Nonappropriated Funds

Nonappropriated Fund Instrumentalities Claims is the name applied to certain employees who are injured while working for the armed services in the United States. This law does not apply to Federal Civil Service employees. They are covered by the Federal Workers’ Compensation Act (FECA).

The Law applies, for example, to employees of the Army or Air Force Exchange Service, Navy Exchange, Marine Corps, Coast Guard Exchange, and other similar service entities. Other examples, would be: childcare service, education service, and cleaning services.

The basis of the Law is the Longshormen’s and Harbor Workers’ Act (LHWA).

The problem with Nonappropriated Fund Claims (NAF) is that the workers are so poorly paid. This means that the potential value of the claim is very limited. In my experience, many plaintiff law firms will not accept NAF claims because the potential recovery may not justify the value of the work performed. However, my firm has always been willing to represent a NAF claimant despite the limited recovery potential.

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