Title 33Navigation and Navigable WatersRelease 119-73not60

§933 Compensation for Injuries Where Third Persons Are Liable

Title 33 › Chapter 18— LONGSHORE AND HARBOR WORKERS’ COMPENSATION › § 933

Last updated Apr 5, 2026|Official source

Summary

Lets a worker (or the worker’s survivors) who gets workers’ compensation also try to get money from a third party who caused the injury or death, without having to choose one or the other. If the worker accepts a compensation award or the payment is put into the special fund (section 944), the worker’s right to sue that third party is assigned to the employer unless the worker starts a lawsuit within six months after accepting the award. If the employer gets the claim and does not sue within ninety days after the claim is assigned, the right goes back to the worker. Award = a formal order by a deputy commissioner, an administrative law judge, or the Board. Representative = the legal representative of someone who died. If the employer sues or settles with the third party, the money recovered is divided: the employer keeps its legal and other expenses (including a reasonable attorney fee as decided by the deputy commissioner or Board), the cost of benefits actually given under section 907, all compensation already paid, and the present value of future compensation and future benefits (computed by a schedule from the Secretary and estimated by the deputy commissioner) as a trust to pay future amounts; any extra goes to the worker or representative. If the worker sues within the six months, the employer must pay the difference between the compensation owed and the net recovery (net recovery = amount actually recovered minus reasonable litigation expenses and fees). If the worker settles for less than the compensation they would get, the employer owes under these rules only if the employer and its insurer give written approval on a Secretary form before the settlement and that form is filed with the deputy commissioner within thirty days. Failing to get or file that approval, or failing to tell the employer about a settlement or judgment, ends all rights to compensation and medical benefits. Payments from the special fund (section 944) and from certain trust funds (section 917) have liens on settlement proceeds; the trust fund lien has priority. If the employer’s insurer paid the compensation, the insurer gets the employer’s rights. If a co-worker caused the injury, workers’ compensation is the only remedy against that co-worker, but this does not affect liability of people who are not the employer’s officers or employees.

Full Legal Text

Title 33, §933

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(a)If on account of a disability or death for which compensation is payable under this chapter the person entitled to such compensation determines that some person other than the employer or a person or persons in his employ is liable in damages, he need not elect whether to receive such compensation or to recover damages against such third person.
(b)Acceptance of compensation under an award in a compensation order filed by the deputy commissioner, an administrative law judge, or the Board shall operate as an assignment to the employer of all rights of the person entitled to compensation to recover damages against such third person unless such person shall commence an action against such third person within six months after such acceptance. If the employer fails to commence an action against such third person within ninety days after the cause of action is assigned under this section, the right to bring such action shall revert to the person entitled to compensation. For the purpose of this subsection, the term “award” with respect to a compensation order means a formal order issued by the deputy commissioner, an administrative law judge, or Board.
(c)The payment of such compensation into the fund established in section 944 of this title shall operate as an assignment to the employer of all right of the legal representative of the deceased (hereinafter referred to as “representative”) to recover damages against such third person.
(d)Such employer on account of such assignment may either institute proceedings for the recovery of such damages or may compromise with such third person either without or after instituting such proceeding.
(e)Any amount recovered by such employer on account of such assignment, whether or not as the result of a compromise, shall be distributed as follows:
(1)The employer shall retain an amount equal to—
(A)the expenses incurred by him in respect to such proceedings or compromise (including a reasonable attorney’s fee as determined by the deputy commissioner or Board);
(B)the cost of all benefits actually furnished by him to the employee under section 907 of this title;
(C)all amounts paid as compensation;
(D)the present value of all amounts thereafter payable as compensation, such present value to be computed in accordance with a schedule prepared by the Secretary, and the present value of the cost of all benefits thereafter to be furnished under section 907 of this title, to be estimated by the deputy commissioner, and the amounts so computed and estimated to be retained by the employer as a trust fund to pay such compensation and the cost of such benefits as they become due, and to pay any sum finally remaining in excess thereof to the person entitled to compensation or to the representative; and
(2)The employer shall pay any excess to the person entitled to compensation or to the representative.
(f)If the person entitled to compensation institutes proceedings within the period prescribed in subsection (b) the employer shall be required to pay as compensation under this chapter a sum equal to the excess of the amount which the Secretary determines is payable on account of such injury or death over the net amount recovered against such third person. Such net amount shall be equal to the actual amount recovered less the expenses reasonably incurred by such person in respect to such proceedings (including reasonable attorneys’ fees).
(g)(1)If the person entitled to compensation (or the person’s representative) enters into a settlement with a third person referred to in subsection (a) for an amount less than the compensation to which the person (or the person’s representative) would be entitled under this chapter, the employer shall be liable for compensation as determined under subsection (f) only if written approval of the settlement is obtained from the employer and the employer’s carrier, before the settlement is executed, and by the person entitled to compensation (or the person’s representative). The approval shall be made on a form provided by the Secretary and shall be filed in the office of the deputy commissioner within thirty days after the settlement is entered into.
(2)If no written approval of the settlement is obtained and filed as required by paragraph (1), or if the employee fails to notify the employer of any settlement obtained from or judgment rendered against a third person, all rights to compensation and medical benefits under this chapter shall be terminated, regardless of whether the employer or the employer’s insurer has made payments or acknowledged entitlement to benefits under this chapter.
(3)Any payments by the special fund established under section 944 of this title shall be a lien upon the proceeds of any settlement obtained from or judgment rendered against a third person referred to under subsection (a). Notwithstanding any other provision of law, such lien shall be enforceable against such proceeds, regardless of whether the Secretary on behalf of the special fund has agreed to or has received actual notice of the settlement or judgment.
(4)Any payments by a trust fund described in section 917 of this title shall be a lien upon the proceeds of any settlement obtained from or judgment recorded against a third person referred to under subsection (a). Such lien shall have priority over a lien under paragraph (3) of this subsection.
(h)Where the employer is insured and the insurance carrier has assumed the payment of the compensation, the insurance carrier shall be subrogated to all the rights of the employer under this section.
(i)The right to compensation or benefits under this chapter shall be the exclusive remedy to an employee when he is injured, or to his eligible survivors or legal representatives if he is killed, by the negligence or wrong of any other person or persons in the same employ: Provided, That this provision shall not affect the liability of a person other than an officer or employee of the employer.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1984—Subsec. (b). Pub. L. 98–426, § 21(a), substituted “Acceptance of compensation under an award in a compensation order filed by the deputy commissioner, an administrative law judge, or the Board shall operate as an assignment to the employer of all rights of the person entitled to compensation to recover damages against such third person unless such person shall commence an action against such third person within six months after such acceptance” for “Acceptance of such compensation under an award in a compensation order filed by the deputy commissioner or Board shall operate as an assignment to the employer of all right of the person entitled to compensation to recover damages against such third person unless such person shall commence an action against such third person within six months after such award” and inserted at end “If the employer fails to commence an action against such third person within ninety days after the cause of action is assigned under this section, the right to bring such action shall revert to the person entitled to compensation. For the purpose of this subsection, the term ‘award’ with respect to a compensation order means a formal order issued by the deputy commissioner, an administrative law judge, or Board.” Subsec. (e)(2). Pub. L. 98–426, § 21(b), struck out “, less one-fifth of such excess which shall belong to the employer” after “or to the representative”. Subsec. (f). Pub. L. 98–426, § 21(c)(1), inserted “net” before “amount recovered”. Pub. L. 98–426, § 21(c)(2), inserted at end “Such net amount shall be equal to the actual amount recovered less the expenses reasonably incurred by such person in respect to such proceedings (including reasonable attorneys’ fees).” Subsec. (g). Pub. L. 98–426, § 21(d), designated existing provisions as par. (1), substituted “If the person entitled to compensation (or the person’s representative) enters into a settlement with a third person referred to in subsection (a) for an amount less than the compensation to which the person (or the person’s representative) would be entitled under this chapter, the employer shall be liable for compensation as determined under subsection (f) only if written approval of the settlement is obtained from the employer and the employer’s carrier, before the settlement is executed, and by the person entitled to compensation (or the person’s representative)” for “If compromise with such third person is made by the person entitled to compensation or such representative of an amount less than the compensation to which such person or representative would be entitled to under this chapter the employer shall be liable for compensation as determined in subsection (f) only if the written approval of such compromise is obtained from the employer and its insurance carrier by the person entitled to compensation or such representative at the time of or prior to such compromise on a form provided by the Secretary and filed in the office of the deputy commissioner having jurisdiction of such injury or death within thirty days after such compromise is made”, inserted at end “The approval shall be made on a form provided by the Secretary and shall be filed in the office of the deputy commissioner within thirty days after the settlement is entered into.”, and added pars. (2) to (4). 1972—Subsecs. (b), (e)(1)(A). Pub. L. 92–576, § 15(f), (g), inserted “or Board” after “deputy commissioner”. Subsec. (g). Pub. L. 92–576, § 15(h), substituted “if the written approval of such compromise is obtained from the employer and its insurance carrier by the person entitled to compensation or such representative at the time of or prior to such compromise on a form provided by the Secretary and filed in the office of the deputy commissioner having jurisdiction of such injury or death within thirty days after such compromise is made” for “if such compromise is made with his written approval”. 1959—Subsec. (a). Pub. L. 86–171 inserted “or a person or persons in his employ” after “employer” and substituted “he need not elect whether” for “he may elect, by giving notice to the deputy commissioner in such manner as the Secretary may provide,”. Subsec. (b). Pub. L. 86–171 inserted “unless such person shall commence an action against such third person within six months after such award”. Subsec. (c). Pub. L. 86–171 struck out “, whether or not the representative has notified the deputy commissioner of his election” after “third person”. Subsec. (d). Pub. L. 86–171 reenacted subsec. (d) without change. Subsec. (e). Pub. L. 86–171 substituted “Secretary” for “Commission” in par. (1)(D) and inserted in par. (2) “less one-fifth of such excess which shall belong to the employer”. Subsec. (f). Pub. L. 86–171 struck out “or the representative elects to recover damages against such third person and notifies the Secretary of his election and” before “institutes” and substituted “subsection (b)” for “section 913 of this title” and “Secretary” for “Commission”. Subsec. (g). Pub. L. 86–171 corrected reference to “subsection (e)” to read “subsection (f)”. Subsecs. (h), (i). Pub. L. 86–171 redesignated subsec. (i) as (h) and struck out former subsec. (h) that permitted the deputy commissioner to make an election for a minor or to authorize the parent or guardian to make the election. 1938—Subsec. (b). Act
June 25, 1938, § 12, inserted “under an award in a compensation order filed by the deputy commissioner” and struck out “, whether or not the person entitled to compensation has notified the deputy commissioner of his election” at end of sentence. Subsec. (e). Act
June 25, 1938, § 12, redesignated par. (1)(C) as par. (1)(C) and (D) and included in said par. (1)(D) the present value of the cost of benefits furnished. Subsec. (i). Act
June 25, 1938, § 13, added subsec. (i).

Statutory Notes and Related Subsidiaries

Effective Date

of 1984 AmendmentAmendment by Pub. L. 98–426 effective Sept. 28, 1984, and applicable both with respect to claims filed after such date and to claims pending on such date, see section 28(a) of Pub. L. 98–426, set out as a note under section 901 of this title.

Effective Date

of 1972 AmendmentAmendment by Pub. L. 92–576 effective 30 days after Oct. 27, 1972, see section 22 of Pub. L. 92–576, set out as a note under section 902 of this title.

Reference

Citations & Metadata

Citation

33 U.S.C. § 933

Title 33Navigation and Navigable Waters

Last Updated

Apr 5, 2026

Release point: 119-73not60