Workers’ Compensation Program Update

Postal Service employees who sustain a work-related injury or occupational disease are covered by the Federal Employees’ Compensation Act (FECA). These benefits include wage-loss compensation, medical and rehabilitation services, and death benefit payments to surviving dependents. The Department of Labor’s (DOL) Office of Workers’ Compensation Program has the exclusive authority to administer, implement, and enforce FECA, including paying claims on behalf of injured employees. The Postal Service manages efforts to return injured employees to work through its Injury Compensation Program. During chargeback year (CBY) 2022 (July 1, 2021, through June 30, 2022) the Postal Service reimbursed $1.31 billion to DOL for its compensation claim costs, including administrative fees.Our objective was to evaluate management’s initiatives to reduce workers’ compensation costs and examine good practices for controlling workers’ compensation activity. We reviewed workers’ compensation data from fiscal year (FY) 2017 through FY 2022 and visited five districts based on management’s implemented cost containment initiatives.