Q: What is the Structure of the Federal Employees Compensation Program?

A. The Federal Employee Workers Compensation program got its start with the enactment of the Federal Employees Compensation Act (FECA) by Congress in 1916. The program is funded by a levy against agency payrolls; there is no workers compensation tax that federal employees must pay. The Act was passed originally based on state workers compensation statutes, which still influence it today. Currently one in 25 federal employees is injured on the job every year; in other words, there is an injured worker in every office or workshop. The Act pays medical and pharmacy bills and expenses, as well as lost wages and cash settlements for permanent loss or loss of use of an arm or leg, known as schedule awards.