Anderson v. Homeless & Housing Coalition of Kentucky, Inc.

Summary

The Kentucky Supreme Court held that an AmeriCorps participant injured while performing construction services for a charitable organization was not shown to have worked in exchange for “aid or sustenance only” under KRS 342.650(3). Because the value of his cash allowance and benefits exceeded subsistence needs and was not merely expense reimbursement, the court reversed and remanded for further workers’ compensation proceedings.

Holdings

1. Under KRS 342.650(3), whether a person performed services for aid or sustenance only depends on the value and character of the compensation received, whether paid in cash or in kind. Payment constitutes wages when it is proportional to the work performed and is not gauged by the recipient's subsistence needs.
2. It is immaterial under KRS 342.650(3) that the individual or the charitable organization considers the individual to be a volunteer; the court must examine the actual compensation provided for the work.
3. The evidence did not reasonably support a finding that Anderson performed services for HHCK in exchange for aid or sustenance only; the claim therefore required further consideration rather than exemption from coverage.

Questions Presented

1. Whether an AmeriCorps participant who performed services for a charitable organization and received a living allowance, insurance, reimbursement, and other benefits was exempt from Kentucky workers' compensation coverage under KRS 342.650(3) as a person performing services for aid or sustenance only.
2. Whether the claimant's status as a volunteer or the parties' characterization of his compensation controlled the workers' compensation coverage determination.
3. Whether the evidence reasonably supported the ALJ's finding that the claimant worked for aid or sustenance only.

Disposition

reversed_and_remanded