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Text: The LHWCA “is a comprehensive scheme to provide compensation ‘in respect of disability or death of an em­ ployee . . . if the disability or death results from an injury occurring upon the navigable waters of the United States.’ ” Metropolitan Stevedore Co. v. Rambo, 515 U. S. 291, 294 (1995) (quoting §903(a)). An employee’s compen­ sation depends on the severity of his disability and his preinjury pay. A totally disabled employee, for example, is entitled to two-thirds of his preinjury average weekly wage as long as he remains disabled. §§908(a)–(b), 910.

Section 906, however, sets a cap on compensation.1 Disability benefits “shall not exceed” twice “the applicable national average weekly wage.” §906(b)(1). The national average weekly wage—“the national average weekly earn­ ings of production or nonsupervisory workers on private nonagricultural payrolls,” §902(19)—is recalculated by the Secretary of Labor each fiscal year. §906(b)(3). For most types of disability, the “applicable” national average week­ ly wage is the figure for the fiscal year in which a benefi­ ciary is “newly awarded compensation,” and the cap re­ mains constant as long as benefits continue. §906(c).2

Consistent with the central bargain of workers’ compen­ sation regimes—limited liability for employers; certain, prompt recovery for employees—the LHWCA requires that employers pay benefits voluntarily, without formal admin­ istrative proceedings. Once an employee provides notice of a disabling injury, his employer must pay compensation “periodically, promptly, and directly . . . without an award, except where liability to pay compensation is controvert­ ed.” §914(a). In general, employers pay benefits without contesting liability. See Pallas Shipping Agency, Ltd. v. Duris, 461 U. S. 529, 532 (1983). In the mine run of cases, therefore, no compensation orders issue.

If an employer controverts, or if an employee contests his employer’s actions with respect to his benefits, the dispute advances to the Department of Labor’s Office of Workers’ Compensation Programs (OWCP). See 20 CFR §§702.251–702.262 (2011). The OWCP district directors “are empowered to amicably and promptly resolve such problems by informal procedures.” §702.301. A district director’s informal disposition may result in a compensation order. §702.315(a). In practice, however, “many pending claims are amicably settled through voluntary payments without the necessity of a formal order.” Intercounty Constr. Corp. v. Walter, 422 U. S. 1, 4, n. 4 (1975). If informal resolution fails, the district director refers the dispute to an administrative law judge (ALJ). See 20 CFR §§702.316, 702.331–702.351. An ALJ’s decision after a hearing culminates in the entry of a compensation order. 33 U. S. C. §§919(c)–(e).3