When Postal Service employees get hurt on the job or develop a work-related illness, workers’ compensation benefits are there to help — covering medical care and lost wages while they recover. These benefits are part of a federal program run by the Department of Labor, and USPS participates just like other federal agencies.
But here’s the thing: Workers’ compensation is a big-ticket item for the Postal Service. In recent years, the Postal Service has spent more than $1.5 billion annually to reimburse workers’ compensation claims and administrative costs. And that’s not the whole story—each year, USPS also accrues additional non-cash expenses for future costs, adding to its financial liabilities.
At the OIG, our Office of Investigations works to reduce these costs by fighting fraud in the program. They investigate fraudulent charges by doctors, pharmacies, and other providers who look to exploit the workers’ compensation program. In one case, our special agents worked with five other Offices of Inspector General to stop a company that was billing federal programs, including the workers’ compensation program, for unnecessary medical supplies. Our special agents also investigate fraud by claimants who fail to report outside income or make other false statements. Read about one claimant who reported being disabled and unable to work while leading an active life running a business here.
In addition, we conduct audit and research work involving workers’ compensation. A recent white paper highlighted how the Postal Service’s average workers’ compensation costs per workhour were higher than for private industry, and the gap was getting larger. Had the Postal Service been able to operate workers’ compensation more like the private sector, it could have potentially saved $4.15 billion over 10 years. You can read about the OIG’s workers’ compensation work and find a list of related reports in our Focus on Workers’ Compensation.
Do you have ideas for controlling workers’ compensation costs? Let us know in the comments below.
There’s quite a bit to unpack here, that’s for sure. A large part of this is a direct result of the Das award that created the non career workforce and all of the other two tiered craft jobs other contracts spawned. Couple that with radical DEI initiatives and the result is a markedly lower threshold employee often looking to take advantage of the system. And why not when you work with people making twice what you do and management is abusive, as management is known to do. Every office of any size has one or more that’s hurt and been out for years and still getting paid. Another group that’s disproportionately represented is , I’m sorry to say, veterans. I worked with lots of Vietnam vets and they, for whatever reason, were stand up guys that never complained or got hurt. These younger vets talk openly about their disability rating and which doctor will help get a higher rating. Let’s be clear, this isn’t all of them but it is a disproportionate number and that’s ok, but the USPS knows this so they shouldn’t complain. The end result of all of this is the OIG doesn’t have the manpower to deal with these numbers of individuals and those really injured pay dearly when they are hurt, treated like criminals by management and the department of labor alike. Hiring standards have fallen so low it’s pitiful. The USPS wanted the non career position and are admirably pro veteran, but as the old saying goes, be careful what you ask for because you just might get it.
Safety is the biggest joke in the post office. Management pushes and pushes and could not care less about your safety or health. I have 45 years in the Postal Service and have seen it all. I have reported fraud about my postmaster 3 times and nothing was done.
I have witnessed employees claiming inability to perform certain functions due to an O-T-J injury. I have seen Inspection Service videos of those same employees, off duty, doing exactly what they say they cannot do at work. Regardless, those employees are still working, still on limited duty, and a poor example for newer employees.