D.C. Mun. Regs. tit. 7, r. 7-151
If the Program determines that an injury or death for which indemnity compensation is payable under this chapter is caused under circumstances creating a legal liability on the part of a third party to pay the District or the employee damages, the employee (or authorized representative if the employee is deceased) shall prosecute the action within sixty (60) days of the incident.
If the employee (or authorized representative if the employee is deceased) does not prosecute the action within sixty (60) days of the incident, the employee (or authorized representative, as applicable) shall assign to the District of Columbia government:
If an employee or authorized representative refuses to assign or prosecute an action in his or her own name when required to do so by the Program pursuant to §§ 151.1 and 151.2, the Program shall suspend the employee's current or prospective benefits, unless the employee provides the Program with evidence of extenuating circumstances that prevents the employee from prosecuting the action at the time required by the Program. A claimant's continual refusal to assign or prosecute an action for more than twelve (12) months from the date of the incident without an accepted excuse from the Program shall result in termination of the claimant's indemnity compensation.
The Program may refer to the Office of the Attorney General (OAG) for civil prosecution a cause of action assigned to the District of Columbia government under § 151.2.
Recoveries by the Program following an assignment shall be distributed pursuant to Section 2331(c) of the Act.
If an employee claimant prosecutes a third party for an injury or death for which compensation is payable under this chapter and recovers money or other property in satisfaction of the third party's liability, the employee, after deducting the costs of the prosecution, reasonable attorneys' fees, and one-fifth (1/5) of the net amount of money or property remaining after payment of expenses and attorneys' fees, shall pay to the Program the amount of compensation already paid by the Program to the employee under this chapter. The payment shall be credited to the Employees' Compensation Fund. If there are any funds remaining after the employee's payment to the Program, the remaining sum shall be a credit for the same amount of future payments of compensation by the Program for which the employee is eligible. The Program shall not pay the employee the number of future payments that totals the amount of the credit.
If an employee or claimant successfully prosecutes a claim against a third party pursuant to § 151.1 of this chapter and fails to remit payment to the Program, the amount owed shall be:
No court, insurer, attorney, defendant, or other person shall pay or distribute to the claimant or his or her designee the proceeds of such suit or settlement without first satisfying or assuring satisfaction of the interest of the District of Columbia government pursuant to § 151.6.
The employee or claimant, insurer, attorney, or other person, shall notify the District of any settlement or judgment entered within fourteen (14) days of the settlement of or entry of judgment in any third-party claim filed pursuant to § 151.1.
An attorney, who represents a District employee, who was injured during the course of his or her employment, against a third-party tort-feasor shall not be excused of his or her obligation to satisfy the District's interest in the proceeds of such suit or settlement, unless, the attorney has received written confirmation from the District that it does not have a lien against any such recovery.
Any employee or claimant, insurer, defendant, or other person who fails to comply with §§ 151.6 through 151.9 of this chapter shall be held jointly and severally liable to the District of Columbia government for the amount due as calculated pursuant to § 151.6 of this chapter, plus pre-judgment interest, reasonable attorney's fees and costs incurred by the District.
If an employee returns to work and is then required to appear as a party or witness in the prosecution of an action under this section, the employee shall be considered to be in an active duty status while so engaged.
The Program may treat any payment due to the District under Section 2332 of the Act as an employee debt to the District pursuant to Section 2902 and 2904 of the Act. Pursuant to Section 2901(g) of the Act, Sections 2901(a) through (f) of the Act shall not apply to limit the Program's ability to collect on debt due under this section.
D.C. Mun. Regs. tit. 7, r. 7-151