If you’re injured on the job, your first thought might be: “Do I qualify for workers’ compensation?” But what most people don’t realize is that not all workers’ comp systems are the same—especially when it comes to federal employees.

There’s a significant difference between federal workers’ compensation (administered by the OWCP) and state workers’ compensation programs. In this article, I’ll break it down in clear terms, so you understand which system applies to you, what benefits you can expect, and why it matters more than you think.

Who Gets Federal Workers’ Compensation?

If you are a civilian employee of the United States federal government, then you’re covered by the Federal Employees’ Compensation Act (FECA)—not your state’s compensation system.

This includes:

• Postal workers (USPS)

• TSA officers

• Federal law enforcement

• VA medical staff

• IRS employees

• Social Security Administration workers

• Civilian employees on military bases

The Office of Workers’ Compensation Programs (OWCP) under the U.S. Department of Labor handles all federal comp claims.

In contrast, if you work for a private company, a state agency, or a city government, then your injury will fall under your state’s workers’ comp system.

Key Differences Between Federal and State Workers’ Comp Systems

While both systems aim to provide medical and wage benefits for injured employees, they operate very differently in practice. Here’s a side-by-side breakdown of how they compare:

Why the Difference Matters

You might think workers’ comp is just workers’ comp—but the system that applies to you dictates your rights, your process, and even your outcomes.

For example:

• A postal worker who uses their personal health insurance instead of filing an OWCP claim may miss out on years of tax-free income replacement and a potential schedule award.

• A TSA agent trying to navigate a state system will be told, “You don’t qualify here”—because only OWCP covers federal employees.

• Many state systems cap benefits, limit the duration of wage payments, or require you to see employer-approved doctors. Federal comp offers more flexibility.

Misfiling or delaying because of confusion between systems can jeopardize your benefits or even result in your claim being denied.

OWCP Process vs State Workers’ Comp: What to Expect

The OWCP process is notoriously paperwork-heavy, but it offers clear rights once approved. You’ll submit:

• CA-1 for traumatic injury or CA-2 for occupational illness

• Medical narrative reports linking the injury to your federal duties

• CA-17 (Duty Status Reports) for ongoing updates

OWCP often takes weeks to process, but once accepted, your benefits are robust.

State systems vary widely, but many involve:

• Faster initial approvals

• Tighter restrictions on provider choice

• Shorter benefit windows

• Complex legal battles if disputes arise

If you’re a federal worker, trying to file in a state system is like bringing your passport to a local DMV: it’s the wrong agency for your issue.

Choosing the Right Medical Provider

One of the most critical decisions is who treats your injury. In most states, your employer has some say in this. But under OWCP, you have the right to choose your own doctor, as long as they are registered with the Department of Labor and understand the OWCP system.

Why this matters:

• State doctors often don’t understand OWCP paperwork

• Improper documentation is the #1 reason OWCP claims are denied

• An OWCP-experienced doctor can mean the difference between approval and years of appeal

Legal Representation: State vs Federal

Workers’ comp attorneys are common in state systems. They often work on contingency and navigate court-like proceedings. In federal comp, things work differently:

• Many federal comp consultants or advocates work independently, helping you gather medical evidence and file claims.

• Attorneys are less involved unless you’re appealing to ECAB or suing for third-party negligence.

Still, getting help—whether from an OWCP-knowledgeable doctor, a claims expert, or an advocate—is crucial.

Common Mistakes When You Confuse the Systems

I’ve seen it many times—federal workers using state claims processes, or vice versa. Here are the biggest red flags:

❌ Filing a claim with your state when you’re a federal employee
❌ Using your private health insurance instead of OWCP
❌ Letting your supervisor tell you “just take sick leave”
❌ Waiting too long to report the injury

Remember: the longer you wait, the more difficult it becomes to connect your injury to your job.