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New state Supreme Court ruling could send waves through workers comp industry

Tom Byrne/Delaware Public Media

The state Supreme Court has ruled a person’s legal status can be used when considering if they are able to return from disability leave – potentially meaning they could collect benefits for life.

Magdalena Guardado, a native of El Salvador, injured her wrist while working at Delaware cheese manufacturer Roos Foods in 2010.

After recovering from surgery, the company said Guardado could return to work. But she argued because her efforts to retain her benefits revealed she’s in the country illegally, she’s no longer able to get a job in any industry.

A state board and a Superior Court judge agreed with that argument on its face, but the Delaware Supreme Court says someone’s legal status is just one factor that can be used to determine whether someone qualifies as a displaced worker.

Cassandra Roberts, a workers compensation partner with Young Conaway Stargatt & Taylor, says the ruling could have huge implications if it holds.

“The takeaway should be that you hire an undocumented worker at your peril, because at this juncture…the practical outcome of someone being injured at work who’s undocumented is going to be that they’re entitled to total disability is indefinite and ongoing,” Roberts said.

To lose disability benefits, those receiving them must have fully recovered, their employer must find a new role for them at the company that accommodates their medical condition, or they have to prove the worker could find a new job with their current skill set.

Roberts says the legal community relied on being able to show the court a list of new job opportunities those on disability could take.

Now, she says this could create a disincentive for the undocumented to get back on the job.

“It’s widely known that if you’re on total disability and you’re illegal, we really don’t have a way to get you [off of the benefits] – and especially for the marginally injured, as opposed to the profoundly injured, it really creates a windfall.”

Walt Schmittinger, a lawyer who represents Guardado, says he’s pleased with the decision and that workplace injuries don’t happen in a vacuum.

“Prospective employers do not consider just a claimant’s medical restrictions in making hiring decisions; they consider the whole applicant, with all of the merits and disadvantages peculiar to that person,” Schmittinger said.

The case will get a new hearing before the Industrial Accident Board in the near future.

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