DEFINITION of United States Longshore And Harbor Workers' Compensation Act Of 1927- LHWCA
The United States Longshore And Harbor Workers' Compensation Act Of 1927 (LHWCA) is a program administered by a division of the Department of Labor that offers financial compensation and medical care to injured maritime workers.
They must have suffered the injury and become disabled from accidents that occur on U.S. navigable waters and adjoining areas for loading, unloading, repairing or building a vessel.
BREAKING DOWN United States Longshore And Harbor Workers' Compensation Act Of 1927- LHWCA
First enacted in 1927, the United States Longshore And Harbor Workers' Compensation Act Of 1927 (LHWCA) provides workers' compensation benefits to maritime workers such as dock workers, Outer Continental Shelf workers and U.S. contractors who are working on foreign soil, such as U.S. civilian contractors in Iraq and Afghanistan. Dependents of an injured employee who dies also receives benefits.
Also called the Longshore Act or LHWCA, it is administered by the Office of Workers' Compensation Programs (OWCP), Employment Standards Administration and the U.S. Department of Labor.
A maritime worker who is covered by the Longshore and Harbor Workers’ Compensation Act is generally entitled to compensation benefits equal to two-thirds of his or her average weekly wage while receiving medical treatment. In addition, the worker may receive a scheduled award for injury to body parts, or two-thirds of the worker's lost earning capacity.
If a company neglects to secure coverage under the Act and an employee is injured, it is subject to a fine up to $10,000 or up to a year in prison.
Oftentimes, private insurance companies deny coverage for employers that hire people to perform outwardly dangerous tasks. When that’s the case, the state offers coverage according to assigned risk pools as an alternate; or an employer can self-insure after the U.S. Department of Labor approves it.