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Code of Federal Regulations Pertaining to U.S. Department of Labor |
| Employees' Benefits |
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| Office of Workers' Compensation Programs, Department of Labor |
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| Claims for Compensation Under the Federal Employees' Compensation Act, As Amended |
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| Continuing Benefits |
20 CFR 10.540 - When and how is compensation reduced or terminated?
- Section Number: 10.540
- Section Name: When and how is compensation reduced or terminated?
(a) Except as provided in paragraphs (b) and (c) of this section,
where the
evidence establishes that compensation should be either reduced or
terminated, OWCP will provide the beneficiary with written notice of the
proposed action and give him or her 30 days to submit relevant evidence
or argument to support entitlement to continued payment of compensation.
This notice will include a description of the reasons for the proposed
action and a copy of the specific evidence upon which OWCP is basing its
determination. Payment of compensation will continue until any evidence
or argument submitted has been reviewed and an appropriate decision has
been issued, or until 30 days have elapsed if no additional evidence or
argument is submitted.
(b) OWCP will not provide such written notice when the beneficiary
has no reasonable basis to expect that payment of compensation will
continue. For example, when a claim has been made for a specific period
of time and that specific period expires, no written notice will be
given. Written notice will also not be given when a beneficiary dies,
when OWCP either reduces or terminates compensation upon an employee's
return to work, when OWCP terminates only medical benefits after a
physician indicates that further medical treatment is not necessary or
has ended, or when OWCP denies payment for a particular medical expense.
(c) OWCP will also not provide such written notice when compensation
is terminated, suspended or forfeited due to one of the following: A
beneficiary's conviction for fraud in connection with a claim under the
FECA; a beneficiary's incarceration based on any felony conviction; an
employee's failure to report earnings from employment or self-
employment; an employee's failure or refusal to either continue
performing suitable work or to accept an offer of suitable work; or an
employee's refusal to undergo or obstruction of a directed medical
examination or treatment for substance abuse.
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