The Form 1032 – Is it the “Kiss of Death” of FECA Forms?

Generally speaking, when you are receiving workers’ comp payments, you have a responsibility to notify whoever is paying you if you have returned to work. Each state has its own specific form to report this information, the deadlines to report, and the penalties if you do not report.

In Louisiana, for example, the 1020 form will ask the injured worker about receiving salaries, wages, sales commissions, “or payment, including cash, of any kind.” It asks the injured worker about involvement in self-employment and volunteer work. All of this is understandable. If you can spend 6 hours a day at a desk and computer for yourself, even if you don’t make any money, you should be able to do the same for someone and make money. If you can volunteer yourself for a few hours a week then you, in theory, might be able to do it for money.

In federal workers’ comp cases, the duty to report is less frequent, but the interpretation of what must be reported is very broad. Therefore, if you do not disclose something OWCP could find you owing a significant overpayment and possibly kill your case.

So, the question was posed in a discussion about whether sales on eBay must be reported to OWCP?

Before we get to that, let’s review the basics of reporting earnings to FECA.

If you have reviewed the CA-7, Claim for Compensation, issued by OWCP, you will see in Section 3 instructions that you must report “any and all earnings from employment (outside of your federal job). This includes employment that you received “a salary, wages, income, sales commissions, or payment of any kind.” The Sections clarifies that the employment includes “self-employment, odd jobs, involvement in business enterprises, as well as service with the military.”

OWCP created the Form CA-1032, Request for Information on Earnings, Dual Benefits, Dependents and Third-Party Settlements

When an injured federal or postal worker is receiving benefits on the periodic roll they are required to complete this form every 15 months and upload it to their ECOMP file. When received, it must be completed and returned within 30 days. If you do not return it within the 30-day period, then your benefits will be suspended. If that happens, then you must request a reconsideration with a completed copy of the CA-1032. The claims examiner should promptly reinstate your benefits at that point.

So, what do you need to report? In the question posed during the discussion, a claimant had sold some personal items on Ebay for a few hundred dollars. I see this a lot in state cases where a client may sell personal items on places like Craigslist or Facebook Market Place to cover some bills. Does this qualify as a “business,” “self-employment,” or an “enterprise?”

In situations like that, I always advise a client to disclose it. Since, in those state cases the forms are completed each month, it is easier to contain an offset, if any, to a shorter period.

FECA is a little different

The OWCP definition of “work” does not mean only activity for which you get paid a salary or paid by the hour. Helping other people do their work is also “work.” Examples include answering the phone for a spouse’s business, doing tax returns for others, driving your friends to and from work every day. Volunteer activity, if regular and for a significant number of hours, can also count as work. If you fail to report such activity to OWCP you risk having your benefits cut off and having to repay previously received benefits, and worst-case, going to prison. If you have time and need something to do start educating yourself for a career switch. Do not do other people “favors.” That sounds selfish but the penalties for getting caught are severe and if your benefits get suspended it may take a long time to get them reinstated.

In the matter of G.G., Appellant and USPS 14-1847, 115 LRP 4803 (1/9/15) ECAB approved of OWCP’s termination of benefits by not disclosing what she made from eBay sales. The claimant responded “no,” to all questions about her involvement in business establishment or self-employed when she has, in fact, sold 71 items on eBay. The claimant argued that she made no money from these sales, and that she did them for a friend.

ECAB found that the claimant forfeited her compensation by not disclosing the earnings she made from the eBay auctions on the 1032 forms. Regardless of whether the claimant believed she did not make any money from the sales, the forms clearly stated that any involvement in a business enterprise had to be reported. In addition, the certification clauses on the form clearly state that a claimant is advised that any fraudulent concealment or failure to report income may result in both forfeiture of the right to compensation and criminal prosecution.

So, when in doubt about whether to report or not, ask an attorney that understands FECA. If you have questions about how to answer your 1032 form, or anything else about your federal workers’ compensation claim, Sarphie Law is ready to help.

We Will Review Your Case For Free.

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