Yes. If you’ve already filed an OWCP claim, the United States Government may actually require you to pursue the third-party claim.

Under FECA, when a claimant’s work-related injury or death is caused by a third party and that claimant is in receipt of OWCP benefits, the claimant has two obligations. (1) The claimant must pursue an action against the responsible third party if required by OWCP; and (2) should the claim or action against the third party result in a recovery (including a settlement or judgment), the beneficiary must pay a portion of the recovery to the United States for benefits paid under FECA. 5 U.S.C. § 8132.

Even if the United States has not yet identified your claim as having third-party involvement, you as the claimant are required by law to report any receipt of money or property from the responsible third party to the U.S. Department of Labor, Office of the Solicitor.

Pursuing both claims at the same time also helps ensure that you’re receiving every benefit available to you under the law.

Per 5 U.S.C. § 8132, you as the injured federal worker are entitled to retain at least one-fifth (20%) of the net amount of money remaining after expenses of the suit or settlement have been deducted.

Keep in mind that while a third-party case ends with a one-time settlement, OWCP benefits can last a lifetime or until your work-related disability resolves. For this reason, we recommend hiring an advocate that can maximize both benefits, and one who is prepared to stay involved in your claim in pursuit of further benefits even after the third-party claim settles.

Yes.  Per 5 U.S.C. § 8132, all payments made by OWCP on behalf of a claimant who has a third-party claim create a mandatory right to reimbursement under the FECA. This means that if a claimant is receiving OWCP benefits and they also file a claim against the third-party responsible for their injury, should their claim result in a settlement, judgment, or other recovery, the claimant must pay a portion of that recovery to the United States in acknowledgment of the OWCP benefits already received.

Most personal injury attorneys work on a contingency fee basis, which generally means that the lawyer is compensated by a percentage of the settlement, but only if they win the case.

For third-party claims, OWCP does provide claimants with an allowance for attorney’s fees, “an amount equivalent to a reasonable attorney’s fee proportionate to the refund to the United States.” 5 U.S.C. § 8132.

For this reason, hiring an attorney who can handle both aspects of your claim to resolve the OWCP and personal injury claim together can actually put more money in your pocket.

When a third-party case is settled, that sum of money is disbursed to refund the costs of the case, pay attorney’s fees, pay the refund owed to the United States, and pay the client’s 20% entitlement. If there is any money “left over” after the required disbursements are made, this money is provided to the claimant as a “credit against future benefits.”

This “credit” is paid to the claimant for a very specific purpose – to pay for any future medical expenses or lost wages that may result from the injury. This means that future benefits ordinarily provided by OWCP will be temporarily suspended so long as there is an outstanding credit. This includes wage loss compensation, medical benefits, and schedule award benefits.

It is important to discuss the interplay of the OWCP claim and third-party claim with an attorney as soon as possible after the injury to avoid losing important benefits.

While the third-party claim and the OWCP claim can in theory be handled by separate attorneys, know that the claims themselves are inextricably linked, meaning they cannot be separated. How each claim is handled affects the benefits available under the other. Attorneys that do not routinely practice federal workers’ compensation may not be aware of nuances in federal law that will affect the outcome of your case. To focus solely on the personal injury claim without regard for its impact on the federal workers’ compensation benefits could be considered legal malpractice. We highly recommend hiring a law firm that can coordinate your benefits under both claims, to ensure that you receive every benefit available to you.

Each case is different and there are many factors to consider in calculating the value of your case. These factors include the severity of your injuries, past and future need for medical treatment, the extent of medical treatment needed, whether you’ve sustained a permanent impairment or loss of use of a body member, past and future lost wages, whether you will be able to return to employment, the emotional and mental impact of the accident, your age, your health and pre-existing conditions, and the automobile insurance coverage of all parties involved in the accident. The best way to accurately assess the value of your claim is to discuss the specifics of your situation with an attorney.

We recommend that you pull off of the road in a safe location. Call 911 to report the accident. Check yourself and your passenger(s) for injuries. Exchange information with the other driver; take pictures of their insurance card and driver’s license. Take multiple pictures of both vehicles and the accident scene, including damage to the vehicles, skid marks on the road, debris in the road, and the resting location of both vehicles. Do not admit liability or give a recorded statement to an insurance company without first speaking to an attorney.

Seek medical care immediately, even if you do not yet feel pain. You may eventually feel pain when the shock and adrenaline wear off. As soon as possible, take notes documenting your account of what happened including what you heard, what you saw, and what the other driver or any witnesses said. Take pictures of any visible injuries.