Federal Employees' Compensation Act

5 U.S.C. CHAPTER 81COMPENSATION FOR WORK INJURIES

01/23/00SUBCHAPTER I - GENERALLY

Section8101. Definitions.8102. Compensation for disability or death of

employee.8103. Medical services and initial medical and

other benefits.8104. Vocational rehabilitation.8105. Total disability.8106. Partial disability.8107. Compensation schedule.8108. Reduction of compensation for subsequent

injury to same member.8109. Beneficiaries of awards unpaid at death;

order of precedence.8110. Augmented compensation for dependents.8111. Additional compensation for services of

attendants or vocational rehabilitation.8112. Maximum and minimum monthly payments.8113. Increase or decrease of basic compensation.8114. Computation of pay.8115. Determination of wage-earning capacity.8116. Limitations on right to receive

compensation.8117. Time of accrual of right.8118. Election to use annual or sick leave.8119. Notice of injury or death.8120. Report of injury.8121. Claim.8122. Time for making claim.8123. Physical examinations.8124. Findings and award; hearings.8125. Misbehavior at proceedings.8126. Subpoenas; oaths; examination of witnesses.8127. Representation; attorneys' fees.8128. Review of award.8129. Recovery of overpayments.

8130. Assignment of claim.8131. Subrogation of the United States.8132. Adjustment after recovery from a third

person.8133. Compensation in case of death.8134. Funeral expenses; transportation of body.8135. Lump-sum payment.8136. Initial payments outside the United States.8137. Compensation for noncitizens and

nonresidents.8138. Minimum limit modification for noncitizens

and aliens.8139. Employees of the District of Columbia.8140. Members of the Reserve Officers' Training

Corps.8141. Civil Air Patrol volunteers.8142. Peace Corps volunteers..8143. Job Corps enrollees; volunteers in service to

America.8143a. Members of the National Teacher Corps.8144. Student-employees.8145. Administration.8146. Administration for the Panama Canal

Commission and The Alaska Railroad.8146a. Cost-of-living adjustment of compensation.8147. Employees' Compensation Fund.8148. Forfeiture of benefits by convicted felons.8149. Regulations.8150. Effect on other statutes.8151. Civil service retention rights.

Sec. 8101 Definitions

For the purpose of this subchapter -(1) ''employee'' means -

(A) a civil officer or employee in any branchof the Government of the United States,including an officer or employee of aninstrumentality wholly owned by the UnitedStates;(B) an individual rendering personal serviceto the United States similar to the service ofa civil officer or employee of the UnitedStates, without pay or for nominal pay,when a statute authorizes the acceptance oruse of the service, or authorizes payment oftravel or other expenses of the individual;(C) an individual, other than an independentcontractor or an individual employed by anindependent contractor, employed on theMenominee Indian Reservation inWisconsin in operations conducted under astatute relating to tribal timber and loggingoperations on that reservation;(D) an individual employed by thegovernment of the District of Columbia; and(E) an individual appointed to a position onthe office staff of a former President undersection 1(b) of the Act of August 25, 1958(72 Stat. 838); but does not include -

(i) a commissioned officer of theRegular Corps of the Public HealthService;(ii) a commissioned officer of theReserve Corps of the Public HealthService on active duty;(iii) a commissioned officer of theEnvironmental Science ServicesAdministration; or(iv) a member of the MetropolitanPolice or the Fire Department ofthe District of Columbia who ispensioned or pensionable undersections 521-535 of title 4, Districtof Columbia Code; and anindividual selected pursuant tochapter 121 of title 28, UnitedStates Code, and serving as a petitor grand juror;

(2) ''physician'' includes surgeons, podiatrists,dentists, clinical psychologists, optometrists,chiropractors, and osteopathic practitioners withinthe scope of their practice as defined by State law.The term ''physician'' includes chiropractors only tothe extent that their reimbursable services are limitedto treatment consisting of manual manipulation of the

spine to correct a subluxation as demonstrated by X-ray to exist, and subject to regulation by theSecretary;(3) ''medical, surgical, and hospital services andsupplies'' includes services and supplies bypodiatrists, dentists, clinical psychologists,optometrists, chiropractors, osteopathic practitionersand hospitals within the scope of their practice asdefined by State law. Reimbursable chiropracticservices are limited to treatment consisting of manualmanipulation of the spine to correct a subluxation asdemonstrated by X-ray to exist, and subject toregulation by the Secretary; (4) ''monthly pay'' means the monthly pay at the timeof injury, or the monthly pay at the time disabilitybegins, or the monthly pay at the time compensabledisability recurs, if the recurrence begins more than 6months after the injured employee resumes regularfull-time employment with the United States,whichever is greater, except when otherwisedetermined under section 8113 of this title withrespect to any period;(5) ''injury'' includes, in addition to injury byaccident, a disease proximately caused by theemployment, and damage to or destruction ofmedical braces, artificial limbs, and other prostheticdevices which shall be replaced or repaired, and suchtime lost while such device or appliance is beingreplaced or repaired; except that eyeglasses andhearing aids would not be replaced, repaired, orotherwise compensated for, unless the damages ordestruction is incident to a personal injury requiringmedical services;(6) ''widow'' means the wife living with or dependentfor support on the decedent at the time of his death,or living apart for reasonable cause or because of hisdesertion;(7) ''parent'' includes stepparents and parents byadoption;(8) ''brother'' and ''sister'' mean one who at the time ofthe death of the employee is under 18 years of age orover that age and incapable of self-support, andinclude stepbrothers and stepsisters, half brothers andhalf sisters, and brothers and sisters by adoption, butdo not include married brothers or married sisters; (9) ''child'' means one who at the time of the death ofthe employee is under 18 years of age or over thatage and incapable of self-support, and includesstepchildren, adopted children, and posthumouschildren, but does not include married children;(10) ''grandchild'' means one who at the time of thedeath of the employee is under 18 years of age orover that age and incapable of self-support;(11) ''widower'' means the husband living with ordependent for support on the decedent at the time of

her death, or living apart for reasonable cause orbecause of her desertion;(12) ''compensation'' includes the money allowancepayable to an employee or his dependents and anyother benefits paid for from the Employees'Compensation Fund, but this does not in any wayreduce the amount of the monthly compensationpayable for disability or death;(13) ''war-risk hazard'' means a hazard arising duringa war in which the United States is engaged; duringan armed conflict in which the United States isengaged, whether or not war has been declared; orduring a war or armed conflict between militaryforces of any origin, occurring in the country inwhich an individual to whom this subchapter appliesis serving; from -

(A) the discharge of a missile, includingliquids and gas, or the use of a weapon,explosive, or other noxious thing by ahostile force or individual or in combatingan attack or an imagined attack by a hostileforce or individual;(B) action of a hostile force or individual,including rebellion or insurrection againstthe United States or any of its allies;(C) the discharge or explosion of munitionsintended for use in connection with a war orarmed conflict with a hostile force orindividual;(D) the collision of vessels on convoy or theoperation of vessels or aircraft withoutrunning lights or without other customarypeacetime aids to navigation; or(E) the operation of vessels or aircraft in azone of hostilities or engaged in waractivities;

(14) ''hostile force or individual'' means a nation, asubject of a foreign nation, or an individual serving aforeign nation -

(A) engaged in a war against the UnitedStates or any of its allies;(B) engaged in armed conflict, whether ornot war has been declared, against theUnited States or any of its allies; or(C) engaged in a war or armed conflictbetween military forces of any origin in acountry in which an individual to whom thissubchapter applies is serving;

(15) ''allies'' means any nation with which the UnitedStates is engaged in a common military effort or withwhich the United States has entered into a commondefensive military alliance;(16) ''war activities'' includes activities directlyrelating to military operations;

(17) ''student'' means an individual under 23 years ofage who has not completed 4 years of educationbeyond the high school level and who is regularlypursuing a full-time course of study or training at aninstitution which is -

(A) a school or college or universityoperated or directly supported by the UnitedStates, or by a State or local government orpolitical subdivision thereof; (B) a school or college or university whichhas been accredited by a State or by a State-recognized or nationally recognizedaccrediting agency or body;(C) a school or college or university not soaccredited but whose credits are accepted,on transfer, by at least three institutionswhich are so accredited, for credit on thesame basis as if transferred from aninstitution so accredited; or(D) an additional type of educational ortraining institution as defined by theSecretary of Labor. Such an individual isdeemed not to have ceased to be a studentduring an interim between school years ifthe interim is not more than 4 months and ifhe shows to the satisfaction of the Secretarythat he has a bona fide intention ofcontinuing to pursue a full-time course ofstudy or training during the semester orother enrollment period immediately afterthe interim or during periods of reasonableduration during which, in the judgment ofthe Secretary, he is prevented by factorsbeyond his control from pursuing hiseducation. A student whose 23rd birthdayoccurs during a semester or otherenrollment period is deemed a student untilthe end of the semester or other enrollmentperiod;

(18) ''price index'' means the Consumer Price Index(all items - United States city average) publishedmonthly by the Bureau of Labor Statistics; and(19) ''organ'' means a part of the body that performs aspecial function, and for purposes of this subchapterexcludes the brain, heart, and back; and(20) ''United States medical officers and hospitals''includes medical officers and hospitals of the Army,Navy, Air Force, Department of Veterans Affairs,and United States Public Health Service, and anyother medical officer or hospital designated as aUnited States medical officer or hospital by theSecretary of Labor.

Sec. 8102 Compensation for disability ordeath of employee

(a) The United States shall pay compensation asspecified by this subchapter for the disability or deathof an employee resulting from personal injurysustained while in the performance of his duty, unlessthe injury or death is

(1) caused by willful misconduct of theemployee;(2) caused by the employee's intention tobring about the injury or death of himself orof another; or(3) proximately caused by the intoxicationof the injured employee.

(b) Disability or death from a war-risk hazard orduring or as a result of capture, detention, or otherrestraint by a hostile force or individual, suffered byan employee who is employed outside the continentalUnited States or in Alaska or in the areas andinstallations in the Republic of Panama madeavailable to the United States pursuant to the PanamaCanal Treaty of 1977 and related agreements (asdescribed in section 3(a) of the Panama Canal Act of1979), is deemed to have resulted from personalinjury sustained while in the performance of his duty,whether or not the employee was engaged in thecourse of employment when the disability ordisability resulting in death occurred or when he wastaken by the hostile force or individual. Thissubsection does not apply to an individual -

(1) whose residence is at or in the vicinity ofthe place of his employment and who wasnot living there solely because of theexigencies of his employment, unless hewas injured or taken while engaged in thecourse of his employment; or(2) who is a prisoner of war or a protectedindividual under the Geneva Conventions of1949 and is detained or utilized by theUnited States. This subsection does notaffect the payment of compensation underthis subchapter derived otherwise than underthis subsection, but compensation fordisability or death does not accrue for aperiod for which pay, other benefit, orgratuity from the United States accrues tothe disabled individual or his dependents onaccount of detention by the enemy orbecause of the same disability or death,unless that pay, benefit, or gratuity isrefunded or renounced.

Sec. 8103 Medical services and initialmedical and other benefits

(a) The United States shall furnish to an employeewho is injured while in the performance of duty, theservices, appliances, and supplies prescribed orrecommended by a qualified physician, which theSecretary of Labor considers likely to cure, giverelief, reduce the degree or the period of disability, oraid in lessening the amount of the monthlycompensation. These services, appliances, andsupplies shall be furnished -

(1) whether or not disability has arisen;(2) notwithstanding that the employee hasaccepted or is entitled to receive benefitsunder subchapter III of chapter 83 of thistitle or another retirement system foremployees of the Government; and(3) by or on the order of United Statesmedical officers and hospitals, or, at theemployee's option, by or on the order ofphysicians and hospitals designated orapproved by the Secretary. The employeemay initially select a physician to providemedical services, appliances, and supplies,in accordance with such regulations andinstructions as the Secretary considersnecessary, and may be furnished necessaryand reasonable transportation andexpenses incident to the securing of suchservices, appliances, and supplies. Theseexpenses, when authorized or approved bythe Secretary, shall be paid from theEmployees' Compensation Fund.

(b) The Secretary, under such limitations orconditions as he considers necessary, may authorizethe employing agencies to provide for the initialfurnishing of medical and other benefits under thissection. The Secretary may certify vouchers for theseexpenses out of the Employees' Compensation Fundwhen the immediate superior ofthe employee certifies that the expense was incurredin respect to an injury which was accepted by theemploying agency as probably compensable underthis subchapter. The Secretary shall prescribe theform and content of the certificate.

Sec. 8104 Vocational rehabilitation

(a) The Secretary of Labor may direct a permanentlydisabled individual whose disability is compensableunder this subchapter to undergo vocationalrehabilitation. The Secretary shall provide forfurnishing the vocational rehabilitation services. Inproviding for these services, the Secretary, insofar as

practicable, shall use the services or facilities of Stateagencies and corresponding agencies whichcooperate with the Secretary of Health, Education,and Welfare in carrying out the purposes of chapter 4of title 29, except to the extent that the Secretary ofLabor provides for furnishing these services undersection 8103 of this title. The cost of providing theseservices to individuals undergoing vocationalrehabilitation under this section shall be paid fromthe Employees' CompensationFund. However, in reimbursing a State orcorresponding agency under an arrangement pursuantto this section the cost to the agency reimbursable infull under section 32(b)(1) of title 29 is excluded.(b) Notwithstanding section 8106, individualsdirected to undergo vocational rehabilitation by theSecretary shall, while undergoing such rehabilitation,receive compensation at the rate provided in sections8105 and 8110 of this title, less the amount of anyearnings received from remunerative employment,other than employment undertaken pursuant to suchrehabilitation.

Sec. 8105 Total disability

(a) If the disability is total, the United States shallpay the employee during the disability monthlymonetary compensation equal to 66 2/3 percent of hismonthly pay, which is known as his basiccompensation for total disability.(b) The loss of use of both hands, both arms, bothfeet, or both legs, or the loss of sight of both eyes, isprima facie permanent total disability.

Sec. 8106 Partial disability

(a) If the disability is partial, the United States shallpay the employee during the disability monthlymonetary compensation equal to 66 2/3 percent ofthe difference between his monthly pay and hismonthly wage-earning capacity after the beginning ofthe partial disability, which is known as his basiccompensation for partialdisability. (b) The Secretary of Labor may require a partiallydisabled employee to report his earnings fromemployment or self-employment, by affidavit orotherwise, in the manner and at the times theSecretary specifies. The employee shall include in theaffidavit or report the value of housing, board,lodging, and other advantages, which arepart 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 whenrequired; or(2)knowingly omits or understates any partof his earnings;

forfeits his right to compensation with respect to anyperiod for which the affidavit or report was required.Compensation forfeited under this subsection, ifalready paid, shall be recovered by a deduction fromthe compensation payable to the employee orotherwise recovered under section 8129 of this title,unless recovery is waived under that section.(c) A partially disabled employee who

(1) refuses to seek suitable work; or(2) refuses or neglects to work after suitablework is offered to, procured by, or securedfor him;

is not entitled to compensation.

Sec. 8107 Compensation schedule

(a) If there is permanent disability involving the loss,or loss of use, of a member or function of the body orinvolving disfigurement, the employee is entitled tobasic compensation for the disability, as provided bythe schedule in subsection (c) of this section, at therate of 66 2/3 percent of his monthly pay. The basiccompensation is -

(1) payable regardless of whether the causeof the disability originates in a part of thebody other than that member;(2) payable regardless of whether thedisability also involves another impairmentof the body; and(3) in addition to compensation fortemporary total or temporary partialdisability.

(b) With respect to any period after payments undersubsection (a) of this section have ended, anemployee is entitled to compensation as provided by-

(1) section 8105 of this title if the disabilityis total; or(2) section 8106 of this title if the disabilityis partial.

(c) The compensation schedule is as follows:(1) Arm lost, 312 weeks' compensation.(2) Leg lost, 288 weeks' compensation.(3) Hand lost, 244 weeks' compensation.(4) Foot lost, 205 weeks' compensation.(5) Eye lost, 160 weeks' compensation.(6) Thumb lost, 75 weeks' compensation.(7)First finger lost, 46 weeks' compensation.(8) Great toe lost, 38 weeks' compensation.(9)Second finger lost, 30 weeks'compensation.

(10) Third finger lost, 25 weeks'compensation.(11) Toe other than great toe lost, 16 weeks'compensation.(12) Fourth finger lost, 15 weeks'compensation.(13) Loss of hearing -(A) complete loss of hearing of one ear, 52weeks' compensation; or(B) complete loss of hearing of both ears,200 weeks' compensation.(14) Compensation for loss of binocularvision or for loss of 80 percent or more ofthe vision of an eye is the same as for loss ofthe eye.(15) Compensation for loss of more thanone phalanx of a digit is the same as for lossof the entire digit. Compensation for loss ofthe first phalanx is one-half of thecompensation for loss of the entire digit.(16) If, in the case of an arm or a leg, themember is amputated above the wrist orankle, compensation is the same as for lossof the arm or leg, respectively.(17) Compensation for loss of use of two ormore digits, or one or more phalanges ofeach of two or more digits, of a hand orfoot, is proportioned to the loss of use of thehand or foot occasioned thereby.(18) Compensation for permanent total lossof use of a member is the same as for loss ofthe member. (19) Compensation for permanent partialloss of use of a member may be forproportionate loss of use of the member.The degree of loss of vision or hearingunder this schedule is determined withoutregard to correction.(20) In case of loss of use of more than onemember or parts of more than one memberas enumerated by this schedule, thecompensation is for loss of use of eachmember or part thereof, and the awards runconsecutively. However, when the injuryaffects only two or more digits of the samehand or foot, paragraph (17) of thissubsection applies, and when partialbilateral loss of hearing is involved,compensation is computed on the loss asaffecting both ears.(21) For serious disfigurement of the face,head, or neck of a character likely tohandicap an individual in securing ormaintaining employment, proper andequitable compensation not to exceed

$3,500 shall be awarded in addition to anyother compensation payable under thisschedule.(22) For permanent loss or loss of use of anyother important external or internal organ ofthe body as determined by the Secretary,proper and equitable compensation not toexceed 312 weeks' compensation for eachorgan so determined shall be paid inaddition to any other compensation payableunder this schedule.

Sec. 8108 Reduction of compensation forsubsequent injury to same member

The period of compensation payable under theschedule in section 8107(c) of this title is reduced bythe period of compensation paid or payable under theschedule for an earlier injury if -

(1) compensation in both cases is fordisability of the same member or function ordifferent parts of the same member orfunction or for disfigurement; and(2) the Secretary of Labor finds thatcompensation payable for the later disabilityin whole or in part would duplicate thecompensation payable for the preexistingdisability. In such a case, compensation fordisability continuing after the scheduledperiod starts on expiration of that period asreduced under this section.

Sec. 8109 Beneficiaries of awards unpaid atdeath; order of precedence

(a) If an individual -(1) has sustained disability compensable under

section 8107(a) of this title;(2) has filed a valid claim in his lifetime; and(3) dies from a cause other than the injurybefore the end of the period specified by theschedule; the compensation specified by theschedule that is unpaid at his death, whether ornot accrued or due at his death, shall be paid -

(A) under an award made before or after thedeath;(B) for the period specified by the schedule;(C) to and for the benefit of the persons thenin being within the classes and proportionsand on the conditions specified by thissection; and(D) in the following order of precedence:

(i) If there is no child, to the widowor widower.

(ii) If there are both a widow orwidower and a child or children,one-half to the widow or widowerand one-half to the child orchildren.(iii) If there is no widow orwidower, to the child or children.(iv) If there is no survivor in theabove classes, to the parent orparents wholly or partly dependentfor support onthe decedent, or to other whollydependent relatives listed bysection 8133(a)(5) of this title, or toboth in proportions provided byregulation.(v) If there is no survivor in theabove classes and no burialallowance is payable under section8134 of this title, anamount not exceeding that whichwould be expendable under section8134 of this title if applicable shallbe paid toreimburse a person equitablyentitled thereto to the extent and inthe proportion that he has paid theburial expenses, but a compensatedinsurer or other person obligated bylaw or contract to pay the burialexpenses or a State or politicalsubdivision or entity is deemed notequitably entitled.

(b) Payments under subsection (a) of this section,except for an amount payable for a period precedingthe death of the individual, are at the basic rate ofcompensation for permanent disability specified bysection 8107(a) of this title even if at the time ofdeath the individual was entitled to the augmentedrate specified by section 8110 of this title. (c) A surviving beneficiary under subsection (a) ofthis section, except one under subsection (a)(D)(v),does not have a vested right to payment and must bealive to receive payment.(d) A beneficiary under subsection (a) of this section,except one under subsection (a)(D)(v), ceases to beentitled to payment on the happening of an eventwhich would terminate his right to compensation fordeath under section 8133 of this title. When thatentitlement ceases, compensation remaining unpaidunder subsection (a) of this section is payable to thesurviving beneficiary in accordance with subsection(a) of this section.

Sec. 8110 Augmented compensation fordependents.

(a) For the purpose of this section, ''dependent''means-

(1) a wife, if -(A) she is member of the samehousehold as the employee;(B) she is receiving regularcontributions from the employeefor her support; or(C) the employee has been orderedby a court to contribute to hersupport;

(2) a husband, if -(A) he is a member of the samehousehold as the employee; or(B) he is receiving regularcontributions from the employeefor his support; or(C) the employee has been ordered

by a court to contribute to his support;(3) an unmarried child, while living with theemployee or receiving regular contributionsfrom the employee toward his support, andwho is -

(A) under 18 years of age; or(B) over 18 years of age andincapable of self-support becauseof physical or mental disability;and

(4) a parent, while wholly dependent on andsupported by the employee.Notwithstanding paragraph (3) of thissubsection, compensation payable for achild that would otherwise end because thechild has reached 18 years of age shallcontinue if he is a student as defined bysection 8101 of this title at the time hereaches 18 years of age for so long as hecontinues to be such a student or until hemarries.

(b) A disabled employee with one or moredependents is entitled to have his basic compensationfor disability augmented -

(1) at the rate of 8 1/3 percent of hismonthly pay if that compensation is payableunder section 8105 or 8107(a) of this title;and(2) at the rate of 8 1/3 percent of thedifference between his monthly pay and hismonthly wage-earning capacity if thatcompensation is payable under section8106(a) of this title.

Sec. 8111 Additional compensation forservices of attendants or vocational rehabilitation.

(a) The Secretary of Labor may pay an employeewho has been awarded compensation an additionalsum of not more than $1,500 a month, as theSecretary considers necessary, when the Secretaryfinds that the service of an attendant is necessaryconstantly because the employee is totally blind, orhas lost the use of both hands or both feet, or isparalyzed and unable to walk, or because of otherdisability resulting from the injury making him sohelpless as to require constant attendance.(b) The Secretary may pay an individual undergoingvocational rehabilitation under section 8104 of thistitle additional compensation necessary for hismaintenance, but not to exceed $200 a month.

Sec. 8112 Maximum and minimummonthly payments

(a) Except as provided by section 8138 of this title,the monthly rate of compensation for disability,including augmented compensation under section8110 of this title but not including additionalcompensation under section 8111 of this title, maynot be more than 75 percent of the monthly pay ofthe maximum rate of basicpay for GS-15, and in case of total disability may notbe less than 75 percent of the monthly pay of theminimum rate of basic pay for GS-2 or the amount ofthe monthly pay of the employee, whichever is less.(b) The provisions of subsection (a) shall not apply toany employee whose disability is a result of anassault which occurs during an assassination orattempted assassination of a Federal officialdescribed under section 351(a) or 751(a) of title 18,and was sustained in the performance of duty.

Sec. 8113 Increase or decrease of basiccompensation

(a) If an individual -(1) was a minor or employed in a learner'scapacity at the time of injury; and(2)was not physically or mentallyhandicapped before the injury; the Secretaryof Labor, on review under section 8128 ofthis title after the time the wage-earningcapacity of the individual would probablyhave increased but for the injury, shallrecompute prospectively the monetarycompensation payable for disability on thebasis of an assumed monthly pay

corresponding to the probable increasedwage-earning capacity.

(b) If an individual without good cause fails to applyfor and undergo vocational rehabilitation when sodirected under section 8104 of this title, theSecretary, on review under section 8128 of this titleand after finding that in the absence of the failure thewage-earning capacity of the individual wouldprobably have substantially increased, may reduceprospectively the monetary compensation of theindividual in accordance with what would probablyhave been his wage-earning capacity in the absenceof the failure, until the individual in good faithcomplies with thedirection of the Secretary.

Sec. 8114 Computation of pay

(a) For the purpose of this section -(1) ''overtime pay'' means pay for hours of

service in excess of a statutory or other basicworkweek or other basic unit of worktime,as observed by the employing establishment;and

(2) “year'' means a period of 12 calendarmonths, or the equivalent thereof asspecified by regulations prescribed by theSecretary of Labor.

(b) In computing monetary compensation fordisability or death on the basis of monthly pay, thatpay is determined under this section.(c) The monthly pay at the time of injury is deemedone-twelfth of the average annual earnings of theemployee at that time. When compensation is paid ona weekly basis, the weekly equivalent of the monthlypay is deemed one-fifty-second of the average annualearnings. However, for so much of a period of totaldisability as does not exceed 90 calendar days fromthe date of the beginning of compensable disability,the compensation, in the discretion of the Secretaryof Labor, may be computed on the basis of the actualdaily wage of the employee at the time of injury inwhich event he may be paid compensation for thedays he would have worked but for the injury.(d) Average annual earnings are determined asfollows:

(1) If the employee worked in theemployment in which he was employed atthe time of his injury during substantiallythe whole year immediately preceding theinjury and the employment was in a positionfor which an annual rate of pay -

(A) was fixed, the average annualearnings are the annual rate of pay;or

(B) was not fixed, the averageannual earnings are the productobtained by multiplying his dailywage for the particularemployment, or the average thereofif the daily wage has fluctuated, by300 if he was employed on thebasis of a 6-day workweek, 280 ifemployed on the basis of a 5 1/2-day week, and 260 if employed onthe basis of a 5-day week.

(2) If the employee did not work inemployment in which he was employed atthe time of his injury during substantiallythe whole year immediately preceding theinjury, but the position was one whichwould have afforded employment forsubstantially a whole year, the averageannual earnings are a sum equal to theaverage annual earnings of an employee ofthe same class working substantially thewhole immediately preceding year in thesame or similar employment by the UnitedStates in the same or neighboring place, asdetermined under paragraph (1) of thissubsection.(3) If either of the foregoing methods ofdetermining the average annual earningscannot be applied reasonably and fairly, theaverage annual earnings are a sum thatreasonably represents the annual earningcapacity of the injured employee in theemployment in which he was working at thetime of the injury having regard to theprevious earnings of the employee inFederal employment, and of otheremployees of the United States in the sameor most similar class working in the same ormost similar employment in the same orneighboring location, other previousemployment of the employee, or otherrelevant factors. However, the averageannual earnings may not be less than 150times the average daily wage the employeeearned in the employment during the daysemployed within 1 year immediatelypreceding his injury.(4) If the employee served without pay or atnominal pay, paragraphs (1), (2), and (3) ofthis subsection apply as far as practicable,but the average annual earnings of theemployee may not exceed the minimum rateof basic pay for GS-15. If the averageannual earnings cannot be determinedreasonably and fairly in the manner

otherwise provided by this section, theaverage annual earnings shall be determinedat the reasonable value of the serviceperformed but not in excess of $3,600 ayear.

(e) The value of subsistence and quarters, and of anyother form of remuneration in kind for services if itsvalue can be estimated in money, and premium payunder section 5545(c)(1) of this title are included aspart of the pay, but account is not taken of -

(1) overtime pay;(2) additional pay or allowance authorized

outside the United States because ofdifferential in cost of living or other specialcircumstances; or

(3) bonus or premium pay for extraordinaryservice including bonus or pay forparticularly hazardous service in time ofwar.

Sec. 8115 Determination of wage-earningcapacity

(a) In determining compensation for partial disability,except permanent partial disability compensableunder sections 8107-8109 of this title, the wage-earning capacity of an employee is determined by hisactual earnings if his actual earnings fairly andreasonably represent his wage-earning capacity. Ifthe actual earnings of the employee do not fairly andreasonably represent his wage-earning capacity or ifthe employee has no actual earnings, his wage-earning capacity as appears reasonable under thecircumstances is determined with due regard to -

(1) the nature of his injury;(2) the degree of physical impairment;(3) his usual employment;(4) his age;(5) his qualifications for other employment;(6) the availability of suitable employment;and(7) other factors or circumstances whichmay affect his wage-earning capacity in hisdisabled condition.

(b) Section 8114(d) of this title is applicable indetermining the wage-earning capacity of anemployee after the beginning of partial disability.

Sec. 8116 Limitations on right to receivecompensation

(a) While an employee is receiving compensationunder this subchapter, or if he has been paid a lump

sum in commutation of installment payments untilthe expiration of the period during which theinstallment payments would have continued, he maynot receive salary, pay, or remuneration of any typefrom the United States, except -

(1) in return for service actually performed;(2) pension for service in the Army, Navy,or Air Force;(3) other benefits administered by theDepartment of Veterans Affairs unless suchbenefits are payable for the same injury orthe same death; and(4) retired pay, retirement pay, retainer pay,or equivalent pay for service in the ArmedForces or other uniformed services, subjectto the reduction of such pay in accordancewith section 5532(b).

(b) An individual entitled to benefits under thissubchapter because of his injury, or because of thedeath of an employee, who also is entitled to receivefrom the United States under a provision of statuteother than this subchapter payments or benefits forthat injury or death (except proceeds of an insurancepolicy), because of service by him (or in the case ofdeath, by the deceased) as an employee or in thearmed forces, shall elect which benefits he willreceive. The individual shall make the election within1 year after the injury or death or within a furthertime allowed for good cause by the Secretary ofLabor. The election when made is irrevocable, exceptas otherwise provided by statute.(c) The liability of the United States or aninstrumentality thereof under this subchapter or anyextension thereof with respect to the injury or deathof an employee is exclusive and instead of all otherliability of the United States or the instrumentality tothe employee, his legal representative, spouse,dependents, next of kin, and any other personotherwise entitled to recover damages from theUnited States or the instrumentality because of theinjury or death in a direct judicial proceeding, in acivil action, or in admiralty, or by an administrativeor judicial proceeding under a workmen'scompensation statute or under a Federal tort liabilitystatute. However, this subsection does not apply to amaster or a member of a crew of a vessel.(d) Notwithstanding the other provisions of thissection, an individual receiving benefits for disabilityor death under this subchapter who is also receivingbenefits under subchapter III of chapter 84 of thistitle or benefits under title II of the Social SecurityAct shall be entitled to all such benefits, except thatof §8212;

(1) benefits received under section 223 ofthe Social Security Act (on account of

disability) shall be subject to reduction onaccount of benefits paid under thissubchapter pursuant to the provisions ofsection 224 of the Social Security Act; and(2) in the case of benefits received onaccount of age or death under title II of theSocial Security Act, compensation payableunder this subchapter based on the Federalservice of an employee shall be reduced bythe amount of any such social securitybenefits payable that are attributable toFederal service of that employee covered bychapter 84 of this title. However, eligibilityfor or receipt of benefits under chapter 84 ofthis title, or benefits under title II of theSocial Security Act by virtue of servicecovered by chapter 84 of this title, does notaffect the right of the employee tocompensation for scheduled disabilitiesspecified by section 8107(c) of this title.

Sec. 8117 Time of accrual of right

An employee is not entitled to compensation for thefirst 3 days of temporary disability, except -

(1) when the disability exceeds 14 days;(2) when the disability is followed bypermanent disability; or(3) as provided by sections 8103 and 8104of this title.

Sec. 8118 Continuation of pay; election touse annual or sick leave

(a) The United States shall authorize the continuationof pay of an employee, as defined in section 8101(1)of this title (other than those referred to in clause (B)or (E), who has filed a claim for a period of wageloss due to a traumatic injury with his immediatesuperior on a form approved by the Secretary ofLabor within the time specified in section 8122(a)(2)of this title.(b) Continuation of pay under this subchapter shallbe furnished -

(1) without a break in time unlesscontroverted under regulations of theSecretary;(2) for a period not to exceed 45 days; and(3) under accounting procedures and suchother regulations as the Secretary mayrequire.

(c) An employee may use annual or sick leave to hiscredit at the time the disability begins, but hiscompensation for disability does not begin, and thetime periods specified by section 8117 of this title do

not begin to run, until termination of pay as set forthin subsections (a) and (b) or the use of annual or sickleave ends.(d) If a claim under subsection (a) is denied by theSecretary, payments under this section shall, at theoption of the employee, be charged to sick or annualleave or shall be deemed overpayments of pay withinthe meaning of section 5584 of title 5, United StatesCode.(e) Payments under this section shall not beconsidered as compensation as defined by section8101(12) of this title.

Sec. 8119 Notice of injury or death

An employee injured in the performance of his duty,or someone on his behalf, shall give notice thereof.Notice of a death believed to be related to theemployment shall be given by an eligible beneficiaryspecified in section 8133 of this title, or someone onhis behalf. A notice of injury or death shall -(a) be given within 30 days after the injury or death;(b) be given to the immediate superior of theemployee by personal delivery or by depositing it inthe mail properly stamped and addressed;(c) be in writing;(d) state the name and address of the employee;(e) state the year, month, day, and hour when and theparticular locality where the injury or death occurred;(f) state the cause and nature of the injury, or, in thecase of death, the employment factors believed to bethe cause; and(g) be signed by and contain the address of theindividual giving the notice.

Sec. 8120 Report of injury

Immediately after an injury to an employee, whichresults in his death or probable disability, hisimmediate superior shall report to the Secretary ofLabor. The Secretary may -

(1) prescribe the information that the reportshall contain;(2) require the immediate superior to makesupplemental reports; and(3) obtain such additional reports andinformation from employees as are agreedon by the Secretary and the head of theemploying agency.

Sec. 8121 Claim

Compensation under this subchapter may be allowedonly if an individual or someone on his behalf makesclaim therefor. The claim shall -

(1) be made in writing within the timespecified by section 8122 of this title;(2) be delivered to the office of theSecretary of Labor or to an individual whomthe Secretary may designate by regulation,or deposited in the mail properly stampedand addressed to the Secretary or hisdesignee;(3) be on a form approved by the Secretary;(4) contain all information required by theSecretary;(5) be sworn to by the individual entitled tocompensation or someone on his behalf; and(6) except in case of death, be accompaniedby a certificate of the physician of theemployee stating the nature of the injury andthe nature and probable extent of thedisability. The Secretary may waiveparagraphs (3)-(6) of this section forreasonable cause shown.

Sec. 8122 Time for making claim

(a) An original claim for compensation for disabilityor death must be filed within 3 years after the injuryor death. Compensation for disability or death,including medical care in disability cases, may not beallowed if claim is not filed within that time unless -

(1) the immediate superior had actualknowledge of the injury or death within 30days. The knowledge must be such to putthe immediate superior reasonably on noticeof an on-the-job injury or death; or(2) written notice of injury or death asspecified in section 8119 of this title wasgiven within 30 days.

(b) In a case of latent disability, the time for filingclaim does not begin to run until the employee has acompensable disability and is aware, or by theexercise of reasonable diligence should have beenaware, of the causal relationship of the compensabledisability to his employment. In such a case, the timefor giving notice of injury begins to run when theemployee is aware, or by the exercise of reasonablediligence should have been aware, that his conditionis causally related to his employment, whether or notthere is a compensable disability.(c) The timely filing of a disability claim because ofinjury will satisfy the time requirements for a deathclaim based on the same injury.(d) The time limitations in subsections (a) and (b) ofthis section do not -

(1) begin to run against a minor until hereaches 21 years of age or has had a legalrepresentative appointed; or

(2) run against an incompetent individualwhile he is incompetent and has no dulyappointed legal representative; or(3) run against any individual whose failureto comply is excused by the Secretary on theground that such notice could not be givenbecause of exceptional circumstances.

Sec. 8123 Physical examinations

(a) An employee shall submit to examination by amedical officer of the United States, or by aphysician designated or approved by the Secretary ofLabor, after the injury and as frequently and at thetimes and places as may be reasonably required. Theemployee may have a physician designated and paidby him present to participate in the examination. Ifthere is disagreement between the physician makingthe examination for the United States and thephysician of the employee, the Secretary shallappoint a third physician who shall make anexamination.(b) An employee is entitled to be paid expensesincident to an examination required by the Secretarywhich in the opinion of the Secretary are necessaryand reasonable, including transportation and loss ofwages incurred in order to be examined. Theexpenses, when authorized or approved by theSecretary, are paid from the Employees'Compensation Fund.(c) The Secretary shall fix the fees for examinationsheld under this section by physicians not employedby or under contract to the United States to furnishmedical services to employees. The fees, whenauthorized or approved by the Secretary, are paidfrom the Employees' Compensation Fund.(d) If an employee refuses to submit to or obstructsan examination, his right to compensation under thissubchapter is suspended until the refusal orobstruction stops. Compensation is not payable whilea refusal or obstruction continues, and the period ofthe refusal or obstruction is deducted from the periodfor which compensation is payable to the employee.

Sec. 8124 Findings and award; hearings

(a) The Secretary of Labor shall determine and makea finding of facts and make an award for or againstpayment of compensation under this subchapter after-

(1) considering the claim presented by thebeneficiary and the report furnished by the

immediate superior; and (2)completing suchinvestigation as he considers necessary.

(b)(1) Before review under section 8128(a) ofthis title, a claimant for compensation notsatisfied with a decision of theSecretary under subsection (a) of thissection is entitled, on request made within30 days after the date of the issuance of thedecision, to a hearing on his claim before arepresentative of the Secretary. At thehearing, the claimant is entitled to presentevidence in further support of his claim.Within 30 days after the hearing ends, theSecretary shall notify the claimant in writingof his further decision and any modificationsof the award he may make and of the basisof his decision.(2) In conducting the hearing, therepresentative of the Secretary is not boundby common law or statutory rules ofevidence, by technical or formal rules ofprocedure, or by section 554 of this titleexcept as provided by this subchapter, butmay conduct the hearing in such manner asto best ascertain the rights of the claimant.For this purpose, he shall receive suchrelevant evidence as the claimant adducesand such other evidence as he determinesnecessary or useful in evaluating the claim.

Sec. 8125 Misbehavior at proceedings

If an individual -(1) disobeys or resists a lawful order orprocess in proceedings under this subchapterbefore the Secretary of Labor or hisrepresentative; or(2) misbehaves during a hearing or so nearthe place of hearing as to obstruct it; theSecretary or his representative shall certifythe facts to the district court havingjurisdiction in the place where he is sitting.The court, in a summary manner, shall hearthe evidence as to the acts complained ofand if the evidence warrants, punish theindividual in the same manner and to thesame extent as for a contempt committedbefore the court, or commit the individualon the same conditions as if the forbiddenact had occurred with reference to theprocess of or in the presence of the court.

Sec. 8126 Subpoenas; oaths; examinationof witnesses

The Secretary of Labor, on any matter within hisjurisdiction under this subchapter, may -

(1) issue subpoenas for and compel theattendance of witnesses within a radius of100 miles;(2) administer oaths;(3) examine witnesses; and(4) require the production of books, papers,documents, and other evidence.

Sec. 8127 Representation; attorneys' fees

(a) A claimant may authorize an individual torepresent him in any proceeding under thissubchapter before the Secretary of Labor.(b) A claim for legal or other services furnished inrespect to a case, claim, or award for compensationunder this subchapter is valid only if approved by theSecretary.

Sec. 8128 Review of award

(a) The Secretary of Labor may review an award foror against payment of compensation at any time onhis own motion or on application. The Secretary, inaccordance with the facts found on review, may -

(1) end, decrease, or increase thecompensation previously awarded; or(2) award compensation previously refusedor discontinued.

(b) The action of the Secretary or his designee inallowing or denying a payment under this subchapteris -

(1) final and conclusive for all purposes andwith respect to all questions of law and fact;and(2) not subject to review by another officialof the United States or by a court bymandamus or otherwise. Credit shall beallowed in the accounts of a certifying ordisbursing official for payment inaccordance with that action.

Sec. 8129 Recovery of overpayments

(a) When an overpayment has been made to anindividual under this subchapter because of an errorof fact or law, adjustment shall be made underregulations prescribed by the Secretary of Labor bydecreasing later payments to which the individual is

entitled. If the individual dies before the adjustmentis completed, adjustment shall be made by decreasinglater benefits payable under this subchapter withrespect to the individual's death.(b) Adjustment or recovery by the United States maynot be made when incorrect payment has been madeto an individual who is without fault and whenadjustment or recovery would defeat the purpose ofthis subchapter or would be against equity and goodconscience.(c) A certifying or disbursing official is not liable foran amount certified or paid by him when -

(1) adjustment or recovery of the amount iswaived under subsection (b) of this section;or(2) adjustment under subsection (a) of thissection is not completed before the death ofall individuals against whose benefitsdeductions are authorized.

Sec. 8130 Assignment of claim

An assignment of a claim for compensation underthis subchapter is void. Compensation and claims forcompensation are exempt from claims of creditors.

Sec. 8131 Subrogation of the United States

(a) If an injury or death for which compensation ispayable under this subchapter is caused undercircumstances creating a legal liability on a personother than the United States to pay damages, theSecretary of Labor may require the beneficiary to -

(1) assign to the United States any right ofaction he may have to enforce the liability orany right he may have to share in money orother property received in satisfaction ofthat liability; or(2) prosecute the action in his own name.An employee required to appear as a partyor witness in the prosecution of such anaction is in an active duty status while soengaged.

(b) A beneficiary who refuses to assign or prosecutean action in his own name when required by theSecretary is not entitled to compensation under thissubchapter.(c) The Secretary may prosecute or compromise acause of action assigned to the United States. Whenthe Secretary realizes on the cause of action, he shalldeduct therefrom and place to the credit of theEmployees' Compensation Fund the amount ofcompensation already paid to the beneficiary and theexpense of realization or collection. Any surplusshall be paid to the beneficiary and credited on future

payments of compensation payable for the sameinjury. However, the beneficiary is entitled to not lessthan one-fifth of the net amount of a settlement orrecovery remaining after the expenses thereof havebeen deducted.(d) If an injury or death for which compensation ispayable under this subchapter is caused undercircumstances creating a legal liability in the PanamaCanal Company to pay damages under the law of aState, a territory or possession of the United States,the District of Columbia, or a foreign country,compensation is not payable until the individualentitled to compensation -

(1) releases to the Panama Canal Companyany right of action he may have to enforcethe liability of the Panama Canal Company;or(2) assigns to the United States any right hemay have to share in money or otherproperty received in satisfaction of theliability of the Panama Canal Company.

Sec. 8132 Adjustment after recovery froma third person

If an injury or death for which compensation ispayable under this subchapter is caused undercircumstances creating a legal liability in a personother than the United States to pay damages, and abeneficiary entitled to compensation from the UnitedStates for that injury or death receives money orother property in satisfaction of that liability as theresult of suit or settlement by him or in his behalf, thebeneficiary, after deducting therefrom the costs ofsuit and a reasonable attorney's fee, shall refund tothe United States the amount of compensation paidby the United States and credit any surplus on futurepayments of compensation payable to him for thesame injury. No court, insurer, attorney, or otherperson shall pay or distribute to the beneficiary or hisdesignee the proceeds ofsuch suit or settlement without first satisfying orassuring satisfaction of the interest of the UnitedStates. The amount refunded to the United Statesshall be credited to the Employees' CompensationFund. If compensation has not been paid to thebeneficiary, he shall credit the money or property oncompensation payable to him by the United States forthe same injury. However, the beneficiary is entitledto retain, as a minimum, at least one-fifth of the netamount of the money or other property remainingafter the expenses of a suit or settlement have beendeducted; and in addition to this minimum and at thetime of distribution, an amount equivalent to a

reasonable attorney's fee proportionate to the refundto the United States.

Sec. 8133 Compensation in case of death

(a) If death results from an injury sustained in theperformance of duty, the United States shall pay amonthly compensation equal to a percentage of themonthly pay of the deceased employee in accordancewith the following schedule:

(1) To the widow or widower, if there is nochild, 50 percent.(2)To the widow or widower, if there is achild, 45 percent and in addition 15 percentfor each child not to exceed a total of 75percent for the widow or widower andchildren.(3)To the children, if there is no widow orwidower, 40 percent for one child and 15percent additional for each additional childnot to exceed a total of 75 percent, dividedamong the children share and share alike.(4)To the parents, if there is no widow,widower, or child, as follows -

(A) 25 percent if one parent waswholly dependent on the employeeat the time of death and the otherwas not dependent to any extent;(B) 20 percent to each if both werewholly dependent; or(C) a proportionate amount in thediscretion of the Secretary of Laborif one or both were partlydependent. If there is a widow,widower, or child, so much of thepercentages are payable as, whenadded to the total percentagespayable to the widow, widower,and children, will not exceed a totalof 75 percent.

(5)To the brothers, sisters, grandparents, andgrandchildren, if there is no widow,widower, child, or dependent parent, asfollows -

(A) 20 percent if one was whollydependent on the employee at thetime of death;(B) 30 percent if more than onewas wholly dependent, dividedamong the dependents share andshare alike; or(C) 10 percent if no one is whollydependent but one or more is partlydependent, divided among thedependents share and share alike. If

there is a widow, widower, child,or dependent parent, so much ofthe percentages are payable as,when added to the total percentagespayable to the widow, widower,children, and dependent parents,will not exceed a total of 75percent.

(b) The compensation payable under subsection (a)of this section is paid from the time of death until;

(1) a widow, or widower dies or remarriesbefore reaching age 55;(2) a child, a brother, a sister, or agrandchild dies, marries, or becomes 18years of age, or if over age 18 and incapableof self-support becomes capable of self-support; or(3) a parent or grandparent dies, marries, orceases to be dependent. Notwithstandingparagraph (2) of this subsection,compensation payable to or for a child, abrother or sister, or grandchild that wouldotherwise end because the child, brother orsister, or grandchild has reached 18 years ofage shall continue if he is a student asdefined by section 8101 of this title at thetime he reaches 18 years of age for so longas he continues to be such a student or untilhe marries. A widow or widower who hasentitlements to benefits under this titlederived from more than one husband or wifeshall elect one entitlement to be utilized.

(c) On the cessation of compensation under thissection to or on account of an individual, thecompensation of the remaining individuals entitled tocompensation for the unexpired part of the periodduring which their compensation is payable, is thatwhich they would have received if they had been theonly individuals entitled to compensation at the timeof the death of the employee.(d) When there are two or more classes of individualsentitled to compensation under this section and theapportionment of compensation under this sectionwould result in injustice, the Secretary may modifythe apportionment to meet the requirements of thecase.(e) In computing compensation under this section,the monthly pay is deemed not less than theminimum rate of basic pay for GS-2.However, thetotal monthly compensation may not exceed -

(1) the monthly pay computed under section8114 of this title, except for increasesauthorized by section 8146a of this title; or(2) 75 percent of the monthly pay of themaximum rate of basic pay for GS-15.

(f) Notwithstanding any funeral and burial expensespaid under section 8134, there shall be paid a sum of$200 to the personal representative of a deceasedemployee within the meaning of section 8101(1) ofthis title for reimbursement of the costs oftermination of the decedent's status as an employee ofthe United States.

Sec. 8134 Funeral expenses; transportationof body

(a) If death results from an injury sustained in theperformance of duty, the United States shall pay, tothe personal representative of the deceased orotherwise, funeral and burial expenses not to exceed$800, in the discretion of the Secretary of Labor.(b) The body of an employee whose home is in theUnited States, in the discretion of the Secretary, maybe embalmed and transported in a hermetically sealedcasket to his home or last place of residence at theexpense of the Employees' Compensation Fund if :

(1) the employee dies from -(A) the injury while away from hishome or official station or outsidethe United States; or(B) from other causes while awayfrom his home or official stationfor the purpose of receivingmedical or other services,appliances, supplies, orexamination under this subchapter;and

(2) the relatives of the employee request thereturn of his body. If the relatives do notrequest the return of the body of theemployee, the Secretary may provide for itsdisposition and incur and pay from theEmployees' Compensation Fund thenecessary and reasonable transportation,funeral, and burial expenses.

Sec. 8135 Lump-sum payment

(a) The liability of the United States forcompensation to a beneficiary in the case of death orof permanent total or permanent partial disabilitymay be discharged by a lump-sum payment equal tothe present value of all future payments ofcompensation computed at 4 percent true discountcompounded annually if;

(1) the monthly payment to the beneficiaryis less than $50 a month;

(2) the beneficiary is or is about to become anonresident of the United States; or(3) the Secretary of Labor determines that itis for the best interest of the beneficiary.The probability of the death of thebeneficiary before the expiration of theperiod during which he is entitled tocompensation shall be determined accordingto the most current United States LifeTables, as developed by the United StatesDepartment of Health, Education, andWelfare, which shall be updated from timeto time, but the lump-sum payment to awidow or widower of the deceasedemployee may not exceed 60 months'compensation. The probability of thehappening of any other contingencyaffecting the amount or duration ofcompensation shall be disregarded.

(b) On remarriage before reaching age 55 a widow orwidower entitled to compensation under section 8133of this title, shall be paid a lump sum equal to twenty-four times the monthly compensation payment(excluding compensation on account of anotherindividual) to which he was entitled immediatelybefore the remarriage.

Sec. 8136 Initial payments outside theUnited States

If an employee is injured outside the continentalUnited States, the Secretary of Labor may arrangeand provide for initial payment of compensation andinitial furnishing of other benefits under thissubchapter by an employee or agent of the UnitedStates designated by the Secretary for that purpose inthe locality in which the employee was employed orthe injury incurred.

Sec. 8137 Compensation for noncitizensand nonresidents

(a) When the Secretary of Labor finds that theamount of compensation payable to an employeewho is neither a citizen nor resident of the UnitedStates or Canada, or payable to a dependent of suchan employee, is substantially disproportionate tocompensation for disability or death payable insimilar cases under local statute, regulations, custom,or otherwise at the place outside the continentalUnited States or Canada where the employee isworking at the time of injury, he may provide forpayment of compensation on a basis reasonably inaccord with prevailing local payments in similarcases by -

(1)the adoption or adaption of thesubstantive features, by a schedule orotherwise, of local workmen's compensationprovisions or other local statute, regulation,or custom applicable in cases of personalinjury or death; or(2)establishing special schedules ofcompensation for injury, death, and loss ofuse of members and functions of the bodyfor specific classes of employees, areas, andplaces. Irrespective of the basis adopted, theSecretary may at any time -

(A) modify or limit the maximummonthly and total aggregatepayments for injury, death, andmedical or other benefits;(B) modify or limit the percentagesof the wage of the employeepayable as compensation for theinjury or death; and(C) modify, limit, or redesignatethe class or classes of beneficiariesentitled to death benefits, includingthe designation of persons,representatives, or groups entitledto payment under local statute orcustom whether or not included inthe classes of beneficiariesotherwise specified by thissubchapter.

(b) In a case under this section, the Secretary or hisdesignee may -

(1) make a lump-sum award in the mannerprescribed by section 8135 of this title whenhe or his designee considers it to be for thebest interest of the United States; and(2) compromise and pay a claim forbenefits, including a claim in which there isa dispute as to jurisdiction or other fact or aquestion of law. Compensation paid underthis subsection is instead of all othercompensation from the United States for thesame injury or death, and a payment madeunder this subsection is deemedcompensation under this subchapter and issatisfaction of all liability of the UnitedStates in respect to the particular injury ordeath.

(c) The Secretary may delegate to an employee oragency of the United States, with such limitationsand right of review as he considers advisable,authority to process, adjudicate, commute by lump-sum award, compromise, and pay a claim or class ofclaims for compensation, and to provide otherbenefits, locally, under this section, in accordance

with such regulations and instructions as theSecretary considers necessary. For this purpose, theSecretary may provide or transfer funds, includingreimbursement of amounts paid under thissubchapter.(d) The Secretary may waive the application of thissubchapter in whole or in part and for such period orperiods as he may fix if he finds that -

(1) conditions prevent the establishment offacilities for processing and adjudicatingclaims under this section; or(2) claimants under this section are alienenemies.

(e) The Secretary may apply this sectionretrospectively with adjustment of compensation andbenefits as he considers necessary and proper.

Sec. 8138 Minimum limit modification fornoncitizens and aliens

(a) Except as provided by subsection (b) of thissection, the minimum limit on monthly compensationfor disability under section 8112 of this title and theminimum limit on monthly pay on which deathcompensation is computed under section 8133 of thistitle do not apply in the case of a noncitizenemployee, or a class or classes of noncitizenemployees, who sustain injury outside the continentalUnited States. The Secretary of Labor may establisha minimum monthly pay on which deathcompensation is computed in the case of a class orclasses of such noncitizen employees.(b) The President may remove or modify theminimum limit on monthly compensation fordisability under section 8112 of this title and theminimum limit on monthly pay on which deathcompensation is computed under section 8133 of thistitle in the case of an alien employee, or a class orclasses of alien employees, of the Canal ZoneGovernment or the Panama Canal Company.

Sec. 8139 Employees of the District ofColumbia

Compensation awarded to an employee of thegovernment of the District of Columbia shall be paidin the manner provided by statute for the payment ofthe general expenses of the government of theDistrict of Columbia.

Sec. 8140 Members of the Reserve Officers'Training Corps

(a) Subject to the provisions of this section, thissubchapter applies to a member of, or applicant formembership in, the Reserve Officers' Training Corpsof the Army, Navy, or Air Force who suffers aninjury, disability, or death incurred, or an illnesscontracted, in line of duty -

(1) while engaged in a flight or in flightinstruction under chapter 103 of title 10; or(2) during the period of the member'sattendance at training or a practice cruiseunder chapter 103 of title 10, United StatesCode, beginning when the authorized travelto the training or practice cruise begins andending when authorized travel from thetraining or practice cruise ends.

(b) For the purpose of this section, an injury,disability, death, or illness of a member referred to insubsection (a) may be considered as incurred orcontracted in line of duty only if the injury, disability,or death is incurred, or the illness is contracted, bythe member during a period described in thatsubsection. Subject to review by the Secretary ofLabor, the Secretary of the military departmentconcerned (under regulations prescribed by thatSecretary), shall determine whether an injury,disability, or death was incurred, or an illness wascontracted.(c) In computing the compensation payable underthis section, the monthly pay received by the injuredor deceased individual, in cash and kind, is deemed$150.(d) The Secretary of the military departmentconcerned shall cooperate fully with the Departmentof Labor in the prompt investigation and prosecutionof a case involving the legal liability of a third partyother than the United States.(e) An individual may not receive disability benefitsunder this section while on active duty with thearmed forces, but these benefits may be reinstatedwhen the individual is released from that active duty.(f) Expenses incurred by a military department inproviding hospitalization, medical and surgical care,necessary transportation incident to thathospitalization or medical and surgical care, or inconnection with a funeral and burial on behalf of anindividual covered by subsection (a) of this sectionshall be reimbursed by the Secretary of Labor fromthe Employees' Compensation Fund in accordancewith this subchapter. However, reimbursement maynot be made for hospitalization or medical or surgicalcare provided an individual by a military departmentin a facility of a military department.

(g) For purposes of this section, the term ''applicantfor membership'' includes a student enrolled, during asemester or other enrollment term, in a course, whichis part of Reserve Officers' Training Corpsinstruction at an educational institution.

Sec. 8141 Civil Air Patrol volunteers

(a) Subject to the provisions of this section, thissubchapter applies to a volunteer civilian member ofthe Civil Air Patrol, except a Civil Air Patrol Cadetunder 18 years of age.(b) In administering this subchapter for a member ofthe Civil Air Patrol covered by this section-

(1) the monthly pay of a member is deemedthe rate of basic pay payable for step 1 ofgrade GS-9 in the General Schedule undersection 5332 of this title for the purpose ofcomputing compensation for disability ordeath;(2) the percentages applicable to paymentsunder section 8133 of this title are -

(A) 45 percent for section8133(a)(2) of this title, if themember dies fully or currentlyinsured under subchapter II ofchapter 7 of title 42, with noadditional payments for a child orchildren while the widow orwidower remains eligible forpayments under section 8133(a)(2)of this title;(B) 20 percent for section8133(a)(3) of this title for one childand 10 percent additional for eachadditional child, but not to exceed atotal of 75 percent, if the memberdied fully or currently insuredunder subchapter II of chapter 7 oftitle 42; and(C) 25 percent for section8133(a)(4) of this title, if oneparent was wholly dependent onthe deceased member at the time ofhis death and the other was notdependent to any extent; 16 percentto each, if both were whollydependent; and if one was or bothwere partly dependent, aproportionate amount in thediscretion of the Secretary ofLabor;

(3) a payment may not be made undersection 8133(a)(5) of this title;

(4) ''performance of duty'' means only activeservice, and travel to and from that service,rendered in performance or support ofoperational missions of the Civil Air Patrolunder direction of the Department of the AirForce and under written authorization bycompetent authority covering a specificassignment and prescribing a time limit forthe assignment; and(5) the Secretary of Labor or his designeeshall inform the Commissioner of SocialSecurity when a claim is filed and eligibilityfor compensation is established undersection 8133(a)(2) or (3) of this title, and theCommissioner of Social Security shallcertify to the Secretary of Labor as towhether or not the member concerned wasfully or currently insured under subchapterII of chapter 7 of title 42 at the time of hisdeath.

(c) The Secretary of Labor or his designee mayinform the Secretary of the Air Force or his designeewhen a claim is filed. The Secretary of the Air Force,on request of the Secretary of Labor, shall advise himof the facts concerning the injury and whether or notthe member was rendering service, or engaged intravel to or from service, in performance or supportof an operational mission of the Civil Air Patrol atthe time of injury. This subsection does not dispensewith the report of the immediate superior of themember required by section 8120 of this title, orother reports agreed on under that section.

Sec. 8142 Peace Corps volunteers

(a) For the purpose of this section, ''volunteer'' means-

(1) a volunteer enrolled in the Peace Corpsunder section 2504 of title 22;(2) a volunteer leader enrolled in the PeaceCorps under section 2505 of title 22; and(3) an applicant for enrollment as avolunteer or volunteer leader during aperiod of training under section 2507(a) oftitle 22 before enrollment.

(b) Subject to the provisions of this section, thissubchapter applies to a volunteer, except thatentitlement to disability compensation payments doesnot commence until the day after the date oftermination of his service as a volunteer.(c) For the purpose of this subchapter -

(1) a volunteer is deemed receiving monthlypay at the minimum rate for GS-7;(2) a volunteer leader referred to by section2505 of title 22, or a volunteer with one or

more minor children as defined in section2504 of title 22, is deemed receivingmonthly pay at the minimum rate for GS-11;(3) an injury suffered by a volunteer whenhe is outside the several States and theDistrict of Columbia is deemed proximatelycaused by his employment, unless the injuryor disease is;

(A) caused by willful misconductof the volunteer;(B) caused by the volunteer'sintention to bring about the injuryor death of himself or of another;or(C) proximately caused by theintoxication of the injuredvolunteer; and

(4) the period of service of an individual asa volunteer includes:

(A) any period of training undersection 2507(a) of title 22 beforeenrollment as a volunteer; and(B) the period between enrollmentas a volunteer and the terminationof service as a volunteer by thePresident or by death orresignation.

Sec. 8143 Job Corps enrollees; volunteersin service to America

(a) Subject to the provisions of this subsection, thissubchapter applies to an enrollee in the Job Corps,except that compensation for disability does notbegin to accrue until the day after the date on whichthe injured enrollee is terminated. In administeringthis subchapter for an enrollee covered by thissubsection -

(1) the monthly pay of an enrollee is deemedthat received at the minimum rate for GS-2;(2) section 8113(a) of this title applies to anenrollee; and(3) ''performance of duty'' does not includean act of an enrollee while absent from hisassigned post of duty, except whileparticipating in an activity (including anactivity while on pass or during travel to orfrom the post of duty) authorized by orunder the direction and supervision of theJob Corps.

(b) This subchapter applies to a volunteer in serviceto America who receives either a living allowance ora stipend under part A of subchapter VIII of chapter34 of title 42, with respect to that service andtraining, to the same extent as enrollees of the Job

Corps under subsection (a) of this section. However,for the purpose of the computation described insubsection (a)(1) of this section, the monthly pay of avolunteer is deemed that received at the minimumrate for GS-5 of the General Schedule under section5332 of title 5, United States Code.

Sec. 8143a Members of the NationalTeacher Corps

Subject to the provisions of this section, thissubchapter applies to a member of the NationalTeacher Corps. In administering this subchapter for amember covered by this section -

(1) ''performance of duty'' does not includean act of a member while -

(A) on authorized leave; or(B) absent from his assigned postof duty, except while participatingin an activity authorized by orunder the direction or supervisionof the Commissioner of Education;and

(2) In computing compensation fordisability or death, the monthly pay of amember is deemed his actual pay or thatreceived at the minimum rate for GS-6,whichever is greater.

Sec. 8144 Student-employees

A student-employee as defined by section 5351 ofthis title who suffers disability or death as a result ofpersonal injury arising out of and in the course oftraining, or incurred in the performance of duties inconnection with that training, is considered for thepurpose of this subchapter an employee who incurredthe injury in the performance of duty.

Sec. 8145 Administration

The Secretary of Labor shall administer, and decideall questions arising under, this subchapter. He may -

(1) appoint employees to administer thissubchapter; and(2) delegate to any employee of theDepartment of Labor any of the powersconferred on him by this subchapter.

Sec. 8146 Administration for the PanamaCanal Commission and The Alaska Railroad

(a) The President, from time to time, may transfer theadministration of this subchapter -

(1) so far as employees of the Panama CanalCommission are concerned to theCommission; and(2) so far as employees of The AlaskaRailroad are concerned to the generalmanager of The Alaska Railroad.

(b) When administration is transferred undersubsection (a) of this section, the expenses incident tophysical examinations which are payable undersection 8123 of this title shall be paid fromappropriations for the Panama Canal Commission orfor The Alaska Railroad, as the case may be, insteadof from the Employees' Compensation Fund. ThePresident may authorize the Panama CanalCommission and the general manager of The AlaskaRailroad to pay the compensation provided by thissubchapter, including medical, surgical, and hospitalservices and supplies under section 8103 of this titleand the transportation and burial expenses undersections 8103 and 8134 of this title, fromappropriations for the Panama Canal Commissionand for The Alaska Railroad, and theseappropriations shall be reimbursed for the paymentsby transfer of funds from the Employees'Compensation Fund.(c) The President may authorize the Panama CanalCommission to waive, at its discretion, the making ofthe claim required by section 8121 of this title in thecase of compensation to an employee of the PanamaCanal Commission for temporary disability, eithertotal or partial.(d) When administration is transferred undersubsection (a) of this section to the general managerof The Alaska Railroad, the Secretary of Labor is notdivested of jurisdiction and a claimant is entitled toappeal from the decision of the general manager ofThe Alaska Railroad to the Secretary of Labor. TheSecretary on receipt of an appeal shall, or on his ownmotion may, review the decision of the generalmanager of The Alaska Railroad, and in accordancewith the facts found on review may proceed undersection 8128 of this title. The Secretary shall providethe form and manner of taking an appeal.(e) The same right of appeal exists with respect toclaims filed by employees of the Panama CanalCommission or their dependents in case of death, asis provided with respect to the claims of otheremployees to whom this subchapter applies, undersection 8149 of this title. The Employees'Compensation Appeals Board referred to by section8149 of this title has jurisdiction, under regulationsprescribed by the Secretary, over appeals relating toclaims of the employees or their dependents.

Sec. 8146a Cost-of-living adjustment ofcompensation

(a) Compensation payable on account of disability ordeath which occurred more than one year beforeMarch 1 of each year shall be annually increased onthat date by the amount determined by the Secretaryof Labor to represent the percent change in the priceindex published for December of the preceding yearover the price index published for the December ofthe year prior to the preceding year, adjusted to thenearest one-tenth of 1 percent.(b) The regular periodic compensation paymentsafter adjustment under this section shall be fixed atthe nearest dollar. However, the regular periodiccompensation after adjustment shall reflect anincrease of at least $1.(c) This section shall be applicable to personsexcluded by section 15 of the Federal Employees'Compensation Act Amendments of 1966 (PublicLaw 89-488) under the following statutes: Act ofFebruary 15, 1934 (48 Stat. 351); Act of June 26,1936 (49 Stat. 2035); Act of April 8, 1935 (49 Stat.115); Act of July 25, 1942 (56 Stat. 710); Public Law84-955 (August 3, 1956); Public Law 77-784(December 2, 1942); Public Law 84-879 (August 1,1956); Public Law 80-896 (July 3, 1948); Act ofSeptember 8, 1959 (73 Stat. 469). Benefit paymentsto these persons shall initially be increased by thetotal percentage of the increases in the price indexfrom the base month of July 1966, to the next mostrecent base month following the effective date of thissubsection.

Sec. 8147 Employees' Compensation Fund

(a) There is in the Treasury of the United States theEmployees' Compensation Fund which consists ofsums that Congress, from time to time, mayappropriate for or transfer to it, and amounts thatotherwise accrue to it under this subchapter or otherstatute. The Fund is available without time limit forthe payment of compensation and other benefits andexpenses, except administrative expenses, authorizedby this subchapter or any extension or applicationthereof, except as otherwise provided by thissubchapter or other statute. The Secretary of Laborshall submit annually to the Office of Managementand Budget estimates of appropriations necessary forthe maintenance of the Fund. For the purpose of thissubsection, ''administrative expenses'' does notinclude expenses for legal services performed by orfor the Secretary under sections 8131 and 8132 ofthis title.

(b) Before August 15 of each year, the Secretaryshall furnish to each agency and instrumentality ofthe United States having an employee who is or maybe entitled to compensation benefits under thissubchapter or any extension or application thereof astatement showing the total cost of benefits and otherpayments made from the Employees' CompensationFund during the preceding July 1 through June 30expense period on account of the injury or death ofemployees or individuals under the jurisdiction of theagency or instrumentality. Each agency andinstrumentality shall include in its annual budgetestimates for the fiscal year beginning in the nextcalendar year a request for an appropriation in anamount equal to the costs. Sums appropriatedpursuant to the request shall be deposited in theTreasury to the credit of the Fund within 30 daysafter they are available. An agency or instrumentalitynot dependent on an annual appropriation shall makethe deposit required by this subsection from fundsunder its control during the first fifteen days ofOctober following the furnishing of the statement. Ifan agency or instrumentality (or part or functionthereof) is transferred to another agency orinstrumentality, the cost of compensation benefitsand other expenses paid from the Fund on account ofthe injury or death of employees of the transferredagency or instrumentality (or part or function) shallbe included in costs of the receiving agency orinstrumentality.(c) In addition to the contributions for themaintenance of the Employees' Compensation Fundrequired by this section, the United States PostalService, or a mixed ownership corporation as definedby section 9101(2) of title 31, or any othercorporation or agency or instrumentality (or activitythereof) which is required by statute to submit anannual budget pursuant to or as provided by chapter91 of title 31, shall pay an additional amount for itsfair share of the cost of administration of thissubchapter as determined by the Secretary. Withrespect to these corporations, agencies, andinstrumentalities, the charges billed by the Secretaryunder this section shall include an additional amountfor these costs, which shall be paid into the Treasuryas miscellaneous receipts from the sources authorizedand in the manner otherwise provided by this section.

Sec. 8148 Forfeiture of benefits byconvicted felons

(a) Any individual convicted of a violation of section1920 of title 18, or any other Federal or Statecriminal statute relating to fraud in the application foror receipt of any benefit under this subchapter or

subchapter III of this chapter, shall forfeit (as of thedate of such conviction) any entitlement to anybenefit such individual would otherwise be entitled tounder this subchapter or subchapter III for any injuryoccurring on or before the date of such conviction.Such forfeiture shall be in addition to any action theSecretary may take under section 8106 or 8129.(b)

(1) Notwithstanding any other provision ofthis chapter (except as provided underparagraph (3)), no benefits under thissubchapter or subchapter III of this chaptershall be paid or provided to any individualduring any period during which suchindividual is confined in a jail, prison, orother penal institution or correctionalfacility, pursuant to that individual'sconviction of an offense that constituted afelony under applicable law.(2) Such individual shall not be entitled toreceive the benefits forfeited during theperiod of incarceration under paragraph (1),after such period of incarceration ends.(3) If an individual has one or moredependents as defined under section8110(a), the Secretary of Labor may, duringthe period of incarceration, pay to suchdependents a percentage of the benefits thatwould have been payable to such individualcomputed according to the percentages setforth in section 8133(a)(1) through (5).

(c) Notwithstanding the provision of section 552a ofthis title, or any other provision of Federal or Statelaw, any agency of the United States Government orof any State (or political subdivision thereof) shallmake available to the Secretary of Labor, uponwritten request, the names and Social Securityaccount numbers of individuals who are confined in ajail, prison, or other penal institution or correctionalfacility under the jurisdiction of such agency,pursuant to such individuals' conviction of an offensethat constituted a felony under applicable law, whichthe Secretary of Labor may require to carry out theprovisions of this section.

Sec. 8149 Regulations

The Secretary of Labor may prescribe rules andregulations necessary for the administration andenforcement of this subchapter including rules andregulations for the conduct of hearings under section8124 of this title. The rules and regulations shallprovide for an Employee's Compensation AppealsBoard of three individuals designated or appointedby the Secretary with authority to hear and, subject to

applicable law and the rules and regulations of theSecretary, make final decisions on appeals takenfrom determinations and awards with respect toclaims of employees. In adjudicating claims undersection 8146 of this title, the Secretary maydetermine the nature and extent of the proof andevidence required to establish the right to benefitsunder this subchapter without regard to the date ofinjury or death for which claim is made.

Sec. 8150 Effect on other statutes

(a) This subchapter does not affect the maritimerights and remedies of a master or member of thecrew of a vessel.(b) Section 8141 of this title and section 9441 of title10 do not confer military or veteran status on anyindividual.

Sec. 8151 Civil service retention rights

(a) In the event the individual resumes employmentwith the Federal Government, the entire time duringwhich the employee was receiving compensationunder this chapter shall be credited to the employeefor the purposes of within-grade step increases,retention purposes, and other rights and benefitsbased upon length of service.(b) Under regulations issued by the Office ofPersonnel Management -

(1) the department or agency which was thelast employer shall immediately andunconditionally accord the employee, if theinjury or disability has been overcomewithin one year after the date ofcommencement of compensation or from thetime compensable disability recurs if therecurrence begins after the injured employeeresumes regular full-time employment withthe United States, the right to resume hisformer or an equivalent position, as well asall other attendant rights which theemployee would have had, or acquired, inhis former position had he not been injuredor disabled, including the rights to tenure,promotion, and safeguards in reductions-in-force procedures, and(2) the department or agency which was thelast employer shall, if the injury or disabilityis overcome within a period of more thanone year after the date of commencement ofcompensation, make all reasonable efforts toplace, and accord priority to placing, the

employee in his former or equivalentposition within such department or agency,or within any other department or agency.

© 2002 National Association of LetterCarriers, AFL-CIO