---
kind: "section"
citation: "5 U.S.C. § 8131"
title: "5"
title_heading: "Government Organization and Employees"
number: "8131"
heading: "Subrogation of the United States"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/5/8131"
units:
  - "Part III — Employees"
  - "Subpart G — Insurance and Annuities"
  - "Chapter 81 — Compensation for Work Injuries"
  - "Subchapter I — Generally"
---

# §8131. Subrogation of the United States

- (a) If an [injury](/usc/5/8101.md?p=5) or death for which continuation of [pay](/usc/5/7511.md?p=a-4) or [compensation](/usc/5/8101.md?p=12) is payable under this subchapter is caused under circumstances creating a legal liability on a [person](/usc/5/7103.md?p=a-1) other than the [United States](/usc/5/7103.md?p=a-18) to [pay](/usc/5/7511.md?p=a-4) damages, the [Secretary](/usc/5/9901.md?p=2) of Labor may require the beneficiary to—
  - (1) assign to the [United States](/usc/5/7103.md?p=a-18) any right of action he may have to enforce the liability or any right he may have to share in money or other property received in satisfaction of that liability; or
  - (2) prosecute the action in his own name.

  An [employee](/usc/5/8101.md?p=1) required to appear as a party or witness in the prosecution of such an action is in an active duty status while so engaged.

- (b) A beneficiary who refuses to assign or prosecute an action in his own name when required by the [Secretary](/usc/5/9901.md?p=2) is not entitled to [compensation](/usc/5/8101.md?p=12) under this subchapter.
- (c) The [Secretary](/usc/5/9901.md?p=2) may prosecute or compromise a cause of action assigned to the [United States](/usc/5/7103.md?p=a-18). When the [Secretary](/usc/5/9901.md?p=2) realizes on the cause of action, he shall deduct therefrom and place to the credit of the [Employees](/usc/5/8101.md?p=1)’ [Compensation](/usc/5/8101.md?p=12) [Fund](/usc/5/8401.md?p=6) the amount of continuation of [pay](/usc/5/7511.md?p=a-4) or [compensation](/usc/5/8101.md?p=12) already paid to the beneficiary and the expense of realization or collection. Any surplus shall be paid to the beneficiary and credited on future payments of [compensation](/usc/5/8101.md?p=12) payable for the same [injury](/usc/5/8101.md?p=5). However, the beneficiary is entitled to not less than one-fifth of the net amount of a settlement or recovery remaining after the expenses thereof have been deducted.
- (d) If an [injury](/usc/5/8101.md?p=5) or death for which [compensation](/usc/5/8101.md?p=12) is payable under this subchapter is caused under circumstances creating a legal liability in the Panama Canal Company to [pay](/usc/5/7511.md?p=a-4) damages under the law of a [State](/usc/5/8521.md?p=a-3), a territory or possession of the [United States](/usc/5/7103.md?p=a-18), the District of Columbia, or a foreign country, [compensation](/usc/5/8101.md?p=12) is not payable until the individual entitled to [compensation](/usc/5/8101.md?p=12)—
  - (1) releases to the Panama Canal Company any right of action he may have to enforce the liability of the Panama Canal Company; or
  - (2) assigns to the [United States](/usc/5/7103.md?p=a-18) any right he may have to share in money or other property received in satisfaction of the liability of the Panama Canal Company.

## Source credit

(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 546; Pub. L. 90–83, § 1(60), Sept. 11, 1967, 81 Stat. 211; Pub. L. 117–263, div. E, title LIII, § 5305(b)(1), Dec. 23, 2022, 136 Stat. 3254.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| 1966 Act |  |  |
| Derivation | U.S. Code | Revised Statutes and<br>Statutes at Large |
| (a)–(c) | 5 U.S.C. 776. | Sept. 7, 1916, ch. 458, § 26, 39 Stat. 747. |
|  |  | Sept. 13, 1960, Pub. L. 86–767, § 207, 74 Stat. 908. |
| (d) | 5 U.S.C. 791. | Sept. 7, 1916, ch. 458, § 41, 39 Stat. 750. |

In subsection (d), the first 45 words of section 41 of the Act of Sept. 7, 1916, are omitted as executed. The words “Panama Canal Company” are substituted for “Panama Railroad Company” on authority of the Act of Sept. 26, 1950, ch. 1049, § 2(a) (2), 64 Stat. 1038.

Administration of this subchapter was transferred to the Secretary of Labor by section 1 of 1950 Reorg. Plan. No. 19, 64 Stat. 1271 (see section 8145).

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.


| 1967 Act |  |  |
| --- | --- | --- |
| Section of title 5 | Source (U.S. Code) | Source (Statutes at Large) |
| 8131(c) | 5 App.: 776 (proviso). | July 4, 1966, Pub. L. 89–488, § 10(a), 80 Stat. 255. |

### Editorial Notes

### References in Text

For definition of Panama Canal Company, referred to in text, see section 3602(b) of Title 22, Foreign Relations and Intercourse.

### Amendments

2022—Subsec. (a). Pub. L. 117–263, § 5305(b)(1)(A), inserted “continuation of pay or” before “compensation” in introductory provisions.

Subsec. (c). Pub. L. 117–263, § 5305(b)(1)(B), inserted “continuation of pay or” before “compensation already paid”.

### Statutory Notes and Related Subsidiaries

### Personnel Not Affected by 1967 Increase

Increases authorized under amendment by Pub. L. 90–83 not applicable to specified personnel, see section 7 of Pub. L. 90–83, set out as a note under section 8103 of this title.
