Continuation of Pay - 17th Annual Federal Workers` Compensation

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VA BEST PRACTICES IN FEDERAL
WORKERS’ COMPENSATION:
SUPERVISOR LEVEL COURSE
MANAGING LEAVE DUE TO
OWCP
FEBRUARY 25 – 27, 2014
Course Description
 This session will discuss Continuation of Pay (COP)
entitlement and eligibility for COP. It will provide a
basis for managing agency COP through an
understanding of COP entitlement, methods of
authorization and how to calculate or count COP
days.
 It will also address the use of Leave without Pay,
Annual Leave and Sick Leave after the COP period in
connection with a claim.
Course Objectives
 Determine eligibility and entitlement to COP.
 Identify reason(s) for controverting COP.
 Identify valid reason(s) for terminating COP.
 Discuss the appropriate use of leave for medical
appointments and disability.
 Discuss the issues of coordination with
timekeeping and fiscal.
 Discuss ensuring that timecards reflect the
appropriate leave status
History
 The first Workers Compensation Regulations were
enacted in 1910. It was an Insurance Program
approved because of high risk jobs, and a Progressive
Political Climate. They wanted to establish an
insurance plan to protect the family of the injured
worker.
 This opened the gate for Old Age Insurance and
Unemployment Insurance.
 The 1974 amendments to the FECA Program
introduced the concept of Continuation of Pay.
COP Defined
 COP is the continuation of regular pay for up to 45
calendar days of wage loss due to disability and/or
medical treatment after a work related traumatic
injury.
 The intent of COP is to avoid interruption of pay
while the claim is adjudicated by the Claims
Examiner.
What does COP Include / Exclude?
 COP Includes:
 All regular pay deductions including income tax, retirement,
allotments, etc.
 Night differential
 Scheduled changes in pay – Promotions, step increases, etc
 COP Excludes:
 Overtime
 Holiday Pay
 Saturday and Sunday Premium pay unless the employee
actually worked on that day
Eligibility and Entitlement
 The injury must be a traumatic injury.
 The employee must file a CA-1 (or Notice of Injury)
within 30 days of the date of injury.
 The employee must begin losing time for disability
or medical appointments within 45 days of the
injury.
 COP cannot be paid if employee is separated from
agency.
 If the light duty job excludes extra pay (night
differential) COP is tracked for payment of this
benefit up to 45 days (lost element of pay).
Do I Controvert or Dispute COP
 The Agency may terminate or not begin COP only if
the controversion is clearly based on one of the
following nine categories.
 OWCP makes the final determination and can
overturn the Agency Controversion and require
that COP be paid.
9 Reasons to Convert COP
1. Disability results from an occupational disease.
(example: Carpal Tunnel Syndrome)
2. The employee is excluded by 5 USC 8101 (1) B or E.
This section of the law deals mostly with volunteers
(unpaid) to the Federal Government.
3. The employee is neither a citizen nor a resident of
the United States or Canada.
4. The injury occurred off the employing premises
and the employee was not involved in “official off
premises duties”.
9 Reasons to Convert COP (Continued)
5. The injury was caused by the employee’s willful
misconduct, intent to bring about injury or death
to self or another person, or was proximately
caused by employee intoxication.
6. The injury was not reported within 30 days.
7. Work stoppage first occurred more than 45 days
following the injury.
9 Reasons to Convert COP (Continued)
8. The employee initially reports the injury after his
or her employment has been terminated.
9. The employee is enrolled in the Civil Air Patrol,
Peace Corp, Job Corp, Youth Conservation Corp,
Work Study Programs or other similar groups.
This means they are not entitled to COP. They
are entitled to compensation.
Other Reasons to Dispute
 Evidence provided in the accident
investigation does not match the injury
claimed.
 Medical evidence does not support a
diagnosis (ICD9) that can be connected to
the work related event claimed. (Pain)
 Evidence of pre-existing medical condition.
When can I terminate COP?
• Employee has not filed a CA-1 or notice.
• Medical evidence is not receive within 10 days
• Medical evidence shows the employee is not disabled
for regular work.
• Medical evidence shows employee is capable of
performing light duty and the employee has refused
a written job offer.
• OWCP directs the Agency to stop COP.
• 45 calendar days of COP has been paid.
What is Appropriate Medical Documentation?
•
•
Date of examination.
History of injury. (Reported by employee)
•
Medical evidence supporting total or partial
disability resulting from the claimed injury.
Medical evidence should provide details of
restricted activity and date of return to work.
Document must be signed by a physician.
•
•
Insufficient Medical for COP
 An off work slip indicating an employee is
totally disabled, with a to and from date is
not sufficient to continue COP past the 10
calendar days.
 The physician has to provide medical
evidence supporting disability is a result of
the alleged injury.
Light Duty Job Offers-Why and How To
 Refusal to provide light duty work in writing to a
partially disabled employee that has been released to
return to modified work during a COP period
requires the agency to pay COP.
 Job Offer should include: Start date; Scheduled days
and hours, location; Salary (note same pay);
Description of duties assigned; Physical
requirements needed to perform work; Supervisor’s
signature; and the employee’s signature noting
acceptance or refusal.
My Employee Elected Sick Leave - Not COP?
 Just above the signature line on the CA-1 the
employee must choose to be paid either sick leave or
COP if their injury should incur lost time.
 An employee may elect to use accumulated sick or
annual leave instead of COP. This will not extend the
COP period.
 The employee can request to have their leave
changed to COP within 1 year of acceptance of the
claim. 20 CFR 10.206(a), 206(b)
Calculating AA and COP
 Authorized Absence (AA): This is paid on the day
of a traumatic injury if the employee is disabled for
work for the remainder of their shift, or if they
leave work for medical treatment on the day of
injury.
 An employee can be paid AA if they complete a CA1, and require absence from work on the day of
injury and during the same shift.
 A claim is not considered lost time if only AA is
used on the day of injury.
Calculating COP
• If the traumatic injury occurs prior to the
beginning of the tour of duty, COP is authorized for
time away from work on the date of injury.
• The COP period of eligibility begins after the first
return to duty date.
• If the employee becomes disabled again within the
45 days of entitlement. The employer will pay any
of the remaining 45 days of entitlement.
• COP is counted by calendar days; not work days
Calculating COP Continued…
There are 3 possibilities for a first return to duty
date.
1. Employee returns on date of injury.
2. Employee received AA and returns to work on
the next scheduled day following the date of
injury.
3. The employee is place off work on the day of
injury, and returns to duty between the second
and 44th calendar day following the initial date
of injury.
Calculating COP Continued
• Use of any part of a work day counts as 1 calendar
day COP ( 2 hours COP for doctor visit = 1 calendar
day COP).
• If the employee is disabled for Friday and Monday
and not schedule Saturday and Sunday, continue
calendar for 4 days of COP but pay for is for 2 days.
• Holiday Pay is paid as a holiday, but counted as a
COP day.
Calculating COP Continued
 If the employee’s regular pay includes night
differential, and they are scheduled light duty
during the day, they are entitled to 45 days of COP
that pays what they would have earned for the loss
of night differential pay only. Lost elements of pay
for Saturday and Sunday schedules cannot be paid
unless they work on Saturday or Sunday. (COP
only)
Managing Timecards, Payroll, and DFAS
COP should not be approved unless authorized
by the Control Point (Usually Human Resources).
Authorization can be transmitted by email, scan
document, or a letter signed by the official
designated to authorize COP with identified dates
and hours of eligibility.

The employee can enter sick leave in VISTA and
notate it is for an on-job-injury. The timekeeper can
change the sick leave to COP which is backed up and
approved by the employee’s supervisor.

Managing Timecards, Payroll, and DFAS
 Night Differential is paid by recording the original
schedule that includes night pay. The timekeeper
will make a notation that the employee was detailed
to the day shift and identify hours and schedule
actually worked.
 The timekeeper will also notate the number of hours
authorized for an absence during the day shift, and
indicate if the absence was connected to a medical
appointment, or disability connected to the injury.
Managing Timecards, Payroll, and DFAS
 Physician Pay for leave used is for a full day. If the
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physician has a scheduled appointment for COP,
place them on regular scheduled hours and notate
the physician used 4 hours COP to attend a medical
appointment.
Remember Payroll deadlines for COP.
Check an recheck COP timecards for accuracy.
Make immediate adjustments when errors occur,
and follow-up with payroll if a debt is incurred due to
an overpayment or rescinded COP.
The employee may change rescinded COP to sick or
annual leave if a balance is available.
Employer Responsibilities
 The supervisor is responsible for initiating the CA-1 and
notifying the employee they have 10 days to submit
appropriate medical documentation.
 The supervisor is responsible for advising the employee
of light duty availability and COP eligibility.
 The supervisor and Human Resources Office are
responsible to inform the employee of any decision to
controvert or dispute a claim, and provide the basis for
doing so. OWCP will not uphold the termination of pay if
the agency fails to notify the employee of a pending
controversion. The employee must be provided the
opportunity to respond to the reasons addressed by the
Agency, and time to provide additional documentation if
requested. OWCP has 30 days to adjudicate a CA-1
claim.
Employee Responsibilities
 The employee is responsible for completion of form CA-1
as soon as possible, but no later than 30 days.
 The employee is responsible for providing medical
evidence and to cooperate with OWCP’s development of
their claim. They are also responsible for providing an
accurate history of their condition including prior or preexisting diagnosed conditions that are similar.
 The employee is responsible for selecting a physician that
will provide work limitations with a return to duty date.
 The employee must provide their physician with a copy
of any modified light duty assignments offered, and
request when they can return to modified work . Failure
to notify the physician of a refused written light duty
assignment that is considered suitable is a sufficient
reason to terminate COP.
OWCP Absence After COP
 If the employee is expected to be off work beyond 45
days, Human Resources will notify the supervisor
and employee how to file for Compensation.
 (Recommended) The employee elects Leave without
Pay (LWOP) for time lost due to the injury and files
Form CA-7 and CA-7a to OWCP to be paid lost wage
compensation by OWCP.
 (Not recommended) The employee can use their sick
leave and annual leave and file a CA-7 for a Leave
Buy Back (LBB) through DFAS
Leave Without Pay (LWOP)
 The employee should elect LWOP if the claim is
accepted and the physician has provided
documentation for the employee to be off work.
 After filing the CA-7 and CA-7a, OWCP will pay the
employee most often within two weeks.
 The Human Resources Specialist or Fiscal Officer
must certify that all time claimed on form CA-7 is for
LWOP before submitting the claim to OWCP.
 An overpayment will be declared by OWCP if the
employee is paid by the Agency and OWCP.
Leave Buy Back (LBB)
 The employee may use their sick leave and/or annual
leave for lost time due to a work related injury. Often
an employee will elect to use leave when their claim is
pending approval and they are not eligible for
compensation.
 For LBB, the employee must pay the Agency the
difference between what they were paid by the Agency
and what they would receive for compensation
 There must be medical documentation supporting the
inability to work as a result of the accepted medical
condition for any period where LBB is claimed.
Leave Buy Back (LBB)
 When the claim is approved, the employee files the
CA-7 and CA-7a for a LBB.
 Payroll calculates the amount the employee will
need to pay in order to have their leave restored on
a CA-7b.
 DFAS sets up an account for OWCP to pay their
portion of the LBB, and bills the claimant for their
portion.
 Leave is restored when both payments are received
by DFAS.
LWOP for Workers Compensation
 A Form 50 is placed in the OPF indicating the
employee was paid by OWCP and that OWCP
deducted health benefits and life insurance during
the period of absence.
 An employee does not earn leave or receive holiday
pay while they are on LWOP. They cannot file for
benefits they did not earn.
LWOP for Workers Compensation
 LWOP does not affect:
 Service Computation Dates
 Within Grade Increases (WGI)
 Time in Service requirements for leave accrual
 Health Insurance
 Life Insurance
 Retirement Credit
 LWOP does affect:
 Eligibility to participate in Thrift Savings Plan (TSP)
 AL/SL accruals
Family Medical Leave Act (FMLA)

An employee is not required to invoke FMLA for
LWOP used with a work related claim. If the work
related claim is denied and the employee remains
off work in a LWOP status, they should be notified
they may file the forms requesting FMLA.
Reasonable Accommodation
 An employee can file a request for a reasonable
accommodation, and a work related claim at the same time.
They are separate requests and should remain separate in
both processes.
 The OWCP Claims Examiner may rate a job offer suitable,
and stop OWCP compensation when the employee refuses
to return to work. For the same job offer, EEOC might find
the offer not suitable based on legal requirements identified
with reasonable accommodation guidelines.
 If the OWCP claim is denied and disability continues, the
employee should be advised to file for a reasonable
accommodation.
Contact Information
Nicole Kelsch
VA Medical Center
Lake City, FL 32025
(386) 755-3016 x2621
Nicole.Kelsch@va.gov
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