Was Helping Boyfriend Run Rehab ‘Work’ for Purposes of TTD Fraud Finding?

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In Ohio, work, for purposes of total temporary disability compensation, doesn't always require that the worker is getting paid. A case involving an injured Big Lots employee who received TTD benefits while allegedly acting as a counselor at a drug rehabilitation facility underscores some of the factors that can sway courts in fraud cases.

The employee injured her back on the job in 2019 and was awarded salary continuation and TTD compensation from August 2019 to December 2020.

During that period, in July 2020, she checked “no” on a section of an Industrial Commission form when asked whether she was working in any capacity.

One day, while receiving benefits, she emailed the Big Lots compensation manager. Her email listed an address for the drug rehab facility and designated her as a chemical dependency counselor assistant there. That’s what triggered a fraud investigation.

The truth is, the claimant had been keeping busy helping her boyfriend, who owned the center. Among other activities, she performed work as a substance abuse counselor, wrote employee’s checks, and completed administrative tasks. Her LinkedIn account listed her as a volunteer and administrator/addiction counselor. Her national healthcare provider profile indicated she was an addiction counselor.

A hearing officer found that she engaged in fraud by accepting benefits while continuing to work. The employee appealed that decision.

Unpaid activities that directly generate income for a separate entity may be considered work for purposes of TTD compensation eligibility. Generally, the performance of tasks that a person would normally be paid to do constitutes "work." If the claimant's activities are minimal, however, and only indirectly generate income, they may not be considered work.

Was the employee engaged in “work” for purposes of the fraud claim?

A. Yes. She was engaging in activities that the drug rehab would normally have paid someone to do.

B. No. There was no evidence that she was receiving compensation or that she was doing anything other than helping out her boyfriend.

If you selected A, you agreed with the court in Dattilio v. Industrial Commission of Ohio, No. 22AP-421 (Ohio Ct. App. 01/23/25), which held that the employee was working for the facility while receiving TTD benefits.

The court rejected her primary argument, which was that she was not getting paid for her efforts. 

“Although ‘work’ generally means labor exchanged for pay, unpaid activities that directly generate income for a separate entity may also be considered work for purposes of TTD compensation eligibility,” the court wrote.

Thus, the fact that the facility did not compensate her did not by itself bar a finding that she was working there.

The court also pointed out that her work was not minimal but was sustained and that her activities directly benefited the facility.

As such, the court held, she was engaged in work for purposes of TTD benefits while receiving compensation. Adopting a magistrate judge's report and recommendation, the court declined to reverse the hearing officer’s fraud finding and repayment order.

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