Oct
12
2009

### Ogilvie Calculations Made Simple, II

A little while ago William S. Morris, an Applicant’s attorney, told me that the Ogilvie adjustment calculation could be further simplified. 1 He suggested the following2 :

1. Earnings Loss34
1. L = (PIESSE – PIEA) / PIESSE
2. Individualized Proportional Earnings Loss
1. = (WPI / L) / 100
1. = ([1.81/a] * .1) + 1
2. = ( (1.81 * .1)/a) + 1
3. = (.181/a) + 1
4. = 1 + (.181/a)
1. = WPI * DFEC Adjustment Factor
2. = WPI * (1 + (.181/a) )
3. = WPI * (1 + (.181 / Individualized Proportional Earnings Loss) )
4. = WPI * (1 + (.181 / ( (WPI / L) / 100) ) )
5. = WPI * (1 + (18.1 / ( (WPI / L)  ) )
6. = WPI * (1 + (18.1 * (L/WPI) ) )
7. = WPI + (18.1 * L)
5. Conclusion
1. If the injured workers’ individualized proportional earnings loss is outside all of the FEC ranks, you may calculate the Ogilvie adjustment by adding (18.1*Earnings Loss) to the WPI.

The only flaw with the proofs offered by William and myself is that they are too exact.  The WCAB in Ogilvie never sets forth the exact process for performing the Ogilvie adjustment calculation – so the only official method involves rounding to different significant figures at different places.  Thus, a calculation performed in strict accordance with the WCAB in Ogilvie and through one of these mathematical proofs would differ very slightly.

1. Photo courtesy of Dahveed76 []
2. I’m paraphrasing here []
3. PIESSE = Post Injury Earnings of Similarly Situated Employees []
4. PIEA = Post Injury Earnings of Applicant []
Jul
17
2009

Yesterday while at the Oakland WCAB an Applicant’s attorney mentioned he noticed an interesting trend in the Ogilvie formula. 23 He said that whenever he does an Ogilvie calculation for someone with a 100% earnings loss and a modest WPI, the WPI is always increased by 18. 4

I ran a number of test calculations on this theory and it appeared to be right.  My calculations show that up to a WPI of 44 the increase appears to always be 18.1, but the last “0.1” always gets rounded down.  However, appearing to be right just isn’t good enough for me.  And, because I am just truly that nerd, here’s the fully mathematical proof:

Let’s break down the calculations at the heart of Ogilvie:

1. Earnings Loss56
1. = (PIESSE – PIEA) / PIESSE
2. = (\$1.00 – \$0.00) / \$1.00
3. = \$1.00 / \$1.00
4. = 1
5. = 100%
2. Individualized Proportional Earnings Loss
1. = (WPI / Earnings Loss) / 100
2. = (WPI / 100% )/100
3. = (WPI / 1) / 100
4. = WPI / 100
5. Thus, for any WPI less than 45 and a total loss of earnings, the Individualized Earnings Loss will always be less than 0.450 in Table A.
1. = ([1.81/a] * .1) + 1
2. = ( (1.81 * .1)/a) + 1
3. = (.181/a) + 1
4. = 1 + (.181/a)
1. = WPI * DFEC Adjustment Factor
2. = WPI * (1 + (.181/a) )
3. = WPI * (1 + (.181 / Individualized Proportional Earnings Loss) )
4. = WPI * (1 + (.181 / (WPI / 100) ) )
5. = WPI * (1 + (.181 * 100 / WPI ) )
6. = WPI * (1 + (18.1/ WPI ) )
7. = WPI * ( (WPI/WPI) + (18.1/ WPI ) )
8. = WPI * (WPI + 18.1/ WPI )
9. = WPI * (WPI + 18.1/ WPI )
10. = WPI + 18.1
5. Conclusion
1. If you have an Applicant with a 100% post injury earnings loss and a WPI of 44 or less, you should rebut the FEC and arrive at an adjusted WPI that is equal to the original WPI plus 18.1.

Therefore, I propose a new Ogilvie formula that will be easy for anyone to remember:

• Step 1: If the injured worker has a 100% earnings loss and a WPI of 44 or less, add 18.1 to the WPI and round down.
• Step 2: If the injured worker has less than 100% earnings loss or a WPI of 45 or higher, go to Step 3.
• Step 3: For heaven’s sake, just make your life easier and use the calculators here at PDRater.com.