Collection of Workers' Compensation Overpayments

An advance decision was requested regarding the propriety of withholding an Air Force employee's pay to collect overpayments made to the employee by the Department of Labor. The payments in question were from the Employees' Compensation Fund which is administered by Labor, and the agency asked the Air Force to assist in collecting an overpayment from the fund. GAO has long held that the Government cannot withhold the current salary of employees without their consent to satisfy general debts owed to the Government. However, payments to the employee from the fund should be repaid to the fund by the Air Force. An overpayment by the fund becomes an overpayment when the agency is billed for the payment by Labor. Therefore, an overpayment by the fund to the employee may be collected by the Air Force, as if it had been made directly by the Air Force.