The Difference Between State and Federal Workers’ Compensation

Workers’ compensation provides financial and medical benefits to employees injured on the job. However, the system that governs these benefits differs depending on whether a worker falls under state or federal jurisdiction. An experienced Orange County workers’ compensation attorney can help injured employees navigate these complexities and pursue the full benefits they’re entitled to.

California State Workers’ Compensation Overview

California’s workers’ compensation system applies to most private-sector and public employees within the state. The Division of Workers’ Compensation (DWC), under the California Department of Industrial Relations, administers this system. California law requires all employers to carry workers’ compensation insurance, even if they have only one employee. Key features include:

• No-fault coverage: Injured workers receive benefits regardless of who caused the accident.
• Medical treatment: All reasonable and necessary medical care for work-related injuries is covered.
• Temporary disability benefits: Injured employees receive wage replacement if they cannot work during recovery.
• Permanent disability benefits: If the injury causes lasting impairment, workers may receive ongoing compensation.
• Supplemental job displacement benefits: Workers unable to return to their prior job may receive vouchers for retraining or education.
  

Claims are typically filed directly with the employer’s insurance carrier. Disputes are handled by the Workers’ Compensation Appeals Board.

Federal Workers’ Compensation Overview

The federal workers’ compensation system covers specific categories of employees, particularly those working for the federal government or in federally regulated industries. These benefits fall under different laws, such as:

• Federal Employees’ Compensation Act (FECA): Covers federal civilian employees.
• Longshore and Harbor Workers’ Compensation Act (LHWCA): Covers maritime workers injured on navigable waters or in adjoining areas like docks or shipyards.
• Defense Base Act (DBA): Covers civilian employees working overseas on U.S. military bases or under U.S. government contracts.
• Energy Employees Occupational Illness Compensation Program Act (EEOICPA): Provides compensation for Department of Energy workers and contractors affected by radiation or toxic exposure.
  

Federal workers’ compensation programs are typically administered by the U.S. Department of Labor. These claims follow federal guidelines and processes.

Key Differences Between State and Federal Workers’ Compensation

Governing Authority

California’s DWC administers state claims. The U.S. Department of Labor handles federal claims.

Coverage Scope

State law covers most private-sector workers. Federal law applies to federal employees and workers in specialized roles.

Claims Process

California workers typically report injuries to their employer and work through the state’s system. Federal workers file claims with federal agencies using different forms and procedures.

Dispute Resolution

California disputes go through the Workers’ Compensation Appeals Board. Federal disputes may go through the Employees’ Compensation Appeals Board or administrative hearings.

Benefits Calculation

Benefit amounts, durations, and eligibility standards may differ. For example, FECA pays 75 percent of the salary for employees with dependents, while California’s temporary disability benefits are based on two-thirds of pre-injury wages, subject to weekly caps.

How Do I Know Which One I Qualify For?

Determining whether you qualify for California state workers’ compensation or a federal program depends on who employs you and the nature of your work. The key factor is your employer’s status—not the location where you perform the work. If you are unsure, review your employment documents or consult your HR department. Federal employees will typically receive official government employee identification, pay stubs from a federal agency, and guidance on federal benefits enrollment. Private-sector workers and public employees at the state or local level generally fall under California’s jurisdiction. If you’re still uncertain or need help with a claim, contact Aegis Law Firm today for a free consultation with an experienced Orange County workers’ compensation lawyer.