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Multiple Problems With the 1974 Amendments to the Federal Employees' Compensation Act

HRD-79-80 Published: Jun 11, 1979. Publicly Released: Jun 11, 1979.
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Highlights

The number of lost-time injury claims filed by federal workers increased sharply following legislative changes in 1974 which allowed employees' pay to continue uninterrupted for 45 days after a traumatic injury and gave them free choice of a physician.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress should require that the 3-day waiting period for traumatic injuries be applied before the payment of COP, rather than 45 days later, in order to reduce the number of minor and frivolous claims which are diverting Labor's efforts from more serious claims, to reduce the cost to taxpayers, and to give federal employees an incentive to return to work.
Closed – Not Implemented
Any legislation to amend the Federal Employees' Compensation Act is not likely to pass in the near future.
Congress should provide employing agencies with the authority, if there is a question about the initial diagnosis of an employee's injury or the length of disability resulting from that injury, to require an employee to submit to a second medical examination by a federal medical officer or a physician designated by the Secretary of Labor.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Labor The Secretary of Labor should actively encourage employing agencies to develop programs for working with employees and their physicians, including contacting the employee's physician at the earliest possible opportunity and working with the physician in determining the best resolution of the employee's claim and length and extent of the disability.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Labor The Secretary of Labor should have the Assistant Secretary for Employment Standards instruct the Office of Workers' Compensation Programs to require district office claims examiners to obtain sufficient evidence for all COP claims before rendering final decisions.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Labor The Secretary of Labor should require the Assistant Secretary for Employment Standards to instruct the Office of Workers' Compensation Programs to give employing agencies the authority to controvert and withhold COP in controversial claims or in claims for which the agencies have found a basis for denial. Labor should give priority adjudication to these controverted claims.
Closed – Not Implemented
Labor believed that a complicated scheme would be necessary to ensure that uniform standards would be applied in these cases.
Department of Labor The Secretary of Labor should have the Assistant Secretary for Employment Standards instruct the Office of Workers' Compensation Programs to assist employing agencies with establishing uniform policies for dealing with COP. These policies should include provisions for investigating questionable claims, monitoring the progress of an employee recovering from an injury, contacting the employee's physician, developing a light-duty program, and recovering the COP paid for denied claims.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Labor The Secretary of Labor should require the Assistant Secretary for Employment Standards to instruct the Office of Workers' Compensation Programs to provide all employing agencies with the authority to withhold COP: (1) until employees have provided agencies with sufficient medical evidence to substantiate their claims; and (2) when the employee refuses to return to work on a suitable light-duty assignment when such an assignment is in accordance with the attending physician's diagnosis.
Closed – Not Implemented
Labor believed that it would require a complicated administrative scheme to ensure uniform standards to withhold COP until the injured employee provided an agency with sufficient medical evidence to substantiate a claim and that the agencies already have the authority to terminate COP when an employee refuses to return to work.

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Topics

Claims processing costsClaims settlementCompensation claimsEligibility determinationsPhysiciansProgram abusesWorkers compensationFederal employeesContinuation-of-pay claimsEmployee compensation