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The Longshore Compensation Act provides over $747 million in monetary,
medical and vocational rehabilitation benefits in more than 27,000 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 Longshore compensation program maintains over $2.8
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 2005 in excess of $747 million in compensation and medical
benefits will be paid in approximately 27,000 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 2005 over 2,500 informal conferences were conducted in
disputed claims.
The Longshore program is also responsible for over $2.8 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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