Does OWCP Stop Paying If I Return to Work?
A lot of injured federal workers worry that the moment they try to return to work, OWCP benefits disappear completely. The reality is more nuanced than that.
The federal workers’ compensation system is actually designed to encourage return to work whenever possible.
What happens to temporary total compensation?
If you’re currently receiving temporary total compensation (or leave without pay benefits), those payments generally stop once you return to work. That’s because those benefits are meant to replace wages while you’re completely unable to work.
But that doesn’t necessarily mean all compensation ends.
What if you return at lower pay?
If your injury forces you into a position that pays less than your previous federal job, you may be able to file for the difference through a:
loss of wage-earning capacity, or
impairment of earning capacity claim.
In other words, if your injury permanently limits what you can earn, OWCP may compensate you for part of that lost income.
What if you can’t work full-time anymore?
This is another very common situation. Some employees can return to work, but only on reduced hours or modified schedules.
In those cases, you may still be entitled to compensation for the hours you’re medically unable to work. That’s usually handled by submitting CA-7 forms for the missed time.
So should you be afraid to attempt returning to work?
Generally, no. Returning to work does not automatically “ruin” your claim. In many situations, the system allows for partial compensation while you transition back into employment.
The takeaway
OWCP benefits often change when you return to work — but they don’t always disappear entirely. If your injury limits your hours or earning capacity, there may still be benefits available to help bridge the gap.
Every Schedule Award and compensation case is unique. The Office of Workers’ Compensation Programs (OWCP) does not publish fixed timelines or guaranteed outcomes. Benefits depend on your medical evidence, impairment rating, and OWCP’s review process. The information provided here is for general educational purposes only and should not be taken as legal advice. For guidance on your specific claim, consult with an experienced federal workers’ compensation attorney.