U.S. Department of Labor 

October 1, 1988 

Employment Standards Administration ADM 8-5. 3 

Office of Workers' Compensa\ior Programs X COM-L 9-1 

Division of Longshore and 

Harbor WorKers' Compensation 

Washington, D.C. 20210 

No. 67 

NOTICE TO INSURANCE CARRIERS, SELF-INSURED EMPLOYERS UNDER 

THE LONGSHORE AND HARBOR WORKERS'· OOMPENSATION ACT, AND 

OTHER INTERESTED PERSONS 

SUBJECT: Maximum and Minimum Compensation Rates Under 

Longshore Act, Effective October l, 19881 

Adjustments of Permanent Total Disability and Death cases 

Section 6(b)(3) of the Longshore and Barbor workers' Compensation 

Act provides that prior to October l 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 l, of the current year, and ending with September 30 of the next year. It has been determined that 

the applicable national average weekly wage for the period 

beginning October l, 1988, and ending September 30, 1989, is 

$318.12. 

section 6(b) (l) provides that for the period October l, 1988 

through September 30, 1989, 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 and death is $636.24 (200 percent of $318.12). 

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 foregoing limitation. 

The minimum compensation rate payable for disability incurred 

in the above period is $159,06 per week, 50 percent of the 

national average weekly wage. However, if an employee'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 deceased employee shall not be 

less than $318.12 per week, which is the national average weekly 

wage for the covered period. In addition, under the provisions 

of the 1984 Amendments, the total weekly death benefits shall not 
exceed the lesser of the average weekly wages of the deceased or 

200% of the national average weekly wage. During the period October 1, 1988 to September 30, 1989 the 200% maximum benefit 

amount is $636.24 per week, and is applicable to cases in which 

the death occurs during that period, except for DCCA cases which 

are not subject to the 1984 ammendments. 

The above noted maximum and minimum rates for disability and 

death also apply to employees covered by the Nonappropriated Fund 

Instrumentalities (NFI) Act. 

Onder Section l0(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, 1988, 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, 1988, as determined under 

Section 6(b), exceeds the applicable national average weekly wage for the preceding period; or (2) 5 percent. DCCA cases are 

always subject to (1). The percentage by which the latter figure 

exceeds the former is 3.13. Since 3.13 is the lesser, these 

cases are to be increased by this percentage effective October 1, 

1988. 

Field or district offices of insurance carriers or self-insured 

employers paying benefits under the Longshore and Harbor workers' 

Compensation Act and related Acts (District of Columbia 

Compensation Act of 1928 l/, 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 l0(f} and l0(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: 202-523-8721), may be contacted. 

For DCCA cases, contact the D.C. Government, Department of 

Empl ment Sei:vices (Telephone: (202} 576-6265} • 

IO 

Director, 

Longshore and Harbor 

Workers' Compensation 

l/ Applicable only to injuries which occurred prior to 

July 26, 1982.