(H.R. 3055 and H.R. 4357 follow:) [H.R. 3055, 86th Cong., 1st Sess.] A BILL To amend the Federal Employees' Compensation Act to provide that compensation paid thereunder shall be based on wage rates currently in effect Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (f) of section 40 of the Federal Employees' Compensation Act is amended to read as follows: "(f) The term 'monthly pay' means the monthly compensation which the Secretary of Labor determines is currently payable for the position or office most nearly comparable to that which the employee held at the time of the injury except where otherwise determined under section 6(d) with respect to any period." [H.R. 4357, 86th Cong., 1st sess.] A BILL To amend the Federal Employees' Compensation Act to provide that compensation paid there under shall be based on wage rates currently in effect Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (f) of section 40 of the Federal Employees' Compensation Act is amended to read as follows: "(f) The term 'monthly pay' means the monthly compensation which the Secretary of Labor determines is currently payable for the position or office most nearly comparable to that which the employee held at the time of the injury, except where otherwise determined under section 6(d) with respect to any period." Mr. WIER. If there is no report on that bill, either Mr. MCCAULEY. Let's see. Mrs. BOSONE. Yes; there is. Mr. MCCAULEY. We filed a report on that. Mr. WIER. All right. (H.R. 4017 follows:) Thank you. We pass to 4017. [H.R. 4017, 86th Cong., 1st sess.] A BILL To amend the Federal Employees' Compensation Act with respect to employment preferences for disabled employees Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Federal Employees' Compensation Act is amended (1) by redesignating section 43 as section 44; and (2) by adding immediately before section 44 as so redesignated the following: "PREFERENCE IN REEMPLOYMENT "SEC. 43. The Civil Service Commission is authorized and directed to provide by regulation that: "(a) Any employee who within the meaning of this Act suffers temporary or permanent total disability or partial disability and who within a year recovers sufficiently to resume suitable work, shall (i) if he is still qualified to perform the duties of his position, be reemployed in such position or a position of like seniority, status, and pay or (ii) if not qualified to perform the duties of such position by reason of such disability but qualified to perform the duties of any other position in the agency, be reemployed in such other position the duties of which he is qualified to perform as will provide him with like seniority, status, and pay or the nearest approximation thereof consistent with the circumstances of his case. Such employee shall be considered as having been on furlough or leave of absence during the period he was absent from his position by reason of such disability. "(b) Such reemployment shall take effect even if the employee may have been separated from the rolls while receiving or entitled to benefits under this Act. "(c) Any employee who suffers permanent disability of a character which is likely to cause serious handicap in his obtaining other suitable employment, and which is thereby likely to result in payment of compensation benefits for loss of 10 per centum or greater in wage-earning capacity, shall, during the continuance of such disability, be entitled to similar preference and under similar conditions, in relation to certification for appointment, appointment, reinstatement, reemployment, and retention in civilian positions, to the preference by law provided in the case of disabled veterans who have established existence of a service-connected disability except the preference provided in section 14 of the Veterans' Preference Act. "(d) The unremarried widow of a deceased employee, who in the administration of this Act is found entitled to death benefits, shall, while so entitled, be entitled to similar preference and under similar conditions, in relation to certification for appointment, appointment, reinstatement, reemployment, and retention in civilian positions, to the preference by law accorded to the unremarried widows of deceased ex-servicemen except the preference provided in section 14 of the Veterans' Preference Act. "(e) In the administration of this section by the Civil Service Commission sections 37 and 40(b) (2), (3), (4), and (5) of this Act shall not be applicable." Mr. O'HARA. Was the report on that last one favorable or unfavorable? Mr. MCCAULEY. That was unfavorable because of the difficulties I mentioned. Mr. O'HARA. The difficulties of computation. Mr. WIER. With respect to employment preferences for disabled employees. Mr. MCCAULEY. Which bill are you referring to? Mr. Wier. 4017, the Forand bill. Mr. MCCAULEY. This bill deals primarily with employment issues rather than workmen's compensation, Mr. Chairman. Mr. WIER. I see that. Mr. MCCAULEY. And it seems to us the Civil Service Commission views should probably be obtained in this position. Mr. WIER. I will have Mr. Forand in here to explain the bill and then make proper disposition of that, if you prefer that. Mr. MCCAULEY. The idea, of course, is to give some preferential status to employees who suffered permanent injury while engaged in their employment in Federal service so far as retention is concerned when there is reduction in force. Mr. WIER. That is a placement bill, is it not? Mr. MCCAULEY. Something similar to veterans' preference. Mr. FRELINGHUYSEN. Would your Department make a report on this? Mr. MCCAULEY. We have not. Mr. FRELINGHUYSEN. Your Department would be the logical one to make it? Mr. MCCAULEY. I think you should also get the views of the Civil Service Commission on that. It deals primarily with employment policy rather than workmen's compensation. Mr. FRELINGHUYSEN. Do you want to get a formal motion on that, if required? Mr. WIER. We will hear Mr. Forand and then point out to him Civil Service is involved in this, a report. As far as veterans are concerned, I thought it had a pretty good setup for placement and preferences. Mr. MCCAULEY. I do not believe there is any preference for civilians injured in the Federal service. Mr. WIER. That would be civilians. Mr. MCCAULEY. Some provision of that kind would probably be preferential as far as the Government is concerned because if a man has a permanent disability which might impair his opportunities for employment in the open labor market and he is thrown out of work in his Government job then we have to pick him up on compensation. Mr. WIER. I think the President's commission that he set up for the placement of disabled people and the preferential hiring of disabled people as now in vogue supports this. Mr. MCCAULEY. The President's Committee on Employment of the Physically Handicapped has gone into this question. Mr. WIER. Sure. Mr. MCCAULEY. I think they are favorably disposed. Mr. WIER. Here is another one. Dixon has a bill similar to mine. Mr. MCCAULEY. Similar to yours; yes, sir. Mr. WIER. Yes. Mr. Baker's differs a little bit, quite a bit. (H.R. 5182 follows:) [H.R. 5182, 86th Cong., 1st sess.] A BILL To amend the Federal Employees' Compensation Act to provide compensation for the anatomical loss, or loss of use, of a procreative organ as a result of a personal injury sustained by a Federal employee while in the performance of his duty Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 5(a) of the Federal Employees' Compensation Act (5 U.S.C. 755(a)) is amended by adding at the end thereof the following new paragraph: "(22) Loss or loss of use of procreative organ, two hundred and eighty weeks' compensation." Mr. MCCAULEY. I checked out yesterday. I find there are only four States which recognize this type of loss under their workmen's compensation. Mr. WIER. There is no report on this? Mr. MCCAULEY. No, sir. Mr. WIER. Will you get one in? Mr. MCCAULEY. Yes, sir; we will. Mr. WIER. Mr. Merrow's bill here is wage rates again. I have a lot of support in here. (H.R. 5507 follows:) [H.R. 5507, 86th Cong., 1st sess.] A BILL To amend the Federal Employees' Compensation Act to provide that compensation paid thereunder shall be based on wage rates currently in effect Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (f) of section 40 of the Federal Employees' Compensation Act is amended to read as follows: "(f) The term 'monthly pay' means the monthly compensation which the Secretary of Labor determines is currently payable for the position or office most nearly comparable to that which the employee held at the time of the injury, except where otherwise determined under section 6(d) with respect to any period." Mr. MCCAULEY. You surely have. Mr. WIER. This is H.R. 6362 to amend the Federal Employees' Compensation Act so as to facilitate correction of fees by attorneys representing claimants. (H.R. 6362 follows:) [H.R. 6362, 86th Cong., 1st sess.] A BILL To amend the Federal Employees' Compensation Act so as to facilitate the collection of fees by attorneys representing claimants under such Act Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 23(b) of the Federal Employees' Compensation Act, as amended (63 Stat. 865; 5 U.S.C. 773), is amended to read as follows: "(b) A claimant may be represented before the Secretary in any proceeding under this Act by any person duly authorized by such claimant. No claim for legal services or for any other services rendered in respect of a case, claim, or award for compensation under this Act, to or on account of any person, shall be valid unless approved by the Secretary. If so approved, such claim or claims shall become a lien upon the compensation awarded and upon any moneys ordered paid under any award made by the Secretary, and shall be paid by separate check directly to the person performing said services. Any person who receives any fee or other consideration, or any gratuity on account of services so rendered, unless such fee, consideration, or gratuity is so approved, or who solicits employment for himself or another in respect of any case, claim, or award for compensation under (or to be brought under) this Act, shall be guilty of a misdemeanor." SEC. 2. The Secretary of Labor is authorized and directed to prescribe those changes in the regulations under the Federal Employees' Compensation Act, as amended, which are necessary to carry out the purposes of the first section of this Act. Mr. WIER. What is that, a third-party bill? Mr. MCCAULEY. No, sir; this would be fees for attorneys representing claimants under the compensation act, claimant for benefits under the compensation act. Mr. WIER. This bill is the same as Holtzman's. Mr. MCCAULEY. The Holtzman bill is the same; yes, sir. (H.R. 6577 follows:) [H.R. 6577, 86th Cong., 1st sess.] A BILL To amend the Federal Employees' Compensation Act so as to facilitate the collection of fees by attorneys representing claimants under such Act Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 23(b) of the Federal Employees' Compensation Act, as amended (63 Stat. 865; 5 U.S.C. 773), is amended to read as follows: "(b) A claimant may be represented before the Secretary in any proceeding under this Act by any person duly authorized by such claimant. No claim for legal services or for any other services rendered in respect of a case, claim, or award for compensation under this Act, to or on account of any person, shall be valid unless approved by the Secretary. If so approved, such claim or claims. shall become a lien upon the compensation awarded and upon any moneys ordered paid under any award made by the Secretary, and shall be paid by separate check directly to the person performing said services. Any person who receives any fee or other consideration, or any gratuity on account of services so rendered, unless such fee, consideration, or gratuity is so approved, or who solicits employment for himself or another in respect of any case, claim, or award for compensation under (or to be brought under) this Act, shall be guilty of a misdemeanor." SEC. 2. The Secretary of Labor is authorized and directed to prescribe those changes in the regulations under the Federal Employees' Compensation Act, as amended, which are necessary to carry out the purposes of the first section of this Act. Mr. MCCAULEY. Under the compensation act an attorney who requests a fee of a claimant for compensation must have that fee approved by the Bureau but there is no provision in the statute for the collection of that fee. This bill proposes that whatever fee be approved then become a lien on the compensation payment. Mr. WIER. 10 percent. Mr. MCCAULEY. There are some equities to it. Mr. WIER. Is there a limit on percentage of collection? Mr. MCCAULEY. No, sir. We don't recognize any contingent fee or contract fee. We approve the fee on the basis of the services performed and require the attorney to submit a statement to us. Mr. WIER. You do not protect the employee against exorbitant charges? Mr. MCCAULEY. That is right. Mr. WIER. Are they identical, the Holtzman and Fino bills? Mr. WIER. It looks like it on the front page. Mrs. BOSONE. Yes, they are, Mr. Chairman. Mr. MCCAULEY. Yes, they are identical. Mr. WIER. Why is it that your Department does not protect your claimants or your beneficiaries against excessive cost? Mr. MCCAULEY. We do. The point is here that the attorney has to get his fee approved by the Bureau. We fix Mr. WIER. By your Bureau? Mr. MCCAULEY. Yes. Then he has the problem of collecting his fee. Mr. WIER. I understand that part of it. Mr. MCCAULEY. This proposes to make the fee approved by the Bureau on a lien on the compensation. Mr. WIER. When you approve it, then he can move? Mr. MCCAULEY. That is right. But we protect the employees for claimant parties. Mr. WIER. Do you have many complaints by attorneys who fail to collect? What do you do in case an attorney comes to you who has worked on a compensation case and has said, "I was successful in getting this fellow what he was deserving but now I have no means of getting my fee." What do you do in that case? Mr. MCCAULEY. We can't help him. Mr. WIER. What? Mr. MCCAULEY. We can't help him under existing law. It is up to him. Mr. WIER. Are there many of those cases? Mr. MCCAULEY. I doubt if there are too many of the cases in which they have difficulty in collecting their fee. Perhaps I shouldn't even say that because I am not certain. But we do have some complaints. Mr. WIER. That reminds me. Off the record. (Discussion off the record.) Mr. MCCAULEY. Our procedure is to require the attorney to file with his request for approval of the fee an itemized statement of the services performed by him in behalf of his client in respect to his compensation claim. Then we verify his statement with the claimant to see if the claimant admits that such services were rendered and then we determine what we think is a reasonable fee for that service. Mr. WIER. If I put in a private bill, Mr. McCauley, a private bill for a claim where an attorney is engaged in helping an individual, the committee, the Judiciary Committee puts that 10 percent on it. Mr. MCCAULEY. 10 percent; yes, sir. In some cases we might not even approve 10 percent if very little work has been done. Suppose the attorney just fills out a claim form or something like that, a very nominal service. Mr. WIER. Would you rather have the option of making the decision rather than by law having a lien filed? Mr. MCCAULEY. It would be simpler for us. It would relieve us of a lot of headaches. But I am not so sure it would work out to the advantage of the claimant in all cases. Mr. WIER. That is what I had in mind. Mrs. BOSONE. Mr. Chairman, may I say something? In the practice of law years ago I had some of these types of cases in the |