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Office of Workers' Compensation Programs (OWCP)

Division of Longshore and Harbor Workers' Compensation (DLHWC)

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Benefits Under the Defense Base Act
Elke Crabbe February 22, 2006 U.S.

References

What is Covered?

Benefits Under the DBA

Medical Benefits

Reference: 33 U.S.C. §907

When is Compensation Due?

Under Section 914(b) the first payment of compensation is due within 14 days after the employer has knowledge of the injury causing disability.
Employer's knowledge is imputed to the carrier.
The employer/carrier has fourteen days to pay or controvert using Form LS-207.
If the notice of controversion is not timely filed, the employer's liability for the additional assessment attaches when compensation is not paid within 14 days after it becomes due. Therefore, where employer fails to file a timely notice of controversion, it has 28 days from the date of knowledge within which to pay compensation without incurring liability under Section 14(e).
The 14(e) penalty is 10% of the unpaid compensation, plus interest.

Compensation Types

What are the types of disability?

Temporary Total Disability (TTD); Temporary Partial Disability (TPD); Permanent Total Disability (PTD)Permanent Partial Disability (PPD). PPD can be scheduled or unscheduled.

Temporary Total Disability (TTD)

Temporary Partial Disability (TPD)

Compensation for Loss of Wage Earning Capacity (LWEC)
2/3 of employee's loss of wages e.g.
Earnings prior to injury = $1500,
Earnings after injury = $ 500 - $1000
TPD = $1000 x 2/3 = $666.67 per week

Permanent Total Disability

Permanent Partial Disability

2/3 of employee's loss of earning capacity, or
Total disability for a defined number of weeks for a percentage of permanent impairment of a scheduled body part under Section Sections 8(c)(1)-(20).

Death Benefits

Burial Expenses of up to $3,000.
50% of AWW for the surviving spouse, or if no spouse, for one surviving child.
16 2/3% of AWW for one or more surviving children, shared equally, in addition to the 50% for spouse and one child.
Child benefit is paid up to age 18, student benefit through age 23 if in school full-time.

Average Weekly Wage

Determination of AWW is based upon "average annual earnings" divided by 52 weeks.
Preferred method is Section 910(a), which uses claimant's actual earnings for year prior to injury if claimant is a 5- or 6-day worker and has worked "substantially" the whole of the year.
Alternatively, Section 910(b) uses earnings of a similarly situated worker.
The last alternative is Section 910(c), which is the "catch-all" provision.
Compensation rate is calculated by multiplying AWW by 66 2/3 % (or 2/3).

Compensation Rate Annual Adjustment

Permanent total disability and death benefits are subject to annual adjustment (increase) based on U.S. national average weekly earnings as reported by the Bureau of Labor Statistics.
Annual adjustments are applied on October 1 of each year. Lifetime Payments Widow(er)'s benefits
If the same employee had been killed, his 30 year old widow and 2 infant children will receive over the life of the claim in excess of $2,000,000, not including annual adjustments.
Widow @ $750 x 52 weeks x 45 years = $1,755,000
Children @ $250 x 52 weeks x 21 years = $273,000

Commutation

Permanent disability and death benefits payable to aliens and non-US citizens residing outside the US may be commuted.
Commuted benefit is equal to one half of the present value of future compensation, paid in one lump sum.

Other Benefits

Vocational Rehabilitation services for permanently disabled employees unable to return to employment without assistance.
Services can include placement with previous employer in a modified position, placement with a new employer, or retraining.
Currently rehabilitation services are only available to those permanently disabled employees residing in the United States.
Paid for by the U.S. Department of Labor, although claimant may be temporarily totally disabled during retraining.