Appeals court removes key civil service protection

National News

A federal appeals court ruling that has taken key civil service protection away from government employees involved in national security work will have far-reaching implications, advocates for federal workers say.

Tom Devine, legal director of the Government Accountability Project, a whistle-blower advocacy group, said Tuesday that the appeals court has given agencies "a blank check to cancel all government accountability in civil service law."

In a 2-1 decision Friday involving two Defense Department employees, the U.S. Court of Appeals for the Federal Circuit said the Merit Systems Protection Board is prohibited from reviewing dismissals and demotions of government employees who hold "noncritical sensitive" positions, regardless of whether those jobs require access to classified information.

The dissenting judge in the case said the decision "effectively nullifies" the 1978 civil service law. Advocates for federal workers point out that federal employees in "noncritical sensitive" jobs work at many federal agencies, making the impact of the ruling government-wide.

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Workers’ Compensation Subrogation of Administrative Fees and Costs

When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.

In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.

In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.

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