.S. De} nt of Labor Employment Standards Administration
US partne! Office of Workers’ Compensation Programs

Division of Longshore and
Harbor Workers' Compensation
Washington, D.C. 20210

October 20, 1997
Notice No. 84

NOTICE TO INSURANCE CARRIERS, SELF-INSURED EMPLOYERS UNDER
THE LONGSHORE AND HARBOR WORKERS' COMPENSATION ACT (LHWCA),
AND OTHER INTERESTED PERSONS

SUBJECT: Increase In The Maximum Civil Penalties that May
Be Assessed Under The LHWCA

On July 2, 1997, the Department of Labor published a
proposal to amend various provisions of the regulations
implementing the Longshore and Harbor Workers' Compensation
Act (LHWCA). More specifically, the amendments, which were
published in final on October 17, 1997, will increase the
maximum civil penalties that may be assessed under the LHWCA
as required by the Federal Civil Penalties Inflation
Adjustment Act of 1990 (FCPIAA), as amended by the Debt
Collection Improvement Act of 1996 (DCIA). This Industry
Notice calls to your attention these amendments, which
become effective on November 17, 1997.

The LHWCA authorizes the assessment of a civil money penalty
in three situations: (1) Where an employer fails to file a
report within sixteen days of the final payment of
compensation, it shall be assessed a $100 civil penalty
(LHWCA, section 14(g)); (2) where an employer, insurance
carrier, or self-insured employer knowingly and willfully
fails to file any report required by section 30, or
knowingly or willfully makes a false statement or
misrepresentation in any required report, the employer,
insurance carrier, or self-insured employer shall be
assessed a civil penalty not to exceed $10,000 (LHWCA,
section 30(e)); and (3) where an employer is found to have
discriminated against an employee because the employee had
claimed or attempted to claim compensation, or has testified
or is about to testify in proceedings under the LHWCA, the
employer shall be liable for a civil penalty of not less
than $1,000 or more than $5,000 (LHWCA, section 49).

The DCIA, amending the FCPIAA, requires each agency to issue

regulations adjusting the amount of civil money penalties
they may levy. The DCIA requires that the civil money

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penalties be adjusted by a cost-of-living increase equal to
the percentage, if any, by which the Department of Labor's
Consumer Price Index (CPI) for all urban consumers for June
of the calendar year preceding the adjustment exceeds the
June CPI for the calendar year in which the civil penalty
amount was last set or adjusted. Due to inflation since the
LHWCA civil money penalties were last set or adjusted, the
increase will, in every case, be the maximum 10% initially
permitted under the DCIA.

As a result of the amendments the section 14(g) penalty will
be $110; the section 30(e) maximum penalty may not exceed
$11,000; and the section 49 maximum penalty will be not less
than $1,100 or more than 5,500. These adjusted civil
penalties apply only to violations occurring on or after

November 17, 1997.

The final rule was published in the Federal Register,
Vol.62, No. 201; Friday, October 17, 1997.

Director, Division of
Longshore and Harbor
Workers' Compensation