Breaking Down OWCP Vocational Rehab & The Shadrick Formula

Episode Summary: Fresh off their trip to the Bureau of Prisons National Convention in Fort Lauderdale, Chris and Gini dive into a highly requested topic: OWCP Vocational Rehab. If you are a federal employee unable to return to your original job due to an accepted injury, this episode breaks down your options, your rights, and the complex math behind your continuing compensation. Key TakeawaysVocational rehab is designed to help injured federal workers transition into new employment while compensating them for their lost wage-earning capacity. This program serves as an alternative to OPM FERS disability, which drops an employee's compensation to 40% of their previous salary in their second year. OWCP uses the Shadrick formula to calculate your adjusted wage loss by comparing your new earning capacity against what your original federal job pays today. Workers with an eligible dependent receive 75% of their adjusted wage loss, while those without dependents receive 66 and two-thirds percent. Federal benefits like FEHB health insurance, dental, vision, and OWCP medical treatment often continue while enrolled in this program. Injured workers must not casually refuse job offers but should challenge medically inappropriate work using specific medical restrictions provided by their treating doctor. Important statutes to reference are 5 U.S.C. 8104 for vocational rehabilitation and 5 U.S.C. 8115 for the determination of wage-earning capacity. The Shadrick Formula ExampleAssume a federal employee earned 80,000 dollars annually at the time of their injury. The worker completes vocational rehab and secures a private-sector job earning 60,000 dollars. If their original federal job now pays 100,000 dollars today, their new 60,000 dollar salary represents a 60% wage-earning capacity. Multiply the original 80,000 dollar salary by that 60% capacity to equal 48,000 dollars. Subtract 48,000 dollars from the original 80,000 dollars to determine an adjusted wage loss of 32,000 dollars. If the worker has a dependent, OWCP pays 75% of that 32,000 dollar wage loss, providing an additional 24,000 dollars in compensation. Website for Locations. www.federalinjurycenters.comContact: 877-787-OWCP or message us FacebookTo Buy The Book: www.breakingowcp.comTo Email information: [email protected] Us on Facebook, YouTube, LinkedIn, Instagram @Wednesday Night OWCP Chats with Chris & Gini