The Federal Employees’ Compensation Act (FECA): Workers’ Compensation for Federal Employees

[Excerpt] The Federal Employees’ Compensation Act (FECA) is the workers’ compensation program for federal employees. Like all workers’ compensation programs, FECA pays disability, survivors, and medical benefits, without fault, to employees who are injured or become ill in the course of their federal employment and the survivors of employees killed on the job. The FECA program is administered by the Department of Labor (DOL) and the costs of benefits are paid by each employee’s host agency. Employees of the U.S. Postal Service (USPS) currently comprise the largest group of FECA beneficiaries and are responsible for the largest share of FECA benefits. The modern FECA program can trace its roots to 1916 but has not been significantly amended since 1974. Today, the FECA program pays a basic disability benefit equal to two-thirds of an injured worker’s pre-disability wage, which rises to 75% of the pre-disability wage if the worker has any dependents. Benefits continue for the duration of disability or the life of the beneficiary and in cases of traumatic injuries, beneficiaries can receive a continuation of their full pay for the first 45 days. Persons with specific permanent partial disabilities, such as the loss of a limb, are entitled to disability benefits for a set number weeks provided by schedules set by statute and regulation. All medical costs associated with covered conditions are provided by the FECA program without any copayments, cost-sharing, or use of private insurance by the beneficiaries. The survivors of employees killed on the job are entitled to cash benefits based on the worker’s wages and a modest benefit for funeral costs. Beneficiaries are also entitled to vocational rehabilitation services to assist them in returning to work. In the 112th Congress, several committees have held hearings on the FECA program. These hearings have identified several key policy issues facing the program, including the disproportionate share of claims and program costs attributed to postal workers, the payment of FECA benefits after retirement age, the overall generosity of FECA disability benefits as compared with those offered by the states, and the administration of the FECA program. To address some of these policy issues, committees in the House and Senate passed legislation that would make changes to the FECA program. In the House, H.R. 2309 would set financial conditions under which the USPS would be required to create a new workers’ compensation system for its employees. Additional bills, H.R. 2465, passed by the House, and S. 1789, would make changes to the FECA program for all federal employees with the Senate legislation reducing benefit levels for beneficiaries over retirement age and eliminating augmented compensation for dependents. This report will be updated to reflect major legislative activity

The Longshore and Harbor Workers’ Compensation Act (LHWCA): Overview of Workers’ Compensation for Certain Private- Sector Maritime Workers

[Excerpt] The Longshore and Harbor Workers’ Compensation Act (LHWCA) is a federal workers’ compensation program that covers certain private-sector maritime workers. Firms that employ these workers are required to purchase workers’ compensation or self-insure and are responsible for providing medical and disability benefits to covered workers who are injured or become ill on the job and survivors benefits to the families of covered workers who die on the job. More than $980 million in LHWCA benefits are paid each year. The LHWCA is administered by the Department of Labor (DOL) and all benefit costs are paid by employers and their insurance carriers. Congress has extended the provisions of the LHWCA to cover workers outside of the maritime industry, such as overseas government contractors and civilian employees of military post exchanges. As part of the American Recovery and Reinvestment Act of 2009 (ARRA), Congress added to the list of workers exempted from the LHWCA persons who repair recreational vessels of any size. The LHWCA pays for all medical care associated with a covered injury or illness. Disability benefits are based on a worker’s pre-injury wage, and, unlike comparable state workers’ compensation benefits, are adjusted annually to reflect national wage growth

The Federal Employees’ Compensation Act (FECA): Workers’ Compensation for Federal Employees

The Federal Employees’ Compensation Act (FECA) is the workers’ compensation program for federal employees. Like all workers’ compensation programs, FECA pays disability, survivors, and medical benefits, without fault, to employees who are injured or become ill in the course of their federal employment and the survivors of employees killed on the job. The FECA program is administered by the Department of Labor (DOL) and the costs of benefits are paid by each employee’s host agency. Employees of the U.S. Postal Service (USPS) currently comprise the largest group of FECA beneficiaries and are responsible for the largest share of FECA benefits. Elements of the FECA program include basic disability benefits equal to two-thirds of an injured worker’s pre-disability wage, which rises to 75% of the pre-disability wage if the worker has any dependents; disability benefits that continue for the duration of disability or the life of the beneficiary and in cases of traumatic injuries, beneficiaries can receive a continuation of their full pay for the first 45 days; disability benefits for persons with specific permanent partial disabilities, such as the loss of a limb, for a set number weeks provided by schedules set by statute and regulation; all medical costs associated with covered conditions without any copayments, cost-sharing, or use of private insurance by the beneficiaries; cash benefits for the survivors of employees killed on the job based on the worker’s wages and a modest benefit for funeral costs; and vocational rehabilitation services to assist beneficiaries in returning to work. This report also focuses on several key policy issues facing the program, including the disproportionate share of claims and program costs attributed to postal workers, the payment of FECA benefits after retirement age, the overall level of FECA disability benefits as compared with those offered by the states, and the administration of the FECA program. The modern FECA program can trace its roots to 1916 but has not been significantly amended since 1974. A legislative history of the FECA program is provided in the Appendix

Buma v. Providence Porp. Dev., 135 Nev. Adv. Op. 60 (Dec. 12, 2019)

The court determined that the Nevada Industrial Insurance Act (NIIA) extends workers’ compensation protections to traveling employees while they are on work trips. The court held that traveling employee cases will use a categorical approach, where workers’ compensation is extended to traveling employees for injuries sustained during activity that can be considered an employment risk or a neutral risk which passes the increased risk test, but not to activities which are considered a personal risk. Activities considered a personal risk fall under the “distinct departure” exception, which requires that no compensation be given for injuries sustained during “personally motivated activities that take the traveling employee on a material deviation in time or space from carrying out the trip’s employment-related objectives.

More Harm than Good: Responding to States' Misguided Efforts to Regulate Immigration

This year's state legislative sessions have seen a large number of anti-immigrant worker legislative proposals, ranging from state-level employer sanctions bills, legislation requiring employers of immigrants to register and pay fees, taxes for employers of "aliens", proposals to deny workers' compensation to certain immigrants, and proposals requiring state agencies to act as arms of Immigration and Customs Enforcement (ICE).These proposals are misguided. They will result in increased discrimination against workers who are perceived to be "foreign", drive already vulnerable workers further underground and divert scarce state and local resources away from activities that benefit local communities.There is a better way: more effective enforcement of labor and employment rights to eliminate exploitation of immigrant workers and unfair competition against good employers. Shutting down the sweatshops will benefit all workers, whether US- or foreign-born, and create a climate of good jobs for all

Labor Retrenchment Laws and Their Effect on Wages and Employment: A Theoretical Investigation

Many countries have legislation which make it costly for firms to dismiss or retrench workers. In the case of India, the Industrial Disputes Act, 1947, requires firms that employ 50 or more workers to pay compensation to any worker who is to be retrenched. This paper builds a theoretical model to analyze the effects of such anti-retrenchment laws. Our model reveals that an anti-retrenchment law can cause wages and employment to rise or fall, depending on the parametric conditions prevailing in the market. We then use this simple model to isolate conditions under which an anti-retrenchment law raises wages and employment. In a subsequent section we assume that the law specifies exogenously the amount of compensation, s, a firm has to pay each worker who is being dismissed. It is then shown that as s rises, starting from zero, equilibrium wages fall. However beyond a certain point, further rises in s cause wages to rise. In other words, the relation between the exogenously specified cost to the firm of dismissing a worker and the equilibrium wage is V-shaped

An Evaluation of the New York State Workers’ Compensation Pilot Program for Alternative Dispute Resolution

In 1995, the State 0f New York enacted legislation authorizing the establishment of a workers\u27 compensation alternative dispute resolution pilot program for the unionized sector of the construction industry. Collective bargaining agreements could establish an alternative dispute resolution process for resolving claims (including but not limited to mediation and arbitration), use of an agreed managed care organization or list of authorized providers for medical treatment that constitutes the exclusive source of all medical and related treatment, supplemental benefits, return-to-work programs, and vocational rehabilitation programs. The legislation also directed the School ofIndustrial and Labor Relations at Cornell University (ILR) to evaluate compliance with state and federal due process requirements provided in the collective bargaining agreements authorized by this act, and the use, costs and merits of the alternative dispute resolution system established pursuant to this act. In response to this legislative mandate, ILR reviewed the research previously conducted on alternative dispute resolution (ADR), generally, and in workers\u27 compensation. This included examining the purported advantages and disadvantages of ADR, the prevalence of ADR, and published statistical or anecdotal evidence regarding the impact of ADR. ILR created a research design for claimant-level and project-level analyses, and developed data collection instruments for these analyses that included an injured worker survey for ADR claimants and claimants in the traditional (statutory)workers\u27 compensation system, an Ombudsman\u27s log, a manual of data elements pertaining to ADR and comparison group claimants, and interview questions for ADR signatories and other officials. The findings in this report draw upon a comparison of claimant-level, descriptive statistics (averages) for injured workers in the ADR and traditional (statutory) workers\u27 compensation system; the results of more sophisticated, statistical analyses of claimant-level data; and project-level information (including, but not limited to, interviews with ADR signatories and dispute resolution officials)

Semi-Annual Report to Congress for the Period of April 1, 2009 to September 30, 2009

[Excerpt] I am pleased to submit this Semiannual Report to Congress, which highlights the most significant activities and accomplishments of the U.S. Department of Labor, Office of Inspector General (DOL-OIG), for the six-month period ending September 30, 2009. During this reporting period, our investigative work led to 214 indictments, 221 convictions, and $123.1 million in monetary accomplishments. In addition, we issued 22 audit and other reports. OIG audits and investigations continue to assess the effectiveness, efficiency, economy, and integrity of DOL’s programs and operations. We also continue to investigate labor racketeering and/or organized crime influence against unions, employee benefit plans, and workers. From an audit perspective, the OIG is highly engaged in ensuring the integrity of DOL activities related to the American Recovery and Reinvestment Act of 2009 (Recovery Act) funding. During this reporting period, we issued five reports to that end. Among our findings are that DOL implemented procedures for the accounting of Recovery Act financial activity, acted quickly to implement the premium-assistance provisions for workers who temporarily maintain their health insurance at group rates after losing their jobs, and effectively implemented the temporary program for additional unemployment compensation for eligible recipients. We also identified areas for improvement related to financial and performance reporting and programmatic coordination with states. An audit found shortcomings with DOL’s new iCert system, which is designed to identify inaccuracies in H-1B labor condition applications (LCAs) for foreign workers. We found that, because of missing electronic checks, manual reviews of the LCAs by analysts are necessary. However, increases in the volume of applications may result in analysts not being able to perform a 100 percent review. This increases the risk of LCAs being improperly certified. Our audits also continue to reveal that some Job Corps centers do not comply with requirements for reporting performance for student attendance and accountability. We also found that, at three centers, a contractor had not ensured compliance with procedures to address student misconduct. An audit of the handling of injured Federal employees’ reemployment status at two Federal workers’ compensation district offices found that the Department did not ensure that consistent intervention actions were taken toward removing cases from the periodic roll. This increased the risk of claimants continuing to receive full Federal Employee’s Compensation Act benefits after they were able to return to work or after their compensation could have been reduced. Our investigations continue to combat organized crime and/or labor racketeering involving the monies in union- sponsored benefit plans, internal union corruption, and labor-management relations. A major OIG investigation disclosed more than 30 years of organized crime control of the International Longshoremen’s Association Local 1235, which represents port workers in New Jersey. In another investigation, the business manager for the Electrical Workers Local Union No. 3, who was a former New York State assemblyman, was sentenced to 10 years’ imprisonment on racketeering, bank fraud, and false statement charges involving a number of schemes carried out for personal gain. OIG investigations also identified vulnerabilities and fraud in DOL programs, such as the foreign labor certification (FLC) program. One OIG investigation led to the recent sentencing of Viktar Krus and his co-conspirators to various periods of incarceration for fraudulently obtaining visas for more than 3,800 foreign nationals and defrauding the government of$7.4 million in payroll taxes. Because of our investigative expertise, the OIG is a member of the International Organized Crime (IOC) strategy headed by the U.S. Attorney General. The IOC is committed to combating crime by international organized groups. Finally, I would like to express my sincere gratitude to former DOL Inspector General Gordon S. Heddell, who is now serving as the Inspector General at the U.S. Department of Defense. During his leadership of more than eight years, the DOL-OIG consistently achieved significant results similar to those presented in this report. As Acting Inspector General, I look forward to continuing to work with the Secretary of Labor and her management team in ensuring the effectiveness of DOL in delivering services and protecting the rights and benefits of American workers and retirees

Pension Portability and Labour Mobility in the United States. New Evidence from SIPP Data

We explore the role of employer provided pensions on job mobility choices using data from the Survey of Income and Program Participation. Defined benefit plans are found to have a significant negative effect on mobility. However, we find no significant evidence that the potential pension portability losses deter job mobility among workers covered by these plans. We also find that the portability policy change implemented by the Tax Reform Act of 1986 had only minor effects on mobility. Puzzlingly, defined contribution plans, although fully portable, are found to have an impact similar to defined benefit plans. Evidence of compensation premiums accruing to workers in pension, union and health insurance covered jobs supports the view that workers are less likely to leave 'good jobs'.Labour mobility ; Pension portability ; Switching regression models