The Longshore and Harbor Workers' Compensation Act provides employment-injury and occupational-disease protection to
approximately 500,000 workers who are injured or contract occupational diseases occurring on the navigable waters of the
United States, or in adjoining areas, and for certain other classes of workers covered by extensions of this Act.
These benefits are paid directly by an authorized self-insured employer; or through an authorized insurance carrier; or,
in particular circumstances, by a Special Fund administered directly by the Division of Longshore Compensation.
In addition to longshore, harbor, and other maritime workers, LHWCA covers a variety of other employees through the
following extensions to the Act: The District of Columbia Workmen's Compensation Act (enacted in 1928 and repealed
effective July 26, 1982); Defense Base Act (1941); Nonappropriated Fund Instrumentalities Act (1952); and the Outer
Continental Shelf Lands Act (1953).
The Longshore Compensation Program provides over $670 million in monetary, medical and vocational rehabilitation benefits
in more than 72,000 cases annually for maritime workers and various other special classes of private industry employees
disabled or killed by employment injuries or occupational diseases. In addition the program maintains over $2 billion in
securities to ensure the continuing provision of benefits for these injured workers in cases of employer insolvency.
Claimants depend upon timely receipt of these benefits to provide food, housing and a minimal standard of living for
themselves and their families.
The Longshore and Harbor Workers' Compensation Act, administered by the U.S. Department of Labor, provides medical
benefits, compensation for lost wages and rehabilitation services to longshoremen, harbor workers and other maritime
workers who are injured during the course of employment or suffer from diseases caused or worsened by conditions of
employment. Several other statutes extend the provisions of the Act to cover other classes of private-industry workers.
These include workers engaged in the extraction of natural resources of the outer continental shelf, employees on American
defense bases, and those working under contracts with the U.S. government for defense or public-works projects, outside of
the Continental United States.
During FY 2003 in excess of $670 million in compensation and medical benefits will be paid in approximately 72,000 cases
covered under these compensation acts. These benefits constitute the only source of income for many families. Medical
benefits provide the treatment necessary to recuperate and return to gainful employment when timely provided.
A primary function of the Longshore compensation program is to act as a mediator in resolving disputed claims. By means of
an informal conference claimants and their employers discuss the issues and voluntarily resolve their disputes. Lacking
this informal mechanism for resolving controversies, the parties must request a formal hearing before an Administrative
Law Judge. This can result in delays before a decision is issued. Injured workers entitled to benefits are then without
income for extended periods of time. Likewise, employers experience significant increases in litigation costs. In
addition, the government realizes substantial savings each time the conference produces an agreement. For example the
Longshore program can conduct an informal conference for an estimated average of $300 while each formal hearing costs over
$2,000. During FY 2003 over 3,300 informal conferences were conducted in disputed claims.
The Longshore program is also responsible for over $2 billion in negotiable securities, cash and bonds which are
maintained for the payment of benefits in the event of insolvency of the employer or insurance carrier. The Longshore
Program has the fiduciary responsibility to ensure that the amounts posted are adequate to secure the payment of benefits
which requres constant auditing and adjustment.
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