U.S. DEPARTl\.fENT OF LABOR 

EMPLOYMENT STANDARDS ADMiNlS'ffiATION 

---------------,------------ - ........ ,,,-

Office of Workers' Compensation Programs 

September 26, 1977 

No. 36 

NOTICE TO INSURANCE CARRIERS, SELF-INSURED EMPLOYERS UNDER 

THE LONGSHOREMEN'S AND HARBOR WORKERS' COMPENSATION ACT, AND 

· OTHER INTERESTED PERSONS 

Subject: Maximum and Minimum Compensation Rates Under 

Longshore Act Effective October 1, 1977; 

Adjustments of Permanent Total Disability and 

Death Cases 

Section 6(b) (3) of the Longshoremen's and Harbor Wcrkers' 

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 to be applicable for the period beginning 

October 1 of that year and ending with September 30 of the 

next year. It has been determined that the applicabl8 

national average weekly wage for the period beginning 

October 1, 1977, and ending September 30, 1978, is $183.61. 

Section 6(b) (1) (D) provides that for the period October 1, 

1977 through September 30, 1978 the maximum rate of compensation under this Act shall not exceed 200 percent of the 

national average weekly wage. The maximum compensation rate 

for total disability for injuries sustained during this 

period is $367.22 (200 percent of $183.61). Compensation 

for disability subject to this maximum should be paid at 66-

2/3 percent of the employee's average weekly wage as detccrmined 

under section 10, subject to the foregoing limitation. 

The minimum compensation rate payable for disability incurred 

in the above period is$ 91.81 per week, fifty percent of 

the national average weekly wage. However, if an emp1oyee's 

average weekly wage is less than this amount, he or she 

receives the employee's entire average weekly wage as 

compensation for total disability. 

In computing death benefits covered by this applicable 

period, the average weekly wage of the deceasc,d emplcy0c, 

shall be considered to have been not less than $183.61 per 

week, but total weekly benefits may not exceed the averas2 

weekly wage of the deceased. 
The foregoing maximum and minimum rates do not apply to 

employees covered by the Nonappropriated Fund Instrumentalities Act. The maximum and minimum rates for those 

employees change under a separate schedule, whenever Federal 

employees' pay rates change. 

In accordance with subsections lO(f) and lO(h) (3) of the 

Act, effective October 1, 1977 the compensation or death 

benefits payable for cases of permanent total disability or 

death which occurred prior to October 1, 1977 are to be 

increased by 7.21 percent, the percentage by which the 

national average weekly wage of $183.61 (effective October 

1, 1977) exceeds the previous national average weekly wage 

of $171.27 (effective October 1, 1976 through September 30, 

1977). The weekly compensation after adjustment is fixed at 

the nearest dollar, and no adjustment of less than $1 shall 

be made. In no event is compensation for death benefits 

reduced. District Offices of the Office of Workers' Compensation Programs will advise beneficiaries receiving payments, 

·and insurance carriers and self-insured employers of the 

amount of adjustment due in each case. 

Field or district offices of insurance carriers or selfinsured employers paying benefits under the Longshoremen's 

and Harbor Workers' Compensation Act and related Acts (the 

District of Columbia Compensation Act, the Defense Base Act, 

the Outer Continental Shelf Lands Act and the Nonappropriated Fund Instrumentalities Act) will soon receive specific instruct±ons from the Office of Workers' Compensation 

Programs (OWCP) District Offices for making the adjustments 

under section lO(f) in individual cases, and should begin 

paying at the new benefit levels as soon as possible. 

If the section lO(f) increase is to be reimbursed to an 

insurance carrier or self-insured employer under procedures 

which have been established by the OWCP National Office, it 

will be indicated on form Ltr. LS-521 (rev.) for that case 

with the "Yes" block being marked on the front of the 

letter. If the "No" block is marked, the Section lO(f) 

adjustment is not subject to reimbursement by OWCP. In case 

of questions about implementing these mandatory adjustments, 

any district office or-the OWCP National Office may be 

contacted. (Phone: Area Code 202 - 523-8721) 

n,. L ~ ,#,J,e._. 

J~STOCKER 

Associate Director for 

Longshore and Harbor 

Workers' Compensation