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  • 1.  Inclusion of Fringe Benefits and Loss Earning Capacity Vocational or Economist Scope ?

    Posted 03-14-2025 10:54

    Good morning ,
    I would like input on employee fringe benefits when performing a Vocational Loss Earning Capacity Evaluation. Is this more so an economist who performs this type of review? I
    d have a file where there is no economist present but the person evaluated obviously has loss of benefits as well as she was employed by the state. I listed two
    articles below that provide better insight on the calculation of fringe benefits. What say you........ Is this the scope of a economist or as a Vocational Expert would calculating such loss be usual and customary?



    US Census Economic News Release

    Employer Costs for Employee Compensation Summary
    Total employer compensation costs for state and local government workers averaged $63.46 per hour worked in December 2024. Wages and salaries averaged $39.22 and accounted for 61.8 percent of employer costs, while benefit costs averaged $24.23 and accounted for 38.2 percent.

    The double whammy in calculating loss of earning capacity. (n.d.). https://plaintiffmagazine.com/recent-issues/item/the-double-whammy-in-calculating-loss-of-earning-capacity



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    Jenn Toles MS CRC CLCP CCM
    Guided Life Care Planning Services
    info@guidedlifecare.com
    Lithia, Florida
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  • 2.  RE: Inclusion of Fringe Benefits and Loss Earning Capacity Vocational or Economist Scope ?

    Posted 03-14-2025 12:12

    Attorneys in my area rarely use economists. I encountered them rarely, mainly on out of state cases. Some seemed to want to dumb stuff down and seemed to often not understand what earning capacity is solely focusing on what the individual was doing at moment of injury as in a WC case.  Compensation and earning capacity, (including benefit value) is IMO more the domain of VE.

    I have seen both economists and incompetent VE say that since Joe or Sally "did not have benefits when injured benefit value is zero. Such demonstrates ignorance, bias or likely both. All employed workers have benefit of FICA, etc. Plus, loss of earning capacity NEVER should be artificially and illogically limited to focus on only the specific job or even sole occupation the individual did at DOI. Rather what the individual had/lost opportunity to access in the labor market.. Therefore, what the typical worker generally, or specifically by trade, public/private sector, occupational group must be the focus. People routinely change employers and change occupations in a worklife. Self-employed workers decide to become employed workers. 

    Employer Costs for Employee Compensation – December 2024

    This is what many of us use to get an accurate picture. It is quite fascinating. Spoken as a nerd. I tended to most often used a 25 percent value (wage x 1.25) to capture value of benefits in total compensation. Sometimes more or less depending upon variables. Use of the tables may in some instances suggest a much higher value but avoiding double dips and being conservative is good.



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    Scott T. Stipe, MA, CRC, IPEC, D/ABVE
    Certified Rehabilitation Counselor
    Board Certified Vocational Expert
    Scott Stipe & Associates, Inc.
    DBA Career Directions Northwest
    4110 SE Hawthorne Blvd
    #188
    Portland, Oregon, 97214
    (503)807-2668
    email: sstipecrc@gmail.com
    ------------------------------



  • 3.  RE: Inclusion of Fringe Benefits and Loss Earning Capacity Vocational or Economist Scope ?

    Posted 03-14-2025 12:31

    Wonderful Scott that was the same updated article published by the BLS I was referring to. There has been some back and forth banter on this issue and I truly appreciate insight from seasoned expert such as yourself. Enjoy your day and retirement from what I hear.

    Jennifer



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    Jenn Toles MS CRC CLCP CCM
    Guided Life Care Planning Services
    info@guidedlifecare.com
    Lithia, Florida
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  • 4.  RE: Inclusion of Fringe Benefits and Loss Earning Capacity Vocational or Economist Scope ?

    Posted 03-14-2025 12:12
    Jennifer,

    This is an interesting question because there is some overlap between the world of vocational counseling and economics here.  An economist can clearly calculate many fringe benefits (being given a company car, time off, paid vacations, etc.) but things like quality of life (hedonic damages) are a bit more controversial.  As labor and the nature of work changes from mini google/facebook villages with free vending machines next to our desks to work-from-home arrangements to GenZ viewing work more as a source of personal meaning, not just a paycheck, there is clearly some territory of the rehabilitation counselor.  It seems like that is within our scope to address and consider, however I don't know how that would be quantified in a meaningful way that could be used in legal decisions regarding damages. 

    I'm curious to hear from some more experienced people here. 

    Aaron Mertes PhD, PCLC, CRC

    Assistant Professor – University of Wisconsin - Whitewater

    CACREP Board of Directors

    www.aaronmertes.com 








  • 5.  RE: Inclusion of Fringe Benefits and Loss Earning Capacity Vocational or Economist Scope ?

    Posted 03-14-2025 12:33

    I appreciate your insight Aaron. This particular individual stayed at her same place of employment with the same job title for over 30 years prior to injury. This I say is very rare in today's climate.



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    Jenn Toles MS CRC CLCP CCM
    Guided Life Care Planning Services
    info@guidedlifecare.com
    Lithia, Florida
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  • 6.  RE: Inclusion of Fringe Benefits and Loss Earning Capacity Vocational or Economist Scope ?

    Posted 03-18-2025 13:55

    Jennifer:    apologies for the delayed response.

    I try to pay attention to all those "either-or" scenarios, which, do not need to be such.   Most times, growth and answers may be rightfully found in a blend.   The use of an "and" scenario may well be appropriate, as I believe it is in this case.

    I am one who, as a VRC or VC, do opine on benefits-- in some cases.   And the use of the cite you noted is as authoritative as it gets.  When I think back to my early years of providing detailed Rehab Plan, the benefit part of RTW was indeed one of the components of assisting a person with disability in planning for their future.  In addition, the information which you state here is from a public domain, which does not need a credential to cite, or use as baseline.  In addition, most helpful to me is the ability to combine and average more than one of its Tables, if indeed the evaluee more correctly is identified by doing so.  

    Would an economist tackle the question of benefits (alone) differently?   Some do, others don't.  I do limit myself however to cases in which there are no complexities (Present Value, T-Bill values, inflation, business valuations, etc.) for which I am neither trained nor certified.  That leaves more than 80 percent of these in which I may and do appropriately and affirmatively respond, in my experience.  When a contradiction, critique, or large disparity of dollars may occur between me and the opposing side, I confidently compare apples to apple and notably explain the use of published BLS stats, as my methodology baseline.   No problem. 

    Furthermore, I do not see any issue with the "staying in my lane" argument.  As described above, the VRC or VR is well within their scope to opine on past and future earning capacity, which includes benefits in addition to wages.   Just because one is honest enough to admit that not being able to do complex geometry, does not mean one cannot do the basic 4 functions of math.   As such, once again, I attest that Benefits, WorkLife, and even Household Services may be well within our "lane" and am very confident that these types of analyses are within mine in particular, without being an Economist.  It is the extent of the sophistication (experience, credentialization, and knowledge) in which I would err if I were go further.   Your topic is not limited to an either-or question, which may unnecessarily confine the potential reply.  Hence, I am very glad that you asked.  

    My long-term membership in and service on the AREA Board- to include a recent 2-term Presidency therein, have only solidified my stance on the topic and helped me with learning more.   I hope this helps.  Good luck!



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    Bob Paré, MS, CRC, LRC, FVE, ABVE/D
    rpare@consultativerehab.com
    Mt. Laurel, NJ. Tel: 609-531-2529
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  • 7.  RE: Inclusion of Fringe Benefits and Loss Earning Capacity Vocational or Economist Scope ?

    Posted 03-18-2025 14:16
    Jenn: yes, many, not all of Vocational Experts are qualified to opine such opinions. It depends on your experience, certification (s), and rationale well explained in the report. 

    you stated the lost occupation was with State employment? First, call the State HR / personnel department and get either dollar values broken down by category or if they use a percentage  x wages. This is solid evidence. The BLS is excellent for cases that lost fringe benefits though no good evidence exists:  the last actual received $ value is always best. Make sure you itemize each benefit to avoid overestimating.

    If Union, I get the latest Union bargaining agreement and use real $. I have contrasted received benefits to now, post injury values by BLS or use to confirm total dollar values. 

    I have survived three Motions in limine at State  and Federal courts as plaintiff estimating both wage loss and fringe values. I am a long term member of AREA, ABVE and IARP/ forensic. This commitment helped me and attorneys draft the challenge via Motion (s) filed. I see folks leaving a lot of economic value by avoiding details on fringe benefits or misuse of the BLS tables.

    You should ask a colleague to review your analysis before submitting and avoid eating Crow in depo or trial. Get a release signed due to confidentiality. 

    John Berg
    Vocational Consulting Inc.
    Seattle- Wa






  • 8.  RE: Inclusion of Fringe Benefits and Loss Earning Capacity Vocational or Economist Scope ?

    Posted 03-18-2025 16:43

    As usual, the follow up by John Berg is so spot-on with practicality!   Especially his suggestion to have a peer proofread yours before you set out on a first flight of your own. 

    Thanks, Juan!  Best to you and your family. 



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    Bob Paré, MS, CRC, LRC, CDMS, FVE, ABVE/D
    rpare@consultativerehab.com
    Mt. Laurel, NJ. Tel: 609-531-2529
    ------------------------------