Gallo v. Department of Labor and Industries

**Workers' Compensation Benefits Calculation Dispute** This case involved a disagreement about how to calculate workers' compensation benefits when employees are injured on the job. Workers argued that their employer contributions to retirement plans, training programs, and insurance funds should count as part of their "wages" when determining how much money they would receive while unable to work due to injury. The Washington Supreme Court ruled against the workers. The court decided that employer contributions to retirement funds, apprenticeship programs, and most insurance plans do not count as "wages" under Washington law. This means these contributions cannot be included when calculating workers' compensation time-loss benefits. However, the court made an exception for health and security benefits that are essential for basic survival needs. **What This Means for Workers:** This ruling limits how much workers' compensation benefits injured employees can receive. Since employer contributions to many benefit programs don't count toward the wage calculation, workers may receive smaller compensation payments while recovering from workplace injuries. Workers should understand that only their direct pay and certain essential benefits will be considered when determining their workers' compensation benefits, potentially resulting in lower financial support during recovery periods.