Aug 10, 2015
Topic: Correct Pay Rate for Federal Workers’ Compensation claim
In most cases, establishing the pay rate for a Federal Workers’ Compensation claim is rather easy. You look to the total pay for the year prior and then divide by 52 weeks. However, the average annual earnings should never be less than 150 times the employee’s average daily wage earned in the particular employment during the year just before the injury. This is known as “the 150 formula”.
Category:Frequently Asked Questions Federal Worker Compensation General
Posted by: injuredfederal
In most cases, establishing the pay rate for a Federal Workers’ Compensation claim is rather easy. You look to the total pay for the year prior and then divide by 52 weeks. However, the average annual earnings should never be less than 150 times the employee’s average daily wage earned in the particular employment during the year just before the injury. This is known as “the 150 formula”.
Part time, or new workers (less than 11 months), must have the wage set in accordance with 5 USC 8114(d)(1)(b).
In a case where the rural carrier worked 10 months and 18 days, OWCP was not permitted to use the 11 month criteria. OWCP must follow the formula of 8114(d). The OWCP must obtain the specific hours and days the claimant worked. OWCP must obtain the wages that a similarly situated employee of the same grade step and area of the claimant would have earned. In addition, the actual yearly earnings of the employee(s) working the greatest number of hours in the same position of the claimant. Also, if the claimant had any additional earnings outside the Federal employment, this should be included as well.
In short, OWCP must be made to justify their wage rate decision.
Part time, or new workers (less than 11 months), must have the wage set in accordance with 5 USC 8114(d)(1)(b).
In a case where the rural carrier worked 10 months and 18 days, OWCP was not permitted to use the 11 month criteria. OWCP must follow the formula of 8114(d). The OWCP must obtain the specific hours and days the claimant worked. OWCP must obtain the wages that a similarly situated employee of the same grade step and area of the claimant would have earned. In addition, the actual yearly earnings of the employee(s) working the greatest number of hours in the same position of the claimant. Also, if the claimant had any additional earnings outside the Federal employment, this should be included as well.
In short, OWCP must be made to justify their wage rate decision.