Schedule award lump sum may delay second award

The law provides that a schedule award should be paid out every four weeks until the entire payment of the award is made to the injured worker. If, for instance, a claimant received an award letter advising of 40 weeks of compensation, he would receive a total of 10 payments made every four weeks.

The law provides that the claimant cannot receive any additional compensation from the OWCP during the 40 week period that he is receiving payment of the schedule award. That would mean that he may not receive payment of wage loss benefits during the 40 week period that he receives payment for a schedule award.

The law does allow the federal government to pay out a schedule award to an injured worker if it determines that such a payment is in the best interests of the individual. If the injured worker were to receive a lump sum payment for 40 weeks during his first week, he would be unable to receive any additional compensation benefits from the OWCP until the 40 week period expires.

This is an important concept to remember if you become eligible for a second schedule award during the time period that the initial award is being paid out. You must also remember that you will be unable to elect wage loss benefits under OWCP during the time that you are being paid for a schedule award.

In one case, a claimant had received a lump sum payment for a schedule award in 1999 which would have run into 2006. He requested payment of a second schedule award in 2004. The ECAB provided that he was entitled to the second schedule award but could not received payment until the payout from the 1999 award expired in early 2006.

If you have questions please visit www.barzLaw.com or email Steve@theOWCPattorney.com.

© Stephen V. Barszcz, P.A. 2012