Longshore & Harbor Workers' Compensation Act

The Longshore and Harbor Workers' Compensation Act (LHWCA) — enacted in 1927 and codified at 33 U.S.C. §§ 901–950 — is the federal workers' compensation system for maritime workers who are injured on navigable waters or in adjoining areas (docks, wharves, terminals, shipyards), providing medical benefits and wage replacement outside state workers' comp systems. The LHWCA covers an estimated half a million workers — longshoremen, cargo handlers, ship repairers, and harbor construction workers — and pays two-thirds of the worker's average weekly wage (capped at 200% of the national average weekly wage; the maximum is approximately $2,082.70/week effective October 1, 2025) for the duration of disability, with full medical benefits and death benefits for surviving dependents. The Act is administered by the Department of Labor's Office of Workers' Compensation Programs (OWCP) and is a strict-liability no-fault system — workers don't need to prove employer negligence. The LHWCA has three major extensions that dramatically expand its reach: the Defense Base Act (DBA) covers civilian contractors working on U.S. military bases and foreign government contracts overseas (a critical coverage for contractors in Afghanistan, Iraq, and other conflict zones); the Outer Continental Shelf Lands Act (OCSLA) extends LHWCA to offshore oil and gas workers; and the Non-Appropriated Fund Instrumentalities Act covers civilian workers at military recreation facilities. Employers must either purchase LHWCA insurance or qualify as self-insured with DOL approval.

Current Law (2026)

Legal Authority

• 33 U.S.C. § 904 — Liability for compensation (every employer shall be liable for compensation for disability or death of an employee resulting from injury occurring upon the navigable waters of the United States, including any adjoining pier, wharf, dry dock, terminal, building way, marine railway, or other adjoining area customarily used by an employee in loading, unloading, repairing, dismantling, or building a vessel)
• 33 U.S.C. § 906 — Compensation schedule (disability compensation at 66⅔% of average weekly wage; subject to maximum and minimum rates; scheduled awards for specific injuries — loss of arm, leg, eye, etc.)
• 33 U.S.C. § 908 — Compensation for disability (temporary total: 66⅔% of wages during disability; permanent total: 66⅔% for life plus additional if injured worker requires attendant care; permanent partial: scheduled benefits for specific body parts or 66⅔% of wage loss for unscheduled injuries)
• 33 U.S.C. § 909 — Compensation for death (surviving spouse receives 50% of average weekly wage until death or remarriage; children receive additional percentages; funeral expenses up to $3,000)
• 33 U.S.C. § 933 — Third-party liability (if injury is caused by a third party, the employee may sue the third party for damages; the employer's lien on the recovery protects the compensation already paid)

How It Works

The LHWCA is the federal workers' compensation system for maritime workers — longshoremen, harbor workers, shipbuilders, ship repairers, and others who work on or near navigable waters. It fills a gap left by state workers' compensation systems, which generally don't cover maritime employment, and by the Jones Act, which covers only seamen.

The LHWCA covers employees working on the navigable waters of the United States or in adjoining areas customarily used for maritime employment — piers, wharves, docks, terminals, shipyards, and similar facilities — who are engaged in "maritime employment" as courts have interpreted it: longshoremen, harbor workers, ship repairers, shipbuilders, and workers loading, unloading, building, or dismantling vessels. The LHWCA explicitly excludes clerical and office workers, small retail or service establishment employees, crew members (covered instead by the Jones Act), government employees, and employees covered by other federal workers' compensation programs. Like the Federal Employees' Compensation Act, the LHWCA is a no-fault system — workers need not prove employer negligence. Benefits under 33 U.S.C. § 908 include: temporary total disability (66⅔% of average weekly wage while unable to work); permanent total disability (66⅔% for life plus attendant care); permanent partial disability (scheduled awards for specific body parts — 312 weeks for an arm, 288 weeks for a leg — or wage-loss benefits for unscheduled injuries); full medical treatment paid by the employer; and death benefits (50% of average weekly wage to a surviving spouse, additional percentages for children, plus funeral expenses). Maximum weekly benefits are capped at 200% of the national average weekly wage, adjusted annually.

The LHWCA's reach extends well beyond U.S. waterfronts through three major extensions. The Defense Base Act (DBA) extends LHWCA coverage to civilian contractors working overseas on U.S. military bases, under U.S. government contracts, and in U.S.-funded public works projects — covering hundreds of thousands of contractors in Iraq, Afghanistan, and other conflict zones, with substantial litigation over PTSD and traumatic brain injury claims since 2001. The Outer Continental Shelf Lands Act (OCSLA) extends coverage to workers on offshore oil and gas platforms, wind farms, and other structures on the outer continental shelf — critical for the offshore energy industry as it expands into new regions. When an injury occurs, the injured worker files a claim with the OWCP District Director; if the employer contests the claim, it proceeds to an Administrative Law Judge (ALJ) hearing, then to the Benefits Review Board, then to federal circuit court. Employers must either self-insure (posting security with DOL) or carry LHWCA insurance through an authorized carrier. The Department of Labor's Special Fund covers second-injury claims and cases where no responsible employer can be identified — limiting the cost exposure employers face for hiring workers with pre-existing conditions.

How It Affects You

If you're a longshoreman, harbor worker, ship repairer, shipbuilder, or maritime facility worker injured on the job: Report your injury to your employer immediately — notice requirements under the LHWCA are strict, and delayed reporting can complicate your claim. This is a no-fault system: you don't need to prove your employer was negligent. You're entitled to all reasonable and necessary medical treatment paid directly by the employer's insurer — after the initial visit, you can choose your own physician. Wage-loss disability compensation is 66⅔% of your average weekly wage, up to a maximum of $2,082.70/week effective October 1, 2025 (200% of the national average weekly wage, adjusted annually). For permanent partial disability from loss of a specific body part, the LHWCA schedule sets fixed awards: an arm is worth 312 weeks at your compensation rate, a leg 288 weeks, an eye 160 weeks — regardless of whether you lose that much income. For disputes: file with DOL's Office of Workers' Compensation Programs (OWCP) District Director. Unresolved claims go to an Administrative Law Judge (ALJ) hearing, then to the Benefits Review Board, then federal court. Don't accept an insurer's initial settlement offer without consulting a longshore attorney — early offers frequently undervalue permanent disability claims.

If you're a civilian contractor working on a U.S. military base, government contract, or overseas public works project: The Defense Base Act (DBA) extends LHWCA coverage to you regardless of where you're working — Iraq, Afghanistan, Germany, Okinawa, or anywhere else a U.S. government contract takes you. Your employer is required to carry DBA insurance; if they don't and you're injured, they're personally liable. Report injuries immediately and document everything — overseas claims face practical complications with rotating witnesses, medical records in different languages, and logistical challenges. PTSD and traumatic brain injury claims from conflict-zone contractors have generated significant litigation: PTSD from witnessing combat, improvised explosive device attacks, or violent incidents can qualify as a DBA-compensable injury even without direct physical trauma to you. Carriers typically deny PTSD/TBI claims initially; prevailing usually requires medical documentation from qualified specialists and, often, an ALJ hearing. DBA provides the same benefits as LHWCA — medical treatment, disability compensation, and death benefits for surviving family.

If you work on an offshore oil platform, offshore wind installation, or structure on the outer continental shelf: The Outer Continental Shelf Lands Act (OCSLA) extends LHWCA coverage to your work on the OCS — platforms, fixed structures, drilling rigs. The key distinction to understand: LHWCA/OCSLA workers receive no-fault compensation at 66⅔% of wages, while Jones Act seamen (crew members of navigating vessels) can sue for unlimited negligence damages including pain and suffering but must prove fault. Whether you're covered by OCSLA or the Jones Act depends on your employment classification — if your primary work is on a fixed platform or structure, OCSLA typically applies; if you're a crew member on a vessel that moves in navigable waters searching for work, the Jones Act may apply. The offshore wind industry's rapid expansion on the Eastern seaboard is creating new OCSLA coverage questions as installation vessels, floating platforms, and maintenance crews operate in complex legal environments. Confirm your coverage classification and your employer's insurance before beginning work offshore.

If you're a maritime employer — shipping company, stevedore, shipyard, or offshore operator: LHWCA compliance is mandatory. You must carry LHWCA insurance through an authorized carrier or qualify as a DOL-approved self-insurer (self-insurance requires posting security and demonstrating financial stability). When an employee is injured: provide immediate medical care — delay creates additional liability and is itself a violation. Notify your insurance carrier promptly and cooperate with the investigation. Anti-retaliation: you cannot discharge, coerce, or discriminate against any employee for filing a LHWCA claim; violations carry independent penalties. The Special Fund (DOL-administered) covers second-injury claims — if a previously disabled employee suffers a new injury, your liability is limited to the disability attributable to the new injury rather than the combined result, limiting your cost exposure for hiring workers with pre-existing conditions. Monitor your claims experience: LHWCA insurance is experience-rated, and high-frequency or high-severity claims drive premium increases.

State Variations

• The LHWCA is exclusively federal — state workers' compensation does not apply to covered maritime employment
• Some states have concurrent jurisdiction for injuries in areas that overlap between maritime and land-based employment
• State workers' compensation may apply to maritime workers not covered by the LHWCA (e.g., clerical workers at maritime facilities)
• State law may govern non-maritime aspects of the employment relationship (wages, discrimination)

Implementing Regulations

The OWCP regulations implementing the LHWCA are at 20 CFR Parts 701–704. Part 702 governs the core claims and adjudication procedure. Key provisions:

• § 702.111 — Employer records: every employer must maintain adequate records of injuries sustained by employees; records must be available for OWCP inspection at any time
• § 702.131 — Representation: injured workers may be represented by attorneys or other persons before OWCP; non-attorney representatives are permitted
• § 702.134 — Attorney's fees in disputed claims: when an employer controverts a claim and the claimant prevails, the employer must pay the claimant's attorney fees as approved by the District Director or ALJ; contingency fee agreements must be filed with and approved by OWCP — unapproved fees are unenforceable
• § 702.201 — Employer's injury report: within 10 days of an employee's injury or death (or 10 days from the date the employer acquires knowledge), the employer must file a written report with the District Director (LS-202 form); includes name/address of employer, employee's name/occupation/SSN, cause of injury, nature and extent of injury, dates of disability, and name of insurance carrier
• § 702.204 — Penalty for failure to report: employers, carriers, or self-insured employers who knowingly and willfully fail to file the required injury report or who falsify a report are subject to civil penalties
• § 702.212 — Employee notice requirements: the injured worker must give notice of injury to the designated employer official within 30 days of a traumatic injury; for occupational disease, notice runs from the date the employee knows or should know the condition is work-related — failure to give timely notice does not bar the claim if the employer had actual knowledge or is not prejudiced by the delay
• § 702.221 — Filing the claim: formal compensation claims must be filed in writing with the District Director for the compensation district where the injury occurred; claims for disability have a one-year limitation period from date of injury; claims for occupational disease run from date the worker knows or should know of the disease and its work-related cause
• § 702.231 — Noncontroverted claims — immediate payment: unless the employer files a notice of controversion, the employer or carrier must pay compensation without any formal award — the obligation to pay begins immediately on receiving notice; the employer cannot wait for an OWCP determination before paying clear-cut claims
• § 702.232 — Payment timing: the first payment must be made within 14 days of the employer receiving notice or having knowledge of the injury; all compensation due on that 14th day must be paid; subsequent installments are paid periodically in the same manner as wages
• § 702.233 — Late payment penalty: if any installment of compensation is not paid within 14 days of becoming due, a 10% penalty is automatically added and must be paid along with the late installment — this is a self-executing penalty that requires no separate action by the worker
• § 702.251 — Controversion: an employer that disputes liability must file a written notice of controversion with the District Director, stating the specific reasons for dispute; blanket or unexplained controversions are not permitted; filing a controversion shifts the claim to the formal adjudication track before an Administrative Law Judge

The typical claim flow: employer reports injury → worker files claim → if not controverted, employer pays within 14 days → if controverted, claim goes to ALJ hearing → ALJ decision appealable to the Benefits Review Board → federal circuit court review. Informal dispute resolution through OWCP's informal conference process is available before formal ALJ proceedings and resolves many claims without a hearing. The 10% late payment penalty and automatic attorney fee shifting in contested claims create strong financial incentives for employers and carriers to pay valid claims promptly rather than delay.

Recent rulemaking: In February 2026, DOL's OWCP issued guidance clarifying security deposit requirements for carriers authorized under the LHWCA.

• 20 CFR Part 61 — Claims for Compensation Under the War Hazards Compensation Act (30 sections across 2 subparts): implements the War Hazards Compensation Act (WHCA, 42 U.S.C. §§ 1701–1706), which addresses the gap in the Defense Base Act's coverage by providing a federal backstop when a defense contractor worker's injury or death results from a war-risk hazard — defined as hostile or warlike action, terrorism, mines, torpedoes, sabotage, enemy attack, capture, or internment. The DBA mandates workers' comp coverage for U.S. defense contractors working overseas; the WHCA ensures that DBA carriers (private insurers and self-insured employers) are not left bearing the cost when the specific cause was an act of war or terrorism rather than an ordinary workplace accident.

  Two-part structure: Part 61 separates into two subparts tracking the WHCA's two compensation pathways:

  Subpart B — Reimbursement to carriers (§§ 61.100–61.105): the primary WHCA mechanism for defense contractor employees already covered by DBA. When a DBA carrier pays workers' compensation benefits and the injury or death was caused by a war-risk hazard (enemy action, terrorism, sabotage), the carrier may apply to OWCP for full federal reimbursement of those benefit payments. Key provisions:

  • § 61.100 — General reimbursement: OWCP will reimburse any carrier that pays DBA benefits due to injury, disability, or death from a war-risk hazard; reimbursement covers compensation payments, medical expenses, and approved rehabilitation costs; the carrier is made whole — it pays the claimant, then recovers from the federal government; this structure allows private insurers to write DBA policies without bearing the catastrophic risk of mass-casualty terrorist attacks on contractor workers
  • § 61.101 — Filing for reimbursement: the carrier or employer submits a reimbursement request to OWCP's Division of Federal Employees' Compensation; the request must document the injury, the DBA benefits paid, and evidence that the cause was a war-risk hazard; the standard requires a causal nexus between the hazard and the injury — ordinary accidents that happen to occur in a war zone do not qualify
  • § 61.104 — Claims expense reimbursement: OWCP reimburses not only the underlying compensation but also the carrier's reasonable and necessary claims expense (investigation costs, legal costs, medical evaluations) attributable to the war-risk case — recognizing that processing complex terrorism and hostile-fire cases is more expensive than standard workers' comp claims
  • § 61.105 — Direct payment: in cases where no carrier is involved (uninsured employer or gap in coverage), OWCP may pay benefits directly to the injured worker or survivors; this backstop prevents workers in war zones from falling through cracks between DBA coverage and WHCA eligibility

  Subpart C — Direct WHCA compensation (§§ 61.200–61.203): for employees not covered by DBA who are injured by a war-risk hazard — including U.S. government employees serving in the war zone under non-standard arrangements and certain non-DBA employees of U.S. contractors. Key provisions:

  • § 61.200 — Entitlement: compensation is payable for injury or death due to a war-risk hazard regardless of whether the employee was engaged in the direct performance of contract duties at the moment of injury — the hazard (enemy action, explosion, capture) need only be the proximate cause; this broader scope recognizes that war-zone environments create constant risk unrelated to specific work tasks
  • § 61.202 — Time limitations: claims must be filed within the limitations periods applicable under the LHWCA (incorporated by reference); OWCP has discretion to waive late filing when there is a good cause, including the claimant's inability to file due to incapacitation, captivity, or hostilities; the waiver provision is practically important for cases involving captivity or hostage-taking
  • § 61.203 — Benefit limits: WHCA direct compensation is capped at the maximum rate under LHWCA § 6(b) — the national average weekly wage standard; unlike DBA benefits (which have no statutory cap beyond the national average weekly wage), WHCA direct benefits are explicitly bounded; workers with potential DBA coverage must exhaust DBA remedies first before accessing WHCA direct compensation

  The WHCA program's practical significance has increased substantially since the post-9/11 military operations in Afghanistan and Iraq. The wars generated tens of thousands of DBA claims from U.S. defense and reconstruction contractors, with a meaningful percentage involving injuries from IEDs, rocket attacks, suicide bombings, and sniper fire — all classic WHCA-covered war-risk hazards. Major defense contracting companies (Fluor, KBR, DynCorp, MPRI) used the WHCA reimbursement mechanism to recover from the federal government the DBA benefits they paid to injured workers. The WHCA reimbursement structure is what made large-scale DBA insurance commercially viable in conflict zones — without it, private insurers would have faced uninsurable catastrophic risk. No major rulemakings since 1979 (44 FR 45285, August 1979 — original Part 61 promulgation); the program has operated under stable rules for four decades.

Pending Legislation

No standalone Longshore and Harbor Workers' Compensation Act reform bills pending in the 119th Congress.

Recent Developments

• Defense Base Act claims from Iraq and Afghanistan have generated significant litigation, particularly regarding PTSD and traumatic brain injury
• Offshore wind energy development has created new OCSLA coverage questions as the industry expands
• The maximum weekly compensation rate continues to increase with the national average weekly wage
• COVID-19 raised questions about LHWCA coverage for maritime workers exposed to the virus at work
• OWCP has modernized its claims processing systems but the system continues to face delays in complex cases

In February 2026, DOL's Office of Workers' Compensation Programs issued guidance clarifying security deposit requirements for insurance carriers authorized under the Longshore and Harbor Workers' Compensation Act.