Employment Standards Administration
U.S. Department of Labor Office of Workers’ Compensation Programs

Division of Longshore and

Harbor Workers' Compensation

Washington, D.C. 20210

September 12, 2006
Notice No. 121

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, 2006; 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
mational 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, 2006, and ending September 30, 2007, is $557.22.

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 $1,114.44 (200 percent of $557.22).
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
$1,114.44.

The minimum compensation rate payable for disability incurred
after October 1, 2006, is $278.61 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
$557.22 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 $1,114.44
per week, and is applicable to cases in which the death occurs
during the period October 1, 2006, through September 30, 2007,



except for District of Columbia Compensation Act (DCCA)+ 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, 2006, 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, 2006, 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 3.80 percent. As this
figure is less than 5 percent, compensation is to be increased by
3.80 percent effective October 1, 2006.

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 Instrument -
alities 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 adjust-
ments, 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

* District of Columbia Compensation Act of 1928 which is

applicable only to injuries which occurred prior to
July 26, 1982.