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Appellate Court Affirms Decision That Company’s “Fun Day” Was Not a Work Event

November 8, 2019

Any decision from the Appellate Division on recreational or social activities is welcome precisely because there have been so few decisions since the 1979 Amendments.  The case of Goulding v. NJ Friendship House, Inc., A-5996-17T3 (App. Div. November 7, 2019) is the most recent decision on this area of law in years.

Kim Goulding worked as a cook for NJ Friendship House, a
non-profit organization providing vocational training for individuals with
developmental issues.  She would
regularly cook and prepare meals for members during lunchtime and afterschool
programs.  She worked Monday through
Friday, from 10:00 a.m. until 3:30 p.m.

The Friendship House hosted its first “Family Fun Day” on
September 23, 2017, and the event was held in the rear parking lot of the
employer’s premises. There were recreational activities, food, music, games, and
prizes for members and their families. 
Volunteers were asked to attend, and some agreed to participate while
others did not.  Goulding volunteered
right away and arrived before nine a.m. to prepare breakfast.  She stepped into a small pothole around
noontime injuring her foot.

Goulding filed a claim petition which her employer denied,
and then she filed a motion for medical and temporary disability benefits.  Friendship House contended that her accident
did not arise out of her employment.

The Judge of Compensation applied the test set forth in
N.J.S.A. 34:15-7. She found that the purpose of the activity was improvement of
morale and that it was not a regular incident of employment.  The claim petition and motion were therefore
dismissed.  Goulding appealed and argued
that she was performing her usual work as a cook at Fund Day, not participating
in a recreational activity.

The Appellate Division first noted that there was nothing
involved in Fun Day that would take this case out of the basic formula for a
non-work recreational event.  This was
not a fundraiser.  It produced no benefit
for the company in terms of public relations. It was the first time ever for
Fun Day and therefore not a regular incident of employment.

The Court further noted that petitioner herself admitted she volunteered and did not feel any compulsion to participate.  To her argument that she was really just doing her regular job as a cook, the Court said, “If an employee chose to help out, the employee could participate in any capacity.  Appellant could have worked at a game, or assisted with prizes.  She chose to set up tables, arrange trays and grill hot dogs.  We cannot conclude the Fun Day was as customary as a lunch or coffee break.”

One of the key factors in this case was that no one was compelled to participate.  The employer handled this the right way in terms of making the whole event optional.  In fact, many employees of the company declined to participate with no adverse consequences to them.  All of the evidence in this case pointed to a recreational activity whose main purpose was improvement of morale.  There was no proof by petitioner of any purpose greater than improvement of morale; nor was Fun Day a regular incident of employment.  Therefore the case was clearly not compensable.

The post Appellate Court Affirms Decision That Company’s “Fun Day” Was Not a Work Event appeared first on NJ Workers' Comp Blog.

About the Author:

John H. Geaney

Co-Chair, Workers’ Compensation Practice

Mr. Geaney’s practice involves representation of employers, self-insured companies, third party administrators, and insurance carriers in workers’ compensation, the Americans with Disabilities Act, and Family and Medical Leave Act. He also conducts training sessions on workers’ compensation, ADA, and FMLA issues.

Mr. Geaney authors the New Jersey Workers’ Compensation Blog, which was named a LexisNexis Top Blog for Workers’ Compensation and Workplace Issues for 2016, and John H. Geaney’s New Jersey Workers’ Compensation Manual for Attorneys, Physicians, Adjusters, and Employers.

A frequent seminar moderator and presenter, Mr. Geaney travels the State of New Jersey extensively, speaking on a diverse range of topics spanning the breadth of workers’ compensation law.  John also served as the Mayor of Voorhees Township, New Jersey in 1991.

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