Want to know what goes into a Longshore or Defense Base Act settlement? Look no further than the Code of Federal Regulations. A Longshore or Defense Base Act settlement is technically a settlement application, not a settlement agreement. The parties negotiate an agreement between themselves, but a third party must approve the written application describing that agreement before the agreement takes effect. As such, the parties to a claim submit their settlement application to either an Office of Workers Compensation Programs’ district director or an administrative law judge. The adjudicator will determine whether the settlement is adequate. Typically, this determination is made within thirty days. See 20 C.F.R. § 702.243(b). What is “adequate”? It depends on the facts and circumstances of the individual case, which the adjudicator must consider. Specifically, the Code of Federal Regulations states: (f) When presented with a settlement, the adjudicator shall review the application and determine whether, considering all the circumstances, including, where appropriate,Read more
Court Analyzes DBA, Exclusivity, and Borrowed Employee Rule
The Defense Base Act contains a provision which makes it an exclusive remedy. That means that a U.S. employee with a workplace injury (or their beneficiary) can only seek benefits from the employer pursuant to the DBA workers’ compensation scheme. The exclusive remedy provision states: The liability of an employer, contractor (or any subcontractor or subordinate subcontractor . . . ) under this Act shall be exclusive and in place of all other liability for such employer, contractor, subcontractor, or subordinate contractor to his employees (and their dependents) coming within the purview of this Act, under the workmen’s compensation law of any State, Territory, or other jurisdiction, irrespective of the place where the contract off hire of any such employee may have been made or entered into. See 42 U.S.C. § 1651(c). Recently, the United States District Court for the District of Arizona addressed the Defense Base Act’s exclusivity provision in the context of aRead more
New National Average Weekly Wage Numbers
Beginning on October 1, 2015, the following wage/compensation rates will apply in claims arising under the Longshore and Harbor Workers’ Compensation Act and its extensions. National Average Weekly Wage: $703.00 Maximum Compensation Rate: $1,406.00 Minimum Compensation Rate: $351.50 Percent Increase (from last year): 2.10% Visit the Division of Longshore and Harbor Workers’ Compensation’s NAWW Information Page for more information or to see past NAWW figures. Also, please keep in mind that the change in the National Average Weekly Wage applies to Defense Base Act claims too. Contact your attorney if you have any questions about the application of this change to your claim. Finally, if you need legal assistance with your Longshore or Defense Base Act claim, please contact Jon Robinson of Strongpoint Law Firm at (844) DBA-COMP or [email protected]. Attribution: Photo courtesy of Flickr User Ervins Strauhmanls.
The War Hazards Compensation Act: A Primer
My new article is out. The Loyola Maritime Law Journal was nice enough to publish my piece, “The War Hazards Compensation Act: A Primer.” As soon as possible, I will update this post with a link to my SSRN page. There, you will be able to download a free copy of the article. In the meantime, here is the abstract: Over the past decade, the number of Defense Base Act and War Hazards Compensation Act claims dramatically increased. These two acts are inextricably intertwined when a “war-risk hazard” event causes an injured worker’s injury and disability. When that happens, an employer or its insurance carrier may use the War Hazards Compensation Act to secure reimbursement for Defense Base Act benefits and expenses paid on behalf of the worker’s injury and disability. Yet, little has been written to address the procedure for successfully maneuvering a claim from its Defense Base ActRead more
Non-Deployable Medical Conditions and the Defense Base Act
In most Defense Base Act cases the parties have to determine whether the injured worker can return to their usual and customary employment. For contractors, that means determining whether the injured worker can return to overseas employment. If they cannot return to their pre-injury job, then the injured worker is considered totally disabled until the employer demonstrates the existence of suitable alternative employment (i.e., another job that the claimant could work). But what if the injury suffered by the contractor–that is, the injury that required workers compensation in the first place–is best classified as a “non-deployable medical condition”? Today, I want to focus on non-deployable medical conditions and how those conditions could affect a Defense Base Act claim when the litigants are determining the injured worker’s post-injury employment outlook. Further, I want to address the situation where employers use overseas military contracting jobs on their labor market surveys to deflate anRead more
The Last Responsible Covered Employer Rule
When an injured employee worked for multiple employers, questions about liability can arise. If the employee’s multiple employers were all maritime or Defense Base Act employers, then the last responsible employer rule is applied. But, what happens when the employee worked for employers covered by the Longshore Act or DBA as well as non-covered employers? Last Responsible Employer or Last Responsible Covered Employer? In a Longshore and Harbor Workers’ Compensation Act claim, the last responsible employer rule assigns liability to the employer who last exposed the injured worker to injurious stimuli. The last employer in time is the first employer in liability. If the last employer can exculpate itself from liability, then the second most recent employer will be liable unless it can exculpate itself too. And so on. Most of the time, courts address the last responsible employer rule vis a vis multiple maritime employers. That is, a longshore workerRead more
No Defense Base Act Comp? Then No Report of Earnings.
Recently, I received a request that one of my clients complete the Report of Earnings, Form LS-200. This is a form developed by the Department of Labor’s Division of Longshore and Harbor Workers’ Compensation. The form itself is completely legit. But, in my case there was a problem. The employer and carrier were not paying compensation to my client. Consequently, the issue was whether my client may refuse to complete the requested form because the employer and carrier were not paying Defense Base Act benefits. Statutory Basis for the Report of Earnings: The Defense Base Act is an extension of the Longshore and Harbor Workers’ Compensation Act (“LHWCA”). Section 8(j) of the LHWCA contains the provision for reporting earnings. See 33 U.S.C. § 908(j). It states: (j)(1) The employer may inform a disabled employee of his obligation to report to the employer not less than semiannually any earnings from employment or self-employment,Read more
Increase Local National Comp Rates After Immigration?
Should the minimum compensation rate apply to foreign national Defense Base Act benefits recipients who become U.S. citizens or residents? In other words, should insurance carriers still pay Defense Base Act compensation rates tied to a foreign economy even though the injured worker is now living in a much more expensive country? The Defense Base Act is an extension of the Longshore and Harbor Workers’ Compensation Act. But there are some important differences. Whereas the Longshore Act uses a minimum compensation rate, the Defense Base Act does not. In fact, the Defense Base Act does not have a minimum compensation rate for disability or death benefits. Minimum Compensation Under the Longshore Act: First, let’s look at the Longshore Act. Injured longshore workers who are totally disabled are paid wages equal to two-thirds of their average weekly wage. But, there is a floor. The statutory basis for the minimum compensation rateRead more
The Zone of Special Danger Applies to Local Nationals
A new Benefits Review Board case addresses an interesting zone of special danger issue. Specifically, the case addresses the applicability of the zone of special danger doctrine to a local national employee who was injured in his home country. Factual Background: In Jetnil v. Chugach Management Services, the employee was injured while he was fishing on the reef at Gagan Island (part of the Republic of the Marshall Islands). The employee slipped and cut his foot on the coral. His cut developed into a serious medical condition, ultimately requiring a below-the-knee amputation. As with all zone of special danger cases, the obligations and conditions of the injured worker’s employment are incredibly important. Here, the employee was a citizen of the Republic of the Marshall Islands. He resided on Kwajalein Atoll, which is also home to the U.S. Army Space and Missile Defense Command’s Ronald Reagan Ballistic Missile Defense Test Site. The employeeRead more
How Do Longshore or Defense Base Act Trials Work?
The administrative hearing process is foreign to most Longshore or Defense Base Act claimants. They have never been to an administrative hearing. They do not know how long it will take to get a hearing or a decision. They do not know what actually happens at the hearing. The good news is that there are online resources that can demystify the process. To get started, let’s have a quick rundown of the process that takes a case from the Division of Longshore and Harbor Workers’ Compensation (DLHWC) to the Office of Administrative Law Judges (OALJ). All Longshore and Defense Base Act cases start at the DLHWC. As the case develops, a dispute may arise. The dispute could be anything from a denied medical benefit to a complete and total claim denial. If the parties cannot resolve the dispute at the administrative level, then a party may request referral to the OALJRead more
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