Massachusetts Injury Lawyers Blog
People injured while working on or near navigable waters may be entitled to disability benefits under the Longshore and Harbor Workers’ Compensation Act (LHWCA). The Act provides a structured framework to ensure that qualifying employees receive financial assistance after a workplace injury. One critical issue in determining the amount of benefits available is identifying the date when an employee is considered “newly awarded compensation.” Recently, the United States Supreme Court examined this question and clarified its meaning. If you suffered a work-related injury on the waterfront, it is important to understand how the timing of your award could affect the benefits you receive.
Factual and Procedural Background of the Case
Allegedly, the petitioner worked for the defendant at a marine terminal in Alaska, where he slipped on ice in 2002 and injured his neck and shoulder. The petitioner was unable to return to work. Reportedly, the defendant voluntarily paid the petitioner disability benefits, except for a brief period in 2003, without any formal compensation order being issued.
It is reported that in 2005, the defendant stopped making voluntary payments. As a result, the petitioner filed a formal claim under the LHWCA, which the defendant contested. The dispute was heard by an administrative law judge (ALJ) in 2007, who awarded the petitioner benefits based on the statutory maximum for the year 2002, when the disability began. The petitioner argued that the award should have been calculated using the higher statutory maximum rate in effect in 2007, the year of the ALJ’s order.
Allegedly, the petitioner’s request for reconsideration was denied, and the Benefits Review Board affirmed that the proper maximum rate was determined by the year the disability commenced. The Ninth Circuit Court of Appeals also affirmed this reasoning. The petitioner then sought review from the United States Supreme Court.
Newly Awarded Compensation Under the LHWCA
On review, the Supreme Court considered the meaning of the phrase “newly awarded compensation” under Section 906(c) of the LHWCA. The petitioner maintained that the phrase referred to the issuance of a formal order. At the same time, the defendant and the Department of Labor contended that it meant the date on which an employee first became statutorily entitled to benefits by reason of disability. The Court explained that while the statute could be read either way, only the interpretation advanced by the defendant and the Department of Labor fit coherently within the LHWCA’s overall structure.
The Court emphasized that the LHWCA was designed to promote voluntary, prompt payments by employers without the need for formal orders. If “newly awarded compensation” referred solely to a formal order, employees receiving voluntary payments would not fall within any statutory maximum. This would be inconsistent with the Act’s framework. The Court also stressed that determining the applicable national average weekly wage based on the year the disability began ensured fair treatment among similarly situated employees. Two workers injured on the same day should not receive different benefits simply because one obtained a formal order in a later year.
Further, the Court noted that adopting the petitioner’s interpretation would encourage unnecessary litigation and delay, as employees might file claims solely to obtain higher caps based on later fiscal years. Instead, by tying the cap to the year of disability, the Act’s purposes, prompt and predictable compensation- are preserved. For these reasons, the Supreme Court held that an employee is “newly awarded compensation” when he first becomes disabled, regardless of when or whether a compensation order is issued.
Talk to a Trusted Massachusetts Workers’ Compensation Attorney
Workers who suffer injuries while performing maritime or harbor-related employment may face significant financial burdens. Understanding how compensation is calculated under the LHWCA is essential to ensuring fair recovery. If you were injured on or near navigable waters, it is important to consult with an attorney who can advise you of your rights and advocate for the full range of benefits available. James K. Meehan of the Law Office of James K. Meehan is a trusted Massachusetts workers’ compensation attorney who can evaluate your situation and help you pursue the compensation you deserve. You can contact Mr. Meehan by calling 508-822-6600 or through the firm’s online form to schedule a consultation.