Background

U.S. Postal Service employees who sustain a workrelated injury or occupational disease are covered by the Federal Employees’ Compensation Act (FECA), which provides monetary and medical benefits and assistance in returning employees to work. These benefits include wage-loss compensation, medical and rehabilitation services, and death benefit payments to surviving dependents.

The Postal Service encourages employees to report any work-related injuries or illness to their supervisors as soon as possible. Additionally, the Postal Service manages efforts to return injured employees to work through its Injury Compensation Program by monitoring their medical status and identifying suitable work. The Department of Labor (DOL) Office of Workers’ Compensation Program (OWCP) has the exclusive authority to administer, implement, and enforce FECA, including paying claims on behalf of injured employees.

The Postal Service’s workers' compensation costs per workhour have been consistently higher when compared to the private industry. This white paper is intended to provide an update on the Postal Service’s workers’ compensation activity since the last audit report, which included a summary of trends in costs from chargeback year (CBY) 2017 through CBY 2022, and employees on the periodic rolls from fiscal year (FY) 2017 through FY 2022. Specifically, the following sections show how workers’ compensation costs for the Postal Service continued to rise over the last two years.