Printing - FECA-PT2 - National Association of Letter Carriers

a. Under 5 U.S.C. § 8127(b) and in accordance with 20 C.F.R. § 10.702, fees for representatives'
services must first be approved by the Secretary. Fees may not be collected by the representative
without such approval. Collecting a fee without this approval may constitute a misdemeanor under
18 U.S.C. § 292. A representative can be prosecuted under 18 U.S.C. § 292, which carries
criminal penalties upon conviction of not more than $1000 or imprisonment not to exceed one
year, or both.
b. However, funds deposited into an appropriately segregated account, such as a client trust or
escrow account, until receipt of the Secretary’s approval will not be considered receipt or collection
of a fee by the representative. Under these circumstances, the representative’s claim for services
will be considered valid.
c. In Eugene F. Carbonneau, 39 ECAB 392 (1988), the Employees’ Compensation Appeals Board
(ECAB) ruled that OWCP is not prohibited from approving a fee after a fee has been collected.
Consequently, OWCP is permitted to approve a fee even when the representative is withholding
money from the claimant in violation of 18 U.S.C. § 292 and 20 C.F.R. § 10.702. As ECAB noted in
the above decision, the “remedy against a representative who collects a fee without the prior
approval by the Office is not withholding approval of a fee but rather the criminal sanctions”
imposed by 18 U.S.C. § 292.
2-1200-5 Fees Which May Not Be Approved
5. Fees Which May Not Be Approved. OWCP may not approve fees for certain services or in certain
situations.
a. Fees for service in matters which have no relation to the claim, or for work done before another
government agency, or before the ECAB will not be approved. Representatives who inquire about
payment for work done before the ECAB should be instructed to submit their request for fee approval to
the ECAB. See 20 C.F.R. § 501.11.
(1) Administrative expenses (mailing, copying, messenger services, travel, and the like,
but not including secretarial services, paralegal and other activities) need not be approved
before the representative collects them. However, if they are included in the fee
application, the representative should be informed that OWCP does not rule on
administrative expenses, as ECAB has ruled: “The matter of expenses are a matter between
appellant and his attorney and are not the appropriate subject of a fee application”
(Francesco C. Veneziani, 48 ECAB 572 (1997)). Consequently, such expenses must not be
included in any fee total that is approved by OWCP.
A representative may, however, use the services of a paralegal, legal assistant, legal intern,
or secretary and include the charges for those services in the fee request.
(2) Time spent in preparing the request for fees, writing letters, holding conferences, or
any other activity connected with the preparation and filing of a claim for fee approval may
not be considered. See Robert G. Anderson, 21 ECAB 344(1970), and William Lee Gargus,
25 ECAB 187 (1974).
b. OWCP does not recognize any contract or agreement between representatives and clients for
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