Jurisdiction Under the Longshore and Harbor Workers’ Compensation Act (LHWCA)

The Longshore and Harbor Workers’ Compensation Act (LHWCA) is a federal law that provides benefits, medical care, and vocational rehabilitation services to employees who suffer injuries or illnesses while working on or near navigable waters in the United States, or in adjoining areas customarily used in the loading, unloading, repairing, or building of a vessel.

Understanding jurisdiction under the LHWCA is crucial to determining whether an injured worker is entitled to benefits under the LHWCA or other applicable workers’ compensation laws.

Below, we break down jurisdiction under the LHWCA, including its key elements, extensions, and its interplay with California state workers’ compensation.

A Brief Overview: History and Jurisdiction

The LHWCA is a federal law administered by the U.S. Department of Labor and provides benefits to employees who work in roles integral to maritime commerce, such as longshore workers, shipbuilders, and harbor construction workers. Unlike state workers’ compensation laws, which vary by state, the LHWCA creates a uniform standard for maritime employees engaged in activities on navigable waters or adjoining areas like piers, docks, and terminals.

The LHWCA was enacted in 1927 to cover longshore and harbor workers, who previously were not covered by any workers’ compensation system. While workers who worked entirely on land were covered by state workers’ compensation laws, the Supreme Court decided in 1917 that state workers’ compensation systems did not have jurisdiction over persons working on the navigable waters of the United States, because the Constitution granted the authority over “matters of admiralty and maritime jurisdiction” to the federal government. Southern Pacific Co. v. Jensen, 244 U.S. 205 (1917). The LHWCA created a federal workers’ compensation program to cover these previously excluded workers.

In 1972, the LHWCA was extended to include areas adjacent to navigable waters that are used for loading, unloading, repairing, or building vessels. This change was based on the recognition that modern cargo-handling techniques had moved much of the longshore worker’s duties off of vessels and onto the land.

The Two Elements of Jurisdiction: Status and Situs

To qualify for coverage under the LHWCA, a worker must meet both the status and situs tests:

1. Status Test: This refers to the nature of the employee’s work. To qualify, the worker must be engaged in maritime employment. Maritime employment includes roles such as loading, unloading, repairing, or building ships. Coverage is determined not based on what the employee was doing at the exact time of loss – the specific job he was doing at that time – but rather, upon the workers’ overall status.
2. Situs Test: This refers to the location where the injury occurred. The LHWCA covers injuries that occur on navigable waters of the United States or in adjoining areas customarily used for maritime activities, such as docks, piers, wharves, terminals, or shipyards. For example, a crane operator injured while loading cargo onto a ship at a port would meet the situs requirement.

Extensions of the LHWCA

The LHWCA has several extensions that broaden its coverage to employees working in specific, non-traditional maritime roles:

1. Defense Base Act (DBA): Extends LHWCA benefits to civilian employees working on U.S. military bases or under government contracts outside the United States.
2. Outer Continental Shelf Lands Act (OCSLA): Covers workers engaged in the extraction of natural resources, such as oil and gas, on the outer continental shelf.
3. Nonappropriated Fund Instrumentalities Act (NAFIA): Covers civilian employees working for nonappropriated fund instrumentalities of the U.S. government, such as military exchange stores or recreational facilities.
4. District of Columbia Workmen’s Compensation Act: Extends coverage to certain workers in the District of Columbia.

Each extension maintains the LHWCA’s framework but adapts it to specific employment contexts, ensuring broader protection for workers engaged in activities connected to maritime commerce or government work.

Differentiating California State Workers’ Compensation from the LHWCA

One critical issue is determining whether a worker’s injury falls under the jurisdiction of California state workers’ compensation law or the LHWCA. While both systems provide compensation for workplace injuries and illnesses, their scope and applicability differ:

• California State Workers’ Compensation: Covers most employees working within the state of California, regardless of industry. It applies to injuries occurring within the state’s boundaries and typically does not cover maritime workers engaged in activities directly connected to navigable waters.
• LHWCA: Preempts state workers’ compensation laws for employees who meet the status and situs requirements of the Act. For example, a dockworker injured while loading cargo in the Port of Los Angeles would likely fall under the LHWCA. However, a warehouse worker injured while moving goods inland from the port would more likely be covered under California’s system.

Employers and employees should carefully evaluate the nature of the worker’s duties and the location of the injury to determine jurisdiction. Misclassification can lead to delays in benefits or improper coverage.

Conclusion

The Longshore and Harbor Workers’ Compensation Act provides essential protections for workers engaged in maritime commerce. Understanding jurisdiction under the LHWCA requires a careful analysis of the status and situs tests, as well as the LHWCA’s extensions. Differentiating between federal and state workers’ compensation laws, such as California’s system, is essential to ensuring injured workers receive the benefits to which they are entitled.

Chelsea M. Lalancette is an associate attorney at Bradford and Barthel’s Fresno office. If you have questions about workers’ compensation defense issues, please feel free to contact Chelsea at 559.442.3602 or via email at clalancette@bradfordbarthel.com.

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