United States Department of Labor 

Employees’ Compensation Appeals Board 

__________________________________________ 

J.M., Appellant 

and 

U.S. POSTAL SERVICE, FLEETWOOD 

STATION, Houston, TX, Employer 

__________________________________________ 

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Docket No. 14-280 

Issued: May 5, 2014 

Appearances: Case Submitted on the Record

Appellant, pro se 

Office of Solicitor, for the Director 

ORDER REMANDING CASE 

Before: 

RICHARD J. DASCHBACH, Chief Judge 

ALEC J. KOROMILAS, Alternate Judge 

MICHAEL E. GROOM, Alternate Judge 

On November 20, 2013 appellant filed a timely appeal from the August 16, 2013 merit 

decision of the Office of Workers’ Compensation Programs (OWCP), which denied waiver of 

recovery of an overpayment of compensation.1

On July 16, 2013 OWCP issued a preliminary determination that appellant had received a 

$2,889.92 overpayment of compensation from April 4, 2012 to June 29, 2013 arising from 

incorrect premiums collected for health insurance, but that she was due a refund of $1,557.40 

from the cancellation of her life insurance coverage, for an overpayment balance of $1,332.52.2

On July 18, 2013 appellant requested waiver. She elected a telephone conference with 

OWCP on the issue: “cannot afford extra expenses caused by no fault of my own. Please 

waive.” OWCP received this request on July 25, 2013. 

 1

 On January 24, 2012 appellant, a 52-year-old carrier technician, filed an occupational disease claim alleging that 

the repetitive nature of her duties caused bilateral carpal tunnel syndrome and upper extremity symptoms. OWCP 

accepted her claim for bilateral carpal tunnel syndrome. 

2

 It is well established that OWCP should not attempt to offset underpayments of compensation in determining 

the amount of an overpayment, as they are separate issues. Robert L. Curry, 54 ECAB 675 (2003). If a claimant 

pursues waiver and the adjusted overpayment is waived, the claimant will have lost due process rights with respect 

to recovery of the offset amount. 
2

On August 16, 2013 appellant telephoned OWCP (or OWCP called her back) to advise 

that she could not pay anything on the overpayment because she was not back at work. 

The Board finds that this case is not in posture for decision. Extensive due process rights 

attach to any attempt by OWCP to recoup benefits already paid, even if paid in error.3

 After giving 

appellant notice that an overpayment occurred and that she was not at fault in the matter, making 

her eligible for waiver, appellant requested waiver and exercised her right to a telephone 

conference with OWCP in lieu of a hearing before an OWCP hearing representative. That 

conference, it appears, never took place. The record shows no scheduling or preparation and no 

memorandum of conference. The one-sentence report of telephone contact on August 16, 2013 

cannot be confused with a procedural formal telephone conference, in lieu of a hearing before an 

OWCP hearing representative, on the issue of waiver.4

 Accordingly, the Board finds that OWCP 

issued a final decision denying waiver of recovery of the overpayment without providing 

appellant due process. 

The Board will remand the case to OWCP to correct this error. Following such 

development as may be necessary to facilitate the outstanding request for a formal telephone 

conference, including a current overpayment recovery questionnaire and supporting financial 

documentation, OWCP shall issue an appropriate final decision on appellant’s request for 

waiver.5

 3 See generally FECA Circular No. 82-48, Overpayments and Waiver (December 1, 1982); Federal (FECA) 

Procedure Manual, Part 6 -- Debt Management, Overpayment Overview, Chapter 6.100.3k (May 2004). 

4 See generally Federal (FECA) Procedure Manual, Part 2 -- Claims, Conferences, Chapter 2.500 

(September 2011). 

5 See Jimmie R. Fornero, Docket No. 99-875 (issued January 16, 2001) (remanding the case to OWCP to consider 

the claimant’s request for a telephone conference, as he was not provided the opportunity to present testimonial 

evidence regarding his request for waiver). 
3

IT IS HEREBY ORDERED THAT the August 16, 2013 decision of the Office of 

Workers’ Compensation Programs is set aside and the case remanded for further action 

consistent with this order.6

Issued: May 5, 2014 

Washington, DC 

 

 Richard J. Daschbach, Chief Judge 

 Employees’ Compensation Appeals Board 

 

 Alec J. Koromilas, Alternate Judge 

 Employees’ Compensation Appeals Board 

 

 Michael E. Groom, Alternate Judge 

 Employees’ Compensation Appeals Board 

 6

 OWCP’s October 30, 2013 nonmerit decision denying a 5 U.S.C. § 8124(b) hearing following a final 

overpayment decision is rendered moot.