Gallo v. Department of Labor & Industries

# Gallo v. Department of Labor & Industries **What Happened** A worker at Murphy Brothers, Inc. disputed how their worker's compensation benefits were calculated. The company had provided pension contributions, apprenticeship training benefits, and health insurance as part of the worker's pay package. The worker argued that these benefits should count as "wages" when determining their worker's compensation payment. **What the Court Decided** Washington's Court of Appeals sided with the state's Department of Labor & Industries. The court ruled that pension contributions and apprenticeship training benefits do not count as wages for worker's compensation purposes. However, health insurance benefits were treated differently and did count. **Why This Matters for Workers** This decision clarifies what counts toward worker's compensation calculations in Washington state. It means employers cannot use pension or training contributions to inflate a worker's recorded wage rate for compensation purposes. However, health insurance benefits remain included. Workers should understand that their base pay calculation for worker's compensation may be lower than their total benefits package suggests.