Longshore Attorneys

How to Calculate Longshore Workers Compensation Benefits

Maritime workers injured on the job face a complex system of federal workers’ comp benefits that differ significantly from standard state workers’ compensation programs. The Longshore and Harbor Workers’ Compensation Act (LHWCA) provides specialized coverage for maritime and dock workers, generally offering much better and more comprehensive benefits-  but also introducing more complex calculations and eligibility requirements.

However, as our experienced San Diego longshore attorneys at Cantrell Green will attests, understanding these calculations proves essential for ensuring you receive all benefits you’re entitled to under the law.

Accurate benefit calculation requires consideration of multiple factors including your average weekly wage, the nature and extent of your disability, and specific statutory formulas that determine compensation rates. Even small errors in these calculations can result in significant underpayment over the life of a claim, potentially costing injured workers thousands of dollars in benefits they rightfully deserve.

In San Diego, longshore attorneys at Cantrell Green specialize in navigating these complex benefit calculations to ensure injured maritime workers receive every dollar they’re entitled to under the Longshore & Harbor Workers’ Compensation Act. Their expertise in this specialized area of law proves invaluable in maximizing compensation and addressing calculation errors or disputed classifications.

Recent Longshore Benefit Increases

The Longshore and Harbor Workers’ Compensation Act underwent its most recent maximum rate adjustment for the fiscal year beginning October 1, 2023, with the maximum weekly benefit rate increasing to $1,811.45. This adjustment affects all categories of disability compensation and creates new calculation parameters that injured workers and their representatives must understand to ensure proper benefit delivery.

Sadly, many injured maritime workers discover they’ve been underpaid benefits due to incorrect wage calculations or misclassification of their disability status. Without proper legal guidance from an experienced longshore attorney like those at Cantrell Green, these errors may go undetected for months or years – significantly impacting workers’ financial stability during their recovery.

Understanding Average Weekly Wage Calculation

The foundation of all longshore compensation calculations begins with establishing the injured worker’s average weekly wage (AWW), which serves as the basis for determining benefit rates across all compensation categories. The LHWCA provides three distinct methods for calculating AWW under Section 10, with the appropriate method depending on the worker’s employment pattern in the year preceding the injury.

For workers with consistent employment in the 52 weeks before injury, Section 10(a) calculates AWW by dividing the total earnings during that period by 52. However, this straightforward calculation applies only when the worker had steady employment without significant gaps. For those with irregular work patterns or periods of unemployment, Section 10(b) examines the earnings of similar workers in the same employment class, providing a representative earnings figure that accounts for the inherent variability in maritime employment.

When neither Section 10(a) nor 10(b) can reasonably and fairly determine AWW, Section 10(c) allows for an individualized approach that considers the worker’s full earning capacity. This method proves particularly valuable for recently hired workers, those with increasing wages, or individuals working multiple jobs. Section 10(c) calculations may incorporate overtime, second job earnings, and other factors to establish an AWW that truly represents the worker’s economic reality. San Diego longshore attorneys with specialized experience prove invaluable in advocating for the most advantageous calculation method based on each worker’s unique employment history and circumstances.

Longshore Medical Care Benefits

The Longshore & Harbor Workers’ Compensation Act provides comprehensive medical coverage for work-related injuries and illnesses, with benefits that exceed those typically available through state workers’ compensation systems. Unlike many state programs that impose treatment caps or time limitations, longshore medical benefits continue for the worker’s lifetime as long as the treatment relates to the work injury. This lifetime coverage represents one of the most valuable aspects of longshore benefits, particularly for serious injuries requiring ongoing care.

These medical benefits encompass all reasonable and necessary treatment, including physician visits, hospitalization, surgery, medication, diagnostic testing, medical equipment, and transportation to medical appointments. Importantly, longshore workers maintain the right to choose their own treating physician rather than being restricted to employer-selected providers, though this selection should be properly documented to avoid disputes. The Act also provides for attendant care when medically necessary, covering home health services or nursing care for severely injured workers requiring assistance with daily activities.

While employers and carriers must pay for all reasonable and necessary treatment, disputes frequently arise regarding medical necessity or relationship to the work injury. These disputes often result in denied treatment or delayed care, creating significant challenges for injured workers navigating recovery. San Diego longshore attorneys frequently intervene in these situations, utilizing medical experts and legal precedent to establish treatment necessity and overcome improper denials. Through skilled representation, they help ensure injured maritime workers receive the comprehensive medical care guaranteed under the LHWCA without improper limitations or denials.

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Longshore Disability Benefits

Temporary Total Disability Benefits

Temporary Total Disability (TTD) benefits compensate workers who cannot work at all during their recovery period but are expected to eventually return to employment. These benefits provide essential income replacement during the acute recovery phase when injured workers face both medical challenges and financial pressures from lost wages. The calculation follows a straightforward formula: TTD benefits equal two-thirds (66.67%) of the worker’s average weekly wage, subject to the annual maximum rate.

For the fiscal year beginning October 1, 2023, the maximum weekly benefit rate is $1,811.45, meaning high-wage maritime workers cannot receive more than this amount weekly regardless of their pre-injury earnings. This maximum adjusts annually based on changes in the National Average Weekly Wage. Unlike many state workers’ compensation systems, the Longshore & Harbor Workers’ Compensation Act does not impose arbitrary time limits on TTD benefits, which continue until the worker either returns to work or reaches maximum medical improvement (MMI).

The determination of when TTD benefits should begin and end often becomes contested, with employers sometimes prematurely pushing for MMI declarations or return-to-work clearances before the worker has fully recovered. San Diego longshore attorneys play a crucial role in these situations, working with medical experts to establish appropriate disability periods and preventing premature benefit termination. Their specialized knowledge of Longshore & Harbor Workers’ Compensation Act provisions ensures injured workers receive the full TTD benefits they’re entitled to during their recovery period.

Temporary Partial Disability Benefits

Temporary Partial Disability (TPD) benefits address situations where injured workers can perform some work during their recovery but earn less than their pre-injury wages due to medical restrictions or reduced hours. This category recognizes the economic impact of partial work capacity while encouraging participation in appropriate light-duty or modified work when medically suitable. TPD benefits are calculated as two-thirds (66.67%) of the difference between the worker’s pre-injury average weekly wage and their current earning capacity.

For example, if a longshoreman earned $1,500 weekly before injury but can only earn $900 weekly in a modified position during recovery, the wage loss equals $600 weekly. The TPD benefit would be two-thirds of this difference, or $400 weekly, in addition to the $900 actually earned. This combined income helps maintain financial stability while accommodating the worker’s temporary limitations. Like TTD benefits, TPD compensation continues until the worker either returns to full pre-injury earnings or reaches maximum medical improvement.

Disputes frequently arise regarding appropriate wages for calculating TPD benefits, particularly when employers claim workers could earn more than they actually are. These “wage-earning capacity” determinations consider not just actual earnings but what the worker could theoretically earn given their restrictions, age, education, and available job opportunities. San Diego longshore attorneys advocate for realistic assessments of earning capacity that accurately reflect local maritime employment markets rather than theoretical positions that may not actually be available or suitable for the injured worker’s specific limitations.

Permanent Total Disability Benefits

Permanent Total Disability (PTD) provides compensation for workers whose injuries prevent them from ever returning to gainful employment. This category addresses the most serious injuries resulting in permanent inability to work in any capacity. Under the Longshore & Harbor Workers’ Compensation Act, PTD benefits equal two-thirds (66.67%) of the worker’s average weekly wage and continue for the worker’s lifetime, with annual cost-of-living adjustments to maintain purchasing power over time.

The Act recognizes two paths to establishing PTD status: statutory and actual. Statutory PTD applies automatically to catastrophic injuries specifically listed in the Act, including loss of both hands, both arms, both feet, both legs, both eyes, or combinations of these losses. However, most PTD cases involve “actual” total disability, where the worker proves inability to perform any gainful employment considering their physical limitations, age, education, and vocational background. This determination considers the worker’s ability to compete in the open labor market rather than theoretical capacity for minimal activity.

The lifetime nature of PTD benefits makes these determinations particularly contentious, with employers and carriers often vigorously disputing total disability classifications. Establishing PTD status frequently requires comprehensive vocational evidence demonstrating that no regular employment exists that the worker can realistically perform and obtain. San Diego longshore attorneys with extensive experience develop comprehensive evidence supporting PTD claims, including medical documentation, vocational assessments, labor market analyses, and expert testimony that establishes the worker’s inability to secure gainful employment due to their work-related condition.

Scheduled Permanent Partial Disability Benefits

The Longshore & Harbor Workers’ Compensation Act provides a specific schedule of compensation for permanent partial impairments to certain body parts, including arms, legs, hands, feet, fingers, toes, and sensory functions. These “scheduled” injuries receive compensation based on a predetermined number of weeks specified in the Act, regardless of their impact on the worker’s actual earning capacity. For example, the loss of an arm entitles the worker to 312 weeks of compensation at two-thirds (66.67%) of their average weekly wage.

Partial losses of scheduled body parts receive proportional compensation based on the percentage of impairment. For instance, a 20% permanent impairment to an arm would warrant 62.4 weeks of compensation (20% of 312 weeks). These impairment ratings typically come from physicians using standardized guidelines such as the AMA Guides to the Evaluation of Permanent Impairment, though significant disputes often arise regarding appropriate rating methodologies and percentages.

Unlike many other benefit categories, scheduled PPD awards are paid in addition to any wage-replacement benefits the worker receives for temporary disability. This means a worker can receive temporary disability benefits during recovery and still qualify for the full scheduled award once reaching maximum medical improvement. These payments may be made weekly or as a lump sum settlement, with the latter requiring approval from the Department of Labor to ensure the settlement adequately protects the worker’s interests. San Diego longshore attorneys play a crucial role in securing appropriate impairment ratings and maximizing scheduled awards by ensuring proper evaluation methodologies and challenging artificially low ratings that undercompensate permanent losses.

Non-scheduled Permanent Partial Disability Benefits

Permanent partial disabilities affecting body parts not listed in the schedule—most notably the back, neck, shoulder, and internal organs—fall under “non-scheduled” compensation provisions. Unlike scheduled awards based on anatomical impairment, non-scheduled PPD benefits compensate for economic loss caused by the injury. These benefits equal two-thirds (66.67%) of the difference between the worker’s pre-injury average weekly wage and their post-injury wage-earning capacity, continuing for the duration of the disability.

The determination of post-injury wage-earning capacity involves assessing what the worker can realistically earn given their permanent medical restrictions, age, education, work experience, and available employment opportunities. This assessment requires comprehensive vocational analysis rather than simply considering physical impairment. When workers return to alternative employment, their actual earnings generally establish wage-earning capacity, though exceptions exist when these earnings don’t fairly represent long-term earning potential.

Non-scheduled PPD determinations frequently become highly contested, with employers and carriers often claiming greater wage-earning capacity than injured workers can realistically achieve. These disputes may involve competing vocational assessments, labor market surveys, transferable skills analyses, and testimony regarding suitable alternative employment. San Diego longshore attorneys specializing in LHWCA claims develop comprehensive vocational evidence supporting realistic wage-earning capacity determinations that accurately reflect the economic impact of permanent injuries on their clients’ earning potential.

Permanent Partial Disability for Retirees

The 1984 amendments to the Longshore & Harbor Workers’ Compensation Act created special provisions for workers who discover occupational diseases after retirement, most commonly addressing conditions like hearing loss and asbestos-related diseases that may not become apparent until years after workplace exposure. For these retired workers, PPD benefits are calculated differently than for actively employed individuals.

For voluntary retirees (those who left the workforce for reasons unrelated to their condition), compensation equals one percent of the national average weekly wage for each percentage point of impairment, multiplied by the applicable number of weeks from the schedule. For instance, a retiree with 40% binaural hearing loss would receive 40% of the national average weekly wage for 200 weeks (the scheduled period for complete hearing loss).

For involuntary retirees (those who left employment due to their occupational disease), benefits are calculated based on actual wage loss, similar to standard disability determinations. This distinction recognizes the different economic impact of occupational diseases based on whether they directly caused the worker’s employment to end. San Diego longshore attorneys with specialized knowledge in occupational disease claims help retirees navigate these complex provisions, ensuring proper classification and maximum benefits under the appropriate calculation method.

Longshore Rehabilitation Benefits

The Longshore & Harbor Workers’ Compensation Act provides comprehensive vocational rehabilitation services for injured workers unable to return to their previous employment due to permanent limitations. These services aim to restore earning capacity through retraining, education, job placement assistance, and other vocational interventions. Unlike medical benefits that focus on physical recovery, rehabilitation benefits address the economic aspect of recovery by developing transferable skills for alternative employment.

The Department of Labor’s Division of Longshore and Harbor Workers’ Compensation administers this program through vocational rehabilitation counselors who develop individualized plans for injured workers. These plans may include vocational assessment, counseling, training programs, education, job seeking skills development, and placement services. During approved vocational rehabilitation, injured workers typically continue receiving temporary total disability benefits, providing financial support during the retraining process.

While vocational rehabilitation offers valuable opportunities for injured workers to develop new skills and career paths, the process often becomes adversarial when employers or carriers push for minimal rehabilitation efforts or unsuitable employment goals. San Diego longshore attorneys advocate for comprehensive rehabilitation plans that provide meaningful earning restoration rather than token efforts that fail to address the worker’s long-term economic needs. Through skilled representation, they help ensure rehabilitation services fulfill their intended purpose of restoring genuine earning capacity after career-ending injuries.

Longshore Death Benefits

When maritime accidents result in worker fatalities, the Longshore & Harbor Workers’ Compensation Act provides substantial benefits to surviving dependents. These death benefits include funeral expenses up to $3,000 and ongoing compensation to eligible survivors based on their relationship to the deceased worker and degree of financial dependency. The calculation of these benefits depends on the specific family composition and dependency status of survivors.

For surviving spouses with no dependent children, benefits equal 50% of the deceased worker’s average weekly wage for life or until remarriage. If the spouse has dependent children, the spouse receives 50% of the AWW plus an additional 16.67% for each child, up to a maximum total of 66.67% of the AWW. Should the surviving spouse remarry, they receive a final lump sum payment equal to two years of benefits, while children’s benefits continue. When no spouse survives but dependent children remain, each child receives 50% of the AWW divided equally among them, with a collective maximum of 66.67%.

The Act also provides potential benefits for other dependents when slots remain within the 66.67% maximum. These may include dependent parents, siblings, grandparents, or grandchildren who relied on the deceased worker for financial support. Establishing dependency for these relations requires demonstrating actual financial dependency at the time of death. San Diego longshore attorneys with specialized LHWCA experience help surviving family members navigate these complex provisions, ensuring proper classification of dependents and maximum available benefits during the difficult period following a workplace fatality.

Longshore Attorneys | San Diego

The calculation of longshore benefits involves complex formulas, understanding complicated laws, and strategic considerations that significantly impact the compensation available to injured maritime workers. Even a small error in these calculations can result in substantial underpayment over the life of a claim, potentially costing injured workers thousands of dollars in benefits they legally deserve.

This is why it is so important to have an experienced longshore attorney by your side. The San Diego longshore attorneys at Cantrell Green have helped thousands of injured maritime and dock workers obtain the compensation for which they qualify.

Contact the San Diego longshore attorneys at Cantrell Green to ensure your benefits are calculated correctly and to address any discrepancies in payments you’ve already received. With the dedicated legal representation of our longshore attorneys, you can be confident that your rights under the Longshore and Harbor Workers’ Compensation Act will be fully protected and that you receive the maximum benefits for which you qualify.

Long Beach Longshore Attorneys: 800-964-8047