Removed Army PA’s Workers’ Comp Benefits Bar Efforts to Collect Interim Relief Payments

Federal Focus

Because a federal worker received workers' compensation benefits, she wasn't able to "double dip," so to speak, and also receive interim relief payments after her removal from an Army position. Simply Research subscribers have access to the full text of the decision.

Case

Holmes v. Department of the Army, No. 2025-1541 (Fed. Cir. 03/12/26)

What Happened?

A physician assistant in the arm was removed from her position for failing to follow instructions, disrespectful behavior, insubordination, and unauthorized disclosure of information. An administrative judge reversed the removal on due process grounds.

Eventually, the Merit Systems Protection Board remanded the case for a decision on the merits of the removal action and in the same decision explained that the Army was excused from distributing interim relief payments to the PA when she was already receiving compensation from the Office of Workers' Compensation Programs.

The MSPB explained that simultaneously receiving OWCP compensation and interim relief payments would contravene federal law that prohibits federal employees from receiving OWCP compensation from receiving "salary, pay, or remuneration of any type from the United States."

The MSP issued a Final Order finding that the Army had sufficiently established that PA's debt and that it had not sought recoupment for interim relief payments.

The PA appealed to the Federal Circuit.

Rule of Law

The Federal Circuit may set aside an MSPB action if it was unsupported by substantial evidence.

What the Federal Circuit Said

The court found that substantial evidence supported the MSPB's determination that the Army complied with the MSPB's order to explain its calculations of the PA's debt accrued.

According to the court, the Army provided a narrative and spreadsheets with detailed information for the relevant time period, explaining how the PA's debt was calculated.

Additionally, the PA provided no specific challenges to the Army's calculations nor did she argue that she returned unaccounted payments to the Army.

Verdict: The Federal Circuit affirmed the MSPB's Final Order.

Takeaway

Federal workers' receiving workers' compensation benefits may not receive other remuneration from the government.

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