Cornell University Library HD7816.U6A3 1914a Federal employees' compensation . 3 1924 002 404 766 HD 7816 U6 A3 191/4'a U. S. Congress. House. Committee on'', the Judiciary. Federal employees' compensation ... Reporti HD CORNELL UNIVERSITY LIBRARY NEW YORK STATE SCHOOL OF INDUS'TRIAL AND LABOR RELATIONS THE GIFT OF The Family of Dr. I M. RuBiNOW 1875-1936 eaSession. f " 1 No. 661. 6SD^qp|tGBES8, ^' HOUSE OF EEPRESENTATIVES. j Repoet f ERERAJU EMPI^OTEE^' COMPe:nsaTIQN. April 21, 1914. — Go^umitted to the Cominittee of tie VTlio^e House on ^e; sta|g,,of the Union and ordered to be printed. Mr. IilpGiLLiouDDT, from the Committee on the Judiciary, submitted the following REPORT. [To accompany H. R. 15222.] The Committee on the Judiciary, having had under consideration H. R. 15222, to provide compensation for employees of the United States suffermg injuries or occupational diseases in the course of their employment, report it back to the House with the following amend- ments and recommend that the bill as amended do pass : ^. Amendment No. 1; Page 2, at the end of line 2, add "or if the injury or death results solely from the intoxication of the injiored employee in the course of his employment." Amendment No. 2: Page 6, line 15, strike out the sentence, "In case of marriage there shall be paid to her a lump sum equal to 36 months' compensation." Amendment No. 3: Page 9, line 15, add at the end the following: "The terms 'adopted' and 'adoption' as used in this clause include only legal adoption." Amendment No. 4: Page 10, after line 7, insert a paragraph to read as follows : (L) If any person, entitled to compensation imder tliia section, whose compensation by the terms of this section ceases upon his marriage, accepts any payments of com- pensation after his marriage he shall be punished by a fine of not more than $2,000 or by imprisonment for not more than one year, or by both such fine and imprison- ment. Amendment No. 5: Page 11, line 24, strike out the words "Nar tional Fraternal Congress" and insert in place thereof the words "American Experience Table of Mortahty," and strike out the word *' Table" at the end of said line. .. Amendment No. 6: Page 16, lines 10 to 11, strike out the words "no claims for compensation under this act shall be assignable" ?«,nd insert in place thereof the following: "any assignment of a claim for compensation under this act shall be void." Amendment No. 7, page 21, line 18, before the comma, insert the word "Company." 2. . FEDERAL EMPLOYEES' COMPENSATION. Amendment No. 8, page 22, line 14, strike out the period and insert in place thereof the following: : And provided further, That if an injury or death for which compensation is payable under this act is caused under circumstances creating a legal liability in the Panama Railroad Company to pay damages therefor under the laws of any State, Territory, or possession of the United States or of the District of Columbia or of jany foreign country, no compensation shall be payable until the person entitled" to compensation releases to tile Panama Railroad Company any right of action which he may have to enforce such liability of the Panama RaUroad Company, or until he assig^ to the United States any right which he may have to share m any money or other property received iu satisfaction of such liablity of the Panama Railroad Company. The bill as amended reads as follows: FEDEBAL EMPLOYEES' COMPENSATION. 63d congress, 2d Session. } H.E. 15223. IN THE HOTJSE OF REPRESENTATIVES, March 31, 1914. Mr. McGiLLicuDDY introduced the following bill; which was referred to the Com» mittee on the Judiciary and ordered to be printed. [Omit the part struck through and insert the part printed in italic] A BILL To provide compensation for employees of the United States sufieiing injuries or occupational diseases in the course of their employment and for other purposes. 1 Be it enacted hy the Senate and House of Representor 2 tives of the United States of America in Congress assembled, 3 That the United States shall pay compensation as herein- 4 after specified for the disability or death of an employee 5 resulting from a personal injury sustained in the course of 6 his employinent, and for the disability, death, or suspension 7 from work of an employee resulting from an occupational 8 disease contracted in the course of his employment; but no 9 coroipensation shall be paid if the injury, death, or occupa- FEDEEAL EMPLOYEES' COMPENBATIOISr. 1 tional disease is caused by the employee's intention to bring 2 about the injury or death of himself or of another, or if the 3 injury or death residts solely from the intoxication of the ivr 4 jured employee in the course of his employment. 5 Sec. 2. That during the first three days of disability 6 the employee shall not be entitled to compensation except 7 as provided in sectifH tes- No eompeiisation sh^all at any 8 time be paid for such period. 9 Sec. 3. That if the disabiEty is total the United States 10 shall pay to the disabled ©mployee during such disability a 11 monthly compensation equal to sixty-six and two-thirds per 12 centum of liis monthly pay. 13 ^EC. 4. T)iat if ^^ disability is pflo^tja^ tl^^ IJnft^ed 14 States shall pay to the disabled employee during such dis- 15 ability a monthly compensation equaj to sixty-six and two- 16 thirds per centum of the difference between his monthly pay 1 7 and his monthly wage-earning capacity after the beginning of 18 such partial disability. The commission may, from time to 19 time, require a partially disabled employee to make an affi- 20 davit as to the wages which he is then receiving. In such 21 affidavit the employee shall include a statement of the value 22 of housing, board, lodging, and other advantages which are 23 received from the employer as a part of his remuneration 24 and which can be estimated in money. If the employee, 25 when required, fails to make such affidavit he shall not be 26 entitled to any compensation while such failure continues, (2) FEDERAL employees' OOMPENSATrON. 1 and fhe period of Such failure shall be deducted from the 2 period during which compensation is payable to him. 3 Sec. 5. That if a partially disabled employee refuses to 4 work after suitable w'ork is furnished to or secured for him 5 by the United States he shall not be entitled to any com- 6 pensation while such refusal continues, and the period of 7 such refusal shall be deducted from the period during which 8 (JOnipenSation is payable to him. 9 Sec. 6. That if, as a result of any examination author- 10 ized by section twenty-three, any employee is found to 11 have contracted any occupational disease he may, in the dis- 12 cretion of the commission, although not disabled, be sus- 13 pended from work, or, if practicable, given other Work which 14 he niay be physically able to do until such time as, in the 15 opinion of the commission, it is safe for him to retiffn to his 16 i^gular wOrk. During such suspension or substitute ein- 17 ployihent the United States, if he has contracted the disease 18 in the course Of his employment, shall pay tO him a inonthly 19 compensation as for total or partial disability, as the case 20 niay be. 21 Sfic. 7. That the monthly compensation for total dls- 22 ability or for susJ)ension from work shall not be ttiore than 23 $66.67 nor less than S33.33, unless the employee's toOhthly 24 pay is less than $33.33, in whifch case his inonthljr compen- 25 satioii ^haU be the full amount Of his monthly pay. The (^) 6 FEDERAL EMPLOYEES' COMPENSATION. 1 monthly compensation for partial disability shall not be more 2 than $66.67. In the case of persons who at the time of the 3 injury or of the beginning of disability or suspension from 4 work resulting from an occupational disease were ininors or 5 employed in a learner's capacity and who were not physically 6 or mentally defective, the commission shall, on any review , 7 after the time when the monthly wage-earning capacity of 8 such persons would probably, but for the injury or disease, 9 have increased, award compensation based on such probable 10 monthly wage-earning capacity. The commission may, on 11 any review after the time when the monthly wage-earning 12 capacity of the disabled employee would probably, irre- .13 spective of the injiu'y or disease, have decreased on account 14 of old age, award compensation based on such probable 15 monthly wage-earning capacity. 16 Sec. 8. That as long as the employee is. in receipt of 17 compensation under this Act, or, if he has bpen paid a lump 18 sum in commutation of installment payments, until the ex- 19 piration of the period during which such installment pay- 20 ments would have continued, he shaU not receive from the 21 United States any salary, pay, or remuneration whatsoever 22 except in return for services actually performed, and except 23 pensions. 24 Sec. 9. That if at the time the disability or suspension 25 from work begins the employee has annual or sick leave to (4.) FEDEBAL EMPLOYEES' COMPENSATION, 7 1 his credit he may, subject to the approval of the head of 2 the department, use such leave until it is exhausted, in 3 which case his compensation shall, in the case of suspension 4 from work, begin immediately after the annual or sick leave 5 has ceased, and, in case of disabiUty, begin on the fourth 6 day of disability after the annual or sick leave has ceased. 7 Sec. 10. That immediately after an injury sustained 8 by an employee in the course of his employment, whether 9 or not disability has arisen, and for a reasonable time there- 10 after, and immediately after the beginning of disability or 11 of suspension from work due to an occupational disease con- 12 tracted by an employee in the course of his employment, 13 and for a reasonable time thereafter, the United States shall 14 furnish to such employee reasonable medical, surgical, and 15 hospital services and supplies unless he refuses to accept 16 them. Such services and supplies shall be furnished by 17 United States medical officers and hospitals, but where this 1 8 is not practicable shall be furnished by private physician's an^ 19 hospitals designated or approved by the commission and 20 paid for from the employees' compensation fund. If neces- 21 sary for the securing of proper medical, surgical, and hospital 22 treatment, the employee, in the discretion of the commission, 23 may be furnished transportation at the expense of the em- 24 ployees' compensation fund. (5) PEDBBAL KMPL0YEE6 COMPENSATION. 1 Sec. 11. That if death results from the injury or from 2 the occupational disease tdthin six years after the injury 3 or fJie beginning of disability or suspension from work 4 due to such disease the United States shall pay to the 5 following persons for the following periods a monthly com- 6 pensation equal to the following percentages of the deceased 7 employee's monthly pay, subject to the modification that no 8 compensation shall be paid where the death takes place 9 more than one year after the cessation of disability resulting 10 from such injury, or of disability or suspension from work 11 resulting from such disease, or, if there has been no disability 12 preceding death, more than one year after the injury: , 13 (A) To the widow, if there is no child, thirty-fivfe 14 per centum. This compensation shall be paid iindl her 15 death or marriage. I n c as e of mar yia gc, there e hnll- bo pa i4 17 (B) To the widower, if there is no child, thirtSr-fitfe 18 per centum if wholly dependent for support upon the de- 19 ceased employee at the time of her death, and «uch propor- 20 tionate amount as the commission deetos proper if partly 21 dependent. This compensation shall be paid until his death 22 or marriage. 23 (C) To the widow or widower, if thei'e is a child, the 24 compensation payable und^ cltiuse (A) or clause (B) and 25 in addition thereto ten per centum for each child, not to (6) FEDERAL EMPLOYEES' COMPENSATION. 9 1 exceed a total of sixty-six and two thirds per centum for such 2 widow or widower and children. The compensation payable 3 on account of any child shall cease when he dies, marries, or 4 reaches the age of eighteen, or, if OTer eighteen, and in- 6 capable of self-support, becomes cap9,ble of self-suppOrt. 6 (D) To the children, if there is no widow or widower, 7 twenty-five per centum for one child and ten per centum 8 additional for each additional child, not to exceed a total of , 9 sixty-six and two-thirds per centum, divided among such chil- 10 dren share and share alike. The compensation of ea«h child 11 shall be paid until he dies, marries, or reaches the age of 12 eighteen, or, if over eighteen and incapable of self-support, 13 becomes capable of self-support. The compensation of a 14 child under legal age shall be paid to its guardian. 15 (E) To the parents, if one is wholly dependent for 16 support upon the deceased employee at the time of his death 17 and the other is not dependent to any extent, twenty-five 18 per centum; if both are wholly dependent, twenty per 19 centum to each; if one is or both are partly dependent, a 20 proportionate amount in the discretion of the commission. 21 The above percentages shall be paid if there is no 22 widow, widower, or child. If there is a widow, widowfet, 28 or chMj there ghall be paid So much of the above percentages 24 as, when added to the total percentages payable to the (7) 10 FEDERAL EMPLOYEES' COMPENSATION. 1 widow, widower, and children, will not exceed a totalof 2 sixty-six and two-thirds per centum. 3 (F) To the brothers, sisters, 'grandparents, and grand- 4 children, if one is wholly dependent upon the deceased em- 5, ployee for support at the time of his death, twenty per 6 centum ; if more than one are wholly dependent, thirty per 7 centum, divided among them share and share alike; if there 8 is no one of them wholly dependent, but one or more partly 9 dependent,, ten per pentum divided among them share and 10 share alike; ' 11 The above percentages shall be paid if there is no .12 widow, widower, child, or dependent parent. If there is a 13 widow, widower, child, or dependent parent, there shall be 14 paid so much of the above percentages as, when added to 15 the total percentage payable to the widow, widower, chil- 16 dren, and dependent parents, will not exceed a total of 17 sixty-six and two-thirds per centum. 18 CGr) The compensation of each beneficiary under 19. clauses (E) and (F) shall he paid for a period of eight 20 years from the time of the death, imless before that time he, 21 if a parent or grandparent, dies, marries, or ceases to be 22 dependent, or, if a brother, sister, or grandchild, dies, mair- 23 ries, or reaches the age of eighteen, or, if over eighteen aM 24 incapable of self-support, becomes capable of self=-suppoft. 26 The compensation of a brother, sister, or grandchild under 26 legal age shall be, paid to his or her guardian. (8> FEDERAL employees' COMPENSATION. 11 - 1 (H) As used in this section, the term "chUd" in- 2 eludes stepchildren, adopted children, and posthumous chU- •3 dren, but does not include married children. The terms '4 ' 'brother " and ' ' sister " include stepbrothers and stepsisters, 5 half brothers and half sisters, and brothers and sisters by 6 adoption, but do not include married brothers or married 7 sisters. All of the above terms and the term "grandchild" 8 include only persons who at the time of the death of the de- 9 ceased employee are under eighteen years of age or over that 10 age and incapable of self-support. The terrn "parent" 11 includes step-parents and parents by adoption. The term 12 "widow" includes only the decedent's wife living with or 13 dependent for support upon him at the time of his death. 14 The term "widower" includes only the decedent's husband 15 dependent for support upon her at the time of her death. 16 TJie terms "adopted" and "adoption" as. used in this .17 clause include only legal adoption. 18 (I) Upon the cessation of compensation under this 19 section to or on account of any person, the compensation of 20 the remaining persons entitled to compensation for the unex- 21 pired part of the period during which their compensation is 22 payable shall be that which such persons would have 23 received if they had been the only persons entitled to com- 24 pensation at the time of the decedent's death. 25 (J) In case there are two or more classes of pers ns 26 tcntitled to compensation under this section and the appor- 27 tionment of such compensation, above provided, would result (9), ■12 FEDERAL EMPLOYEES' COMPENSATION. 1 in injustice, the commisaion may, in its discretion, modffy 2 the apportionment to meet the requirements oi the case. 3 (K) In computing compensation under this section, 4 the monthly pay shall be considered not to be more than 5 $100 nor less than $50, but the total monthly compensation 6 shall not exceed the monthly pay computed as provided in 7 section thirteen; 8 (i) If any person' entitled to compensation under this 9 section, whose compensation hy the terms of this section 10 ceases upon his marriage, accepts any payments of com- 11 pensation after his marriage he shall he punished Iry a fine of 12 not more than $2,00Q or hy imprisonmerU for not more than 13 one year, or hy hoth such fine and imprisonment. 14 Sec. 12. That if death results from the injury or from 15 the occupational disease within six years after the injury 16 or the beginning of disability or suspension from work 17 due to such disease, the United States shall pay to the 18 persOhal represehtaitive of the deceased employee burial 19 expenses not to exceed 1100, in the discretion of the commis- 20 sion. In the case of an employee whose home is within the 21 United States, if his death occurs away from his home office 22 or outside of the United States, and if so desired by his 23 relatives, the body shall, in the discretion of the commission, 24 be embalmed and transported in a hermetically sealed casket 25 to the home of the employee. Such burial expenses shall 26 not be paid and such transportation shall not be furnished 27 where the death tiakes place more than one year after the 28 cessation of disability resulting from such injurjr, or of 29 disability or suspension from work resulting frdin sutJh 30 disease, or if there has been no disability precedir^ death, 31 more than one year after the injury. (10) PEDEEAL employees' COMPENSATION. 13 1 Sbo. 13. That in computing the monthly pay the usual 2 practice qf the service in which the employee was employed 3 shall he. followed. Subsistence and the value of quarters 4 fiiriiished an employee shaU be included as part of the pay, 5 but overtime pay shall not be taken into account. 6 Seq, 14. That in the dictermiiftation of the employee's 7 monthly wfltge-e^rning capacity after the hegi^vning of par- 8 tial disability, the. value of housing, board, lodging, and other 8 a^'iantages which are reeei'Ked from his employer as a part IQ, eif his remiiineration apd which can be estimated in moi^ey 11 shall be takft:^ into account. 1^ Sbsc. 15. That in, cases of death or of permanent total 13 or permanent partial disability, if the monthly payment to 14 the beneficiayy is less thsin $5 a month, or if the benpficiBry 15 is or is about to become a nonresident of the United States, 16 or if the eonimission determines that it is foJr the best inter- 17 ests of the bene:Qciary, the liability of the United States for 18, Gqnipensa.tion to. s;uch beneficiary way be discharged by the 19 payment of a lump sum equal to the present value of all 20 future payments of compensation computed at four per 21 centum true discount compounded annually. The probability 22 of the beneficiary's death before the expiration of theperipd ?3, during which he is entitled to compensation, shall be dete;r- 24 fliined according to the jfafeiena l Frator Bft l Congres s American 25 Experience TcMe of Mortality tq i blo ; but in case of coiapensa- (11); 14 FEDEEAL EMPLOYEES' COMPEl be unfitted. 15 , Sb5Q. 23. That ai^y employee employed ip or about any 16 work or process in which he is subject to the j^k of cob,- 17 traptii^g an occiji,p>ational disease shall, from tinae tQ time if; IS so ordered by thf commission, submit himself to exa^mins^ 19 tion by a medical officer of the United States or by a duly 20 qualified physician designated or approved by the c«iipmi|^: 21 sion, for the. purpose of determining whether or not he haar 22 contracted svich disea,se. 23 Sec. 24. Thftt after the injury or after disability or 24 suspension fronj work on account of an occupatioiial disease 25 the ^mploy^e shajl, as frequently and at such tinies andf (14) FEDERAL EMPLOYEES' COMPENSATION. l7 1 places as may be reasonably required, submit himself to 2 examination by a medical officer of the United States or by 3 a duly qualified physician designated or approved by the 4 commission. The employee may have a duly qualified 5 physician designated and paid by him present to participate 6 in such examination. For all examinations after the first 7 the employee shall, in the discretion of the commission, be 8 paid his reasonable traveling and other expenses and loss '9 of wages incurred in order to submit to such examination. 10 If the employee refuses to submit him.self for or in any way 11 obstructs any examination, his right to claim compensation 12 Tinder this Act shall be suspended until such refusal or ob-« 13 struction ceases. No compensation shall be payable while 14 such refusal or obstruction continues, and the period of such 15 refusal or obstruction shall be deducted from the period for 16 which compensation is payable to him. 17 Sec. 25. That in case of any disagreement betweefl 18 the physician making an examination on the part of the 19 United States and the employee's physician the eommis-» 20 sion shall appoint a third physician, duly qualified, wha 21 shall make an examination. 22 Sec. 26. That fees for examinations made on the pafi 23 of the United States undersections twenty-two, twenty-three, 24 twenty-four, and twenty-five by physicians who are noi 25 already in the service of the United States shall be fixed H. Kept. 561, 63-2 2 (15) X8 FEDEKAL EMPLOYEES' COMPENSATION. 1 . by the commission. Such fees, and any sum payable to 2 the employee under section twenty-four, shall be paid out of S the appropriation for the work of the commission. 4 Sec. 27. That immediately after an injury to an em- 5 ployee resulting in his death or in his probable disability, 6 his immediate superior shall make a report to the com- 7 mission containing such information as the commission 8 may require, and shall thereafter make such supplementary 9 reports as the commission may require. JU &EC. ^o. X xlfliT; G6 — GiftlHSS — x04* G0iDl'PdlSftBrO£b"llfiwCT^ * uillS 11 Act s hall bo assigiMiible, any assignment of a claim for com- 12 pensation under this Act shall he void and all compensation 13 and claims therefor shall be exempt from all claims of 14 creditors. 15 Sec. 29. That no claim for legal services in connection 16 with any claim arising under this Act shall be enforceable 17 unless approved by the commission. 18 Sec. 30. That if an injury or death for which com- 19 pensation is payable under this Act is caused under circum- 20 stances creating a legal liability in some person other than 81 the United States to pay damages therefor, and a beneficiary 22 entitled to compensation from the United States for such 23 injury or death receives, as a result of a suit brought by him 24 or on his behalf, or as a result of a settlement made by him 25 or on his behalf, any money or other property in satisfaction 26 of the liability of such other person, such beneficiary shall, 27 after deducting the costs of suit and a reasonable attorney's (16) FEDERAL EMPLOYEES' OOMPENSATION. 19 1 fee, apply the money or other property so received in the 2 following manner: 3 (A) If his compensation has been paid in whole or in 4 part, he shall refund to the United States the amount of 5 compensation which has been paid by the United States and 6 credit any surplus upon future payments of compensation 7 payable to him. Any amount so refimded to the United 8 States shall be placed to the credit of the employees' com- 9 pemsation fund. 10 (B) If no compensation has been paid to him by the 1 1 United States, he shall credit the money or other property 12 so received upon any compensation payable to him by the 13 United States. 14 Sec. 31 . That a commission is hereby created, to be known 15 as the United States Employees' Compensation Commis- 16 sion, and to be composed of three commissioners appointed 17 by the President, with the advice and consent of the Senate, 18 one of whom shall be designated by the President as chair- 19 man. No commissioner shall hold any other office or posi- 20 tion imder the United States. Each commissioner shall 21 hold office until his successor is appointed and has qualified. 22 Any vacancy occurring shall be filled in the same manner as 23 an original appointment. Each commissioner shall receive 24 a salary of $5,000 a year. (17) 20 FEDERAL EMPLOYEES' COMPENSATION. 1 Sec. 32. That the commission, or any commissioner by 2 authority of the commission, shall have power to issue 3 subpoenas for and compel the attendance of witnesses, to 4 require the production of books, papers, documents, and 5 other evidence, to administer oaths, and to examine witnesses. 6 Sec. 33. That the commission shall have such assist- 7 ants, clerks, and other employees as may be from time to 8 time provided by Congress. They shall be appointed by the 9 commission in the same manner as appointments to the com- 10 petitive classified civil-service positions. 11 Sec. 34. That the commission shall submit annually 12 to the Secretary of the Treasury estimates of the appro- 13 priations necessary for the work of the commission. 14 Sec. 35. That the commission is authorized to make 15 necessary rules end regulations for the enforcement of this 16 Act, and shall decide all questions arising under this Act. 17 Sec. 36. That the commission shall study the causes 18 of accidents and occupational diseases among the employees 19 covered by this Act, and shall from time to time make such 20 recommendations as it may deem proper to the various 21 departments as to the best means of preventing such acci- 22 dents and occupational diseases. 23 Sec. 37. That the commission shall make to Congress 24 at the beginning of each regular session a report of its w.rk (18) FEDEEAL EMPLOYEES' COMPENSATION. 21 1 for the preceding fiscal year, including a detailed statement of 2 appropriations and expenditures, a detailed statement show- 3 ing receipts of and expenditures from the employees' com- 4 pensation fund, and its recommendations for legislation. 5 Seo. 38. That for the remainder of the fiscal year 6 ending June thirtieth, nineteen hundred and fourteen, and 7 for the fiscal year ending June thirtieth, nineteen hundred 8 and fifteen, there is hereby appropriated, from any money 9 in the Treasury not otherwise appropriated, the sum of 10 $50,000 for the work of the commission, including salaries 11 of the commissioners and of such assistants, clerks, and other 12 employees as the commission may deem necessary, and for 13 traveling expenses, expenses of medical examinations under 14 sections twenty-two to twenty-five, inclusive, reasonable 15 traveling and other expenses and loss of wages payable to 16 employees under section twenty-four, rent and equipment of 17 offices, purchase of books, stationery and other, supplies, 18 printing and binding, to be done at the Government Printing 19 Ofiice, and other necessary expenses. , 20 Sec. 39. That there is hereby appropriated, from any 21 money in the Treasury not otherwise appropriated, the sum 22 of $500,000, to be set aside as a separate fund in the 23 Treasury, to be known as the employees' compensation 24 fund. To this fund there shall be added such sums as 25 Congress may from time to time appropriate for the pur- (19) 22 FEDERAL EMPLOYEES' COMPENSATION. 1 pose. Such fund, including all additions that may be made 2 to it, is hereby permanently appropriated for the payment 3 of the compensation provided by this Act, including the 4 medical, surgical, and hospital services and suppMes provided 5 by section ten and the transportation and burial expenses 6 provided by sections ten and twelve. The commission shall 7 submit annually to the Secretary of the Treasury estimates 8 of the appropriations necessary for the maintenance of the 9 fund. 10 Sec. 40. That compensation provided by this Act may 11 be awarded in such manner as the commission may by 12 regulation determine upon the claim presented by the bene- 13 ficiary and the report fimiished by the immediate superior 14 of the employee and upon such investigation as the com- 15 mission may deem necessary to discover the facts. Compen- 16 sation when awarded shall be paid from the employees' 17 compensation fund. 18 Sec. 41. That if the original claim for compensation 19 has been made within the time specified in section twenty- 20 one, the commission may, at any time, on its own motion or 21 on application, review the award, and, in accordance with 22 the facts found on such review, may end, diminish, or in- 23 crease the compensation previously awarded, or, if com- 24 pensation has been refused or discontinued, award compen- 25 sation. (20) FEDERAL EMPLOYEES' COMPENSATION. 2 1 Sec. 42. That if any compensation is paid uiider a 2 mistake of law or of fact, the commission shall immediately 3 cancel any award under which such compensation has been 4 paid and shall recover, as far as practicable, any amount 6 which has been so paid. Any amount so recovered shall be 6 placed to the credit of the employees' compensation fund 7 Sec. 43. That whoever makes, in any affidavit required 8 under section four or in any claim for compensation, any 9 statement, knowing it to be false, shall be guilty of perjury 10 and shall be punished by a fine of not more than S2,000, or 11 by imprisonment for not more than one year, or by both such 12 fine and imprisonment. 13 Sec. 44. That wherever used in this Act — 14 The singular includes the plural and the masculine 15 includes the feminine. 16 The term "employee" includes all civilian officers 17 and employees of the United States and of the Panama Rail-' 18 road Company, but includes no others. 19 The term "commission" shall be taken to refer to 20 the United States Employees' Compensation Commission 21 provided for in section thirty-one. 22 The term "department" includes the executive de^ 23 partments whose heads are members of the President's 24 Cabinet, and all independent offices, bureaus, boards, oi* 25 commissions. (21) 24 FEDERAL EMPLOYEES' COMPENSATION. 1 The term "physician" includes surgeons. 2 The term "monthly pay" shall be taken to refer to 3 the monthly pay at the time of the injury or, in case of 4 disabihty or of suspension from work resulting from an 5 occupational disease, at the time of the beginning of such dis- 6 ability or suspension, unless the employee at the time of the 7 beginning of such disabihty or suspension is not in the service 8 of the United States, in which case it shall be taken to refer 9 to the monthly pay at the time of his leaving such service. JO Sec. 45. That all Acts or parts of Acts inconsistent 3.1 with this Act are hereby repealed: Provided, however, That 12 for injuries occurring prior to July first, nineteen hundred 13 and fourteen, compensation shall be paid under the law in 14 force at the time of the passage of this Act ; And provided 15 further, That if an injury or death for which compensation is 16 payable under this Act is caused under circumstances creating 17 a legal liability in the Panama Railroad Company to pay damr- 18 ages therefor under the laws of any State, Territory, or pos- 19 session of the United States or of the District of Columbia or of 20 any foreign country, no compensation shall be payable until the 21 person entitled to compensation releases to the Panama Railroad 22 Company any right of action which he may have to enforce such 23 liability of the Pamma Railroad Company, or until he assigns 24 to the United States any right which he may have to share in any 25 money or other property received in satisfaction of such lia- 26 bility of the Panama Railroad Company. 27 Sec. 46. That sections t" enty-two, twenty-six, thirty- 28 one to thirty-eight, both inclusive^ forty-four, and forty- 29 six of this Act shall take effect immediately upon its 30 passage. The remainder of the Act shall take effect on July 31 fii'st, nineteen hundred and fourteen, but shall not apply to 32 disability or death resulting from an injury sustained prior 33 to July first, nineteen hundred and fourteen, or to disabihty, 34 suspension from work, or death resulting prior to July first, 35 nineteen hundred and fourteen, from an occupational disease. (22) FEDEEAL EMPLOYEES' COMPENSATION. 25 This bill, H. E. 15222, is practically the same as H. R. 14994, which it supersedes. The only differences in the two bills are minor changes in phraseology. Brieily stated, this bill, which has the cordial support of the Bureau of Labor Statistics, which administers the existing law, seeks to sup- plant the existing inadequate Federal compensation law of May 30, 1908, with a new law providing adequate compensation for all civihan employees of the United States suffering injuries or occupa- tional diseases in the course of their employment. For the purpose of making the legislation effective in the highest possible degree and to reduce as rapidly as possible the expenses of compensation, pro- vision is made for an independent administrative commission, which, whUe passing upon claims for compensation, shall also concern itself with the prevention of injuries or occupational diseases among the einployees covered by this act. Following is a summary of the principal features of the bill with a brief statement pointing out wherein the bill differs from the existing law and of the reasons which seemed to the committee to make a change in the existing law advisable : WHAT EMPLOYEES GRANTED COMPENSATION. All civilian officers and employees of the United States and the Panama Railroad Co. The existing law applies only to specified employments deemed to be especially- nazardous and covers only about 100,000 employees. The bill here reported will cover about 400,000 employees. It seemed to the committee that if an employee is injured in the course of his employment he is entitled to compensation regardless of his occupation. This is the law in 16 of the 23 States having compen- sation laws. If the contrary conclusion is reached, the theory on which aU compensation acts are based, viz, that the industry shall bear the burden of injuries caused by it, does not hold good. In this connection it should be borne in mind that the extension of the existing law in this particular wiU not increase the cost in propor- tion, for although the number of employees covered is four times as great under the existing law, the number of accidents will not be proportionately increased, since the accident risk in the added employments is not so great. FOK WHAT COMPENSATION IS GRANTED. The biU provides compensation for disabihty or death of an em- ployee resulting from personal injury sustained or occupational dis- ease contracted in the course of his employment. It also provides compensation in case an employee is suspended from work in order to prevent his disabifity from an occupational disease. No compensa- tion is allowed if the injury is caused by the employee's intention to bring about the injury or death of himself or of another, or solely by reason of intoxication in the course of his employment. This foUows the existing law except that it grants compensation in cases of occupational disease contracted in the course of employ- ment. The committee could see no reason why a man disabled by an occupational disease should not receive compensation, while a man 26 PEDBEAL employees' COMPENSATION. disabled by reason of an industrial accident does receive compensa- tion. The extent of occupational diseases in the Government service can not be accurately stated, but it is known that such highly danger- ous diseases as lead poisoning and compressed-air illness have occurred with considerable frequency. The existing law excludes from compensation injuries "due to the negligence or misconduct of the employee." This phrase is not in harmony with the trend of legislation in this country and abroad. One of the main purposes of the compensation act is to do away with the principle of contributory neghgence, which has been prodliotive of so much injustice in the past. As stated by the United States Employers' Liability and Workmen's Compensation Commission, on page 72 of volume 1 of their report: The serious objection to provisions of this character is that they deprive the law to a great extent of one of its.principal benefits, namely, that of certainty. While their absence may occasionally result in some employee receiving compensation where strict justice might deny it, this is more than compensated for by relieving the law of the element of uncertainty in its administration which would otherwise result from their presence, and which on the whole would brmg hardship and injustice upon a much larger number of deserving employees. The basic idea of the whole legisla- tion is that compensation to injured employees should be standardized by rules as definite as the subject matter will admit, so as to prevemt litigation, and insure cer- tainty, and in framing the law the exceptional case must be made to yield to this controlling, vital,, and general principle. AMOUNT OF COMPENSATION — DISABILITY PAYMENTS. Total disabiUty, 66§ per cent of the monthly pay during the con- tinuance of disability, not to exceed $66.67 a month, and not less than 133.33, unless employee's, monthly pay is less than $33.3,3, in which case compensation is full pay. Partial disabihty, 66f per cent of the difference between the monthly pay at the time of the injury and the monthly wage-earning capacity after the beginning of the partial disability, not to exceea $66.67 per month. If the employee refuses to work after suitable work is furnished to or secured for him by the United States, no com- pAisation is allowed while the refusal continues. Medical, surgical, and hospital services and supplies for a reasonable time and in a reasonable amount. No compensation for first three days of disability, except medical, etc., services and supplies. if emplovee has unused annual or sick leave he may, subject to approval of head of department, substitute it for compensation until used up. DEATH PAYMENTS. To the widow, if no child, 35 per cent of monthly pay of deceased employee until death or marriage. To widower, if no child, 35 per cent if wholly dependent and a proportionate amount if partly dependent, payable until death or marriage. To widow or widower, if there is a child, the above amounts and in addition 10 per cent for each child not to exceed a total of 66§ per cent for widow or widower aaid children. Compensation on account of any child ceases when he dies, marries, or reaches 18, FEDERAL EMPLOYEES' COMPENSATION. 27 or if over 18 and incapable of self -support becomes capable of self- support. To the children, if no widow or widower, 25 per cent for one child and 10 per cent additional for each additional child not to exceed a total of b6§ per cent. Compensation of each child ceases when he dies, marries, or reaches 18, or if over 18 and incapable of self-sup- port becomes capable of self-support. To the parents, 25 per cent for one wholly dependent and 40 per cent if both wholly dependent. Proportionate amount if partly dependent. These percentages paid if no widow, widower, or child. If there is a widow, widower, or child, parents receive so much of these percentages as when added to total percentages payable to widow, widower, and children wiU not exceed total of 66| per cent. To brothers and sisters, grandparents and grandchildren, 20 per cent if one whoUy dependent and 30 per cent if more than one. If no one whoUy dependent and one or more partly dependent, 10 per cent divided share and share alike. These percentages paid if no widow, widower, child, or dependent parent. If there is a widow, widower, or child or dependent parent there shall be paid so much of these percentages as when added to total percentages payable to widow, wido\\fer, children, and dependent parent will not exceed total of 66§ per cent. Payments to last two classes continue for eight years from the time of the death of the injured employee unless before that time the beneficiary di-es, marries, or ceases to be dependent or reaches 18, or if over 18 and incapable of self-support becomes capable of self-support. In computing compensation in case of death, the monthly pay of the injured employee shall be considered not to be more than $100 nor less than S50, but total monthly death payments shall not exceed the actual monthly pay of the employee. Burial expenses up to $100 and transportation of body to home in discretion of administrative ofRcials. COMMUTATION INTO LUMP SUMS. In case of death or permanent disability, administrative officials may commute periodical payments into a lump sum ecjual to present value of all future payments if the beneficiary is or is about to' be- come a nonresident of the United States or it is for the best interests of the beneficiary. In estimating such lump sum the probability of the beneficiary's death shall be determinea according to m.ortality tables, but the probability of the happening cf any other contingency shall be disregarded. The compensation granted by the existing law is full pay during the disability up to one year or one year's pay in case of death. It is obvious that to grant a man fuU pay while disabled will tend to induce him to malinger, and it is equally obvious that to stop the compensation at the end of one year, although the disability is stiU contmuing, is highly unjust. Ihe schedule of compensation con- tained in the proposed bill is in line with the best precedents found in State compensation acts. The States of New York and Ohio grant 66§ per cent of the wkges, and the States of California and Wis- consin provide 65 per cent, while Nevada provides 60 per cent. It is believed that any smaller percentage will not enable the injured 2.8 FEDERAL EMPLOYEES' COMPENSATION. employee to maintain his standard of living, and that a loss of one- third of the wages will be adaquate inducement to the injured man to go back to work, thus avoidmg the danger of malingenng. The principle of providing compensation during the continuance of the disabihty seemed to the committee to be the only fair method. The placing of any limitation of time upon the continuance of the com- pensation would result in throwing the injured man upon charity at the expiration of such time. Nor is it believed that the adoption of this principle will result in largely increased cost. Statistics, for example, show that the number of cases of permanent total disability constitute only about two-tenths of 1 per cent of all accidents and the number of cases of permanent disability of any kind form but 7 per cent of the whole number of accidents. The existing law makes no provision for medical attendance. The proposed bill provides for such attendance for a reasonable amount and for a reasonable time in the discretion of the administrative authority, The importance of prompt medical attendance both for humane reasons and in order to bring about a cure, thus saving the Government money, can not be overestimated. The existing law provides that no compensation shall be paid unless the disability continues for more than 15 days. If it does, so continue, the compensation is paid from the day of the injury. This provision has been productive of much injustice and has also been a direct inducement to malingering, for a man who could normally go back to work in 10 days is ukely to simulate disability for some days more in order that he may receive his compensation. The proposed bill excludes the first three days of disability from compensation. Trifling injuries are thus excluded, and there seems no adequate rea- son for any further waiting period. Washington and Oregon have entirely dispensed with any waiting period. The provisions for com- pensation in case of death are substantially similar to the provisions of the New York law and are deemed preferable to the payment of a lump sum to the dependents, which may be squandered or unwisely invested. NOTICE OF INJURY. No habiUty for compensation unless written notice within 48 hours after the injury or death unless the administrative officials find reasonable cause for notice given later. CLAIM FOR COMPENSATION. No compensation allowed to any person unless he makes a claim within 60 days after the beginning of disability or within one year after the death, but administrative officials may for reasonable cause allow claim to be filed later. Claim must be made on forms furnished ' by administrative officials, must contain all information required by them, and must be sworn to. MEDICAL EXAMINATION. Injured employee required to submit to medical examination at request of administrative officials, and no compensation payable so long as refusal to submit to examination continues. PEDBBAL employees' COMPENSATION. 29 If employee about to enter service discloses on examination symp- toms of occupational disease or physical condition rendering him likely to contract such disease, or to sustain an injury, he shall not be appointed to any position for which he is adjudged unfitted. Any employee performing any work which subjects him to risk of contracting an occupational disease shall be examined from time to time, and if he is found to have an occupational disease he may, although not disabled, be suspended from work or given other work and paid compensation as for total or partial disability. The requirement of medical examination after the injury will obviate all danger of shamming. If on examination the injured employee is found able to work his compensation will immediately be stopped. Provision for examination upon entrance to the service win tend to shut out from the Government service persons physically defective or already suffering from occupational diseases; and the provision allowing examination from time to time wiU it is believed disclose many cases where the employee although not disabled has contracted an occupational disease. If he is then suspended from work these sjrmptoms may disappear; whereas in the absence of such a provision he would go on workmg until disabled, thus causing pain and suffering to himself and expense to the Government. THIRD person's LIABILITY. If the injury or death for which compensation is payable is caused by the negligence of some person other than the Umted States, and if a beneficiary entitled to compensation pursues Ms right of action against such other person, he is required to credit upon compensa- tion due from the United States the amount received from such other person. ADMINISTRATIVE FEATURES OF BILL. The biU provides for a commission, composed of three commis- sioners appointed by the President, with the advice and consent of the Senate, at a salary of $5,000 each, and with such assistants as Congress may from time to time provide to be appointed by the commission subject to civil service requirements. The commission is authorized to make necessary rules and regula- tions for the enforcement of the act and to decide all questions arising under the act. The commission is to submit a report annually to Congress and is to submit annually to the Secretary of the Treasury estimates of the appropriations needed. The existing law is administered by the Secretary of Labor through the Bureau of Labor Statistics. Dr. Meeker, the Commissioner of Labor Statistics, stated at the hearing, page 19, that in his opinion the law should not be administered by his bureau. It seemed to the committee that the administration of this act could best be performed by an independent commission. It is a matter concerning the rela- tion between the Government as a whole and its employees as a. whole, and for that reason should not be placed under the supervision of any one department. It seemed especially unwise to place the admin- istration in the hands of the Department of Labor because that de- partment in large measure represents, and is intended to represent, the side of labor, whereas the administrative body haviQg charge 30 FEDERAL EMPLOYEES' COMPENSATION. of the proposed act should represent, and should constantly be alert to safeguard, the interests of the Governnaent. Furthermore, one of the principal functions of the proposed commission is the studying of causes of accidents and occupational diseases among Government employees and the reco nam ending to the various deparfements the best means of preventing such accidents and disasters. Therefore^, in order to avoid any possible departmental jealousies in connection with the work it would seem best to have the commission entirely outside of any department. It is thought by the committee that the commission of three mem- bers proposed in the bill is not too large to carry on the work properly. The number of claims under the proposed bill wiU be largely increased and the problems coming up for determination will be intricate and diflBcult. Many questions wiU have to be decided and settled. In this connection it should be borne in mind that while the existing law provides compensation only for one year, the proposed bill provides compensation during the continuance of the disabihty. The commis- sion each year, therefore, will have not only to pass upon the claims received during that year but will be under the necessity of vigilantly watching the pajmient of compensation for injuries occurring in past years in order to protect the interests of the Government. Nearly aU the compensation acts in this country provide for administration by a commission. When it is remembered that the number of employees included within the compensation acts of most of these States is far less than the 400,000 employees covered by the proposed bill, the importance of an adequately manned commission is obvious. FUNDS FOE PAYMENT OF COMPENSATION. The biU estabhshes a separate fund in the Treasury to be known as the employees' compensation fund. The bill appropriates $500,000 to estabhsh this fund and provides that there shall be added to it such sums as Congress may from time to time appropriate. The commission is to submit annually to the Secretary of the Treasury estimates of appropriations needed for the maintenance of the funa. The amount here appropriated is deemed ample for the first year. It is, indeed, thought that the expense wiU be somewhat less. The committee has secured an estiniate of the cost under this biU pre- pared by the Bureau of Labor Statistics . on the basis of the cost under the existing law and of the probable number of accidents which will occur in the future. (Hearings, Mar. .31, p. 24-26.) This careful official statement shows there were 2,466 claims made during the year ending June 30, 1913, under the present law. It is estimated that under the McGillicuddy bill there might have been 2,100 cases added, but of these 1,464 were for a period varying from 3 to 15 days.. With a reduction of the rate of compensation to two-thirds of the pay, and the limitation of $66 § as the monthly maximum amount that any wotkman could receive as compensation, regardless of the amount that he may be receiving as earnings when employed, there would be afforded a degree of stimulus to return to work, while the opportunity of continuing unemplovment without loss of pay would be withdrawn. It is believed, therefore, that the proposed bill would involve an expense for the first year not exceeding the amount named, FEDERAL EMPLOYEES' COMPEKSATION. 31 namely, $500,000, and in all probability falling below it, by reason of the fact that in the $482,000 paid out in the year 1910-11, for instance, there were many cases in which the amount of compensation paid was to persons receiving in excess of $66 § ]3er month as benefits. Indeed, of the fatal compensated cases during that year under the act of May 30, 1908, 22 of the 119 received from $900 to $2,500 for the year's benefits, while of the nonfatal cases for that year 810 of the 2,818 compensated cases were of workmen receiving from $900 to $2,500. Under the bill in question no year's payment on account of an individual, injury could exceed $800. Referring now to the fact that the Government is at the present time paying out between four and five hundred thousand dollars under existing laws, which provide for full payment of wages during the term of disability, not exceeding one year, it is evident that the substitution of a law providing two-thirds pay during the term of disability would reduce the expense for the first year by one-third, in so far as the law 9,pplies to persons receiving benefits under existing laws. Inasmuch as at least one-half the additions would be for short-term disabilities, it seems probable that the extension of the law to cover all classes of employees would result in no actual increase in the amounts expended. PREVENTION OF ACCIDENTS AND OCCUPATIONAL DISEASES, The commission is required to study the causes of accidents and occupational diseases among civilian employees of the Government, to report annually to Congress the results of its investigations, and to make such recommendations as it may deem proper to the various departments as to the best means of preventing accidents and occu- pational diseases. This, in the opinion of the committee, is one of the most meritorious features of the biU. It is thought that this aspect of the commission's work will result in a large saving to the Government and that money spent along these lines will be made up many times in the prevention of accidents and of occupational diseases wmch, in the opinion of the committee, should be the purpose of all compensation acts. o Cornell University Library HD7816.U6A3 1914a Federal employees' compensation ... 3 1924 002 404 766