What Is USL&H Coverage and Who Needs It?

The United States Longshore and Harbor Workers’ Compensation Act (USL&H) provides a specialized federal workers’ compensation system for maritime employees. This coverage offers financial and medical benefits to individuals injured or suffering from occupational diseases while working in specific maritime environments. Unlike typical state-level workers’ compensation, USL&H addresses the unique risks and jurisdictional complexities associated with employment on or near navigable waters.

Defining USL&H Coverage

The United States Longshore and Harbor Workers’ Compensation Act (USL&H) is a federal law enacted in 1927. It provides compensation and medical benefits to maritime workers who sustain job-related injuries or contract occupational diseases. This federal program operates distinctly from state workers’ compensation systems, which generally do not cover injuries occurring on navigable waters.

Jurisdictional requirements for USL&H coverage involve both the location of the injury, known as “situs,” and the nature of the worker’s employment, referred to as “status.” For “situs,” the injury must occur on navigable waters of the United States or in adjoining areas customarily used for maritime activities, such as piers, wharves, docks, terminals, building ways, and marine railways. The “status” requirement mandates that the employee be engaged in maritime employment, meaning their work must be integral to maritime navigation or commerce.

This federal mandate supersedes state workers’ compensation laws for covered workers, often providing more comprehensive benefits. Employers who fail to secure USL&H coverage when required can face significant penalties, including fines of up to $10,000, imprisonment for up to one year, or both.

Covered Individuals and Activities

USL&H coverage applies to individuals engaged in maritime occupations that meet the “status” criteria. This includes traditional roles such as longshore workers, shipbuilders, ship repairers, and harbor workers. Other covered employees include marine construction workers, stevedores, and crane operators involved in waterfront activities.

The “situs” test requires the injury to occur on or near navigable waters of the United States. This encompasses the water itself and adjacent areas like docks, piers, wharves, terminals, and shipyards customarily used for maritime activities. For instance, an employee injured while working in a shipyard, even if not directly on a vessel, would likely meet the situs requirement.

However, not all individuals working near water are covered; certain exclusions apply if they are already covered by state workers’ compensation laws. These include office clerical, secretarial, security, or data processing personnel. Employees of clubs, camps, recreational operations, restaurants, museums, or retail outlets are also excluded. Additionally, masters or members of a vessel’s crew, typically covered under the Jones Act, are specifically excluded from USL&H coverage.

Benefits Provided by USL&H

Injured workers covered by USL&H can receive several types of benefits. All reasonable and necessary medical treatment for a work-related injury or illness is fully covered. This includes medical procedures, medications, and travel expenses incurred for doctor appointments.

Disability compensation provides payments for lost wages due to an inability to work. Benefits are calculated as a percentage of the employee’s average weekly wage, typically two-thirds, subject to federal maximums. Categories of disability include Temporary Total Disability (TTD) for complete but temporary inability to work, and Temporary Partial Disability (TPD) for a temporary reduction in earning capacity. Permanent Partial Disability (PPD) provides compensation for a permanent impairment of specific body parts or loss of earning capacity, while Permanent Total Disability (PTD) is for a complete and permanent inability to work.

The Act also includes provisions for vocational rehabilitation services. If an injured worker cannot return to their previous employment, the program offers support for vocational training and job placement services. In the event of a work-related death, USL&H provides death benefits to eligible survivors, such as a spouse and dependent children. These benefits may include a portion of the deceased employee’s weekly wages and coverage for funeral expenses up to $3,000.

Distinguishing USL&H from Other Coverage

State Workers’ Compensation

State Workers’ Compensation is the most common form of workers’ protection, mandated by individual states for most employers. While both USL&H and state workers’ compensation provide no-fault benefits for job-related injuries, USL&H is a federal act specifically designed for maritime workers on or near navigable waters, often preempting state laws. USL&H benefits are more robust than those offered by state programs.

The Jones Act

The Jones Act, also a federal law, protects “seamen,” defined as members of a vessel’s crew who spend a significant portion of their working hours (at least 30%) on a specific vessel. Unlike USL&H, which is a no-fault workers’ compensation system, the Jones Act allows injured seamen to sue their employers for negligence. USL&H covers other maritime workers who are not crew members, filling a gap between state workers’ compensation and the Jones Act.

General Liability Insurance

General Liability Insurance primarily covers third-party bodily injury and property damage, protecting a business from claims arising from its operations, premises, or products. In contrast, USL&H is a specific form of workers’ compensation designed solely for employee injuries sustained in maritime work environments, providing direct benefits to the injured worker regardless of fault. General liability policies exclude employee injuries, which fall under workers’ compensation or USL&H.

Protection and Indemnity (P&I) Insurance

Protection and Indemnity (P&I) Insurance is a marine liability insurance that covers a wide array of maritime liabilities for vessel owners. While P&I can include some coverage for crew injuries, particularly for “seamen” under the Jones Act, USL&H is a separate statutory workers’ compensation scheme for non-seaman maritime workers. P&I is broader in scope, covering various vessel-related risks and liabilities, whereas USL&H focuses on the compensation and medical care of injured longshore and harbor workers.