Friday, May 1, 2015

The Resurgence of the Defense Base Act

The Defense Base Act is federal law that extends the Longshore and Harbor Workers' Compensation Act (LHWCA) to apply to certain categories of employees working overseas. The three general divisions of covered employees are (1) those working on military bases acquired from a foreign government after 1940, (2) employees of contractors and subcontractors engaged in public work projects for the U.S. government outside the continental United States, and (3) individuals employed outside the continental United States by a U.S. employer whose purpose it is to provide welfare or other such services to the Armed Forces as approved by the secretary of defense.


With much work continuing in war-torn places like Iraq and Afghanistan, the number of Defense Base Act (DBA) claims remains steady, and continues to grow. The DBA covers the following employment activities:


  • Work for private employers on U.S. military bases or on any lands used by the U.S. for military purposes outside of the United States, including those in U.S. Territories and possessions

  • Work on public work contracts with any U.S. government agency, including construction and service contracts in connection with national defense or with war activities outside the United States;

  • Work on contracts approved and funded by the U.S. under the Foreign Assistance Act, which among other things provides for cash sale of military equipment, materials, and services to its allies, if the contract is performed outside of the United States;

  • Work for American employers providing welfare or similar services outside the United States for the benefit of the Armed Services, e.g. the United Service Organizations (USO)
If any one of the these criteria is met, all employees engaged in such employment are covered under the DBA. As the Employer, you should ensure that you carry appropriate and adequate insurance coverage.

Additionally, please sure that you understand and adhere to the procedural dictates of the DBA. For example, under the DBA, a company must report any injury or death to OWCP's Division of Longshore and Harbor Workers' Compensation within 10 days, and any knowing and willful failure to report subjects the employer to a civil penalty, just as The Sandi Group/Corporate Bank Financial Services discovered not too long ago when it was fined $75,000 by the US DOL for failure to report injuries and death subject to the provisions of the DBA.

You should also be aware of DBA Waivers. Upon the written request of the head of any department or other agency of the United States, the Secretary of Labor may waive the application of the Defense Base Act with respect to any contract, work location, or class of employees. The request for waiver must be made by the government agency to the Department of Labor (DOL), OWCP. It is Department of Labor policy that the waiver does not apply to citizens or legal residents of the U.S. or to employees hired in the U.S. Once granted, the waiver is only valid if alternative workers' compensation benefits are provided to the waived employees pursuant to applicable local law.

If you have any questions, or think you may be subject to the Defense Base Act and need further information, please contact an experienced attorney to protect your company's interests.
   


Thursday, January 15, 2015

Issues in Workers' Comp: Legislative Update


Here is a first look at some legislative changes that may be coming our way in the workers' compensation world. We will keep you updated. And as always, if you have any questions or concerns about these potential Bills, please contact us.

HB 1285 Workers' compensation; definition of employee; property owners' associations.
Chief patron: Scott
A BILL to amend and reenact § 65.2-101 of the Code of Virginia, relating to the Virginia Workers' Compensation Act; definition of employee; property owners' associations.
15100389D
Summary as introduced:
Workers' compensation; definition of employee; property owners' associations. Amends the definition of employee within the Virginia Workers' Compensation Act to exclude noncompensated employees, directors, and executive officers of any entity that constitutes a property owners' association under the provisions of the Property Owners' Association Act.
09/19/14 House: Prefiled and ordered printed; offered 01/14/15 15100389D
09/19/14 House: Referred to Committee on Commerce and Labor
HB 1372 Workers' compensation insurance; use of experience rating, loss limitation.
Chief patron: Webert
A BILL to amend and reenact § 65.2-817 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 38.2-1908.1, relating to workers' compensation insurance; use of experience rating; loss limitation for not-at-fault motor vehicle accidents.
15100792D
Summary as introduced:
Workers' compensation insurance; use of experience rating; loss limitation for not-at-fault motor vehicle accidents. Directs the State Corporation Commission (SCC) to adopt regulations that establish standards for determining a loss limitation to be included in the calculation of workers' compensation insurance experience modifications when a motor vehicle accident is determined to be a not-at-fault motor vehicle accident. The bill requires the SCC to establish how all loss experience remaining after such deduction of the loss limitation should be distributed among workers' compensation classifications. The SCC is also required to ensure that the amount, if any, by which an employer's experience rating would otherwise be modified as the result of a motor vehicle accident in which an employee is injured or killed shall be reduced if the accident was a not-at-fault motor vehicle accident.
12/07/14 House: Prefiled and ordered printed; offered 01/14/15 15100792D
12/07/14 House: Referred to Committee on Commerce and Labor
HB 1486 Workers' compensation; exclusivity of remedy.
Chief patron: Habeeb
A BILL to amend and reenact § 65.2-307 of the Code of Virginia, relating to the Virginia Workers' Compensation Act; exclusivity of remedies.
15101541D
Summary as introduced:
Workers' compensation; exclusivity of remedy. Provides that if a court determines that an accident, disease, injury, or death is barred by the exclusivity provisions of the Workers' Compensation Act, then that finding shall be res judicata between the parties and estop them from arguing before the Workers' Compensation Commission that the accident, injury, or death did not arise out of and in the course and scope of the employee's employment. The measure also provides that if the Commission or a court determines that the accident, injury, or death does not arise out of or in the course and scope of such employee's employment, then that finding shall be res judicata and estop those same parties from arguing before a court that the accident is barred by the Act's exclusivity provisions.
01/05/15 House: Prefiled and ordered printed; offered 01/14/15 15101541D
01/05/15 House: Referred to Committee on Commerce and Labor
HJ 532 Virginia's workers' compensation system; JLARC to study.
Chief patron: Lingamfelter
Directing the Joint Legislative Audit and Review Commission to study Virginia's workers' compensation system. Report.
15101898D
Summary as introduced:
Study; JLARC to study the Virginia's workers' compensation system; report. Directs the Joint Legislative Audit and Review Commission (JLARC) to study Virginia's workers' compensation system. In its study, JLARC is directed to (i) examine whether claims are reviewed and processed in a timely and fair manner; (ii) assess whether the dispute resolution process is timely, effective, and fair and equitable toward all parties; (iii) compare the structure and administration of workers' compensation programs in other states with that of Virginia's; (iv) analyze the rate of growth in medical prices and examine any changes that occur in access to medical care in states that have adopted medical service fee schedules or treatment guidelines; and (v) review any other issues and make recommendations as appropriate.
12/23/14 House: Prefiled and ordered printed; offered 01/14/15 15101898D
12/23/14 House: Referred to Committee on Rules
SB 745 Workers' compensation; exclusion of certain truck owner-operators.
Chief patron: Cosgrove
A BILL to amend and reenact § 65.2-101 of the Code of Virginia, relating to the Virginia Workers' Compensation Act; exclusion for owner-operator of leased motor vehicle.
15102550D
Summary as introduced:
Workers' compensation; exclusion of certain truck owner-operators. Excludes any owner-operator of a motor vehicle that is leased with or to a common or contract carrier in the trucking industry from the definition of an employee for purposes of the Virginia Workers' Compensation Act, if certain conditions establish that the owner-operator is an independent contractor.
12/18/14 Senate: Prefiled and ordered printed; offered 01/14/15 15102550D
12/18/14 Senate: Referred to Committee on Commerce and Labor
SB 770 Workers' compensation; exclusivity of remedy.
Chief patron: McEachin
A BILL to amend and reenact § 65.2-307 of the Code of Virginia, relating to the Virginia Workers' Compensation Act; exclusivity of remedies.
15100341D
Summary as introduced:
Workers' compensation; exclusivity of remedy. Provides that if a court determines that an accident, disease, injury, or death is barred by the exclusivity provisions of the Workers' Compensation Act, then that finding shall be res judicata between the parties and estop them from arguing before the Workers' Compensation Commission that the accident, injury, or death did not arise out of and in the course and scope of the employee's employment. The measure also provides that if the Commission or a court determines that the accident, injury, or death does not arise out of or in the course and scope of such employee's employment, then that finding shall be res judicata and estop those same parties from arguing before a court that the accident is barred by the Act's exclusivity provisions.
12/23/14 Senate: Prefiled and ordered printed; offered 01/14/15 15100341D
12/23/14 Senate: Referred to Committee on Commerce and Labor