Federal Workers Compensation Coffee Break

Episode 36 Federal Workers Compensation Coffee Break Podcast- FECA Report of Earning Requirements

April 23, 2023 Dr. Taylor Season 2 Episode 7
Federal Workers Compensation Coffee Break
Episode 36 Federal Workers Compensation Coffee Break Podcast- FECA Report of Earning Requirements
Show Notes Transcript

Federal Workers Compensation Coffee Break Podcast is about all things related to Federal Workers Compensation, FECA, OWCP, DOL & Longshore claim filing as an injured federal worker.  The podcast is an educational and informative training on how to navigate the DOL -OWCP claims filing process for all types of injured US government and federal workers. The podcaster has 28 years in assisting with federal workers compensation as a consultant and trainer. The podcast is free and is educational. If you need help with anything related to a federal workers compensation claim...help is just a cup of coffee away.
                      
                   What earnings  information must a government employee report?

An employee who is receiving compensation for partial or total disability must advise OWCP immediately of any  outside employment, outside income (no matter how small)  including any concurrent dissimilar employment held at the time of injury, even if the injury did not result in any lost time in that position.
The employee must report even those earnings which do not seem likely to affect his or her level of benefits. Many kinds of income, though not all, will result in reduction of compensation benefits. While earning income will not necessarily result in a reduction of compensation, failure to report income may result in forfeiture of all benefits paid during the reporting period.
There are two primary ways an injured worker will be asked to report: on OWCP forms CA-7 and EN-1032.

Section 3 of the CA-7 states: You must report all earnings from employment (outside your federal job); include any employment for which you received a salary, wages, income, sales commissions, piece- work, or payment of any kind during the period(s) claimed in Section 2. Include self-employment, involvement in business enterprises, as well as service with the military forces. Fraudulent concealment of employment or failure to report income may result in forfeiture of compensation benefits and/or criminal prosecution. 
Dr. Taylor’s educational podcast utilizes his experience and history as a DOL – OWCP provider and his years of consulting and teaching all things federal workers compensation related. This is an educational short form format for learning how to successfully file federal workers compensation claims. So grab a cup of coffee and lets begin.

Dr. Taylor’s contact information for more information or assistance is:
https://fedcompconsultants@protonmail.com

If you need a provider or assistance with a DOL claim in Tampa, Jacksonville or other areas of Florida you can make an appointment to see him and the other providers at the clinic at 813-877-6900 .



           FECA DFEC: § 10.525 What earnings information must the employee report?

(a) An employee who is receiving compensation for partial or total disability must advise OWCP immediately of any return to work, either part-time or full-time. An employee must report all outside employment, including any concurrent dissimilar employment held at the time of injury, even if the injury did not result in any lost time in that position. In addition, an employee who is receiving compensation for partial or total disability will periodically be required to submit a report of earnings from employment or self-employment, either part-time or full-time. (See § 10.5(g) for a definition of “earnings.”)

 

(b) The employee must report even those earnings which do not seem likely to affect his or her level of benefits. Many kinds of income, though not all, will result in reduction of compensation benefits. While earning income will not necessarily result in a reduction of compensation, failure to report income may result in forfeiture of all benefits paid during the reporting period.

 

 

Compensation benefits are initially paid by the Office of Workers’ Compen- sation Programs (OWCP). At the end of each fiscal year, OWCP bills the Postal Service for the previous year’s medical and wage-loss benefits. To attempt to control these costs, the Postal Service Office of Inspector General (OIG) routinely monitors injured workers. The odds are that if you are injured and on wage- loss compensation, the OIG is monitoring you.

If the OIG has any question that an injured worker is engaging in, or capable of performing, any type of work, it is probable that an investigation will be initiated and OWCP will be contacted.

Section 8106(b) of the Federal Employees Compensation Act (FECA) states:

The Secretary of Labor may require a partially disabled employee to report his earnings from employment or self-employment, by affidavit or otherwise, in the manner and at the times the Secretary specifies. The employee shall include in the affidavit or report the value of housing, board, lodging, and other advantages, which are part of his earnings in employment or self-employment and which can be estimated in money.

An employee who:

(1 )fails to make an affidavit or report when required; or (2)knowingly omits or understates any part of his earnings; forfeits his right to compensation with respect to any period for which the affidavit or report was required.

Compensation forfeited under this subsection, if already paid, shall be recovered by a deduction from the compensation payable to the employee or otherwise recovered under section 8129 of this title, unless recovery is waived under that section.

There are two primary ways an injured worker will be asked to report: on OWCP forms CA-7 and EN-1032.

Section 3 of the CA-7 states:

You must report all earnings from employment (outside your federal job); include any employment for which you received a salary, wages, income, sales commissions, piece- work, or payment of any kind during the period(s) claimed in Section 2. Include self-employment, involvement in business enterprises, as well as service with the military forces.

Fraudulent concealment of employment or failure to report income may result in forfeiture of compensation benefits and/or criminal prosecution.

Injured workers can avoid forfeiture of compensation and criminal prosecution by reporting all work and sources of income on every CA-7 and EN-1032. There is no penalty for reporting sources of income that you are entitled to, whereas the penalties for not reporting such income are significant. When in doubt, report everything.

Many injured workers have made the mistake of not re- porting income from businesses they were engaged in prior to the start of their postal career or to the date of their injury, especially businesses that made no income or even lost money. The fact that a business was a failure does not ab- solve the claimant from the requirement to report it to OWCP.

OWCP can send Form EN-1032 at any time to claimants who are on the periodic roll or on the daily roll. Form EN-1032 re- quires the claimant to report employment, volunteer work, dependents, other federal benefits or payments, third-party settlements and fraud offenses for the previous 15 months. The claimant has 30 days to complete and return the EN-1032. If a timely report of earnings is not made, the right to compensation for wage loss is suspended until the report is received. Perhaps the greatest confusion in filling out the EN-1032 is Part D, Question A: “Do you receive benefits from SSA as part of an annuity for federal service?” This confusing language has resulted in many injured workers not reporting Social Security benefits, resulting in overpayment and the requirement to reimburse OWCP thousands of dollars. The fact is that many employees do not understand that their SSA benefits are part of their annuity. The safe thing to do is report any Social Security benefits. OWCP will then contact the Social Security Administration and determine whether a deduction from wage-loss compensation is warranted.

Injured workers need to be vigilant and mindful of the penalties for failing to respond to requests for information from OWCP. Do not be in the position where the OIG or OWCP can take action against you.

Podcasts we love