Entitlement to Continuation of Pay After Separation

A Federal Bureau of Investigation (FBI) official requested an advance decision as to the procedure to be followed in providing continuation of pay for two former employees after they had left the rolls of the agency. The employees were injured during a training program. Their injuries were job related, reported within the prescribed notification period, and there was medical evidence that the disabilities caused by the injuries continued. The FBI certifying officer sought advice as to whether the claims were proper for payment from the appropriated funds of the agency to employees no longer on the agency rolls, and if so, whether the pay should be subject to deductions for retirement, health benefits, insurance, and taxes. The Department of Labor (DOL) advised the FBI that the employees should receive continuation of pay for the full 45-day entitlement period even though the individuals had left the agency. According to DOL, the status as an employee in such cases is determined at the time of injury, and entitlement is not terminated by the employee's leaving the agency. By regulation, DOL has the authority to decide all questions concerning compensation for work injuries. The decisions are not subject to review. Accordingly, it was held that payments of appropriated funds were proper in these cases. Regulations provide that taxes and other deductions are applicable to continuation pay. The FBI was referred to the Office of Personnel Management for further clarification concerning retirement and health deductions in these cases.