Understanding the Longshore and Harbor Workers' Act

The Longshore and Harbor Workers' Act (LHWCA) is a federal law that provides workers' compensation benefits to specific maritime employees. For candidates preparing for the practice Workers Comp questions, it is vital to understand that the LHWCA is distinct from standard state workers' compensation programs and the Jones Act.

While state workers' compensation covers employees on land and the Jones Act covers the masters and members of a crew on a vessel, the LHWCA fills the gap for those who work on or near navigable waters but are not considered "seamen." This federal program ensures that these workers receive medical care, vocational rehabilitation, and cash benefits if they are injured on the job or develop an occupational disease.

To gain a broader perspective on how this fits into the overall insurance landscape, refer to our complete Workers Comp exam guide.

To determine if an employee is covered under the LHWCA, they must meet two specific criteria: the Situs Test and the Status Test. Failing either one usually means the worker falls under state jurisdiction instead of federal.

The Situs Test (Location)

The injury must occur on the "navigable waters" of the United States or on an adjoining area customarily used by an employer in loading, unloading, repairing, or building a vessel. These areas include:

• Piers and wharves
• Dry docks and terminals
• Marine railways
• Other adjoining areas used for maritime commerce

The Status Test (Occupation)

The individual must be engaged in "maritime employment." This specifically includes:

• Longshoremen: Workers who load and unload ships.
• Harbor Workers: Individuals maintaining the port infrastructure.
• Shipbuilders/Ship Repairers: Those working on the construction or maintenance of vessels.
• Ship-breakers: Those involved in dismantling old vessels.

Not every person working near water is covered by the LHWCA. The act specifically excludes certain categories of workers if they are covered by a state workers' compensation law. These exclusions often include:

• Individuals employed exclusively to perform office clerical, secretarial, security, or data processing work.
• Individuals employed by a club, camp, recreational operation, restaurant, museum, or retail outlet.
• Individuals employed by a marina and who are not engaged in construction, replacement, or expansion of such marina.
• Employees of suppliers, transporters, or vendors who are temporarily doing business on the premises of a maritime employer and are not engaged in work normally performed by employees of that employer.

Note: For the exam, the most critical exclusion is the "Master or member of a crew of any vessel." These individuals are covered under the Jones Act, not the LHWCA.

The benefits under the LHWCA are similar in structure to state laws but often more generous in terms of maximum weekly limits and duration. They include:

• Medical Benefits: Reasonable and necessary medical treatment related to the injury, with the employee having the initial right to choose their physician.
• Disability Benefits: Compensation for temporary total, temporary partial, permanent total, and permanent partial disability. Permanent Total Disability is typically paid at 66 2/3% of the employee's average weekly wage.
• Death Benefits: If the injury causes death, the surviving spouse and/or children are entitled to benefits based on a percentage of the deceased worker's wages.
• Vocational Rehabilitation: Assistance for permanently disabled workers to return to gainful employment.