What Does “Reasonably Gainful Employment” Mean in an Alabama Workers Compensation Case?

What Does “Reasonably Gainful Employment” Mean in an Alabama Workers Compensation Case?

One of the most misunderstood concepts in Alabama workers’ compensation law is the idea of reasonably gainful employment.  Many injured workers assume that if they are physically capable of performing some type of job, they cannot be considered permanently and totally disabled, but this is not necessarily true.

Under Alabama workers’ compensation law, the question is often not “Can this person perform any activity at all?”  Rather, the question is “Can this person perform their previous trade or obtain reasonably gainful employment?”

Understanding that distinction is important because it explains why some workers may be found permanently and totally disabled even though they are still capable of performing certain activities.

Permanent Total Disability Does Not Mean Complete Helplessness

One of the biggest misconceptions about workers’ compensation claims is that permanent total disability means a worker must be completely incapable of doing anything.  That is not the law in Alabama.  Alabama courts have repeatedly recognized that permanent total disability does not require absolute helplessness or complete physical incapacity. A worker may still be capable of:

• Driving a vehicle;
• Performing household tasks;
• Attending church;
• Shopping for groceries;
• Performing limited activities.

Yet still be permanently and totally disabled under Alabama workers’ compensation law.  The issue is whether the worker can realistically return to reasonable gainful employment.

The Two-Part Test

Alabama courts have long recognized that the standard for permanent total disability involves two questions:

Can the Employee Perform His or Her Previous Trade?

Many injured workers can no longer perform the jobs they held before suffering a serious workplace injury.  Examples might include:

• Construction workers;
• Steel/Iron workers;
• Truck drivers;
• Roofers;
• Nurses;
• Warehouse workers.

If the worker cannot return to their previous occupation, the analysis does not end there.  The second question becomes critical.

Can the Employee Obtain Reasonably Gainful Employment?

The issue becomes whether there are other jobs the worker can realistically obtain and perform.

What Is Reasonably Gainful Employment?

Alabama courts have explained that reasonably gainful employment generally means employment that is:

• Similar in pay to the worker’s previous employment;
• Compatible with the worker’s age;
• Compatible with the worker’s education;
• Compatible with the worker’s aptitude;
• Compatible with the worker’s occupational background.

In other words, simply identifying some job somewhere is not enough.  The question is whether the proposed employment is realistically comparable to the worker’s pre-injury earning capacity and vocational background.  For example, imagine a 58-year-old master electrician who spent thirty years performing skilled electrical work.  Before his injury, he earned a substantial income supporting his family.  After a serious back injury, he can no longer:

• Climb ladders;
• Lift heavy equipment;
• Work in industrial settings;
• Perform electrical installations.

The insurance company points to a part-time greeter position paying a fraction of his previous wages.  Is that reasonably gainful employment?

Alabama courts have recognized that simply identifying a low-paying job does not necessarily mean a worker remains employable in a reasonably gainful capacity.

Why Vocational Experts Matter

Vocational experts frequently become important in permanent disability cases.

They evaluate factors such as:

• Age;
• Education;
• Work history;
• Transferable skills;
• Physical restrictions;
• Chronic pain;
• Employability.

The vocational expert’s role is often to help determine whether a worker can realistically obtain and maintain reasonably gainful employment.

There Must Be a Real Labor Market

Another important concept recognized by Alabama courts is that employment opportunities must exist in a reasonably stable labor market.  A theoretical job is not enough. The question is whether there is a realistic market for the worker’s remaining abilities.  This includes considering:

• The quality of the worker’s remaining services;
• Reliability;
• Productivity;
• Physical limitations;
• Ability to maintain employment.

A worker who can only perform highly restricted activities may not have a meaningful labor market available to them.

Why Impairment Ratings Do Not Decide the Case

One of the most common misunderstandings in workers’ compensation claims involves impairment ratings.  Doctors frequently assign permanent impairment ratings.

For example:

• 5% impairment;
• 10% impairment;
• 20% impairment.

These ratings measure physical impairment; they do not necessarily measure loss of earning capacity.

Alabama courts have repeatedly recognized the distinction between:

• Medical impairment; and
• Vocational disability.

A worker may have a relatively modest impairment rating yet still suffer a devastating loss of earning capacity, that is why courts are not bound by an impairment rating when evaluating disability.

Why Chronic Pain Often Matters

Many permanent disability cases involve chronic pain.

Even when a worker remains physically capable of performing certain tasks, pain may affect:

• Concentration;
• Productivity;
• Reliability;
• Attendance;
• Ability to maintain a work pace.

These factors can significantly affect employability and may become important in determining whether reasonably gainful employment exists.

Permanent total disability does not require complete helplessness; likewise, the ability to perform some activity does not automatically mean a worker remains employable.  Alabama courts recognize that the true issue is often whether a worker can obtain and maintain reasonably gainful employment that is compatible with their background, abilities, and earning history.

Understanding that distinction helps explain why vocational evidence, loss of earning capacity, chronic pain, and employability frequently become central issues in serious workers’ compensation cases.

For decades, the attorneys at Powell and Denny have represented injured workers throughout Alabama and have extensive experience handling permanent disability and vocational disability claims, so if you have questions about permanent total disability, loss of earning capacity, impairment ratings, vocational disability, chronic pain, or other workers’ compensation issues, so don’t hesitate to contact the experienced attorneys at Powell and Denny today a free consultation; remember. Virtual appointments are available through Zoom so you can meet with one of the attorneys of Powell and Denny from wherever you live, and remember-there is no fee unless you win.

Powell and Denny: We Work When You Can’t.

Offices in Huntsville, AL and Birmingham, AL