01 Sep Understanding the U.S. Longshore and Harbor Workers’ Compensation Act: A Vital Safety Net
Thousands of men and women work in the United States maritime industry, a job that is often demanding and physically hazardous. Whether loading cargo, repairing vessels, or building offshore structures, these workers are critical to global commerce. Since their work environments differ from traditional office or industrial settings, standard state-level workers’ compensation laws often do not apply to them. This is addressed by the Longshore and Harbor Workers’ Compensation Act (LHWCA).
Enacted in 1927 and revised by the 1972 amendments, the LHWCA is a federal law that provides financial and medical benefits to maritime workers who are injured or develop occupational illnesses in the course of their employment.
To be eligible for benefits, a worker must generally satisfy two primary criteria:
- The employee must be engaged in maritime employment, such as longshoremen, harbor workers, shipbuilders, or ship repairers. (Status Test)
- The injury must occur upon the navigable waters of the United States, or in an adjoining area—such as a pier, wharf, dry dock, terminal, or marine railway—customarily used in the loading, unloading, repairing, or building of a vessel. (Situs Test) (dol.gov)
The Act specifically excludes certain types of employees, such as masters or crew members of any vessel (who are typically covered under the Jones Act) and public employees of the United States or state/foreign governments.
The LHWCA functions similarly to state workers’ compensation but operates under federal jurisdiction, often providing more comprehensive coverage. Its primary benefits include:
- Medical Benefits: The Act requires that employers provide all medical care necessary to treat an injured worker, including hospital stays, surgeries, prescriptions, and rehabilitation services. Unlike some workers’ compensation laws, the injured worker has the right to choose their own physician. (jonesactlaw.com)
- Disability Compensation: An injured employee is entitled to receive wage replacement. This includes temporary total disability, temporary partial disability, permanent total disability, and permanent partial disability benefits, depending on the severity and duration of the impairment.
- Death Benefits: In the event of a work-related death, the LHWCA provides financial support to the surviving spouse and dependent children. (twfgcommercial.com)
For employers, maintaining USL&H (United States Longshore and Harbor) insurance is a critical regulatory requirement. Failing to secure this coverage can lead to severe penalties and significant legal exposure.
The LHWCA serves as an important safeguard for those who keep out nation’s ports and waterways running. By ensuring that injured workers are provided medical care and financial stability rather than litigation and uncertainty, it helps sustain a vital sector of the American economy.
Sometimes eligibility for coverage can be surprising. In an Ohio case, a worker who operated a conveyor belt a mile from the river was injured on the job. The conveyor belt transferred coal to barges in the river. The employer did not recognize the exposure and felt the Ohio monopolistic fund would cover the injury. The employee made a claim under the LHWCA and was awarded coverage.
Agents should be careful advising about coverage. We should be aware of the possible exposure and recommend that our clients contact a maritime attorney. There are too many situations that might trigger coverage under the act, and we want to be careful that we are not providing legal advice.