U.S. DEPARTMENT OF LABOR 

E>ai.on••NT ST.um4am A1>wt..,..,..4TION 

Office ofWotkm' Compensation Programs Wuhincton. I>.C. 202IO 

Division of Lonphore and Harbor Workm' Compensation 

October 17, 1980 

No. 44 

NOTICE TO INSURANCE CARRIERS, SELF-INSURED EMPLOYERS 

UNDER THE LONGSHOREMEN'S AND HARBOR WORKERS' COMPENSATION 

ACT, AND OTHER INTERESTED PERSONS . 

Subject: Maximum and Minimum Compensation Rates Under 

Longshore Act, Effective October 1, 1980: 

Adjustments of Permanent Total Disability 

and Death Cases 

Section 6(b) (3) of the Longshoremen's 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 to be applicable for the period beginning 

October 1, 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 1, 19B0, and ending September 30, 1981, 

is $22B.12. 

Section 6(b) (ll (D) provides that for the period October l, 

1980 through September 30, 1981, 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 for injuries sustained 

during this period is $456.24 (200 percent of $22B.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 $114.06 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 be considered to have been not less than $228.12 per 

week, but total weekly benefits may not exceed the average 

weekly wage of the deceased. 
- 2 -

The foregoing maximum and minimum rates do not apply to 

employees covered by the Nonappropriated Fund Instrumentatilities Act. The maximum and minimum rates for those 

employees change under a separate schedule, whenever 

Federal employees' pay rates change. 

In accordance with subsections lO(f) and lO(h) (3) of the 

Act, effective October l, 1980, the compensation or death 

benefits payable for cases of permanent total disability 

or death which occurred prior to October l, 1980, are to 

be increased by 7.03 percent, the percentage by which the 

national average average weekly wage of $228.12 (effective 

October l, 1980) exceeds the previous national average weekly wage of $213.13 (effective October l, 1979 through 

September 30, 1980). The weekly compensation after adjustment is fixed at the nearest dollar, and no adjustment of 

less than $1 shall be made. In no instance is compensation 

for death benefits reduced. District Offices of the Office 

of Workers' Compensation Programs (OWCP) will advise 

beneficiaries receiving payments, insurance carriers and 

self-insured employers, of the amount of adjustment due in 

each case. 

Field or district offices of insurance carriers or selfinsured employers paying benefits under the Longshorernen's 

and Harbor Workers' Compensation Act and related Acts 

(District of Columbia compensation Act, Defense Base Act, 

Outer Continental Shelf Lands Act and Nonappropriated Fund 

Instrumentalities Act) will soon receive specific instructions from OWCP District Offices for making the adjustments 

under Section lO(f) in individual cases, and should begin 

paying at the new benefit levels as soon as possible. 

If the Section lO(f) increase is to be reimbursed to an 

insurance carrier or self-insured employer under procedures 

which have been established by the OWCP National Office, it 

will be indicated on Form Ltr. LS-521 (Rev.) for that case 

with the "Yes" block being marked on the front of the letter. 

If the "No" block is marked, the Section lO(f) adjustment is 

not subject to reimbursement by OWCP. In case of questions 

about implementing these mandatory adjustments, any district 

office or the OWCP National Office may be contacted 

(Telephone: 202-523-8721). 

7.lvC~~F 

Associate Director, 

Longshore and Harbor 

Workers• Compensation