Performance of Functions; Claims for Compensation Under the Federal Employees' Compensation Act; Compensation for Disability and Death of Noncitizen Federal Employees Outside the United States, 49596-49653 [2010-18965]

Agencies

• DEPARTMENT OF LABOR
• Office of Workers' Compensation Programs

[Federal Register Volume 75, Number 156 (Friday, August 13, 2010)]
[Proposed Rules]
[Pages 49596-49653]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-18965]



[[Page 49595]]

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Part III





Department of Labor





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Office of Workers' Compensation Programs



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20 CFR Parts 1, 10, and 25



Performance of Functions; Claims for Compensation Under the Federal 
Employees' Compensation Act; Compensation for Disability and Death of 
Noncitizen Federal Employees Outside the United States; Proposed Rule

Federal Register / Vol. 75 , No. 156 / Friday, August 13, 2010 / 
Proposed Rules

[[Page 49596]]


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DEPARTMENT OF LABOR

Office of Workers' Compensation Programs

20 CFR Parts 1, 10, and 25

RIN 1240-AA03


Performance of Functions; Claims for Compensation Under the 
Federal Employees' Compensation Act; Compensation for Disability and 
Death of Noncitizen Federal Employees Outside the United States

AGENCY: Office of Workers' Compensation Programs, Department of Labor.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department of Labor proposes to amend the regulations 
governing the administration of the Federal Employees' Compensation Act 
(FECA), which provides benefits to all civilian Federal employees and 
certain other groups of employees and individuals who are injured or 
killed while performing their jobs. The Department of Labor also 
proposes to revise the regulations establishing the authority of the 
Office of Workers' Compensation Programs (OWCP) which administers the 
FECA.
    The existing rules have been amended to acknowledge a change in the 
organization of the OWCP and amendments to the FECA which have occurred 
since the last time the regulations were amended in 1999. These changes 
also update the regulations by taking into account changes in 
technology and other changes to improve administrative efficiency. As 
many FECA claimants are not represented, the regulations are revised to 
insert FECA statutory references as a frame of reference for clarity 
and ease of use. The regulations include adding the skin as an organ 
pursuant to 5 U.S.C. 8107(c)(22). The regulations also create a new 
special schedule covering injuries to non-citizen non-resident Federal 
employees outside the United States. Finally, the regulations covering 
the processing of medical bills have been updated to provide for 
greater use of technology in that process to reduce costs and to 
clarify requirements for such submissions.

DATES: Written comments must be submitted on or before October 12, 
2010.

ADDRESSES: You may submit comments on the proposed rule, identified by 
Regulatory Information Number (RIN) 1240-AA03, by one of the following 
methods:
     Federal e-Rulemaking Portal: The Internet address to 
submit comments on the rule is https://www.regulations.gov. Follow the 
Web site instructions for submitting comments.
     Mail: Submit written comments to Shelby Hallmark, 
Director, Office of Workers' Compensation Programs, U.S. Department of 
Labor, Room S-3524, 200 Constitution Avenue, NW., Washington, DC 20210. 
Because of security measures, mail directed to Washington, DC is 
sometimes delayed. We will only consider comments postmarked by the 
U.S. Postal Service or other delivery service on or before the deadline 
for comments.
    Instructions: All comments must include the RIN 1240-AA03 for this 
rulemaking. Receipt of any comments, whether by mail or Internet, will 
not be acknowledged. Because DOL continues to experience delays in 
receiving postal mail in the Washington, DC area, commenters are 
encouraged to submit any comments by mail early.
    Comments on the proposed rule will be available for public 
inspection during normal business hours at the address listed above for 
mailed comments. Persons who need assistance to review the comments 
will be provided with appropriate aids such as readers or print 
magnifiers. Copies of this proposed rule may be obtained in alternative 
formats (e.g., large print, audiotape or disk) upon request. To 
schedule an appointment to review the comments and/or to obtain the 
proposed rule in an alternative format, contact OWCP at 202-693-0031 
(this is not a toll-free number).
    Written comments on the information collection requirements 
described in this proposed rule should be sent to the Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Attention: Desk Officer for Office of Workers' Compensation Programs, 
Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Shelby Hallmark, Director, Office of 
Workers' Compensation Programs, U.S. Department of Labor, Room S-3524, 
200 Constitution Avenue, NW., Washington, DC 20210, Telephone: 202-693-
0031 (this is not a toll-free number).
    Individuals with hearing or speech impairments may access this 
telephone number via TTY by calling the toll-free Federal Information 
Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: 

I. Background

    The FECA provides compensation for wage loss, medical care, and 
vocational rehabilitation to Federal employees and certain other 
individuals who are injured in the performance of their duties, or who 
develop illnesses as a result of factors of their Federal employment. 
It also provides monetary benefits to the survivors of employees who 
are killed in the performance of duty or die as the result of factors 
of their Federal employment.

II. Overview of the Regulations

    The program's regulations were last substantially revised in 1999. 
Since then, the organization and authority of OWCP has changed. 
Furthermore, new provisions have been added to the statute, and 
experience has shown that certain parts of the regulations need 
clarification or revision to promote fairness and efficiency in the 
claims process. In addition, technological advances that may help 
preserve administrative resources and improve efficiency in the claims 
process have been made since the last update of the regulations. 
Accordingly, OWCP has determined that the regulations governing the 
administration of claims under FECA require updating.
    As many sections of the regulations are based on longstanding 
interpretations and program practice and do not require revision, this 
is not a wholesale revision of the existing regulations. However, 
consistent with past practice on FECA regulatory revisions, the entire 
regulation is being republished for ease of use. A detailed listing of 
the regulations changed and a description of those changes follows.

20 CFR Part 1

    This part has been amended to reflect the change in organization at 
the Department of Labor that occurred on November 8, 2009, when the 
Employment Standards Administration (ESA) was dissolved and the 
authority that the Secretary of Labor had previously delegated under 
the FECA to ESA was delegated by the Secretary to the Director, OWCP.

20 CFR Part 10

Subpart A--General Provisions
    This subpart is substantially the same as current subpart A 
(Sec. Sec.  10.0 through 10.18). The majority of the changes to this 
subpart involve updating the regulations as a result of the addition of 
the new death gratuity benefit which was added to the FECA by 5 U.S.C. 
8102a and by adding clarification language in a number of sections, as 
described below.

[[Page 49597]]

Definitions and Forms
    Section 10.1 has been modified by deleting the references to the 
Assistant Secretary for Employment Standards, as that position no 
longer exists.
    Section 10.2 now includes the new subpart J of this part which 
administers the new death gratuity benefit that was added to the FECA 
in 2008 by 5 U.S.C. 8102a.
    Section 10.3 has been revised to update the list of OMB control 
numbers to include the new death gratuity forms and the subrogation 
forms.
    Section 10.5 has been revised to restore statutory definitions and 
citations, as experience has shown that the absence of these citations 
caused confusion regarding what definitions were applicable and to 
clarify the definition of a recurrence of disability in paragraph (x).
    Section 10.6 now includes a reference to the special definitions 
for survivorship and dependency that apply only to the new death 
gratuity benefit to promote clarity.
    Section 10.7 has been updated to list all new forms described above 
and to eliminate forms that are no longer in use.
Information in Program Records
    Section 10.10 has been amended to state that information may be 
released under the Privacy Act through the routine uses that apply to 
the records if such release is consistent with the purpose for which 
the records were created. This change has been made to clarify that 
there are certain situations where release of claim files is not 
appropriate under the Privacy Act.
Rights and Penalties
    These sections have been updated to reflect current provisions that 
impose civil penalties on false claims under the FECA and to 
affirmatively require submission of documentation where appropriate.
    Section 10.16 has been revised to note that a civil action may be 
maintained under the False Claims Act to recover erroneous payments 
under the FECA.
    Section 10.17 has been revised to clarify when benefits are 
terminated for defrauding the Federal Government to eliminate confusion 
concerning what day should be used when a guilty plea has been entered. 
The addition specifies what date to use in such a situation. This 
section has also been revised to provide an affirmative duty for the 
employing agency (which may be fulfilled by the employing agency's 
Office of Inspector General (OIG) in a case where the agency OIG is 
actively involved) to submit this information to OWCP.
    Section 10.18 has been revised to provide an affirmative duty for a 
beneficiary to report to OWCP any incarceration based on a felony 
conviction that would result in forfeiture of that beneficiary's right 
to compensation during incarceration.
Subpart B--Filing Notices and Claims; Submitting Evidence
    This subpart is substantially the same as the current subpart B 
(Sec. Sec.  10.100 through 10.127). Most changes involve the electronic 
submission of forms, a method of submission that was not feasible when 
the regulations were last changed. Other changes include the 
administration of the change to the waiting period for employees of the 
United States Postal Service necessitated by a statutory amendment in 5 
U.S.C. 8117.
Notices and Claims for Injury, Disease, and Death--Employee or 
Survivor's Actions
    Sections 10.100, 10.101, 10.102, 10.103 and 10.105 all have been 
revised by an identical provision that allows for electronic submission 
of notices and claims forms. This change includes a provision that all 
agencies should create a method to submit such forms electronically by 
December 31, 2012, by which time OWCP will have implemented a method to 
enhance the agencies' ability to file forms electronically. Electronic 
filing will speed OWCP's processing of claim forms.
    Section 10.102 was also revised to clarify the language specifying 
that CA-7 should be used to claim compensation for additional periods 
of disability.
    Section 10.103 has been revised to provide authority to create a 
separate form for schedule award claims under 5 U.S.C. 8107.
    Section 10.104 was revised to make clear what constitutes a 
recurrence of disability and to explain the basis for a modification of 
a loss of wage-earning capacity determination. The addition of 
paragraph (c) to this section clarifies the distinction by 
incorporating longstanding case law from the Employees' Compensation 
Appeals Board.
Notices and Claims for Injury, Disease, and Death--Employer's Actions
    Section 10.111 has been amended to reflect the change in law 
regarding waiting periods and Postal Service employees incorporated in 
the amendment to 5 U.S.C. 8117.
Evidence and Burden of Proof
    Section 10.115 has been revised to clearly state that the burden of 
proof remains with the claimant even when OWCP requests additional 
information, as provided by ECAB case law.
    Section 10.116 has been amended to reflect current OWCP practice, 
in that OWCP does not require the submission of the checklist in all 
situations.
Decisions on Entitlement to Benefits
    Section 10.127 has been amended to remove the language stating that 
service of a decision on either the claimant or the representative 
would count as service to both, as this no longer reflects current 
practice of the OWCP. OWCP serves decisions on entitlement on both the 
claimant and the representative.
Subpart C--Continuation of Pay
    Subpart C (Sec. Sec.  10.200 through 10.224) continues unchanged 
from the previous regulations, except for a change to Sec.  10.200. The 
change to this section reflects the change to continuation of pay to 
Postal Service employees as a result of the statutory change to 5 
U.S.C. 8117 which provides that Postal Service employees are not 
entitled to continuation of pay for the first 3 days of temporary 
disability unless that disability exceeds 14 days or is followed by 
permanent disability.
Subpart D--Medical and Related Benefits
    Subpart D (Sec. Sec.  10.300 through 10.337) is mostly unchanged. 
Most of the changes involve technological advances since the last 
update of the regulations; these advances caused procedures to be 
changed. Other changes clarify the prior regulations or codify current 
practice. Additionally, OWCP seeks to codify authority to make changes 
to the manner in which durable medical equipment and other non-
physician services are provided.
Emergency Medical Care
    Section 10.300 has been amended to clarify that the Form CA-16, 
which provides authorization for initial medical treatment, authorizes 
treatment from the date of injury, not the date the form is signed. 
This change corrects situations where this form has not been signed 
immediately--this posed difficulties for employees obtaining treatment 
at the time of injury.
Medical Treatment and Related Issues
    Section 10.310 has been amended in a number of places. First, this 
section was amended to cross-reference the sections of this part that 
provide for medical billing and authorization. This

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section has also been modified to codify OWCP's authority to utilize 
field nurses in facilitating and coordinating medical care. 
Furthermore, this section has been modified to codify OWCP's authority 
to contract with specific providers to provide services and appliances; 
OWCP has determined that providing such services in this method may aid 
in delivering such benefits as well as controlling medical costs. This 
section has also been amended to clearly state that certain non-
physician providers provide authorized services to injured employees, 
to the extent allowed under Federal and state law including licensure 
by any appropriate regulating body for that profession. This change was 
made to clarify that OWCP pays for such services.
    Section 10.310 has also been amended to add a new paragraph (c) 
that covers durable medical equipment. This paragraph provides first 
that any provider of such equipment must be registered in Medicare's 
Durable Medical Equipment, Prosthetics, Orthotics and Supplies 
Competitive Bidding Process. This requirement provides OWCP a measure 
of reliability (including financial security) in such providers, while 
helping OWCP avoid using scarce program resources to police all such 
providers. Furthermore, this paragraph allows OWCP, when purchasing 
such equipment, to offset the costs of prior rental payments against a 
future purchase and provide refurbished equipment when appropriate. 
Both of these additions were done to help control the cost of providing 
this equipment.
    Section 10.311(d) has been amended to clarify that, for a 
chiropractor's service to be under the direction of a qualified 
physician, that physician must prescribe those services.
    Section 10.314 relating to attendant services has been 
substantially shortened from the prior regulation. As the number of 
attendant services provided in cases prior to January 4, 1999 has 
decreased and since the current policy has been successfully in place 
for over a decade, the extended discussion is no longer necessary.
    Section 10.315 has been substantially modified, increasing the 
reasonable distance of travel up to a roundtrip distance of 100 miles. 
OWCP encountered situations where employees no longer had doctors 
within the old distance of 25 miles and determined that such an 
increase is needed. This section has also been amended to explain 
procedures regarding types and manner of transport allowed.
Directed Medical Examinations
    Section 10.320 has been amended to add language allowing another 
person to be present at an OWCP directed examination where there is 
rationalized medical evidence demonstrating that such a person is 
needed in addition to situations such as where a translator or sign 
language interpreter is needed to aid communication. This change is in 
response to a number of claims where such a person may be needed. This 
language sets forth one method to meet the ``exceptional 
circumstances'' test for allowing an additional person in the 
examination where medically indicated.
    Section 10.321 has been updated to add the word ``impartial'' to 
the referee medical review to conform with terminology normally used by 
OWCP and ECAB.
    Section 10.323 has been amended by expressly noting that 
examinations required by OWCP includes testing such as functional 
capacity evaluations and by adding a new paragraph (b) which details 
the process of how OWCP suspends compensation for obstructing a medical 
examination, as well as to explain how the employee can end that 
obstruction. This paragraph was added to provide additional guidance to 
claimants and to consolidate all such information in one location.
Medical Reports
    Section 10.333 has been amended to provide a cross reference to the 
information necessary to support an award for loss to a scheduled 
member and to include additional language used in the AMA Guides.
Medical Bills
    Section 10.335 has been amended to bring this section in line with 
current OWCP procedures, and to provide notice that OWCP may contract 
with a third party for bill payment processing.
    Section 10.337 has been amended to update the cross-references 
contained in that section.
Subpart E--Compensation and Related Benefits
    Subpart E (Sec. Sec.  10.400 through 10.441) also is largely 
unchanged. Of the changes made to this subpart, most are to clarify the 
prior regulation by codifying ECAB case law or promoting administrative 
efficiency by changing practices that experience has shown waste 
program resources. A few additions have been made, including the 
addition of the skin as a scheduled member and including language 
regarding electronic payments and their effect on overpayments.
    Section 10.400 has been amended to include the statutory citation 
for when permanent total disability is presumed to clarify the origin 
of that definition.
    Section 10.401 has been amended to reflect the change in when the 
waiting period begins for Postal Service employees after the amendment 
to 5 U.S.C 8117 as described above.
    Section 10.403 has been amended to restore the factors used in 
determining wage-earning capacity where actual earnings do not fairly 
and reasonably represent that capacity as described in 5 U.S.C. 8115 to 
facilitate ease of use of that section.
    Section 10.404, which describes how compensation is paid for loss 
to scheduled members under 5 U.S.C. 8107, has been revised to include 
the statutory scheduled members as well as those that have been added 
by regulation. Furthermore, Section 10.404 has been amended to include 
the skin as a schedule member, for up to 205 weeks of compensation, for 
injuries sustained on or after September 11, 2001. In determining 
compensation payable for the skin, OWCP considered a number of factors, 
including relative percentage impairments of the other scheduled 
members under the AMA Guides, as well as the length of compensation 
that had been previously given for members added by regulation. After 
considering these factors, OWCP determined that the skin should be 
given the maximum amount of compensation that had been previously given 
when adding new members. As to the date of applicability of this 
section, OWCP determined that use of September 11, 2001 would allow 
individuals who had sustained severe burns or other skin conditions on 
or after September 11, 2001 to file schedule award claims. OWCP further 
determined that use of an earlier date would create problems of proof 
and eligibility under Sec.  10.413 of this section.
Compensation for Death
    Section 10.410 has been amended to clarify that survivor's benefits 
under 5 U.S.C. 8133 are separate and distinct from the death gratuity 
benefits under 5 U.S.C. 8102a.
    Section 10.412 has been amended to include statutory citations to 
the amounts provided for burial and related expenses.
    Section 10.413 has been amended to codify in the regulations the 
requirement of 5 U.S.C. 8109 and ECAB case law which states a claim for 
a schedule award must be filed while the claimant is still alive in 
order for the claim to be paid.

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    Section 10.415 has been amended to modernize the regulation to 
provide additional detail on handling the increasing number of 
governmental payments made by electronic fund transfer (EFT).
    Section 10.417 has been revised to streamline the process by which 
employees establish the dependency for adult children who are incapable 
of self-support. In this section, OWCP has reduced the reporting 
requirements in those instances to once each year, while placing an 
affirmative duty on the employee to report any change in the conditions 
to OWCP. This change will promote efficiency for OWCP when, in a number 
of instances, the circumstance of such dependency will not change more 
than annually. Furthermore, this section was amended to add a new 
section allowing an employee to establish the permanency of an adult 
child's mental or physical disability; such a change will save OWCP 
administrative resources while eliminating an employee's burden to 
continuously submit reports for an adult child with permanent mental or 
physical disabilities.
Adjustments to Compensation
    Section 10.421 has been amended to reflect the change in language 
to 5 U.S.C. 8116 made after the repeal of 5 U.S.C. 5532.
    Section 10.422 has been amended to note that the availability of 
lump sum payments for non-citizen non-resident employees will be 
addressed in Part 25 of this title.
    Section 10.423 has been amended to delete the discussion that 
suggests claims for compensation are subject to garnishment from claims 
from other Federal agencies. The authority for this language is unclear 
and has not been used.
    Section 10.425 has been amended to clarify that leave donated to an 
employee through an employing agency's leave program is not leave that 
may be restored through the leave buy back process.
Overpayments
    Since the last time the regulations were updated, most recipients 
of FECA benefits have been moved to electronic payment (EFT). This has 
created questions as to when an employee has knowledge of receipt of 
their FECA benefits. Accordingly, Sec.  10.430 has been amended to 
reflect a growing concern regarding when a claimant receives, or has 
knowledge of, an electronic payment. This section has been amended to 
add the normal business transaction definition of such receipt, where a 
payee is presumed to have knowledge of any payment once the payee has 
had the opportunity to receive a bank statement from the payee's 
financial institution.
    Section 10.433 was likewise amended to reflect that an employee is 
required to review such bank statements in order to ensure proper 
receipt of FECA benefits.
    Section 10.440 was amended to include District Court and ECAB case 
law which allow OWCP to pursue collection of a debt while any such 
determination is pending before ECAB.
    Section 10.441 was amended to describe the process used by OWCP to 
collect overpayment debts following the death of an employee.
Subpart F--Continuing Benefits
    Subpart F (Sec. Sec.  10.500 through 10.541) is largely unchanged. 
Most changes clarify the prior regulations by further describing the 
procedures and policies of OWCP and by including ECAB case law 
explaining those prior regulations.
    Section 10.500 was amended to clarify the difference between light 
duty work and a suitable work determination and to restore statutory 
citations to the regulations.
    Section 10.501 was amended to include a new subparagraph (2), which 
allows OWCP to require less medical documentation for continuing 
benefits where circumstances merit such reduced documentation, reducing 
the burden on those employees and the OWCP in administering their 
claims.
    Section 10.502 was revised to update the language used to describe 
the impartial referee examination to bring the terminology in line with 
OWCP and ECAB usage.
Return to Work--Employer's Responsibilities
    Section 10.509 was also modified by splitting that section into two 
sections, Sec. Sec.  10.509 and 10.510. Section 10.509 now covers only 
situations involving the effect of downsizing of a light duty position 
on compensation. New Sec.  10.510 describes when a light duty job may 
be used as a basis for a loss of wage-earning capacity determination.
    Section 10.511 is a new section that codifies longstanding ECAB 
case law which delineates the only circumstances under which a loss of 
wage-earning capacity determination may be modified.
Return to Work--Employee's Responsibilities
    Section 10.517 has been modified to make clear that, when an 
employee refuses to seek or accept suitable work, the resulting 
termination of compensation applies to any prior injuries in which 
compensation may be payable as well as the claim under which 
compensation has ended. Consistent with longstanding program practice, 
medical benefits remain payable in all cases following such 
termination.
    Sections 10.518 and 10.519 have been modified to delete references 
to registered nurses under the vocational rehabilitation of employees, 
as ECAB ruled that the sanctions for failing to cooperate with 
vocational rehabilitation do not apply to nurse services.
    New Sec.  10.521 has been added to explain the process followed by 
OWCP when an employee that is involved in the vocational rehabilitation 
process or other return to work effort elects to receive benefits from 
the Office of Personnel Management instead of FECA benefits, and is no 
longer participating in the vocational rehabilitation process. In such 
instances, OWCP may use the evidence of file to perform a loss of wage-
earning capacity determination.
Reports of Earnings From Employment and Self-Employment
    Section 10.525 has been amended to clarify that an employee must 
report all employment activities, including all outside employment, as 
such employment is material to a disability determination. This is so 
even where such earnings from concurrent dissimilar employment held at 
the time of injury do not reduce compensation payable but may still 
assist OWCP in assessing disability for work.
    Section 10.526 has been amended to clarify that, in reporting 
volunteer activities, the fact that the employee received no monetary 
compensation for those activities is not a basis for not reporting 
those activities to OWCP under ECAB case law.
Reports of Dependents
    Section 10.537 was amended to reflect the change in reporting for 
non-minor children to once a year as described above in the discussion 
regarding Sec.  10.417.
Reduction and Termination of Compensation
    Section 10.540 has been reorganized by splitting paragraph (a) into 
new paragraphs (a) and (b), to promote clarity and ease of use of the 
section.
Subpart G--Appeals Process
    Subpart G (Sec. Sec.  10.600 through 10.626) also continues largely 
unchanged; the changes that have been made were made to promote clarity 
and update the

[[Page 49600]]

regulations to reflect changes in practice and technology that have 
taken place since the regulations were last updated.
Reconsiderations and Reviews by the Director
    Section 10.606 has been modified to add language requiring that 
reconsideration requests be signed and dated. This change has been made 
to clarify when such requests have been made and to allow OWCP to 
ascertain that the person (such as a representative) requesting 
reconsideration is authorized to do so at the time such request is 
made.
    Section 10.607 has been modified by changing the date of the 
reconsideration request for timeliness purposes from the date mailed to 
the date received by OWCP. This change has been made to promote 
efficiency in administering these requests; current electronic case 
files and associated scanning procedures and resources would be 
unnecessarily strained by the requirement to scan in every envelope 
from every letter sent to OWCP. Accordingly, the prior regulation which 
referenced the date of mailing on the envelope led to some uncertainty 
regarding when a request was filed. Rather than reduce the amount of 
time given to file the reconsideration request, OWCP has chosen simply 
to require that the request must have been received by OWCP within the 
one year period, a period which provides more than ample time to obtain 
the necessary evidence or make the legal arguments in support of a 
reconsideration request.
    Section 10.609 has been modified to note that OWCP will not wait 
for comments from an employing agency regarding a request for 
reconsideration when comments from the agency are not germane to the 
issue being resolved on reconsideration.
Hearings
    The sections governing hearings before the OWCP's Branch of 
Hearings and Review (BHR) have been modified to reference that 
procedures are available for reasonable accommodation in the hearing 
process. The sections include procedures for BHR to conduct hearings by 
teleconference and videoconference. Such methods although permissible 
under the regulations were not in active use at the time of the last 
regulation update. These sections have also been modified to clarify 
certain policies related to such processes and to provide discretion to 
utilize other technology to conduct hearings as it may become 
available. OWCP has found that use of teleconferences and 
videoconferences allows hearings to be held more quickly.
    Section 10.616 has been modified to accommodate the alternative 
types of hearings as described above.
    Section 10.617 has been amended to cover a number of policies that 
were previously not contained in the regulation. First, this section 
has been amended to note how an employee may request accommodations 
from BHR. This section has also been amended to note that hearings are 
generally limited to one hour, and to note that the transcript is the 
official record of the hearing. This section has also been modified to 
clarify the time limits for submitting comments following a hearing. 
Finally, a new paragraph (h) has been inserted as a reference to a 
statutory section that allows an OWCP hearing representative to certify 
any misconduct to a District Court for appropriate handling.
    Section 10.618 has been amended to clarify that when an employee 
requests that a hearing be changed to a review of the written record, 
all evidence should be submitted with that request.
    Section 10.619 has been amended to clarify that, if a request for a 
subpoena has been made, the requestor must explain why that subpoena is 
necessary at the time the request is made.
    Section 10.621 has been amended to clarify that it is in the 
discretion of the hearing representative whether the employing agency 
may be allowed to have more than one representative attend the hearing.
    Section 10.622 has been amended to accommodate the alternative 
forms of hearings discussed above and to explain how these types of 
hearings are handled with a monthly docket. Furthermore, this section 
has been amended to add new paragraph (d) which restores prior 
regulatory language addressing abandonment of hearings, as experience 
since that language was removed has shown that this section is 
necessary.
Review by the Employees' Compensation Appeals Board (ECAB)
    Section 10.626 has been amended to cross reference ECAB's rules of 
procedure to promote ease of use of these regulations.
Subpart H--Special Provisions
    While a majority of the provisions in subpart H (Sec. Sec.  10.700 
through 10.741) remain unchanged, some extensive changes have been made 
to certain portions of this subpart. This subpart has been changed to 
reference that an attorney associated with a law firm may represent 
claimants and to explicitly state that OWCP will communicate with the 
law firm. The regulation clarifies OWCP policy that contingency fees 
are not allowed under any circumstances. The FECA subrogation sections 
have been expanded to codify current practice; to promote transparency 
and clarity where a third party is responsible for an injury or death; 
and to better explain how subsequent FECA subrogation claims are 
handled. Finally, the provision relating to coverage of Peace Corps 
volunteers has been amended to restore statutory language concerning 
such coverage.
Representation
    Section 10.700 has been amended to clarify that where a claimant's 
representative is an attorney, OWCP may communicate with any attorney 
or employee in the attorney's law firm. This change has been made to 
comport with the normal practice of law firms, and to promote efficient 
administration of the program.
    Section 10.702 has been amended to clearly state that contingency 
fees are not allowed when representing beneficiaries under the FECA. 
This explicit language addressing contingency fees was removed during 
the last regulatory update; however, experience since that update has 
shown that the removal of this language caused some to believe that the 
ban on contingency fees had been removed as well.
    Section 10.703 has been amended to make clear that OWCP can only 
approve representative's fees for services that have been performed 
before OWCP and references that ECAB must approve fees for services 
performed in front of ECAB. This section has also been amended to 
clarify that contingency fees will not be approved for any reason. 
Contingency fees are not subject to the deemed approved process where a 
fee may be approved if a claimant concurs with such a fee. If the fee 
is disputed, the regulations provide that OWCP will consider the 
customary local charge for a representative with similar qualifications 
in considering what constitutes a reasonable fee.
    New Sec.  10.704 takes a sentence that was formerly the last 
sentence of Sec.  10.702 and makes that language its own section in the 
regulations to highlight that a person who collects a fee without OWCP 
approval may be charged with a misdemeanor. OWCP believes that adding 
this section is useful to provide notice of the potential consequences 
for failing to comport with the OWCP fee approval process.

[[Page 49601]]

Third Party Liability
    Section 10.705 has been amended to give the full address where 
information on subrogation claims may be sent.
    Section 10.707 has been amended to require that certain information 
be submitted in circumstances where the employee is not the only 
plaintiff in a suit.
    The provisions in 10.711 have been moved to 10.712 and the 
provisions in 10.712 have been moved to 10.711. The new order reflects 
the process of calculating the refund and surplus in accordance with 
the statement of recovery form CA-1108. New section 10.711 
substantially revises existing 10.712 by setting out in greater detail 
the manner in which the amount of recovery of the employee is 
determined including situations where property loss is part of the 
recovery or where loss of consortium or wrongful death and survival 
actions have been asserted. New section 10.711 reflects the procedures 
that have been in place for a number of years. New section 10.712 
clarifies that the crediting of a surplus is done against both wage-
loss compensation and medical benefits, sets out in greater detail the 
steps to follow in calculating the refund and surplus, and provides 
additional examples of how these calculations are made, including cases 
where loss of consortium and wrongful death and survival actions have 
been asserted.
    Section 10.714 has been amended to clarify that OWCP may seek 
reimbursement for all types of benefits paid to an employee when that 
employee has successfully sued a third party for that injury. This 
section was also amended to clarify how that employee may obtain a copy 
of the disbursements made by OWCP in their claim.
Peace Corps Volunteers
    Section 10.730 has been amended to restore the statutory language 
applicable to coverage of claims involving Peace Corps volunteers. The 
statutory language is a recognition of the difficulties for such 
volunteers to establish that certain injuries or illness are related to 
their covered activities. The change in language allows OWCP to 
consider evidence that controverts coverage, while still allowing the 
volunteer to establish the claim, and clarifies that a temporary 
aggravation of a preexisting condition may be paid without the 
necessity of accepting all disability related to that condition.
Subpart I--Information for Medical Providers
    A number of changes have been made to subpart I. The majority of 
these changes have been made to address OWCP's electronic bill 
processing system and to comport this processing with that done in 
other compensation programs administered by OWCP. This subpart has also 
been revised to modify the process by which OWCP excludes medical 
providers by including the Department of Labor's Office of Inspector 
General (DOL OIG) in the process.
Medical Records and Bills
    Section 10.800 has been amended to describe OWCP's provider 
enrollment process and automated bill processing and authorization 
system, which has been substantially revised since the last time the 
regulations were updated.
    Section 10.801 has been amended to clarify how medical bills are 
currently processed. In addition to those changes, this section has 
been amended to codify that OWCP may require nursing homes to abide by 
a fee schedule for admissions made after the effective date of the 
regulations, which will standardize billing practices and promote cost 
containment. This change was made to allow additional modifications to 
restrain medical costs. This section has also been amended to provide 
language making it clear that providers must adhere to accepted 
industry standards when billing. Since the advent of the automated bill 
processing system, OWCP wishes to make clear that billing practices 
such as upcoding and unbundling are not in accord with industry 
standards and such attempts to circumvent the fee schedule through 
practices described in that language are prohibited under the 
regulations.
    Section 10.802 has been amended to clarify how an injured employee 
currently seeks reimbursement for out of pocket expenses.
Medical Fee Schedule
    Section 10.805 has been revised in order to give the Director of 
OWCP the express authority to determine a fee schedule for services 
provided by nursing homes.
    Sections 10.806, 10.807 and 10.810 have been revised to update the 
indices used in determining maximum fees.
    Section 10.809 has been revised to clarify that the fee schedule 
regarding medicinal drugs applies whether the drugs are dispensed by a 
pharmacy or by a doctor in his office. This section has also been 
modified by providing OWCP the authority to require the use of a 
specific contract provider for medicinal drugs. This language has been 
added so that OWCP may explore the use of such providers to contract 
for better prices on such drugs. Finally, the authority to require the 
use of generic drugs has been moved to this section as new paragraph 
(c).
    Section 10.811 has been amended to clarify that OWCP will not 
correct procedure or diagnosis codes on submitted bills. Instead those 
bills will be returned to the provider for correction as the 
responsibility for proper submission lies with the provider.
Exclusion of Providers
    Section 10.815 has been amended by adding new sections (i) and (j) 
which set out additional reasons for excluding providers. These new 
reasons are failure to update a change in provider status and having 
engaged in conduct found by OWCP to be misleading, deceptive or unfair. 
Experience has shown that a number of ambiguities existed in the 
exclusion process. These new reasons for exclusion are meant to address 
any perceived loopholes.
    Section 10.816 has been amended to add new section (c), which 
clarifies that a provider may be voluntarily excluded without the 
exclusion procedures being initiated. This clarification is meant to 
address situations where providers agree to be excluded, for example, 
where a provider may be faced with criminal charges.
    Section 10.817 has been amended to provide that the DOL OIG is 
primarily responsible for investigating possible exclusions of 
providers. This duty was previously handled by OWCP; OWCP has no 
investigatory arm and lacks resources to carry out this responsibility. 
Accordingly, this change in the exclusion process has been made in an 
effort to improve administrative efficiency of this process.
    Sections 10.818 through 10.821 have been revised to change the 
deciding official in exclusion matters from just the Regional Director 
to the Regional Director or any other official specified by the 
Director of the Division of Federal Employees' Compensation. This 
change has been made in recognition of the fact that there may be 
instances (such as where more than one region is involved) where the 
Regional Director should not be the deciding official. These sections 
have also been modified to recognize the role of DOL OIG.
    Sections 10.823 through 10.824 have been modified to change the 
manner in which the administrative law judge's recommended decision 
becomes final.

[[Page 49602]]

Previously, the decision became final if no objection was filed, which 
could lead to confusion regarding the finality of this decision. 
Accordingly, these sections were changed to reflect that no recommended 
decision regarding exclusion will become final until the Director of 
OWCP issues the decision in final form.
    Section 10.825 has been amended to reflect current practices of 
OWCP, as OWCP may use discretion in determining who should receive the 
notice of exclusion.
    Section 10.826 has been modified to correct terminology and to 
clarify that the Director of OWCP can order reinstatement of excluded 
providers.
Subpart J--Death Gratuity
    Subpart J (Sec. Sec.  10.900 through 10.916) is unchanged.

20 CFR Part 25

    Section 8137 provides the conditions and parameters for FECA 
coverage for non-citizen non-resident employees of the United States, 
any territory, or Canada. Part 25 describes how benefits will be paid 
to such employees. Since the last time the regulations were revised in 
1999, OWCP encountered a number of situations where the current 
regulatory scheme proved difficult to administer. Although payment of 
FECA compensation across the board in all such cases remains 
substantially disproportionate, benefits payable under local law may be 
insufficient. Moreover, many of the distinctions and definitions such 
as those for third country and fourth country nationals do not comport 
with the current governmental hiring realities for non-citizen non-
resident employees. In conducting the comparison required by the 
current regulations between compensation payable under local law and 
that paid under FECA, OWCP encountered situations where the families of 
employees who were killed received very limited compensation under 
local law. However, payment of ongoing FECA benefits in such cases 
would result in disproportionately high payments and would pose 
administrative challenges in managing such cases on an ongoing basis. 
Under the statute, the Director has authority to create a special 
schedule. In the interests of fairness, the Director has created a new 
more comprehensive special schedule for disability that will pay 
benefits on an ongoing basis for up to two years and will pay a lump 
sum thereafter for cases of permanent total disability. Payment for 
death benefits will also be paid in a lump sum to facilitate benefit 
delivery and to ease administrative burdens.
Subpart A--General Provisions
    Section 25.1 has been revised to reflect a change in policy in the 
payment of compensation under the FECA to employees of the United 
States who are neither citizens nor residents of the United States, any 
territory or Canada, as well as any dependents of such employees. The 
proposed revision would modify the benefit structure for foreign 
nationals by using the authority under section 8137 to create a special 
schedule of compensation for foreign nationals to provide a reduced 
percentage of FECA benefits.
    Section 25.2(a) has been revised to provide that the special 
schedule set forth in subpart B would apply to any non-citizen non-
resident federal employee who is neither hired nor employed in the 
United States, Canada or in a possession or territory of the United 
States, with respect to any injury (or injury resulting in death) 
occurring subsequent to the effective date of the publication of the 
final rule in the Federal Register. This paragraph has also been 
amended to provide that the benefit provisions adopted under this 
paragraph shall apply to injuries that occur on or after 60 days after 
the publication of the final rule in the Federal Register.
    Section 25.2(b) has been revised to provide that the special 
schedule in subpart B shall apply to cases unless the injured non-
citizen non-resident employee receives compensation pursuant to a 
specific separate agreement between the United States and another 
government (or similar compensation from another sovereign government); 
or the employee receives compensation pursuant to the special schedule 
under subpart C; or the employee otherwise establishes entitlement to 
compensation under local law pursuant to section 25.100(e) of this 
part.
    Section 25.2(c) has been revised to provide that compensation in 
all cases of such non-citizen non-resident employees paid and closed 
prior to 60 days after the publication of the final rule in the Federal 
Register are deemed paid in full under 5 U.S.C. 8137.
    Section 25.2(d) has been revised to provide that the compensation 
received under the special schedule set forth in subpart B or as 
otherwise specified in 25.2(b) is the exclusive measure of compensation 
in cases of injury (or death from injury) to non-citizen non- resident 
employees of the United States.
    Section 25.2(e) was revised to clarify the information in former 
section 25.2(e) that compensation for disability and death of non-
citizen non-resident employees outside the United States under this 
part shall in no event exceed that generally payable under the FECA.
    Section 25.3 remains unchanged, providing that the Director has the 
authority to make lump-sum awards (in the manner prescribed by 5 U.S.C. 
8135) to settle claims pursuant to section 8137 of the FECA.
    Section 25.4 remains unchanged except for section (c) which is 
revised to read ``Verification of the employment and casualty by 
Department of Defense personnel'' instead of military personnel to 
reflect the responsibility for providing the type of evidence necessary 
to make a claim under this section resides with that department.
    Section 25.5 has been renumbered but otherwise remains unchanged, 
providing that an employee who is a permanent resident of any United 
States possession, territory, commonwealth or trust territory will 
receive full FECA benefits.
Subpart B--the Special Schedule of Compensation
    Section 25.100 has been amended to provide that the definitions 
under this subpart are generally the same as those provided under the 
rest of the FECA statute and regulations.
    25.101 has been modified to describe how compensation for temporary 
total and partial disability, and permanent total and permanent partial 
disability are paid to non-citizen non-resident employees. Provisions 
under the former section 25.101 for death benefits have been revised 
and currently appear in section 25.102.
    Section 25.101(a) has been amended to provide for temporary total 
disability, where the injured employee is disabled for less than two 
years. Under this provision, the employee receives 50 percent of the 
monthly pay during the period of such disability.
    Section 25.101(b) has been amended to provide for temporary partial 
disability, where the injured employee is unable to earn equivalent 
wages to those earned at the time of injury, but is not totally 
disabled for work. Under this section, the injured employee receives a 
proportional amount of compensation for the period of disability. The 
compensation amount is that portion of compensation for temporary total 
disability, as determined under paragraph (a) of this section, which is 
equal in percentage to the degree or percentage of physical impairment 
caused by the disability.
    Section 25.101(c) has been amended to provide for permanent total

[[Page 49603]]

disability, where the injured employee will be disabled for greater 
than two years. This section provides that the injured employee will 
receive a lump sum settlement, made by the manner prescribed under 5 
U.S.C. 8135, based on compensation equaling 50 percent of the monthly 
pay.
    Section 25.101(d) has been amended to provide for permanent partial 
disability, where there is permanent impairment involving the loss, or 
loss of use, of a member or function of the body. This section 
describes how compensation is paid for loss to scheduled members, and 
has been revised to be consistent with the time periods listed under 5 
U.S.C. 8107 and the regulations listed in 20 CFR 10.404. In addition to 
the revision of the time periods, this section has been amended to 
include the skin as a schedule member, for up to 205 weeks of 
compensation. This change is consistent with changes made under Part 
10. The employee will be paid in a lump sum according to 5 U.S.C. 8135, 
at 50 percent of the monthly pay.
    Section 25.101(e) has been amended to provide that if a beneficiary 
can show that the amount payable under the special schedule would be 
demonstrably less than the amount payable under the law of his home 
country, the Director has the discretion to pay an amount in excess of 
the special schedule of compensation under 5 U.S.C. 8137(a)(2)(A), not 
to exceed the amount payable under FECA. This section provides that to 
request such benefits, the beneficiary must submit the following 
information: translated copies of the applicable local statute as well 
as any regulations, policies and procedures the beneficiary asserts are 
applicable; and a translated copy of an opinion rendered by an attorney 
licensed in that jurisdiction or an advisory opinion from a court or 
administrative tribunal that explains the benefits payable to the 
beneficiary.
    Section 25.102 has been amended to describe how compensation for 
death of a non-citizen non-resident employee is paid. Section 25.102(a) 
has been amended to provide for burial expenses not to exceed $800. 
Sections 25.102(b)-(i) remain similar in the distribution of death 
benefits (as delineated in former sections 25.101(a)-(i)) but have been 
limited to a total of 50 percent of monthly pay. Section 25.102(j) has 
been added to provide that death benefits should be paid in a lump sum 
where practicable pursuant to 5 U.S.C. 8135.
    Section 25.102(k) has been added to provide if a beneficiary can 
show that the amount payable under the special schedule would be 
demonstrably less than the amount payable under the law of his home 
country, the Director has the discretion to pay an amount in excess of 
the special schedule under 5 U.S.C. 8137(a)(2)(A), not to exceed the 
amount payable under FECA. This section provides that the beneficiary 
must submit the same information as noted in section 25.101(e).
    Section 25.102(l) has been added to inform claimants that a FECA 
death gratuity of $65,000 may be payable for the death of a non-citizen 
non-resident employee should the death be a result of injury incurred 
in connection with service with an Armed Force in a contingency 
operation as set forth in subpart J of part 10.
Subpart C
    The provisions of subpart C are largely unchanged in this 
regulatory revision. Section 25.202 has been amended to adjust the 
maximum amount of compensation payable under that section for 
inflation, and to provide an automatic, yearly escalator to that 
amount.
    Section 25.203 has been amended to apply the special schedule 
created by subpart B to non-citizen, non-resident employees in the 
Territory of Guam, without the modifications contained in the prior 
regulations.

III. Administrative Requirements for the Proposed Rulemaking

Executive Order 12866

    This proposed regulatory action constitutes a ``significant'' rule 
within the meaning of Executive Order 12866 in that any executive 
agency could be required to participate in the development of claims 
for benefits under this regulatory action. The Department believes, 
however, that as this regulatory action merely updates existing 
regulations, this regulatory action will not have a significant 
economic impact on the economy, or any person or organization subject 
to the proposed changes. The Department has projected that the addition 
of the skin as an organ under the schedule award provision as well as 
the revision of the part 25 compensation for non-citizen non-resident 
employees will result in additional expenditures of $10,893,434 over 
ten years.
    This projection is based on a very limited amount of data and a 
single significant event could result in substantially higher than 
projected expenditures. This has been reviewed by the Office of 
Management and Budget for consistency with the President's priorities 
and the principles set forth in Executive Order 12866.

Regulatory Flexibility Act of 1980

    This proposed rule has been reviewed in accordance with the 
Regulatory Flexibility Act of 1980, as amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 601-612. The 
Department has concluded that the rule does not involve regulatory and 
informational requirements regarding businesses, organizations, and 
governmental jurisdictions subject to regulation.

Paperwork Reduction Act (PRA)

    This rule contains information collection requirements subject to 
the Paperwork Reduction Act (PRA) of 1995, 44 U.S.C. 3501, et seq. The 
requirements set out in this rule were both submitted to and approved 
by the OMB under the OMB Control Numbers 1240-0001, 1240-0007, 1240-
0008, 1240-0009, 1240-0012, 1240-0013, 1240-0015, 1240-0016, 1240-0017, 
1240-0018, 1240-0019, 1240-0022, 1240-0044, 1240-0045, 1240-0046, 1240-
0047, 1240-0049, 1240-0050 and 1240-0051.

The National Environmental Policy Act of 1969

    The Department certifies that this proposed rule has been assessed 
in accordance with the requirements of the National Environmental 
Policy Act of 1969, 42 U.S.C. 4321 et seq. (NEPA). The Department 
concludes that NEPA requirements do not apply to this rulemaking 
because this proposed rule includes no provisions impacting the 
maintenance, preservation, or enhancement of a healthful environment.

Federal Regulations and Policies on Families

    The Department has reviewed this proposed rule in accordance with 
the requirements of section 654 of the Treasury and General Government 
Appropriations Act of 1999, 5 U.S.C. 601 note. These proposed 
regulations were not found to have a potential negative effect on 
family well-being as it is defined thereunder.

Executive Order 13045: Protection of Children From Environmental Health 
Risks and Safety Risks

    The Department certifies that this proposed rule has been assessed 
regarding environmental health risks and safety risks that may 
disproportionately affect children. These proposed regulations were not 
found to have a potential negative effect on the health or safety of 
children.

[[Page 49604]]

Unfunded Mandates Reform Act of 1995 and Executive Order 13132

    The Department has reviewed this proposed rule in accordance with 
the requirements of Executive Order 13132, 64 FR 43225 (Aug. 10, 1999), 
and the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1501 et seq., 
and has found no potential or substantial direct effects on the States, 
on the relationship between the national government and the States, or 
on the distribution of power and responsibilities among the various 
levels of government. As there is no Federal mandate contained herein 
that could result in increased expenditures by State, local, or tribal 
governments or by the private sector, the Department has not prepared a 
budgetary impact statement.

Executive Order 13175: Consultation and Coordination With Indian Tribal 
Governments

    The Department has reviewed this proposed rule in accordance with 
Executive Order 13175, 65 FR 67249 (Nov. 9, 2000), and has determined 
that it does not have ``tribal implications.'' The proposed rule does 
not ``have substantial direct effects on one or more Indian tribes, on 
the relationship between the Federal government and Indian tribes, or 
on the distribution of power and responsibilities between the Federal 
government and Indian tribes.''

Executive Order 12630: Governmental Actions and Interference With 
Constitutionally Protected Property Rights

    The Department has reviewed this proposed rule in accordance with 
Executive Order 12630, 53 FR 8859 (Mar. 15, 1988), and has determined 
that it does not contain any ``policies that have takings 
implications'' in regard to the ``licensing, permitting, or other 
condition requirements or limitations on private property use, or that 
require dedications or exactions from owners of private property.''

Executive Order 13211: Energy Supply, Distribution, or Use

    The Department has reviewed this proposed regulation and has 
determined that the provisions of Executive Order 13211, 66 FR 28355 
(May 18, 2001), are not applicable as there are no direct or implied 
effects on energy supply, distribution, or use.

The Privacy Act of 1974, 5 U.S.C. 552a, as Amended

    Claims filed under these regulations are subject to the current 
Privacy Act System of Records, DOL/GOVT-1, Office of Workers' 
Compensation Programs, Federal Employees' Compensation Act File, 67 FR 
16826 (April 8, 2002).

Clarity of This Regulation

    Executive Order 12866, 58 FR 51735 (September 30, 1993), and the 
President's memorandum of June 1, 1998, require each agency to write 
all rules in plain language. The Department invites comments on how to 
make this proposed rule easier to understand.

List of Subjects in 20 CFR Parts 1, 10, and 25

    Administrative practice and procedure, Claims, Government 
employees, Labor, Workers' compensation.

    For reasons set forth in the preamble, the Office of Workers' 
Compensation Programs, Department of Labor, amends 20 CFR chapter I as 
follows:
    1. Part 1 is revised to read as follows:

PART 1--PERFORMANCE OF FUNCTIONS

Sec.
1.1 Under what authority does the Office of Workers' Compensation 
Programs operate?
1.2 What functions are assigned to OWCP?
1.3 What rules are contained in this chapter?
1.4 Where are other rules concerning OWCP functions found?
1.5 When was the former Bureau of Employees' Compensation abolished?
1.6 How were many of OWCP's current functions administered in the 
past?

    Authority:  5 U.S.C. 301, 8145 and 8149 (Reorganization Plan No. 
6 of 1950, 15 FR 3174, 3 CFR, 1949-1953 Comp., p. 1004, 64 Stat. 
1263); 42 U.S.C. 7384d and 7385s-10; E.O. 13179, 65 FR 77487, 3 CFR, 
2000 Comp., p. 321; Secretary of Labor's Order No. 13-71, 36 FR 
8155; Employment Standards Order No. 2-74, 39 FR 34722; Secretary of 
Labor's Order No. 10-2009, 74 FR 218.


Sec.  1.1  Under what authority does the Office of Workers' 
Compensation Programs operate?

    (a) The Assistant Secretary of Labor for Employment Standards, by 
authority vested in him by the Secretary of Labor in Secretary's Order 
No. 13-71 (36 FR 8755), established in the Employment Standards 
Administration (ESA) an Office of Workers' Compensation Programs (OWCP) 
by Employment Standards Order No. 2-74 (39 FR 34722). The Assistant 
Secretary subsequently designated as the head thereof a Director who, 
under the general supervision of the Assistant Secretary, administered 
the programs assigned to OWCP by the Assistant Secretary.
    (b) Effective November 8, 2009, ESA was dissolved into its four 
component parts, including OWCP. Secretary of Labor's Order 10-2009 (74 
FR 218) cancelled or modified all prior orders and directives 
referencing ESA, devolved certain authorities and responsibilities of 
ESA to OWCP, and delegated authority to the Director, OWCP, to 
administer the programs now assigned directly to OWCP.


Sec.  1.2  What functions are assigned to OWCP?

    The Secretary of Labor has delegated authority and assigned 
responsibility to the Director of OWCP for the Department of Labor's 
programs under the following statutes:
    (a) The Federal Employees' Compensation Act, as amended and 
extended (5 U.S.C. 8101 et seq.), except 5 U.S.C. 8149 as it pertains 
to the Employees' Compensation Appeals Board.
    (b) The War Hazards Compensation Act, as amended (42 U.S.C. 1701 et 
seq.).
    (c) The War Claims Act of 1948, as amended (50 U.S.C. App. 2003 et 
seq.).
    (d) The Energy Employees Occupational Illness Compensation Program 
Act of 2000, as amended (42 U.S.C. 7384 et seq.), except 42 U.S.C. 
7385s-15 as it pertains to the Office of the Ombudsman, and activities, 
pursuant to Executive Order 13179 (``Providing Compensation to 
America's Nuclear Weapons Workers'') of December 7, 2000, assigned to 
the Secretary of Health and Human Services, the Secretary of Energy and 
the Attorney General.
    (e) The Longshore and Harbor Workers' Compensation Act, as amended 
and extended (33 U.S.C. 901 et seq.), except: 33 U.S.C. 919(d) with 
respect to administrative law judges in the Office of Administrative 
Law Judges; 33 U.S.C. 921(b) as it pertains to the Benefits Review 
Board; and activities, pursuant to 33 U.S.C. 941, assigned to the 
Assistant Secretary of Labor for Occupational Safety and Health.
    (f) The Black Lung Benefits Act, as amended (30 U.S.C. 901 et 
seq.)., including 26 U.S.C. 9501, except: 33 U.S.C. 919(d) as 
incorporated by 30 U.S.C. 932(a), with respect to administrative law 
judges in the Office of Administrative Law Judges; and 33 U.S.C. 921(b) 
as incorporated by 30 U.S.C. 932(a), as it applies to the Benefits 
Review Board.


Sec.  1.3  What rules are contained in this chapter?

    The rules in this chapter are those governing the OWCP functions 
under the Federal Employees' Compensation Act, the War Hazards 
Compensation

[[Page 49605]]

Act, the War Claims Act and the Energy Employees Occupational Illness 
Compensation Program Act of 2000.


Sec.  1.4  Where are other rules concerning OWCP functions found?

    (a) The rules of OWCP governing its functions under the Longshore 
and Harbor Workers' Compensation Act and its extensions are set forth 
in subchapter A of chapter VI of this title.
    (b) The rules of OWCP governing its functions under the Black Lung 
Benefits Act program are set forth in subchapter B of chapter VI of 
this title.
    (c) The rules and regulations of the Employees' Compensation 
Appeals Board are set forth in chapter IV of this title.
    (d) The rules and regulations of the Benefits Review Board are set 
forth in Chapter VII of this title.


Sec.  1.5  When was the former Bureau of Employees' Compensation 
abolished?

    By Secretary of Labor's Order issued September 23, 1974 (39 FR 
34723), issued con