Understanding the Differences: Longshore and Harbor Workers’ Compensation Act vs. State Workers’ Compensation

maritime

Introduction

In the realm of workers’ compensation, various laws govern the rights and benefits of injured workers. Two significant systems in the United States are the Longshore and Harbor Workers’ Compensation Act (LHWCA) and state workers’ compensation programs. While both aim to provide financial support and medical care to injured employees, they operate independently and have distinct features. In this post, we will delve into the differences between these two compensation systems, shedding light on their coverage, benefits, compensation amounts, and dual coverage scenarios.

1. Coverage and Eligibility

LHWCA:

The LHWCA is a federal law specifically designed for workers engaged in maritime occupations. Here are the key points:

Coverage: The LHWCA applies to employees working on navigable waters of the United States or in adjoining areas commonly used for vessel loading, unloading, repairing, or building. This includes longshore workers, ship-repairers, shipbuilders, and harbor construction workers.

Eligibility: Injuries must occur within the scope of maritime employment, such as on piers, docks, terminals, and wharves. Even non-maritime employees may be covered if their work takes place on navigable waters.

State Workers’ Compensation:

State workers’ compensation laws vary by state, but some general aspects include:

Coverage: State programs cover injuries sustained during employment, regardless of the industry. They apply to a wide range of occupations, from office workers to construction laborers.

Eligibility: Injuries must occur within the state’s boundaries, whether on land, in factories, or other work-related locations.

2. Benefits

LHWCA:

The LHWCA provides comprehensive benefits to eligible workers:

Medical Care: The LHWCA pays for all necessary medical treatment related to the covered injury or illness.
Disability Benefits: Disability payments are based on the worker’s pre-injury wage and are adjusted annually to reflect national wage growth.
Survivor Benefits: If an employee dies due to a work-related injury, dependents may receive survivor benefits.

State Workers’ Compensation:

State benefits vary but typically include:

Medical Care: Like the LHWCA, state workers’ compensation covers medical expenses related to the injury.
Temporary Disability Payments: These compensate for lost wages during recovery.
Permanent Disability Payments: If the injury results in permanent impairment, workers may receive ongoing compensation.
Vocational Rehabilitation Services: Some states offer vocational training to help injured workers return to suitable employment.

3. Compensation Amount

LHWCA:

The LHWCA allows workers to receive up to two-thirds (66.67%) of their last year’s average weekly wage (AWW).
It provides a relatively higher compensation rate compared to most state workers’ compensation systems.

State Workers’ Compensation:

State benefits typically cap out at around 60% of the AWW.
The exact percentage varies by state.

4. Dual Coverage

In certain situations, an injured worker may be eligible for compensation under both a state workers’ compensation system and the LHWCA.
However, any amounts received under the state system reduce what the employer must pay under the LHWCA.

Conclusion

Understanding the differences between the LHWCA and state workers’ compensation is crucial for injured workers and employers alike. While both systems aim to protect workers, their specific rules, benefits, and compensation amounts can significantly impact an individual’s financial well-being during recovery. Consulting legal professionals or experts in workers’ compensation ensures that injured workers navigate these complex systems effectively and receive the appropriate benefits tailored to their circumstances.

Remember that seeking timely legal advice and understanding your rights can make a significant difference in your recovery process. Contact our Maritime Practice Group today to get started.

Joshua M. Stahley

Chairman, CEO, & Managing Director of Legal Services

The Law Offices of Joshua M. Stahley, P.A

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