October 17, 2007 

Notice No. 123 

NOTICE TO INSURANCE CARRIERS, SELF-INSURED EMPLOYERS UNDER THE 

LONGSHORE AND HARBOR WORKERS' COMPENSATION ACT, AND OTHER 

INTERESTED PERSONS 

SUBJECT: Maximum and Minimum Compensation Rates Under the 

Longshore Act, Effective October 1, 2007; Adjustments of 

Permanent Total Disability and Death Cases 

Section 6(b) (3) of the Longshore and Harbor Workers• Compensation 

Act provides that prior to October 1 of each year, based on the 

national average weekly wage for the three calendar quarters 

ending June 30 of that year, the Secretary of Labor shall 

determine the national average weekly wage (NAWW) to be applicable 

for the 12-month period beginning October 1. It has been 

determined that the applicable NAWW for the period beginning 

October 1, 2007, and ending September 30, 2008, is $580.18. 

Minimum and Maximum Rates 

Section 6(b) (1) provides that the maximum rate of compensation 

under this Act shall not exceed 200 percent of the national 

average weekly wage. Therefore, the maximum compensation rate for 

total disability and death is $1,160.36 (200 percent of $580.18). 

Compensation for disability subject to this maximum should be paid 

at 66 2/3 percent of the employee's average weekly wage, as 

determined under Section 10, subject to the limitation of 

$1,160.36. 

The minimum compensation rate payable for disability incurred 

after October 1, 2007, is $290.09 per week, which is 50 percent of 

the NAWW. However, if an employee's average weekly wage is less 

than this amount, he or she receives his or her entire average 

weekly wage as compensation for total disability. 

In computing death benefits covered by this period, the average 

weekly wage of the deceased employee shall not be less than 

$580.18 per week. In addition, under the provisions of the 1984 

Amendments, the total weekly death benefits shall not exceed the 

lesser of (1) average weekly wages of the deceased or (2) 200 

percent of the NAWW. The 200 percent maximum benefit is $1,160.36 

per week, and is applicable to cases in which the death occurs 

during the period October 1, 2007, through September 30, 2008, 
except for District of Columbia Compensation Act (DCCA) 1 cases 

which are not subject to the 1984 amendments. 

The above-noted maxi.mum and minimum rates for disability and death 

also apply to employees covered by the Nonappropriated Fund 

Instrumentalities Act (NFIA). The minimum rate does not apply to 

employees covered by the Defense Base Act. 

Annual Adjustments 

Under Section lO(f) and lO(h) of the amended Act, compensation or 

death benefits payable for permanent total disability or death 

cases which were incurred prior to October 1, 2007, are to be 

increased by the lesser of (1) a percentage equal to the 

percentage by which the applicable national average weekly wage 

for the period beginning October 1, 2007, exceeds the applicable 

national average weekly wage for the preceding period, or (2) 5 

pe~cent. (DCCA cases are always subject to the percentage 

increase in the NAWW without regard to the 5 percent limitation.) 

The percentage increase in the NAWW is 4.12 percent. As this 

figure is less than 5 percent, compensation is to be increased by 

4.12 percent effective October 1, 2007. 

Field or district offices of insurance carriers or self-insured 

employers paying benefits under the Longshore and Harbor Workers' 

Compensation Act and related Acts (DCCA, Defense Base Act, Outer 

Continental Shelf Lands Act, and Nonappropriated Fund Instrumentalities Act) will soon receive specific instructions from OWCP 

district offices and/or from the District of Columbia Government 

for making the adjustments on Section lO(f} and lO(h) cases, and 

should begin paying at the new benefit levels as soon as possible. 

In case of questions about implementing these mandatory adjustments, any district office or the OWCP National Office, Longshore 

Division (Telephone: (202) 693-0038) may be contacted. For DCCA 

cases, contact the D.C. Government, Department of Employment 

Services (Telephone: (202) 671-1000). 

MICHAEL NISS 

Director, Division of 

Longshore and Harbor 

Workers' Compensation 

1 District of Columbia Compensation Act of 1928 which is 

applicable only to injuries which occurred prior to 

July 26, 1982. 
LHWCA BULLETIN NO. 08-01 

Issue date: October 1, 2007 

Expiration Date: September 30, 2008 

Subject: National Average Weekly Wage, Minimum/Maximum Rates, 

and Annual Adjustment Under Section l0(f}, Effective October 1, 

2007. 

Background: Under Section 6(b} (3) of the LHWCA, the Secretary 

has determined that the National Average Weekly Wage (NAWW} for 

the three consecutive calendar quarters ending June 30, 2007 is 

$580.18. This amount is the applicable NAWW for the period 

October 1, 2007, through September 30, 2008. 

In accordance with Section 2(19) of the Act, the NAWW of $580.18 

is based on the national average earnings of production or 

nonsupervisory workers on private nonagricultural payrolls. Such 

earnings during the three consecutive calendar quarters ending 

June 30, 2007, as obtained from the Bureau of Labor Statistics, 

are $578.34, $576.09 and $586.12. The average of these three 

quarterly figures is $580.18. 

Under Section 6(b) (1) of the Act, the maximum compensation for 

disability or death is 11 200 per centum of the applicable national 

average weekly wage." Given the NAWW of $580.18, the maximum 

compensation rate for the 12-month period beginning October 1, 

2007, is $1,160.36 per week. 

The minimum compensation rate under Section 6(b)(2) is 11 50 per 

centum of the applicable national average weekly wage," or 

$290.09 per week for the period October 1, 2007, through 

September 30, 2008. 

Section l0(f) provides that, effective October 1 of each year, 

compensation for permanent total disability or death shall be 

increased by (1) a percentage equal to the percentage by which 

the current NAWW exceeds the preceding NAWW or (2) 5 percent, 

whichever is less. The NAWW of $580.18 exceeds the preceding 

NAWW of $557.22 by 4.12 percent. Therefore, the increase 

provided by Section l0{f) for October 1, 2007, is 4.12 percent. 

In summary, the following amounts and percentage are applicable 

during the period October 1, 2007, through September 30, 2008: 
National Average Weekly Wage. 

Maximum Compensation Rate 

Minimum Compensation Rate 

Adjustment Under Sections lO(f) and lO(h) 

. $580.18 

$1,160.36 

$290.09 

. 4.12% 

Purpose: To provide the national average weekly wage, the 

minimum and maximum compensation rates, and the percent of 

adjustment under Section lO(f) applicable to the period beginning 

October 1, 2007, and to provide information and guidance on their 

application. 

References: Chapters 3-202 and 3-203 of the Longshore (LHWCA) 

Procedure Manual. 

Applicability: All District Directors, Claims Examiners, and 

Claims Clerks in the DLHWC District Offices. 

Action: 

1. Effective October 1, 2007, compensation for disability 

incurred during the period 10/1/2007 - 9/30/2008 is to be 

computed at 66 2/3% of the employee's average weekly wage as 

determined under Section 10, subject to the maximum compensation 

rate of $1,160.36. The minimum compensation rate in total 

disability cases is $290.09. However, if an employee's average 

weekly wage is less than this amount, compensation should be paid 

at 100% of the employee's average weekly wage. 

2. In computing death benefits, the average weekly wage of the 

deceased employee should not be less than $580.18, and the total 

weekly death benefit should not initially exceed the maximum 

compensation rate of $1,160.36. Death benefits can subsequently 

exceed the initial maximum limitations by virtue of Section lO(f) 

adjustments. 

3. Form LS-557, copy attached, has been revised to reflect the 

current minimum and maximum limitations applicable where the 

injury occurred on or after October 1, 2007 .. Form LS-557 is also 

being sent as an attachment in Microsoft Word for Windows XP 

format to the District Directors. Each district office may print 

the forms as needed. No supply of the form will be provided by 

the National Office unless specifically requested. A small 

supply of the previous edition of the LS-557 should be retained 

for use in those cases where the injury occurred prior to October 

1, 2007. 

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4. In accordance with the provisions of Section l0(f) of the 

LHWCA, the compensation being paid in cases of permanent total 

disability or death arising out of injuries subject to the Act 

which existed prior to October 1, 2007, is to be increased by 

4.12 percent. 

The adjusted weekly amount will be fixed at the nearest dollar. 

Figures ending in $.50 or more will be raised to the next whole 

dollar; figures ending in less than $.50 will be rounded to the 

preceding dollar amount. No adjustment of less than $1.00 will 

be made. Therefore, in any case where the weekly award is $24.27 

per week or less, there will be no adjustment of compensation. 

If the award is greater than $24.27, then there will be an 

adjustment. 

5. Form LS-521, copy attached, has been revised to reflect the 

percentage of adjustment for October 1, 2007. Form LS-521 is 

also being sent in electronic form via e-mail in Microsoft Word 

for Windows XP format. Offices should use the automated LS-521 

process available in the Longshore Case Management System (LCMS). 

Those offices using word processing or other programs to generate 

the LS-521 should make appropriate revisions to that document. 

Any previous editions of the form are obsolete and should be 

destroyed. 

6. Examples of computations of Section 10 adjustments for 

October 1, 2007, are as follows: 

Example 1. Cases currently being paid at the maximum 

compensation rate: 

$1,114.44 (Weekly compensation payment) 

$1,114.44 x 4.12% (.0412) = $45.9149 ($45.91 rounded to the 

nearest cent) 

$1,114.44 + $45.91 = $1,160.35 or $1,160.00 rounded to the 

nearest dollar. 

NOTE: If application of a Section 10 adjustment results in 

compensation above the maximum amount because of rounding to 

the nearest dollar, the compensation must be reduced to the 

maximum rate. However, this is not the case for this year's 

adjustment. 

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Example 2. Section l0(h) (1) cases currently being paid at the 

highest rate: 

$371.00 (Weekly compensation payment) 

$371.00 x 4.12% (.0412) = $15.285 ($15.29 rounded to the 

nearest cent) 

$371.00 + $15.29 = $386.29 or $386.00 rounded to the nearest 

dollar 

Example 3. Cases in which no adjustment is to be made: 

$24.27 (Weekly compensation payment) 

$24.27 x 4.12% (.0412) = $1.0786 ($1.08 rounded to the 

nearest cent) 

Section l0(g) states in such case that there is no 

adjustment in compensation. This example indicates that in 

any case where the weekly award is $24.27 or less there 

shall be no adjustment to compensation. If the award is 

greater than $24.27, then there will be an adjustment. 

Disposition: This Bulletin should be retained until the 

indicated expiration date or until the necessary changes have 

been made to the Longshore (LHWCA) Procedure Manual. 

MICHAEL NISS 

Director, Division of 

Longshore and Harbor 

Workers' Compensation 

Attachments 

Distribution: List No. 1 

(Regional Directors, OWCP; District Directors, 

DLHWC; All Claims Examiners; Rehabilitation 

Specialists; Mail and File Section; National 

Office DLHWC Professional Staff; Director, OWCP; 

Director, DFEC; Director, DCMWC, Rehabilitation 

Division; Director, DEEOIC, Rehabilitation 

Division; Solicitor's Office, Division of Black 

Lung and Longshore Legal Services) 

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