September 22, 2004 

Notice No. 118 

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, 2004; 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, 2004, and ending September 30, 2005, is $523.58. 

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 $1,047.16 (200 percent of $523.58). 

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 

$1,047.16. 

The minimum compensation rate payable for disability incurred 

after October 1, 2004 is $261.79 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 

$523.58 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 $1,047.16 

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

during the period October 1, 2004 through September 30, 2005, 
except for District of Columbia Compensation Act (DCCA)1

 cases 

which are not subject to the 1984 amendments. 

The above noted maximum 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 10(f) and 10(h) of the amended Act, compensation or 

death benefits payable for permanent total disability or death 

cases which were incurred prior to October 1, 2004, 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, 2004, exceeds the applicable 

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

percent. (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 1.59 percent. As this 

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

1.59 percent effective October 1, 2004. 

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 10(f) and 10(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.