Shipyards and their workers make a significant contribution to our nations defense, economy, and scientific and technological innovations. Regretfully, shipyard workers face many hazards and are subject to a variety of accidents, injuries, and occupational illnesses such as asbestosis. Government agencies and departments monitor the safety shipyard activities, yet too often serious injuries and death occur. In addional to possible third party liability claims, an important avenue of relief for injured workers is the Longshore and Harbor Workers' Compensation Act (LHWCA), administered by the Office of Workers' Compensation Programs (OWCP).  In addition to state worker compensation remedies, the federal act provides for compensation and medical care to employees disabled from injuries that occur on the navigable waters of the United States, or in adjoining areas customarily used in loading, unloading, repairing or building a vessel. The Act also offers benefits to dependents if the injury causes the employee's death. The term "injury" includes occupational disease arising out of employment.

The Act covers employees employed in a maritime occupation, including a Longshore worker or other person in longshore operations, and any harbor worker, including a ship repairer, shipbuilder, and shipbreaker. Certain individuals are excluded by the Act if covered by a State workers' compensation law: office employees, certain retail and service employees, small vessel workers and individuals engaged in repairing certain recreational vessels, and masters or members of a crew of any vessel.

Employers of covered employees are responsible for insuring the payment of compensation and medical benefits to injured employees. This insurance is provided through private insurance carriers, or by employers who are authorized by the Department of Labor to become self-insured. While benefits in certain circumstances may be paid by a Special Fund administered by the Department of Labor, most benefits under the Longshore program are funded by the authorized insurance carriers and self-insured employers.

An injured employee is eligible to receive compensation for disability at the rate of 66 2/3 percent of the employee's average weekly wage, subject to the specified maximum in effect at the time of injury, for as long as the effects of the injury continue. Compensation is also available for permanent impairment of specified limbs and organs and to replace loss of earning capacity. Benefits are paid to a widow or widower, or other eligible survivors, at the rate of 50 percent of the national average weekly wage as determined by the Secretary of Labor, applicable at the time of injury, or the employee's full wage, if less. The maximum compensation rate is 200 percent of the current national average weekly wage as determined by the Secretary of Labor, applicable at the time of injury, or the employee's full average weekly wage, whichever is less. As of October 1, 1996 minimums and maximums ranged from $170.54 to $682.14 a week.

Within 10 days from the date of an employee's injury or death, or 10 days from the date an employer has knowledge of an employee's injury or death, including any disease or death proximately caused by the employment, the employer must furnish a report to the deputy commissioner for the compensation district in which the injury or death occurred, and thereafter furnish additional or supplemental reports as the deputy commissioner may request.

No report is to be filed unless the injury causes the employee to lose one or more shifts from work. However, the employer must keep records containing the following specified information: (a) the name, address, and business of the employer; (b) the name, address, and occupation of the employee; (c) the cause, nature, and other relevant circumstances of the injury or death; (d) the year, month, day, and hour when, and the particular locality where, the injury or death occurred; and (e) such other information as the OWCP may require.

Every employer shall maintain adequate records of injuries sustained by employees, including information on the disease, other impairments or disabilities, or death relating to the injury. Such records must be made available for inspection by OWCP or by any State authority. Records should be retained by the employer for three years following the date of injury.

Employers are required to secure insurance for workers' compensation coverage under the Act either through an authorized insurance carrier or by obtaining approval to self-insure from OWCP. To obtain approval to self-insure, the employer must, among other things, furnish to OWCP proof of his/her ability to pay compensation directly. The OWCP also requires the deposit of security in the form either of an indemnity bond or negotiable securities.

Once insurance has been obtained, the employer may request a certificate from the deputy commissioner in the compensation district in which he/she has operations, showing that the employer has secured the payment of compensation.

Only one certificate will be issued to an employer in a compensation district, and it will be valid only during the period for which the employer has secured such payment. When an employer obtains insurance through a private insurance carrier, the obligation of the employer for payment of benefits and provision of medical benefits is binding on the insurance carrier.

The employer or insurance carrier must pay compensation payments periodically, promptly and directly to the person entitled to benefits under the Act.

An employer may apply to OWCP for an exemption to coverage by certifying a particular facility as one engaged in the building, repairing or dismantling of exclusively small vessels and not receiving a Federal maritime subsidy. (Small vessels are defined as commercial barges which are under 900 lightship displacement tons (long) or a commercial tugboat, towboat, crew boat, supply boat, fishing vessel or other work vessel which is under 1,600 tons gross.) Once certified, injuries sustained at that facility would not be covered under the Act except for injuries which occur over the navigable waters of the United States, including any adjoining pier, wharf, dock, or facility over the land for launching vessels. A facility otherwise covered under the Act remains covered until certification of exemption is issued. This exemption from coverage is not intended to be used by employers whose facilities work on exclusively small vessels.

The special fund was established under the Act so that, under certain circumstances, the employer's liability is limited in the event an employee has pre-existing permanent partial disability; benefits are paid out of a special fund after 104 weeks. In order for this determination to be made, the employer must request limitation-of its liability and file a fully documented application with OWCP as soon as the claimant's condition becomes known or is an issue in dispute.

An employer may not discharge or in any manner discriminate against an employee because the employee has claimed or attempted to claim compensation or has participated in a proceeding under this Act. This prohibition does not prevent discharge or refusal to employ a person who has been found to have filed a fraudulent claim for compensation or otherwise having made a false statement or misrepresentation.

If an employee or his/her survivors), or an employer or insurance carrier disagrees with a recommendation of the Department, a formal hearing may be requested before an administrative law judge. Appeal from the Benefits Review Board decision may be taken to the U.S. Court of Appeals and finally to the United States Supreme Court.

It is important that an experienced legal team evaluate your claim. You may be entitled to worker compensation benefits and/or may have a third party claim. If you are in an accident, call us immediately. We are here to help. At Larry King, P.C., we recognize the unique issues pertaining to your claim. You can call us at (757) 595-8100 seven days a week, 24 hours a day, everyday of the year. We also offer a free legal-infoline service, and you can now contact us on this web site by using the following Personal Injury Contact form. We are committed to doing the extra things it takes to help our clients.