E.ACL 

Notice to Inllurance Oa.r.rten and Selt-Il'I.INred llmplo;ven 

Re, P, L. 92-576 (1972 LS/nwoA ~ts) 

ALL OWCP DEl1'0'l'Y OCDISSIONERS 

..... 20211 

Att8':lhed 1.11 Cl. advanoe OoW of a n.::rtia. to ~ oa.rriers authorised u:nd«L" the ~:cemsn•• Aot 8114 its e:rterud.Ol:UI, and. seli'-1mlu.red 

aployen authod.aed una.u tha Act CIA i ta fllXffl'lBiol:119, adviatnB tbau 

of the 9MO~ of P, L, 9a-,76. The ~t i• batnB pnntGd for maf.lin, &l:ril)g tne wNk ot lfoVlilllba 13, and will be aocoq,anied 

b;r a ill841!Y ot the Jll!l:)flaiona ot the ._,..,..,t,. 0opie11 will be 

Jll&iled to :,OU at the timlll. o.f Prin'iir1", 

Jatm E, S'roOK.l!IR, Aotilll 

Depllty DilNlotor, Office of 

Wozben • • Oompeneat1on ~ 

Att11clBer>t 

oo, 

BAO 

ES.A RIGIOJWs 

( or.t1o4.&L 

~ 

roe).,.,/" 

E10 (Wb.1 te Oo:w) 

Mr, Grmiewald 

Mr· Hall 

Mr, RoberlilllOl1 

Mr. Leviml 

Mr, Ool:IGn 

M», Cuoof.a 

Mr, WolkoY 

Mr, Stooka 

Mr. W~r 

E&CL1JEStoo!atr/dkh ll/l0/72 
NoTilllliber 1$, 1972 

IMPORl.'il'l' lfOTICE TO INSURANCE CABRIERS 

AND SELF-INSUBED EMPLOYERS 

SUBJECT: l'u.'blio Lew 92-576, ett.otive November 26, 1972, 

,.,,tmdtng the Looglllhoremen•a and Harbor Workare• 

C~•tion Aot, u extended, includina' the 

District of Columbia Wo::tianen's Compensation Act. 

Ge:ntlemm:u 

Thill is to advise all inelure.noe oar.den authorised to write 

wo:dlmen I a OQIIIJl9Wl&tion ooverap 'Uilder the Lollgilhoraiien I s and 

Ra:rbor Worke:n I C~•tion .Aot o:i: ~ o:t' its extenlliona and 

to advin eaployen authoril!led to self-1ru!Ure under the Aot or 

1ftX¥ of ita ~ of 8lllell.dlll1illlts to the Aot by P. L. 92-576, 

enaoted October 27, 1972, to be e!fectiw )) da;vs thereafter. 

The amendlnexlts make major ol:ian&'es in coverage of the Aot and 

benefits pl:OVided for: inJm.7 or du.th mi.d&r all affected aota. 

They all\lO llliljmtiomtly change <:Jertain ""8d11f11U&tive and -weal 

prooed\ln. i'il1ally, they provide that the Beoretar,y- o£ Labor 

shall ennuall;r MHllll insura:noe o-.rrie:N 8itld sel£-.inau:N4 

lllllployers for ~ts to the special t'lmd to pi'Ovids om,-.half 

o:t' ~ pqunt11 to total disability and death bene.fi t 

recipients wbo ~ on the :rolls at the time the maendmenta are 

enacted, 

We Olll'lmOt st this time provide detailed ~tstiona o:t' all 

ohaupa effected by the new lesisl•tion 'llh1oh affect you 

N~billties eithff as a ~tion oam.er or a sel:t'-

insu:nd emplo~r. Ho'IIIIMl1', we 11.'N enololW!g an unofficial 

a1J!IPPll:ey '>:t' 1.m;po:rtimt obangea in tha law ill.vol ving emplo;rer or 

O&'!'ri.er liabill t;,, and Mk that 7014 1mmed1 a+.ql;r briJl€ the DeW 

~t and PJIO()edural. prov1aions to tha attention o:t' your 

wo1'1!:m.en' a ~on d.8partments and .field claims serviotrig 

repwMn.te.tives. 
l'or 1'lflher .t.ntozr11&tton ol' uf119t.1oe, ~ filllld reJ4111aent&ttvee '1111111' oontaot 1»putJ' Ccad.1ai02lfte in ilinriot otfto.• 

~ 

of the office of Wo:etaen•e CoaipeaaaUon ~• .&a J14IW 

tor tdmfniaterinl the .....,_ Act a:n dneloJllll, 

~ will be ei!viaad. 

:u:.W::0::.'!o4:. 1'.~':! !::-=:-=:--.,u!'~:1-

CQl:!C1w:rted 07 Aetntstntiw Lav ~11 of the ~tot 

Labor. Vntil fl;i:rrl;hff nottoe, De,pu.tJ' 0Olllll.taaionen will for,.. 

1111.1.'d ar.q- oll!JJu ~ bemns: to tbe Offioe of Jdnhl:let1/llt1w 

Lllill' Ju4aff in 'iubtng+,on, D.O,, adv.l.e.in,g all 1nterene4 puttee 

ot INCh nf'EIJ!'Ml. 

Regulations to:r 01111 atmns: the .lot, ncy be.t.Itg l!ffiaed to 

inooz,ponte cmllllB88 llla&l 07 the aum4men,t,e, will be publilllheli 

before 1!173 in the 1a4ual Reg:1ata end included in fitle 20 

of the 1973 ed1t1on of the Coda of~ RsiU1ationa• 'When 

the ~atioll9 haw been offtou.117 ~tad, you will be 

.t.ntoJ!lllid ot ~ ma4a m 4111..tot ;tai1141otiou of the 

Offloe of Women1e 01,11p111Nti.on ~ end ~ will be eArtlled of peoad.u:rea to'I! npo:li'tiDC 11ft' .i.n,tltr1n en4 fo'll t:ranaff9ffll'JS aiatin,g OUH to that llepuV COllllllieaionu llho will 

aernoe INOh OMlte atter n4tlrtl:d.ctilljJ. 

We lllhall be pleued to IIDIIWft' ltD3' petlona ~ tb.e rwv 

law that • now cc. Pleue llld4:Nee ~ ~•• to, AcUrll' Mnoto:r, Otfioe of Wi:i.....,,,. C!Ol9"1'N.tion ~. 

tJ. S. ~ of Labor, W~, D.C. 202ll, 

Slnoe:Nly, 

HDBP1' .L llOTLII, JR, 

J.otq Jl:lJNx.ltor, Off1oe of 

Wq»'k:alen 1 "1 C~on ~ 

Enolo11nmt 

Q't) 

EACL:JEStfocker dlo'l ... 11/13/72 

/ 

i 
• 

U.S. DEPARTMENT OF LABOR 

EMPLOYMENT STANDARDS A»MINISTllATION 

Office of Workmen's Compensation Programs 

November 15, 1972 

IMPORTANT NOTICE TO INSURANCE CARRIERS 

AND SELF-INSURlID EMPLOYERS 

Washington, D,C. 202:1 l 

SUBJECT: Public Law 92-576, effective November 26, 1972, 

amending the Longshoremen I s and Harbor Workers• 

Compensation Act, as extended, including the 

District of Columbia Workmen's Compensation Act. 

Gentlemen: 

This is to advise all insurance carriers authorized to write 

workmen I s compensation coverage under the Longshoremen I s and 

Harbor Workers' Compensation Act or any of its extensions and 

to advise employers authorized to self-insure under the Act or 

any of its extensions.of amendments to the Act by P. L. 92-576, 

enacted October 27, 1972, to be effective ,30 days thereafter. 

The amendments make major changes in coverage of the Act and 

benefits provided for injury or death under all affected acts. 

They also significantly change certain administrative and appeal 

procedure. Finally, they provide that the Secretary of Labor 

shall annually assess insurance carriers and self-insured 

employers for payments to the special fund to provide one-half 

of increased pa;yments to total disability and death benefit 

recipients who are on the rolls at the time the amendments are 

enacted • 

We cannot at this time provide detailed interpretations of all 

changes effected by the new legislation which affect your 

responsibilities either as a compensation carrier or a selfinsured employer. However, we are enclosing an unofficial 

StmlJilary of important changes in the law involving employer or 

carrier liability, and ask that you immediately bring the new 

benefit and procedural provisions to the attention of your 

workmen's compensation departments and field claims servicing 

representatives. 

lnclud, yo.,,. atldreu, ZIP wle, and file number on all comspondmc, 
-2-

For further information or assistance, your field representatives may contact Deputy Commissioners in district offices 

of the Office of Worlanen's Compensation Programs. As new 

procedures for administering the amended Act are developed, 

you will be advised. 

The amendments provide for form.al hearings under the Administrative Procedures Act. From now on such hearings will be 

conducted by Administrative Law Judges of the Department of 

Labor. Until further notice, Deputy Commissioners will forward mcy- claims requiring hearing to the Office of Administrative 

Law Judges in Washington, D.C., advising all interested parties 

of such refe=al. 

Regulations for administering the Act, now being revised to 

incorporate changes made by the amendments, will be published 

before 1973 in the Federal Register and included in Title 20 

of the 1973 edition of the Code of Federal Regulations. When 

the regulations have been officially pro:nruJ.gated, you will be 

infoimed of changes made in district jurisdictions of the 

Office of Worlanen•s Compensation Programs and you will be advised of procedures for reporting new injuries and for transferring existing cases to that Deputy Commissioner who will 

service such cases after redistricting. 

We shall be pleased to answer mcy- questions regarding the new 

law that we now can. Please address your inquiries to: 

Acting Director, Office of Worlanen's Compensation Programs, 

U. S. Department of Labor, Washington, D.C. 20211. 

~; .4 -:i_ __ /, ,j_ 

HERBERT A. DOYLE, q7f" / 

Acting Director, Office of 

Worlanen Is Compensation Programs 

Enclosure 
OWCP-11/10/72 

SUlllllla:£Y of Major Provisions of the 

Lopgshoremen's and Harbor Workers' Compensation Act AmendJJlents 

of 1972 (P.L. 92-576) 

Affecting Insurance Carriers and Self-Insured Employers 

This summary covers only major changes in the Act brought about by the 1972 

.AmendJJlen ts. 

It describes certain changes in (A) benefits, (B) administrative and appeal 

procedure, and (c) special fund administration. 

Cited section nUlllbemconsistently refer to nUllleration of the Longshoreman's 

and Harbor Workers' Colll:J?ensation Act (44 Stat. 1424, 33 rr.s.c. 902) rather 

than to that of the 1972 AmendJJlents (P.L.92-576). The term "Secretary," 

in each instance where used, refers to the U.S. Secretary of Labor. 

A. Changes in Disability or Death Benefits: 

1. Extension of coverage: 

a, Employee. Section 2(3) of the Act is amended to extend the 

definition of a covered employee to include any Slll:J?loyee engaged in maritime employment, any longshoreman or other person engaged in longshoring 

operations, and any harborworker. 

b. Employer. Section 2(4) of the Act is amended to extend the 

definition of a covered employer to include an employer of such employees 

in maritime employment on any pier, wharf, terminal , building way, or 

marine railway adjoining navigable waters or any dry dock, or other 

adjoining area used in loading, unloading, repairing, or building a vessel. 

c. Locus of injury. Section:,3(a) of the Act is amended to extend 

coverage, in respect to disability or death of an employee, to include 

cases of injury occurring on any pier, wharf, terminal, building way, or 

marine railway adjoining navigable waters, or any other adjoining area 

used in loading, unloading, repairing, or building a vessel. 

2. Student benefits. Section 2 ,of the Act is amended by changing the 

definition of a child eligible to receive death benefits: 

a. Section 2(14) of the Act is amended to include persons who, 

though 18 years of age or older, are students as defined in new subsection 

2(18). 
(2) 

b. New subsection 2(18) defines a "student" as a person stud;ying 

full-time at specified institutions up to age 23, or completion of four 

years education beyand high school , whichever occurs first. Student status 

continues unless there is more than a 5-month break between school years 

or the Secretary finds that factors beyond the person's control prevent 

continuation of education for a longer period, but a person serving in the 

armed forces is not a student. 

3. Reduced waiting period. Section 6(a) of the Act is amended to 

allow compensation from date of disability in cases where injury results 

in disability for more than 14 da;ys. 

4. Limits of disability compensation: 

a. Detem:i.ni:ng compensation. Section 6 of the Act is amended to 

substitute a new method for determining maximum and minimum compensation 

(applicable to persons cu=ently receiving compensation as well as those 

newly awarded compensation) based on the national average weekly wage: 

(1) Compensation for disability shall not exceed specified 

increasing percentages (greater than 100 percent) of the applicable 

national average weekly wage for the next three years, and shall not 

exceed 200 percent of the applicable national average weekly wage thereafter. 

(2) Compensation for total disability shall not be less than 

50 percentum of the applicable national average weekly wage determined by 

the Secretary, except that if' the employee's average weekly wages as 

computed under Section 10 are less than 50 percentum of such national 

average weekly wage, he shall receive his average weekly wages as compensation for total disability. 

(3) Prior to October of each year, the Secretary shall determine the applicable national average weekly wage for the period beginning 

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

on the basis of data (for the three most recent calendar quarters prior to 

his determination) as to the average weekly ea:rnings of production or 

nonsupervisory workers on private nonagricultural payrolls. 

(4) Maximum and minimum compensation for a nonappropriated 

fund instrumentality employee shall be 66 2/3 percent of the highest 

rate of basic pay in GS-12, and of the lowest rate of basic pay in GS-2, 

respectively. 

b. Definition of national average weekly wage. Section 2 of 

the Act is amended by adding the definition of "national average weekly 

wage" as the national average weekly ea:rnings of production or nonsupervisory workers on private nonagricultural payrolls. 
( 3) 

5. Compensation to survivors of deceased employees who had permanent 

partial disability: 

a. Nonschedule award cases. Section 8(d) of the Act is amended 

to provide that, in cases of permanent partial disability under subdivision 

8(0)(21), survivors of the claimant will be entitled to certain percentages 

of 1.5 times the weekly compensation of the deceased at the time of his 

death. 

b. Schedule award cases. Section 8(d) of the Act is amended: 

(1) To eliminate the requirements that children be under 

the age of 18 years and that the widower be dependent on his wife. 

(2) To add a new provision that, if there is no surviving 

spouse or child, compensation which would be pa;yable to other survivors 

listed in section 9(d) of the Act, using appropriate percentages contained 

in that section, shall be pa;yable to such other survivors: 

(a) If the aggregate amount to which all such other 

survivors is less than such unpaid compensation, the excess shall be 

divided among such survivors according to the amount otherwise pa;yable 

to each. 

(b) If there are no survivors, such unpaid compensation 

shall be paid to the special fund established under section1⁄4 of the Act 

(See part C of this summary). 

6. Compensation to survivors of deceased employees who had permanent 

total disability. Section 9 of the Act is amended to provide for payment 

of compensation to survivors of employees wlndie while receiving compensation for permanent total disability, even though death is from other 

causes. 

7. Elimination of limitation on compensation. Section 14(m) of the 

Act is repealed. 

8. Right to and obligation for medical services. Section 7 of the 

Act is amended to provide that: 

a. The employee must notify the employer within 10 days after 

first medical treatment and ma;y choose his own physician from all those 

authorized by the Secretary. 

b. If the employee is not able to choose, it is the duty of the 

employer to select a physician when immediate treatment is needed. 
(4) 

c. The Secretary takes action to assure himself of the quality 

of medical ca;re given injured employees by: 

(1) Actively supervising medical ca:re, requiring periodic 

reports, determining necessity, cha;racter, and sufficiency of any medical 

aid and, on his own initiative or at employer request, ordering a change 

of physicians when desirable, 

(2) Designating authorized physicians to render medical care, 

(3) Having arzy claimant examined, obtaining physician reports 

estimating an employee I s physical :impairment , permitting any party to 

request review or reexamination, which shall be completed within two weeks 

from date ordered, and charging cost of such examination to employer or 

insurance caJ:.Tier. 

9. Disfigurement. Pa:ragraph 20 of section 8( c) of the Act is 

amended to direct that compensation shall be awarded for serious disfigurel!lent of the neck or other normally exposed areas likely to 

handicap the employee in securing or maintaining Cl!lplo;ynent. 

10, Injury following previous impairment. Section 8(f)(l) of the 

Act is amended to p=vide: 

a, That pa;ynent for inJuries to an employee who had a permanent 

disability shall be based on the average weekly wage of the employee at 

the time of injury. If an employee with a partial disability suf"fers a 

second injury and becomes totally and pem.anently disabled, but that 

total disability is not due solely to his second injury, the employer shall 

pay compensation as provided by the applicable schedule in section 8(c)(1)-

(20) or up to 104 weeks, whichever is greater. 

b, In the case of injuries not described in section 8(c)(1)-(20) 

which cause total permanent disability or death to an employee already 

partially disabled, that the employer shall pa;;r compensation pa;yments or 

death benefits for,only 104 weeks in addition to benefits provided by 

8(b) and(e). 

c. In the case of a second injury, within the provisions of 

section 8(c)(1)-(20), which causes permanent partial disability but 

where such partial disability is not solely due to that injury but is 

greater than the injury which would have resulted from the second 

injury alone, that the employer shall pay compensation provided by 

section 8(c)(1)-(20) or 104 weeks, whichever is greater. 
(5) 

d. In the case of second injuries not described in section 

8(0)(1)-(20) whore such injuries cause permanent partial disability 

greater than that which would have resulted from the second injury 

alone, that the employer shall pay compensation for only 104 weeks in 

addition to compensation provided by section 8(b) and (e). 

e. In all cases arising under section 8(f), after expiration 

of the payments provided for, that the remainder of an:y compensation 

due shall be pa.id out of the special fund provided for in section 44 

( Seo part C of this summa.:ry) • 

f. Section 8(f)(2) of the Act, pertaining to pa;yment of subsequent 

injury benefits, is stricken. 

11. Cmnpensation for death, Section 9 of the Act is amended: 

a. To increase funeral expenses payable to $1,000.00. 

b, To increase the death benefit payable to these max:i.Irullns: 

(1) To the widow or widower,50 percent of the decoasod's 

average wages. 

(2) For the support of each child,16 2/3 percent of the 

deceased's average wages. If there.is no widow or widower, 50 percent 

for the first child and 16 2/3 percent for each additional child up 

to 66 2/3 percent. 

c. Section 9( d) of the Act is amended to allow death benofi ts 

to be pa.id for support of dependents who satisfy the definition of 

"dependent" in section 152 of the Internal Revenue Code of 1954, and 

to increase to 20 the percentage of the doceasod's wages for the 

support of grandchildren, brothers and sisters, and those meeting the 

IRC definition. 

d. Section9(e) of the Act is amended to provide, in computing 

death benefits, that the average weekly wages of the deceased shall be 

considered to have been not less than the applicable national average 

weekly wage as prescribed in section 6(b) of the Act, but the total 

weekly benofi ts shall not exceed the average weekly wages of the deceased;, 

12. Determination of employee I s average weekly wages: 

a. New subsection lO(f) of the Act directs that, effective 

October 1 of each year, compensation or benefits payable for permanent 

total disability or death where injury occu=ed after October 27, 1972, 

be increased by the percentage of increase, if an:y, in the applicable 

national weekly wage over that of the previous year. 
( 6) 

b. New subsection lO(g) of the Act provides that there shall 

be no reduction in compensation or death benefits, and that arcyadjustment of them under new subsection lO(f) of the Act shall be 

fixed at the nearest dollar in the amount of at least one dollar. 

c. New subsection lO(h) of the Act provides for adjusting 

compensation or benefits for total permanent disability commencing, or 

death occurring, prior to October 27, 1972: 

(1) Such adjustment shall be arrived at no later than 

90 da;vs after enactment of this subsection, by assuming that the 

national average weekly wage is the employee• s average weekly wage 

and that the injury or death occuxred on the dai)T after such enactment 

date. 

(2) No employee or survivor shall receive less than that to 

which he was entitled on such enactment date. However, in cases where 

such compensation or benefits were awarded at less than the maximum 

rate provided at the ti.me of the injury, the adjustment shall be 

arrived at by assuming that the employee's average weekly wage is 

equal to what it was at the ti.me of the injury, increased by the 

percentage of increase in the national average weekly wage between the 

year of the injury and the first day of the first month following 

enactment of this subsection. 

(3) In cases where the injury occu=ed before 1947, the 

Secretary shall determine the amount by which the employee's average 

weekly Wafse is deemed to have increased for the pre-1947 period. 

(4) Half the adjustment shall be paid out of the special 

fund (See part C of this swnma.:cy) and half from appropriations. 

(5) Compensation and benefits so adjusted shall continue 

to be adjusted each year under new subsectionslO(f) and (g), 

J3. Changes in A&ninistrati ve and Appeal Procedure: 

13. Time period for giving notice. Sections 12(a) and 13(a) of 

the Act are amended to provide in applicable cases that time periods 

within which notice of injury or death must be given and claim for 

disability or death must be filed shall not begin to run until the 

employee or beneficiary is (or should be) aware of the relationship 

between the injury or death and the employment. 

14. Qualified hearing examiners. Section 19( d) of the Act is amended 

so that a hearing on a claim, ordered by a deputy commissioner, must be 

conducted by a hearing examiner (A&ninistrative Law Judge) qualified 

under section 3105 of Title 5, U.S.C., and in accordance with the 

adjudication provisions in section 554, chapter 5, Title 5, (A&ninistrati ve 

Procedures Act). 
( 7) 

15. Review Procedure. For section 21(b) of the Act, two new subsections are substituted to set up a Benefits Review Board, appointed 

by the Secretary, with jurisdiction over decisions on claims raising 

substantiaJ. questions of fact or law, and with authority to order sta;vs 

of pa;yment pending final decision in such proceedings: 

a. A sta;v will not be granted unless i=eparable injury to 

the employer or carrier would otherwise ensue. 

b. The Board I s findings of fact in a decision under review by 

the Board will be conclusive if supported by substantial evidence in 

the record considered as a whole. 

c. Review of final orders of the Board ma;y be obtained by 

filing within 60 da;ys in the U.S. Court of Appeals for the circuit in 

which the injury occurred, 

16. Agxeed Settlements, Section 8(i) of the Act is amended to 

give authority: 

a. To the deputy commissioner to approve agreed settlements 

of the interested parties, whenever ~e determines it is for the best 

interests of the employee entitled to compensation. 

b. To the Seoretary to approve agreed settlements discharging 

the liability of the employer for medical benefits, whenever he 

determines it is for the best interests of the injured employee entitled 

to medical benefits. 

17. Employer liability in third-party compromise. Section 33(g) 

of the Act is amended to direct, where an employee has compromised with 

a third party for an amount less than that to which he would have been 

entitled under the Act , that written approval consenting to the 

compromise be obtained from both the employer and his carrier, no 

later than the time of such compromise, on a form provided by the 

Secretary and file:l.within 30 da;ys in the office of the appropriate 

deputy commissioner. 

18. Fees for Services. Section 28 of the Act is amended to provide: 

a,. In applicable cases, that an attorney's fee ma;y be awarded 

against the employer or carrier. 

b. That an employer or carrier against whom an attorney's fee 

is awarded may be fu:rther assessed costs, fees, and mileage for 

claimant's witnesses. 

19, Discrimination against employees who bring proceed:iJJfW• New 

section 49 of the Act provides thaw. any employer shall be liable to a 

penalty of not less than $100 nor more than $1,000 if the employer 
(8) 

or his agent discharges or otherwise discriminates against an employee's 

employment for his claiming compensation or testifying: 

a. An employee so discriminated against shall be restored to 

employment and compensated by the employer for wage loss, so long as he 

remains qualified to perform the du.ties of his employment. 

b. Only the employer, not his carrier, shall be liable for 

su.ch penalties and payments. 

c. Any insurance policy provision shall be void that undertakes 

to relieve the employer from liability for su.ch penalties and payments. 

C. Changes in Special Fund Administration. Section .44 of the Act is 

amended: 

20, To increase the sum which an employer must pa,y into the 

special fund, when an employee's death resu.l ts from injury and there are 

no survivors entitled to compensation, to $5,000. 

21. To oblige carriers and self-insurers to contribute each year to 

the eXpenses of payments from the special fund in s.ccordance with a 

fo=la determined by the Secretary and based on the carrier's or selfinsu.rer's proportion of pa;yments on risks covered by the Act du.ring the 

previous year in relation to the total of su.ch pa;y:ments made by all 

carriers and self-insurers. 

22, To oblige each carrier and self-insurer to make, keep and 

preserve records, to make reports, and to provide such additional 

information as regulations or orders of the Secretary ma,y prescribe. 

23, To give power to the Secretary to investigate and gather 

data from es.ch carrier and self-insurer and to subpoena witnesses and 

documents.