Office of Workers' Compensation Programs (OWCP)

Printer-Friendly Version

Division of Longshore and Harbor Workers' Compensation (DLHWC)

CHAPTER 3-200 — DETERMINATION OF PAY: SECTION 10

1. Purpose and Scope. This Chapter provides an introduction to the determination of pay and adjustments pursuant to section 10 of the Act. The following Chapters deal with this section of the Act in more depth. PM 3-201 deals with average weekly wage determinations, PM 3-202 deals with annual adjustments for PTD and death cases under section 10(f) of the Act, and PM 3-202 deals with adjustments to the compensation rate under section 10(h) of the Act.
2. General.
   1. The CE should determine the correct rate of compensation, to which an injured employee is entitled as soon as possible, after the EC reports that payments have begun. The initial report of payments is made on Form LS-206, Payment of Compensation Without An Award (Exhibit 19, PM 10-200) and triggers this activity. Form LS-208, Notice of Final Payment or Suspension of Benefits (Exhibit 21, PM 10-200) may be substituted if the injured worker has returned to work.
   2. The starting point in calculating the rate of compensation for disability or death is the injured employee's or deceased employee's average weekly wage. It is the basis of all benefit calculations except those for disfigurement under section 8(c)(20) and medical payments under section 7. The overriding objective is to arrive at a valid earning capacity at the time of injury.
3. Methods for Determining the Average Weekly Wage. Section 10 of the Act describes the basic methods for determining the injured worker's average weekly wage. Chapter 3-201 of the Procedure Manual describes in more detail the principal methods to be utilized.
4. Form To Be Utilized in Determining the Average Weekly Wage.
   1. LS-202, Employers First Report of Injury (Exhibit 16, PM 10-200)
   2. LS-206, Payment of Compensation without Award (Exhibit 19, PM 10-200)
   3. LS-208, Notice of Final Payment or Suspension of Benefits (Exhibit 21, PM 10-200)
   4. LS-426, Request to Employee for Wage Earnings Information (Exhibit 39, PM 10-200)
   5. LS-537, Change in Compensation Based on Higher AWW (Exhibit 46, PM 10-200)
   6. LS-557, Notice to Employee of Compensation Rate under the LHWCA (Exhibit 51, PM 10-200)