Cole v. Davol, Inc.

OPINION

FLANDERS, Justice.

We granted writs of certiorari on these consolidated matters to decide whether an employer can reduce workers’ compensation payments by the amount of vacation-pay benefits paid during a scheduled plant shutdown to partially incapacitated employees who have returned to light-duty work. Because these vacation benefits are payable to employees on the basis of their past service to the employer, and therefore do not relate to any present lost earning capacity, we conclude that they cannot be credited against the amount of workers’ compensation payments owed to the…