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Wage Compensation
Wage-Loss Compensation Under FECA
If a work-related injury or occupational disease keeps you from earning your regular federal wages, the Federal Employees’ Compensation Act (FECA) may provide income replacement. However, payment does not automatically continue simply because your claim was accepted. Different rules apply at each stage, and medical evidence must support the specific period of disability for which you are seeking compensation.
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Categories of Compensation
The Sequence of Pay After an Injury
After a traumatic injury, an eligible federal employee may first receive Continuation of Pay (COP) from the employing agency. COP lasts no more than 45 calendar days. If the employee remains disabled after COP ends, wage-loss compensation may be paid by the Office of Workers’ Compensation Programs (OWCP). Occupational disease claims do not qualify for COP, so eligible wage-loss compensation may begin from the start of disability. Later, benefits may change due to a partial disability, a Loss of Wage-Earning Capacity (LWEC) determination, a return to work, or another legal development.
How Compensation Is Claimed
An accepted underlying claim does not automatically produce wage-loss payments. The employee must submit Form CA-7, Claim for Compensation, identifying the period of wage loss being claimed. The employee must also provide medical evidence establishing disability throughout that period and connecting the disability to the accepted work injury. The following must be in place before a federal employee can be paid.
Accepted Claim
OWCP must accept the underlying injury or occupational condition before paying FECA wage-loss benefits.Medical Evidence
Your physician must support disability for the complete date range covered by the compensation claim.Form CA-7
This form requests compensation for specific periods of LWOP, reduced earnings, or other qualifying wage loss.Form CA-20
The attending physician may use Form CA-20 or a narrative report to document disability, work limitations, treatment, and the connection to the accepted injury.
Understanding Compensation
COP vs. OWCP Compensation
COP and OWCP compensation are not the same payment. COP is regular salary paid by the employing agency after an eligible traumatic injury. It is subject to taxes and normal payroll deductions and is limited to 45 calendar days. After COP, or from the beginning of disability in an occupational disease claim, OWCP pays compensation under FECA rather than through the agency payroll office. FECA compensation is generally paid at 66 2/3% of the applicable pay rate, or 75% when the employee has at least one eligible dependent under 5 U.S.C. § 8110. Compensation is generally tax-free and may be subject to applicable cost-of-living adjustments.
Waiting Periods
A three-day waiting period can apply before FECA wage-loss compensation begins. Under the traditional FECA rule, compensation is not paid for the first three days of temporary disability unless disability lasts more than 14 days, results in permanent disability, or otherwise falls within a statutory exception. A special rule applies to U.S. Postal Service employees. USPS employees generally must use annual leave, sick leave, or leave without pay for the first three days of temporary disability before COP begins. That time may be restored if the disability exceeds 14 days or is followed by permanent disability.
Total and Partial Disability
Total wage-loss compensation may be payable when the accepted injury causes a complete loss of earnings. This can include situations where the employee can perform restricted work but cannot return to the regular job and appropriate work within those restrictions is unavailable. Partial disability means the employee can work but cannot earn the wages received before the injury. For example, an employee who returns to light duty for fewer hours or loses premium pay due to injury-related restrictions may qualify for partial compensation. The payment is based on supported wage loss, not simply the existence of medical restrictions. Returning to some form of work does not necessarily end compensation, but it may change how the benefit is calculated. The duration and amount of compensation depend on continuing injury-related disability, wage-earning capacity, medical evidence, and other statutory requirements.
How Payments Get Reduced
OWCP may reduce compensation through an LWEC determination. An LWEC may be based on the employee’s actual earnings or on a constructed position that OWCP determines the employee is medically and vocationally capable of performing. The resulting earning capacity can reduce benefits even when the employee has not returned to the pre-injury position. Compensation may also be affected by a suitable job offer, failure to cooperate with vocational rehabilitation, earnings from other employment, or legally required benefit offsets.
A schedule award is a separate concept. It compensates for permanent impairment of a scheduled body part or function and is not a weekly wage-loss replacement for time away from work.
How This Interacts With Social Security
Social Security benefits can also create offset issues. Depending on the type of Social Security benefit and the earnings on which it is based, FECA or Social Security payments may be reduced. The direction and calculation of the offset depend on the specific benefits involved. Review our Social Security Disability Insurance and FECA page and obtain advice based on your actual benefit records.
When Payment Problems Are a Paper Problem vs. a Legal Problem
Some interrupted payments result from missing paperwork. OWCP may not have received a CA-7, the claimed dates may be incomplete, or the medical report may not address disability for the entire period. These problems may be correctable with proper documentation. Other interruptions involve legal or medical disputes. A CE may act because of a job offer, second-opinion examination, LWEC decision, medical conflict, or finding that the evidence no longer establishes disability. When OWCP reduces, suspends, terminates, or denies compensation based on a formal determination, the employee may have review or appeal rights with important deadlines.
Additional Help With FECA Compensation Problems
If your COP is ending, your CA-7 has not been paid, or OWCP has reduced or denied your compensation, the reason matters. Aumiller Lomax helps federal employees identify whether the problem is missing evidence, incomplete forms, an unfavorable medical opinion, a job-offer issue, an LWEC determination, or another disputed decision. Contact Aumiller Lomax for a free telephone consultation to discuss your situation, understand your options, and receive a candid assessment of whether representation would be helpful.
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