay from April 24, 1984 until June 14, 1986. This period includes 546


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weekdays consisting of eight regular hours each. Mr. Priest is also being credited with 7.3 overtime hours per week. Overtime will not be awarded, however, for the period of March 1, 1986 to June 14, 1986, because the evidence shows that overtime was not worked during these last 314 months at the project and that substantial reductions in staff were underway. (Exhibit R-6/C-9.)

    The total number of hours for which Mr. Priest will be paid, then, is 4,368 regular hours and 705.7 overtime hours.7 These hours will be broken down as follows to account for different wage rates in effect at different times.

    The parties agree that electricians earned $17.64 per hour from April 24, 1984 until May 31, 1984 (32 work days, including 5 Saturdays), $17.90 per hour from June 1, 1984 until November 30, 1984 (154 work days, including 26 Saturdays), $18.15 per hour from December 1, 1984 until May 31, 1986 (460 work days, including 79 Saturdays), and $18.40 per hour from June 1, 1986 until June 14, 1986 (12 work days, including 2 Saturdays). The following chart illustrates the amount of back pay due Mr. Priest based on these wage rates.

                     Regular             Wage Rate/
Dates              Hours Worked            Hour             Total

4/24/84-5/31/84        216       x        $17.64    =  $3,810.24
6/1/84-11/30/84       1024       x        $17.90    =  $18,329.60
12/1/84-5/31/86       3048       x        $18.15    =  $55,321.20
6/1/86-6/14/86          80       x        $18.40    =  $ 1,472.00

                     Overtime
                    Hours Worked

4/24/84-5/31/84        40.2      x        $35.28    =  $ 1,418.26
6/1/84-11/30/84         191      x        $35.80    =  $ 6,837.80
12/1/84-3/l/86        474.5      x        $36.30    =  $17,224.35

    The total amount of back pay for all work days, without fringe benefits, is $104,413.45. The parties' figures on fringe benefits, which include amounts for the pension fund, the National Electrical Benefit Fund, and health and welfare benefits, are close but are not identical. I accept Baldwin's figures as controlling because they are slightly higher than those submitted by Mr. Priest, thus lending credibility to Baldwin's figures. The following chart illustrates the dollar amount of fringe benefits to which Mr. Priest is entitled.

                         Total              Fringe
  Dates               Hours Worked      Benefits/Hour      Total

4/24/84-5/31/84        256.2     x         $2.94    =  $  753.23
6/1/84-11/30/84       1215       x         $2.97    =  $ 3,608.55
12/1/84-5/31/86       3522.5     x         $2.97    =  $10,461.83
6/1/86-6/14/86          80       x       none paid  =       0


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    The total amount of fringe benefits for work days is $14,823.61. The total amount of back pay, including fringe benefits, is $119,237.06. This amount must be reduced by the amount of earnings Mr. Priest received from Egizii Electric, $4,116.40,8 and by the amount of workers' compensation payments received from Egizii, $38,440.98. Mr. Priest is thus entitled to back wages in the amount of $76,679.68.

Interest

    Mr. Priest has requested that interest in the amount of 7.2% per annum be included in the back pay award. Bearing in mind the objective of fully compensating a wrongfully discharged employee, it is proper to include interest in a back pay award. Hunter, 797 F.2d at 1425-27 (7th Cir. 1986); Marshall v. Hope Garcia, Inc., 632 F.2d 1196, 1199 (5th Cir. 1980); Donovan v. Freeway Constr. Co., 551 F. Supp. 869, 880-81 (D.R.I. 1982); Chastang v. Flynn and Emrich Co., 381 F. Supp. 1348, 1352 (D.Md. 1974), aff'd, 541 F.2d 1040 (4th Cir. 1976); Francis v. Bogan, Inc., 86-ERA-8 (1988).

Attorney Fees

    Mr. Priest has also requested that he be awarded Attorney's fees. It is inappropriate for attorney's fees to be awarded at this time. Pursuant to 42 U.S.C. SS 5851 and 29 C.F.R. 24.6(b)(3), application must be made to this office for costs and expenses including legal fees. Hedden v. Conam Inspection, 82-ERA-3 (June 30, 1982); Deford v. TVA, 81-ERA-1 (March 4, 1981). An


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appropriate request should be submitted within 60 days.

ORDER

    It is ORDERED that Baldwin Associates pay back wages to Jack Priest in the amount of $76,679.68, plus interest at the rate of 7.2 percent per annum on the unpaid weekly wages from the time said wages were due until paid.

       DAVID A. CLARKE, JR.
       Administrative Law Judge

Dated: JUL 27 1988
Washington, D.C.

DAC/JS/dc

[ENDNOTES]

1 The Secretary ordered that Mr. Priest be reinstated to his position of electrician, but that is impossible because the project was completed in 1986 and Baldwin Associates no longer employs electricians at the site.

2 Union men seeking employment would sign a register each month and available work would be offered to them on the basis of seniority on the register. By placing one's self on hold, a union member could maintain his or her position on the register without having to accept the next available job.

3 Affidavit of Jack Priest Regarding Wages and Benefits Due; Respondent's Post-Hearing Brief Regarding Back Pay Issues at Table C.

4 It appears that the Secretary of Labor, in his Final Decision, also found Mr. Priest to be an electrician, rather than a foreman, as it was ordered that Mr. Priest be reinstated as an electrician. It is unclear, though, whether this term was meant specifically or whether it is a general reference to the work done by Mr. Priest.

5 During this I week period, Mr. Priest worked a total of 117.5 overtime hours and 565.5 regular hours. This calculates to an average of 7.3 overtime hours per week and 35.5 regular hours per week.

6 See NLRB v. United Contractors. Inc., 713 F.2d 1322 (7th Cir. 1983). The legislative n story of the ERA illustrates that the ERA's employee protection section is patterned after a similar provision in the National Labor Relations Act. S. Rep. No. 95-848, 95th Cong., 2d sess. 29 (1978); See also Deford v. Secretary of Labor, 700 F.2d 281, 285 (6th Cir. 1983); Consolidated Edison Co. v. Donovan, 673 F.2d 61, 62 (2d Cir. 1982).

7 The figure of 4,368 regular hours is calculated by multiplying 546 workdays by 8 hours of work per day. The figure of 705.7 overtime hours is calculated by multiplying 7.3 overtime hours per week by 96 weeks and 4 days of work.

    Holidays (New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving, and Christmas) are excluded from the calculation of paid work days.

8 This figure includes the amount of fringe benefits earned by Mr. Priest at Egizii. I accept the figure of $536.40 given by Mr. Priest, which represents fringe benefits earned for 200 hours, and which is uncontroverted by Baldwin Associates. (Claimant's Brief at 16.)



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