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Third Party Claims and Workers’ Compensation After Work Accident: Federal Coverage

There are more federal workers on the job in Illinois and Indiana than many realize. For instance, since 2023, Amazon sellers have been able to choose USPS Ground Advantage to deliver goods purchased at Amazon.com. Amazon also utilizes the United States Postal Service for its Last Mile Delivery services, as well as other delivery services under a contract between Amazon and USPS that has been in place since 2013. Read, “When Amazon comes to town, rural post offices struggle to keep up with deliveries,” written by Kai Ryssdal and Sofia Terenzio and published by Marketplace on December 11, 2023.

Other industries in our part of the country, other than warehousing and distribution services, are also heavily involved with federally-related employment. One reason? Indiana and Illinois are each a national and international transportation hub, and our railroaders and maritime workers are often involved with federal transport.

Consider this: The Illinois Department of Transportation describes Illinois as the “center of the nation’s rail network… with 7792 miles of Class I railroads alone (think BNSF and Union Pacific).  And Indiana has been recognized as a major contributor to the international maritime industry: “even with less than 1 percent of the shoreline, Indiana accounted for more than half of the U.S. economic activity related to shipping on the Great Lakes.” Read, “New report shows Indiana part of $35 billion Great Lakes shipping economy,” written by Larry Avila and published by NW Indiana Business Magazine on March 17, 2021.

And of course, there are other employees on the federal payroll, including law enforcement, civil service employees (GS-1 to GS-15), and federal contractors. What happens when someone is hurt on the job in either Indiana or Illinois and they are a federal employee?

Some workers hurt on the job in Illinois or Indiana will not be able to file for state workers’ compensation benefits. Instead, they will have to file under various, specific federal statutes that provide coverage for federal work accidents. They will also be able to investigate and pursue third party claims, similar to other workers in either state, but they must do so in compliance with these federal mandates.

For more, read: Work Injuries and On-the-Job Accidents in Indiana and Illinois With Federal Law Protections: FELA, Jones Act, LHWCA, DBA.

Federal Employees’ Compensation Act (FECA)

The Federal Employees’ Compensation Act (FECA) provides workers’ compensation coverage for many federal employees, including those working for the United States Postal Service; medical staff at Veterans’ Affairs facilities like the Richard L. Roudebush VA Medical Center; security officers at Chicago’s O’Hare International Airport; and civilian workers with the Army Corps of Engineers who may be on the job at any number of construction projects here.

Under FECA, these federal workers have the right to investigate and assert injury claims against third-parties who have caused their bodily injury or death. They are also legally required under FECA to report their third party claims to the federal government, and they may be liable for reimbursing the workers’ compensation benefits they received out of their ultimate recovery from these third party wrongdoers.

See: Federal Workers Compensation Laws Being Reviewed by Congress; Will Federal Workers Compensation Pay Be Cut? and Worker’s Compensation vs. Personal Injury Claims: Who Has to Pay?

Federal Employers’ Liability Act (FELA)

Railroad workers have another law that covers their work accidents. Under the Federal Employers’ Liability Act (FELA), if the worker is paid by a railroad company that is involved in interstate commerce, then their injuries on the job will be covered by FELA, not the state system.

Furthermore, injured railroaders for these railways are free to assert personal injury claims against third parties whose liability they have discovered through investigation by accident experts and legal advocates. As with the state workers’ compensation plans here, rail accident benefits will not be as broad in coverage as personal injury awards.

See: Dangerous Railroads in Illinois, Indiana, Chicagoland: Deadly Collisions and Work Accidents.

Longshore and Harbor Workers’ Compensation Act and the Jones Act

Workers in our part of the country who work on vessels or on shore in the maritime industry will be covered by one of two pieces of federal legislation insofar as obtaining benefits after an on-the-job accident. Think of a tugboat worker in Indiana’s Burns Harbor or deckhands working out of the Port of Chicago.

Maritime work is covered by two different workers’ compensation statutes: the Longshore and Harbor Workers’ Compensation Act (33 USC 901-950) and the Jones Act (46 USC §30104).

There can be a legal hurdle to determine who is covered under these laws. For the Jones Act, the Department of Labor clarifies:

The determination turns solely on the employee’s connection to a vessel in navigation. It is not necessary that an employee aid in navigation or contribute to the transportation of the vessel in order to be “seaman” under the Jones Act, but the employee must be doing the ship’s work by contributing to the function of the vessel or the accomplishment of its mission.”

These maritime workers will be able to sue third parties for personal injury claims in state court, too, for things like negligence on the part of contractors; subcontractors; equipment or machinery manufacturers for defective products or failures to warn; etc. Their particular workers’ compensation statute will provide for how these claims are to proceed and if reimbursement will be required.

See: The Jones Act vs. the Longshoreman and Harbor Workers’ Compensation Act for Maritime Workers.

Federal Work Accidents and Third Party Claims for Justice

After a serious or deadly work accident involving someone employed by a federal agency or involved in a federal service, specific federal statutes will apply to their bodily injuries and compensation available to them and their family members. These injured workers will be allowed to file for worker’s compensation benefits as defined by the federal statute that applies to their situation. They will not be allowed to sue the federal government for damages.

However, they are free to investigate legal liability with any and all third parties who may have caused the accident and proceed under the applicable state laws like negligent supervision; negligent training or hiring; product liability involving defects in design, manufacture, failures to warn; premises liability for things like hidden electrical live wires; or malpractice for failures in planning, design, or safety supervision.

These matters must be considered and pursued carefully, because of the detailed requirements of each federal act. Different statutes of limitations may apply (there is a three year deadline under FELA), and different duties may exist for notice, benefits documentation, etc.

Workers hurt on the job in Illinois or Indiana may find the assistance of an experienced injury attorney to be extremely helpful in many ways. Working together with accident reconstruction experts and others, the worker victim and their loved ones may find justice in the aftermath of a severe work accident from companies or individuals who have blatantly ignored or disregarded long-standing duties of care and safety.

For more, read:

Some workers in Indiana and Illinois will have workers’ compensation benefits available to them under federal law. They are free to investigate and pursue third party claims for personal injuries suffered in an on-the-job accident, subject to the requirement of their particular federal workers’ compensation coverage. These are workers who on the job in some of our most dangerous job sites. Please be careful out there!

Contact Us

If you or a loved one has been seriously injured or killed due to the wrongful acts of another, then you may have a legal claim for damages as well as the right to justice against the wrongdoer and you are welcomed to contact the Northwest Indiana and Chicagoland personal injury lawyers at Allen Law Group to schedule a free initial legal consultation.

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