83_FR_17363 83 FR 17287 - Longshore and Harbor Workers' Compensation Act: Maximum and Minimum Compensation Rates

83 FR 17287 - Longshore and Harbor Workers' Compensation Act: Maximum and Minimum Compensation Rates

DEPARTMENT OF LABOR
Office of Workers' Compensation Programs

Federal Register Volume 83, Issue 76 (April 19, 2018)

Page Range17287-17293
FR Document2018-08133

This final rule contains regulations implementing the Longshore and Harbor Workers' Compensation Act's provisions on maximum and minimum amounts of compensation payable. These regulations clarify how the Department interprets and applies these provisions in accordance with several court decisions to ensure injured workers are compensated properly and insurers and employers are aware of their responsibilities. In addition, the rule implements the Act's annual compensation-adjustment mechanism for permanent total disability compensation and death benefits.

Federal Register, Volume 83 Issue 76 (Thursday, April 19, 2018)
[Federal Register Volume 83, Number 76 (Thursday, April 19, 2018)]
[Rules and Regulations]
[Pages 17287-17293]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-08133]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 83, No. 76 / Thursday, April 19, 2018 / Rules 
and Regulations

[[Page 17287]]



DEPARTMENT OF LABOR

Office of Workers' Compensation Programs

20 CFR Part 702

RIN 1240-AA06


Longshore and Harbor Workers' Compensation Act: Maximum and 
Minimum Compensation Rates

AGENCY: Office of Workers' Compensation Programs, Labor.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule contains regulations implementing the 
Longshore and Harbor Workers' Compensation Act's provisions on maximum 
and minimum amounts of compensation payable. These regulations clarify 
how the Department interprets and applies these provisions in 
accordance with several court decisions to ensure injured workers are 
compensated properly and insurers and employers are aware of their 
responsibilities. In addition, the rule implements the Act's annual 
compensation-adjustment mechanism for permanent total disability 
compensation and death benefits.

DATES: This rule is effective May 21, 2018.

FOR FURTHER INFORMATION CONTACT: Douglas Fitzgerald, Director, Division 
of Longshore and Harbor Workers' Compensation, Office of Workers' 
Compensation Programs, 202-354-9620 (this is not a toll-free number), 
[email protected]. TTY/TDD callers may dial toll free 1-877-
889-5627 for further information.

SUPPLEMENTARY INFORMATION:

I. Background of This Rulemaking

    On August 26, 2016, the Department issued a Notice of Proposed 
Rulemaking (NPRM) under the Longshore and Harbor Workers' Compensation 
Act, 33 U.S.C. 901 et seq. (LHWCA or Act), proposing rules implementing 
the LHWCA's provisions on maximum and minimum amounts of compensation 
payable. 81 FR 58878-90 (Aug. 26, 2016). The comment period closed on 
October 25, 2016.
    As explained in the NPRM, 81 FR 58878-79, the LHWCA establishes a 
federal workers' compensation system for an employee's disability or 
death arising in the course of covered maritime employment. 33 U.S.C. 
903(a), 908, 909. LHWCA compensation is generally based on the 
employee's average weekly wages at the time of his or her disabling 
injury or death. 33 U.S.C. 910. Section 6 of the Act caps compensation 
at a maximum of twice the applicable fiscal year's national average 
weekly wage (NAWW). 33 U.S.C. 906(b)(1). Section 6 also establishes a 
minimum below which compensation may not fall. The minimum rate is the 
lower of fifty percent of the NAWW or the employee's actual average 
weekly wages. 33 U.S.C. 906(b)(2). The Secretary of Labor determines 
the NAWW for each fiscal year, and that determination applies to 
employees or survivors ``currently receiving'' compensation for 
permanent total disability or death, as well as those ``newly awarded'' 
compensation of any type, including for partial and temporary 
disability. 33 U.S.C. 906(b)(3), (c).
    In addition to the provisions in section 6 that allow for 
adjustments to the maximum and minimum compensation rates based on the 
NAWW, section 10(f) of the Act provides another mechanism for adjusting 
compensation amounts so that their value is not eroded over time. 
Benefits payable for permanent total disability or death are increased 
at the beginning of each fiscal year by the same percentage as any 
increase in the NAWW, but no more than five percent per year. 33 U.S.C. 
910(f). Section 10(f) applies to all claimants receiving compensation 
for permanent total disability or death, while section 6 applies only 
to those whose compensation is affected by the maximum or minimum 
rates.
    The Department proposed rules to implement the minimum and maximum 
compensation rate provisions of section 6(c), specifically clarifying 
which maximum compensation rates apply to any particular injury under 
the section's ``newly awarded'' and ``currently receiving'' clauses, 
and relatedly, how the Act's minimum compensation provisions apply. 
Additionally, the proposed rules implement section 10(f)'s annual 
adjustment provision generally and address how section 10(f) integrates 
with section 6's maximum and minimum compensation rates.
    As the NPRM discussed, these rules are primarily based on the 
Supreme Court's controlling decision in Roberts v. Sea-Land Services, 
Inc., 566 U.S. 93 (2012), the Ninth and Eleventh Circuits' decisions in 
Roberts v. Dir., OWCP, 625 F.3d 1204 (9th Cir. 2010), and Boroski v. 
Dyncorp Intern., 700 F.3d 446 (11th Cir. 2012), and the Benefits Review 
Board's decisions in Reposky v. Int'l Transp. Servs., 40 BRBS 65 
(2006), and Lake v. L-3 Communications, 47 BRBS 45 (2013). Aside from 
one small exception, those decisions and this rule comport with the 
Director's longstanding interpretation and application of the maximum 
and minimum compensation provisions. 81 FR 58887. Additionally, the 
Department has been following the Ninth Circuit's construction of the 
statute since 2012 and the regulations reflect this construction as 
well.
    The Department received only six written comments in response to 
the NPRM from a variety of entities in the longshore industry. The 
commenters included longshore employer associations, insurance-industry 
members, and longshore claims administrators associations. These 
comments are addressed in Section III below.
    This rule is not an Executive Order 13771 regulatory action because 
this rule is not significant under Executive Order 12866.

II. Statutory Authority

    Section 39(a) of the LHWCA, 33 U.S.C. 939(a), authorizes the 
Secretary of Labor to prescribe rules and regulations necessary for the 
administration of the Act.

III. Response to Significant Comments and Explanation of Changes

    Most commenters provided general remarks about the rulemaking 
rather than comments on specific proposed regulations. Thus, rather 
than including a full section-by-section analysis in the discussion 
below, the Department's response is organized by the broader issues 
raised. The Department

[[Page 17288]]

appreciates these comments and has made one change to the final rule in 
response.

A. Application of ``Newly Awarded Compensation'' Clause

    Several commenters stated that the proposed rules addressing the 
application of section 6(c)'s ``newly awarded'' clause were unnecessary 
because the Supreme Court had already clearly addressed how to apply 
the clause in Roberts, 132 U.S. 1350. The fact that the Supreme Court 
has addressed the issue does not make this part of the rule 
unnecessary. The rule seeks to ensure a consistent application of 
section 6(c) in its entirety by addressing the proper application of 
both the ``newly awarded'' and ``currently receiving'' clauses. 
Codifying the Supreme Court's ruling in a regulation clarifies and 
informs all stakeholders of the proper interpretation of the provision. 
The rule also provides additional guidance with concrete examples of 
how the Roberts decision applies in a variety of factual situations. 
Accordingly, the Department believes the regulations implementing the 
``newly awarded'' clause are important and has retained them in the 
final rule.

B. Application of ``Currently Receiving'' Clause

    Several commenters objected generally to the proposed rules 
clarifying the application of the ``currently receiving'' clause of 
section 6(c). These commenters argued that the rule is premature 
because the Supreme Court declined to address the application of that 
clause in Roberts, 564 U.S. 1066, and to date, only two Courts of 
Appeals have addressed it. See Boroski, 700 F.3d 446, Roberts, 625 F.3d 
1204. Some of these commenters expressed concerns that the rule would 
preempt further development through the courts on matters that were not 
considered at any stage of the Roberts litigation, namely, the 
computation of the minimum compensation rate under section 6(b), 
computation of weekly compensation payable for death under section 
9(e), or the computation of a claimant's average weekly wage under 
section 10. On the other hand, one commenter commended the Department 
for using the rulemaking process to resolve legal issues arising from 
judicial statutory interpretations.
    The Department is not required to wait for an issue to be 
adjudicated by the Supreme Court or any other court before it can 
promulgate regulations to administer the LHWCA. Indeed, litigation 
often demonstrates the need for an agency regulation. See generally 
Smiley v. Citibank (South Dakota), N.A., 517 U.S. 735, 740-41 (1996) 
(fact that agency regulation was prompted by litigation does not 
undermine deference agency is due; ``That it was litigation which 
disclosed the need for the regulation is irrelevant.'') Here, the 
litigation in Roberts, Boroski, Reposky, Lake and other cases 
highlighted the need for regulations in this area. And this rule falls 
well within the scope of the Secretary of Labor's authority to 
prescribe rules and regulations necessary for the administration of the 
LHWCA. 33 U.S.C. 939(a).
    Furthermore, as explained in the NPRM, the rule does not mark a 
change in the Director's longstanding interpretation and application of 
the maximum and minimum compensation provisions. 81 FR 58887. The 
Department has been following the Ninth Circuit's construction of the 
statute in its entirety since 2012, and aside from one small exception, 
had been following this construction since the Board's 2006 decision in 
Reposky, 40 BRBS 65. That exception involved cases in which the 
employee's disability was initially something other than permanent 
total--temporary total, permanent partial, or temporary partial--and in 
a later fiscal year became permanently totally disabling. In Reposky, 
the Department took the view that the employee's compensation amount 
should remain at the maximum rate in effect on the date of disability 
until the next October 1, at which time the employee would become 
subject to the new fiscal year's maximum rate. But the Ninth Circuit 
held in Roberts that the employee need not wait until the next October 
1 and is instead immediately subject to the maximum rate in effect on 
the day he or she becomes permanently totally disabled under section 
6(c)'s ``currently receiving'' clause. Roberts, 625 F.3d at 1208-09. 
The rule reflects this construction and clarifies the Department's 
longstanding interpretation of the other aspects of section 6(c).
    One commenter contended that the rule is inconsistent with the 
Benefit Review Board's approach in Pittman v. New Century Fabricators, 
Inc., 50 BRBS 17 (2016). In Pittman, the Board declined to extend the 
Supreme Court's reasoning in Estate of Cowart v. Nicklos Drilling Co., 
505 U.S. 469 (1992), to an issue not directly addressed by the Court. 
The Board held that ``absent a Supreme Court or circuit court decision 
to the contrary,'' prior Board decisions on the specific issue in the 
case established the precedent that bound the Board. 50 BRBS at 20. The 
comment argues that because the Supreme Court declined to address the 
application of the ``currently receiving'' clause in Roberts, the 
Board's approach in Pittman would dictate that the Department should 
not address the application of the clause. This ignores two facts. 
First, Pittman says nothing about the Department's authority to issue a 
rule. Second, while the Supreme Court did not interpret the ``currently 
receiving'' clause, the Ninth and Eleventh Circuits did, and this rule 
is consistent with both those rulings. See Boroski, 700 F.3d 446; 
Roberts, 625 F.3d 1204.
    The rule is also consistent with the Board's decision in Lake, 47 
BRBS 45, which adopted the same interpretation of section 6(c)'s 
``currently receiving'' clause as the Ninth and Eleventh Circuits. In 
Lake, the Board held that a claimant is ``currently receiving 
compensation'' under section 6(c) ``during a period in which he is 
entitled to receive compensation, regardless of whether his employer 
actually pays it.'' Id. at 48. The Board also held that when a 
claimant's temporary total disability changes to permanent total 
disability during a fiscal year, the maximum rate in effect during that 
year applies immediately. Id. Thus, the rule's implementation of the 
section 6(c) ``currently receiving'' clause is consistent with the 
precedent from the Board and all courts of appeals that have ruled on 
the issue.
    Two commenters stated that Congress did not intend the ``currently 
receiving'' clause to have any effect beyond the four-fiscal-year 
period after the 1972 amendments to the LHWCA, which annually increased 
the maximum compensation rate until it reached 200 percent of the 
national average weekly wage in 1975. They contended that Congress 
intended section 6(c) to apply only to claimants who were ``currently 
receiving compensation for permanent total disability or death'' during 
the four-year phase-in period.
    Later statutory enactments, however, demonstrate that Congress 
intended to apply the ``currently receiving'' clause beyond the phase-
in period. In 1984, Congress amended section 6 again to remove the 
phase-in provisions yet retained the ``currently receiving'' clause and 
reenacted it as section 6(c). If Congress had intended the outcome 
urged by the commenters--to have section 6(c)'s ``currently receiving 
clause'' apply only to the phase-in years--it could have drafted 
section 6(c) to say exactly that. Instead, Congress removed the phase-
in provisions, making reference to them impossible. It nonetheless 
retained section 6(c) and

[[Page 17289]]

changed the text of the provision to make clear that all claimants 
``currently receiving compensation for permanent total disability or 
death'' are subject to the maximum rate based on the national average 
weekly wage as set under section 6(b)(3). Congress knew that, under 
section 6(b)(3), the national average weekly wage is determined anew 
every year, and thus must be deemed to have understood that the maximum 
rate applicable to those currently receiving compensation for permanent 
total disability or death would also change annually. See generally 
Pucetti v. Ceres Gulf, 24 BRBS 25, 31 (1990) (considering phase-in 
provisions in context of 1984 amendments and holding that ``during a 
yearly period when a given national average weekly wage is in effect, 
those `currently receiving' benefits for permanent total disability or 
death are entitled to that year's new maximum.''); see Dir., OWCP v. 
Perini North River Assoc., 459 U.S. 297 (1983) (where Congress amended 
the Act to extend coverage to land-based workers if they met a status 
test for maritime employees, it was presumed to know that the law 
already covered those injured on navigable waters, and its amendment of 
the Act was not intended to require those ``traditionally covered'' 
employees to also prove status).
    Several commenters stated that section 6 does not allow for the 
maximum compensation rate applicable to a claimant to change each year, 
i.e., that even a permanently totally disabled claimant is forever 
subject to the maximum rate in effect at the time of his injury. First, 
this is contrary to the text of the provision. Section 6 sets the 
maximum rate at 200 percent of the national average weekly wage, 33 
U.S.C. 906(b)(1), requires a new national average weekly wage to be 
determined each October 1, 33 U.S.C. 906(b)(3), and provides that a 
given year's determination ``shall apply to employees . . . currently 
receiving compensation for permanent total disability'' during that 
year. As a claimant can be ``currently receiving compensation for 
permanent total disability'' in more than one year, it is apparent that 
he can be subject to a different national average weekly wage--and, 
thus, a different maximum rate as determined by that national average 
weekly wage--for each year in which he is being compensated for 
permanent total disability. Second, the commenter's approach is 
contrary to the legislative history of the 1972 Amendments. See H.R. 
Report 92-1441 at 3; S. Report 92-1125 at 5-6. Third, the Board 
rejected this very argument in Marko v. Morris Boney, Inc., 23 BRBS 353 
(1990), a decision the Board reaffirmed in Lake, 47 BRBS at 48-50. 
Finally, this approach would treat those receiving compensation for 
permanent total disability or death the same as those receiving 
compensation for any other type of disability, while the statute 
clearly treats permanent total disability and death differently.

C. Impact on Average Weekly Wage Calculations

    A few commenters expressed concern that the rule could adversely 
affect how an individual's average weekly wage is calculated under 
section 10, 33 U.S.C. 910. The Department does not intend this rule to 
govern the basic average weekly wage calculation necessary to determine 
the amount of compensation payable. As explained in the NPRM, ``[t]he 
proposed regulations do not govern general compensation calculations.'' 
81 FR 58881. Instead, the maximum and minimum regulations apply only 
once that calculation (called the ``calculated compensation rate'' in 
the rule) is made.

D. Application of the Rule to Existing Injuries, Disabilities, and 
Deaths

    Two commenters stated that the Department should limit the proposed 
rule's applicability to future injuries. They contended applying the 
new rules to currently existing matters could lead to large additional 
liabilities (which are not fully secured) if claimants with pending 
cases seek increased compensation under the new standards.
    In general, an agency may apply a new regulation to existing 
matters when it does not change the legal landscape. Thus, a rule that 
``is substantively consistent with prior regulations or prior agency 
practices, and has been accepted by all Courts of Appeals to consider 
the issue,'' may be applied to matters pending at the time the 
regulation is promulgated. Nat'l Mining Assoc. v. Dept. of Labor, 292 
F.3d 849, 860 (D.C. Cir. 2002). Conversely, agencies are not required 
``to apply rules retroactively even where it would be permissible for 
them to do so.'' Grant Medical Center v. Hargan, 875 F.3d 701, 706 
(D.C. Cir. 2017).
    Under these principles, the Department believes it could choose to 
apply the rule to all matters, including those injuries, disabilities, 
and deaths occurring before the rule's effective date. The Department's 
interpretation of the ``newly awarded'' and ``currently receiving'' 
clauses is longstanding (since at least 1979 for the former and 2012 
for the latter) and fully consistent with all Court of Appeals and 
Supreme Court precedent. See Nat'l Mining Assoc., 292 F.3d at 860. The 
rules implementing the minimum compensation provisions and section 
10(f) similarly ensconce the Department's longstanding positions and 
are not inconsistent with any Court of Appeals precedent.
    But given the commenters' expressed concern, the Department has 
decided to apply the rule only to injuries and deaths occurring after 
the rule's effective date and has added a clause to Sec.  702.802(a) to 
make this clear. Because the current case law interpreting these 
provisions and the rule reach the same conclusions, the Department sees 
little difference in applying the rule retroactively and applying it 
only prospectively. The Department makes this change, however, to 
emphasize its intent not to upset any settled expectations the 
regulated parties may hold.
    Despite the Department's decision on this issue, parties should be 
aware that existing case law construing section 6(c) still governs 
injuries, disabilities and deaths occurring before the rule's effective 
date. The Department will continue to administer claims in accordance 
with those precedents. Rivers v. Roadway Exp., Inc., 511 U.S. 298, 312-
313 and n.12 (``A judicial construction of a statute is an 
authoritative statement of what the statute meant before as well as 
after the decision of the case giving rise to that construction,'' and 
thus ``of what the statute has meant continuously since the date when 
it became law.'').
    Finally, the examples in the regulations continue to use maximum 
and minimum compensation rates for injuries or deaths that occurred in 
fiscal years prior to the effective date of this rule. This is done out 
of necessity; the Department cannot calculate with any certainty future 
maximum and minimum compensation amounts because they are based on the 
NAWW, which is determined anew each year. The Department believes using 
concrete numbers from past fiscal years will better inform the 
regulated parties about how the regulations should be applied. Of 
course, because the examples apply the current state of the law, they 
may be instructive in calculating compensation for disabilities and 
deaths occurring before the rule's effective date even though not 
explicitly governed by the rule.

IV. Collection of Information (Subject to the Paperwork Reduction Act)

    This rulemaking imposes no new collections of information.

[[Page 17290]]

V. Executive Orders 12866 and 13563 (Regulatory Planning and Review)

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
The Department has considered this rule with these principles in mind 
and has concluded that the regulated community will benefit from this 
regulation.
    This rule will provide the parties with greater guidance on 
applying the Act's maximum and minimum compensation provisions and 
section 10(f) adjustments in determining the amount of disability 
compensation or death benefits payable. By clarifying how these 
provisions apply, the rule will also promote consistency so that 
similarly situated claimants receive similar compensation or death 
benefits. In addition, the rule will benefit the regulated community by 
forestalling further litigation over the ``currently receiving'' clause 
in cases governed by this rule. The Department also sees no 
countervailing burden--economic or otherwise--other than those imposed 
by the statute itself that would counsel against promulgating this 
rule.
    One commenter generally stated that the Department had not fully 
addressed the proposed rule's financial impact on the industry or 
compensation claimants, noting the importance of predictability for 
reserving funds to cover compensation payments. The final rule sets out 
clear standards for applying the LHWCA's maximum and minimum 
compensation provisions and will thus provide the predictability the 
commenter seeks.
    Finally, because this is not a ``significant regulatory action'' 
within the meaning of Executive Order 12866, the Office of Management 
and Budget waived its review.

VI. Regulatory Flexibility Act and Executive Order 13272 (Proper 
Consideration of Small Entities in Agency Rulemaking)

    The Regulatory Flexibility Act of 1980, as amended (5 U.S.C. 601 et 
seq.), requires an agency to prepare a regulatory flexibility analysis 
when it proposes regulations that will have ``a significant economic 
impact on a substantial number of small entities'' or to certify that 
the proposed regulations will have no such impact, and to make the 
analysis or certification available for public comment.
    For the reasons set forth in the NPRM, the Department determined 
that a complete regulatory flexibility analysis was not necessary, and 
certified that the proposed rules would not have a significant economic 
impact on a substantial number of small entities. 81 FR 58887. The 
Department invited public comment on the certification and delivered a 
copy of the certification to the chief counsel for Advocacy of the 
Small Business Administration. See generally 5 U.S.C. 605.
    The Chief Counsel for Advocacy has not filed comments on the 
certification. Although one commenter generally stated that the 
Department had not quantified the economic impact on industry or the 
benefit to Longshore employees, the commenter provided no additional 
information regarding the rule's potential impact on small entities. 
Because the comments provide no basis for departing from its prior 
conclusion, the Department again certifies that this rule will not have 
a significant economic impact on a substantial number of small 
entities. As a result, no regulatory flexibility analysis is required.

VII. Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531 
et seq.) directs agencies to assess the effects of Federal regulatory 
actions on State, local, and tribal governments, and the private 
sector, ``other than to the extent that such regulations incorporate 
requirements specifically set forth in law.'' For purposes of the 
Unfunded Mandates Reform Act, this rule does not include any Federal 
mandate that may result in increased expenditures by State, local, and 
tribal governments, or increased expenditures by the private sector of 
more than $100,000,000.

XIII. Executive Order 13132 (Federalism)

    The Department has reviewed this rule in accordance with Executive 
Order 13132 regarding federalism, and has determined that it does not 
have ``federalism implications.'' The rule will not ``have substantial 
direct effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.''

IX. Executive Order 12988 (Civil Justice Reform)

    This rule meets the applicable standards in sections 3(a) and 
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize 
litigation, eliminate ambiguity, and reduce burden.

List of Subjects in 20 CFR Part 702

    Administrative practice and procedure, Claims, Longshore and harbor 
workers, Maximum compensation rates, Minimum compensation rates, 
Workers' compensation.

    For the reasons stated in the preamble, the Department of Labor 
amends 20 CFR part 702 as follows:

PART 702--ADMINISTRATION AND PROCEDURE

0
1. The authority citation for part 702 is revised to read as follows:

    Authority:  5 U.S.C. 301, and 8171 et seq.; 33 U.S.C. 901 et 
seq.; 42 U.S.C. 1651 et seq.; 43 U.S.C. 1333; Reorganization Plan 
No. 6 of 1950, 15 FR 3174, 64 Stat. 1263; Secretary's Order 10-2009, 
74 FR 58834.


0
2. Add subparts G and H to read as follows:
Subpart G--Section 10(f) Adjustments
Sec.
702.701 What is an annual section 10(f) adjustment and how is it 
calculated?
Subpart H--Maximum and Minimum Compensation Rates

General

Sec.
702.801 Scope and intent of this subpart.
702.802 Applicability of this subpart.
702.803 Definitions.
702.804 What are the weekly maximum and minimum rates for each 
fiscal year and how are they calculated?

Maximum Rates

702.805 What weekly maximum rates apply to compensation for 
permanent partial disability, temporary total disability, and 
temporary partial disability?
702.806 What weekly maximum rates apply to compensation for 
permanent total disability?
702.807 What weekly maximum rates apply to death benefits?

Minimum Rates

702.808 What weekly minimum rates apply to compensation for partial 
disability?
702.809 What weekly minimum rates apply to compensation for 
temporary total disability?
702.810 What weekly minimum rates apply to compensation for 
permanent total disability?
702.811 What weekly minimum rates apply to death benefits?

[[Page 17291]]

Subpart G--Section 10(f) Adjustments


Sec.  702.701  What is an annual section 10(f) adjustment and how is it 
calculated?

    (a) Claimants receiving compensation for permanent total disability 
or death benefits are entitled to section 10(f) adjustments each fiscal 
year. A section 10(f) adjustment cannot decrease the compensation or 
death benefits payable to any claimant.
    (b) The section 10(f) adjustment for a given fiscal year is the 
lower of:
    (1) The percentage by which the new fiscal year's national average 
weekly wage exceeds the prior fiscal year's national average weekly 
wage as determined by the Department (see Sec.  702.804(b)); or
    (2) 5 percent.
    (c) Section 10(f) percentage increases are applied each October 1 
to the amount of compensation or death benefits payable in the prior 
fiscal year.
    (d) In applying section 10(f) adjustments--
    (1) Calculations are rounded to the nearest dollar; and
    (2) No adjustment is made if the calculated amount is less than one 
dollar.
    (e) A section 10(f) adjustment must not increase a claimant's 
weekly compensation or death benefits beyond the applicable fiscal 
year's maximum rate.
    (f) Section 10(f) adjustments do not apply to compensation for 
temporary or partial disability.

Subpart H--Maximum and Minimum Compensation Rates

General


Sec.  702.801  Scope and intent of this subpart.

    (a) This subpart implements the Act's provisions that affect the 
maximum and minimum rates of compensation and death benefits payable to 
employees and survivors. These statutory provisions include sections 
6(b) and (c), and 9(e). 33 U.S.C. 906(b), (c); 909(e). It is intended 
that these statutory provisions be construed as provided in this 
subpart.
    (b) These regulations implement section 6(c), 33 U.S.C. 906(c), 
based on the following concepts:
    (1) An employee is ``newly awarded compensation'' when he or she 
first becomes disabled due to an injury;
    (2) A survivor is ``newly awarded compensation'' on the date the 
employee died; and
    (3) An employee or survivor is ``currently receiving compensation'' 
when compensation for permanent total disability or death benefits is 
payable, regardless of when payment is actually made.


Sec.  702.802  Applicability of this subpart.

    (a) This subpart applies to all compensation and death benefits 
paid under the Act as a result of injuries or deaths occurring on or 
after May 21, 2018 with the following exceptions:
    (1) Amounts payable under an approved settlement (see 33 U.S.C. 
908(i));
    (2) Amounts paid for an employee's death to the Special Fund (see 
33 U.S.C. 944(c)(1));
    (3) Any payments for medical expenses (see 33 U.S.C. 907); and
    (4) Any other lump sum payment of compensation or death benefits, 
including aggregate death benefits paid when a survivor remarries (see 
33 U.S.C. 909(b)) or aggregate compensation paid under a commutation 
(see 33 U.S.C. 909(g)).
    (b) The rules in this subpart governing minimum disability 
compensation and death benefits do not apply to claims arising under 
the Defense Base Act, 42 U.S.C. 1651 (see 42 U.S.C. 1652(a); 20 CFR 
704.103).


Sec.  702.803  Definitions.

    The following definitions apply to this subpart:
    Calculated compensation rate means the amount of weekly 
compensation for total disability or death that a claimant would be 
entitled to if there were no maximum rates, minimum rates, or section 
10(f) adjustments.
    Date of disability. (1) Except as provided in paragraph (2) of this 
definition, the date of disability is the date on which the employee 
first became incapable, because of an injury, of earning the same wages 
the employee was receiving at the time of the injury.
    (2) Exceptions:
    (i) For scheduled permanent partial disability benefits under 33 
U.S.C. 908(c)(1)-(20) that are not preceded by a permanent total, 
temporary total, or temporary partial disability resulting from the 
same injury, the date of disability is the date on which the employee 
first becomes permanently impaired by the injury to the scheduled 
member.
    (ii) For an occupational disease that does not immediately result 
in disability, the date of disability is the date on which the employee 
becomes aware, or in the exercise of reasonable diligence or by reason 
of medical advice should have been aware, of the relationship between 
his or her employment, the disease, and the disability.
    (iii) For any disability lasting 14 or fewer days, the date of 
disability is 4 days after the date on which the employee first became 
incapable, because of an injury, of earning the same wages the employee 
was receiving at the time of the injury.
    Fiscal year or FY means the period from October 1 of a calendar 
year until September 30 of the following calendar year.
    Maximum rate means the maximum weekly compensation rate calculated 
by the Department for a given fiscal year as described in Sec.  
702.804(b).
    Minimum rate means the minimum weekly compensation rate calculated 
by the Department for a given fiscal year as described in Sec.  
702.804(c).
    Section 10(f) adjustment means the annual increase that certain 
claimants receiving compensation for permanent total disability or 
death are entitled to each fiscal year under 33 U.S.C. 910(f) and as 
calculated by the Department as described in Sec.  702.701(b).


Sec.  702.804  What are the weekly maximum and minimum rates for each 
fiscal year and how are they calculated?

    (a) For each fiscal year, the Department must determine a weekly 
maximum and minimum compensation rate. These amounts are called the 
maximum and minimum rates in this subchapter. In combination with other 
factors, these rates are used to determine compensation payments under 
the Act.
    (b) The maximum compensation rate in effect for a given fiscal year 
is 200% of the national average weekly earnings of production or 
nonsupervisory workers on private, nonagricultural payrolls, as 
calculated by the Department, for the first three quarters of the 
preceding fiscal year.
    (c) The minimum compensation rate in effect for a given fiscal year 
is 50% of the national average weekly earnings of production or 
nonsupervisory workers on private, nonagricultural payrolls, as 
calculated by the Department, for the first three quarters of the 
preceding fiscal year.

Maximum Rates


Sec.  702.805  What weekly maximum rates apply to compensation for 
permanent partial disability, temporary total disability, and temporary 
partial disability?

    (a) The maximum rate in effect on the date of disability applies to 
all compensation payable for permanent partial disability, temporary 
partial disability, and temporary total disability.
    (b) Examples:
    (1) Employee A suffers a covered workplace injury on April 1, 2000, 
is temporarily totally disabled from that day through June 4, 2002, and 
is

[[Page 17292]]

thereafter permanently partially disabled. All compensation payable for 
A's disability is subject to the FY 2000 maximum rate.
    (2) Employee B suffers a covered workplace injury on August 25, 
2010, and is temporarily totally disabled until September 25, 2010, 
when he returns to work. On January 3, 2011, he again becomes 
temporarily totally disabled from the same injury. He ceases work and 
is unable to return until November 22, 2012. All compensation payable 
for B's disability is subject to the FY 2010 maximum rate.
    (3) Employee C retires on May 6, 2011. She discovers on November 
10, 2012, that she has a compensable occupational disease. All 
compensation payable for C's occupational disease is subject to the FY 
2013 maximum rate. See Sec.  702.601(b) (occupational diseases 
discovered post-retirement are compensated as permanent partial 
disabilities).


Sec.  702.806  What weekly maximum rates apply to compensation for 
permanent total disability?

    (a) The maximum rate in effect on the date that the employee became 
totally and permanently disabled applies to all compensation payable 
for permanent total disability during that fiscal year.
    (b) For all periods the employee is permanently and totally 
disabled in subsequent fiscal years, the weekly compensation payable is 
subject to each subsequent year's maximum rate.
    (c) If a claimant is receiving compensation for permanent total 
disability at the maximum rate for the current fiscal year, but the 
next fiscal year's maximum rate will be higher than the claimant's 
calculated compensation rate, the claimant's compensation for the next 
fiscal year will increase by the amount of the 10(f) adjustment, 
subject to the maximum rate for the next fiscal year.
    (d) Examples:
    (1) Employee A suffers a covered workplace injury on April 1, 2000, 
and is permanently and totally disabled from that date forward. A's 
compensation for the period from April 1, 2000, until September 30, 
2000, is subject to the FY 2000 maximum rate. Beginning October 1, 
2000, A's compensation for FY 2001 is subject to the FY 2001 maximum 
rate, compensation for FY 2002 is subject to the FY 2002 maximum rate, 
etc.
    (2) Employee B suffers a covered workplace injury on April 1, 2000, 
is temporarily totally disabled from that day through June 3, 2002, and 
is thereafter permanently totally disabled. B's compensation for the 
period from April 1, 2000, through June 3, 2002, is subject to the FY 
2000 maximum rate (see Sec.  702.805(a)). B's compensation for the 
period from June 4, 2002, through September 30, 2002, is subject to the 
FY 2002 maximum rate. Beginning October 1, 2002, B's compensation for 
FY 2003 is subject to the FY 2003 maximum rate, compensation for FY 
2004 is subject to the FY 2004 maximum rate, etc.
    (3) Employee C suffers a covered workplace injury in FY 2009 and is 
permanently totally disabled from that day forward. He was earning 
$1,950.00 a week when he was injured, making his calculated 
compensation rate $1,300.00 ($1,950.00 x 2 / 3). His calculated 
compensation rate exceeds the maximum rate from FY 2009-2012; thus, his 
compensation is limited to each year's maximum rate. In FY 2013, C's 
calculated compensation rate of $1,300.00 is, for the first time, less 
than the FY 2013 maximum rate of $1,325.18. Applying the FY 2013 2.31% 
section 10(f) adjustment to C's FY 2012 compensation rate of $1,295.20 
results in a compensation rate of $1,325.00 ($1,295.20 x .0231 = 
$29.92, rounded to the nearest cent; $1,295.20 + $29.92 = $1,325.12, 
rounded to the nearest dollar). This amount falls just below the FY 
2013 maximum rate of $1,325.18. Thus, C's benefit rate for FY 2013 is 
$1,325.00, and is not limited by the maximum rate.


Sec.  702.807  What weekly maximum rates apply to death benefits?

    (a) The maximum rate in effect on the date that the employee died 
applies to all death benefits payable during that fiscal year.
    (b) Aggregate weekly death benefits paid to all eligible survivors 
during the fiscal year in which the employee died must not exceed the 
lower of--
    (1) The maximum rate for that fiscal year; or
    (2) The employee's average weekly wages.
    (c) For subsequent fiscal years--
    (1) Aggregate weekly death benefits paid during each subsequent 
fiscal year are subject to each subsequent year's maximum rate.
    (2) If death benefits were paid in the first year at the employee's 
full average weekly wage under paragraph (b)(2) of this section, the 
aggregate weekly death benefits paid for each subsequent year may not 
exceed the current benefit rate plus the subsequent year's section 
10(f) adjustment (see Sec.  702.701).
    (d) Post-retirement occupational diseases: Notwithstanding 
paragraphs (a) through (c) of this section, if an employee's death 
results from an occupational disease where the date of disability 
occurred after the employee voluntarily retired--
    (1) Aggregate weekly death benefits paid to all eligible survivors 
during the fiscal year in which the employee died must not exceed the 
lower of:
    (i) The maximum rate for that fiscal year; or
    (ii) One fifty-second part of the employee's average annual 
earnings during the 52-week period preceding retirement.
    (2) For subsequent fiscal years--
    (i) Aggregate weekly death benefits paid during each subsequent 
fiscal year are subject to each subsequent year's maximum rate.
    (ii) If death benefits were paid in the first year at 1/52 part of 
the employee's average annual earnings prior to retirement under 
paragraph (d)(1)(ii) of this section, the aggregate weekly death 
benefits paid for each subsequent year may not exceed the current 
benefit rate plus the subsequent year's section 10(f) adjustment (see 
Sec.  702.701).
    (e) Examples:
    (1) Employee A suffers a covered workplace injury on May 1, 2013, 
and is permanently and totally disabled from that date until August 1, 
2014, when he dies due to the injury. He has one eligible survivor and 
his average weekly wage at the time of injury was $3,000.00. The 
calculated compensation rate for A's survivor is $1,500.00 (i.e., 50% 
of A's average weekly wage). A's weekly survivor's benefits for the 
period from August 2, 2014, to September 30, 2014, are limited to the 
FY 2014 maximum rate of $1,346.68. Beginning October 1, 2014, A's 
survivor's benefits for FY 2015 are subject to the FY 2015 maximum 
rate, benefits for FY 2016 are subject to the FY 2016 maximum rate, 
etc.
    (2) Employee B suffers a covered workplace injury and dies on 
December 1, 2012. She has one eligible survivor and her average weekly 
wage was $300.00. Because B's average weekly wage of $300.00 falls 
below the FY 2013 national average weekly wage of $662.59, death 
benefits are calculated at 50% of that national average wage (see 33 
U.S.C. 909(e)). This yields a calculated compensation rate of $331.30. 
But because this rate exceeds B's actual average weekly wages, weekly 
death benefits payable during FY 2013 are limited to $300.00. In FY 
2014, B's survivor is entitled to a 1.62% section 10(f) adjustment, 
resulting in weekly death benefits of $305.00 ($300.00 x .0162 = $4.86; 
$300.00 + $4.86 = $304.86, rounded to the nearest dollar). B's survivor 
would continue to receive section 10(f) adjustments in subsequent 
fiscal years.

[[Page 17293]]

    (3) Employee C retired on February 1, 1998. During his last year of 
employment, he earned $23,000. He discovers on April 15, 2002, that he 
has a compensable occupational disease resulting in a 50% permanent 
impairment. See Sec.  702.601(b). Because he retired more than one year 
before this date, his payrate for calculating compensation is the FY 
2002 national average weekly wage, or $483.04. See Sec.  702.603(b). He 
is entitled to weekly compensation of $161.01 ($483.04 x 2 / 3 x 50%). 
C dies from the disease on June 1, 2015, leaving two survivors. The 
payrate for calculating death benefits is the FY 2015 national average 
weekly wage, or $688.51. See Sec.  702.604(b). The survivors' aggregate 
calculated compensation rate is $459.01 ($688.51 x 2 / 3). But because 
compensation cannot exceed \1/52\ part of C's last year of earnings, 
aggregate weekly death benefits payable for FY 2015 are limited to 
$442.31 ($23,000 / 52). For FY 2016, C's survivors are entitled to a 
2.10% section 10(f) adjustment resulting in weekly death benefits of 
$452.00 ($442.31 x .021 = $9.29, rounded to the nearest cent; $442.31 + 
$9.29 = $451.60, rounded to the nearest dollar). C's survivors would 
continue to receive section 10(f) adjustments in subsequent fiscal 
years.

Minimum Rates


Sec.  702.808  What weekly minimum rates apply to compensation for 
partial disability?

    There is no minimum rate for compensation paid for partial 
disability, whether temporary or permanent.


Sec.  702.809  What weekly minimum rates apply to compensation for 
temporary total disability?

    (a) The minimum compensation payable for temporary total disability 
is the lower of:
    (1) The minimum rate in effect on the date of disability, or
    (2) The employee's average weekly wage on the date of disability.
    (b) Example: Employee A suffers a covered workplace injury on May 
6, 2014. He is temporarily totally disabled until November 6, 2015, 
when he returns to work. His average weekly wages at the time of 
disability were $500.00. Because his calculated compensation rate 
(i.e., 66 and \2/3\% of $500.00, or $333.34) is lower than the $336.67 
FY 2014 minimum rate, A's compensation is raised to $336.67 for the 
entire period of his disability.


Sec.  702.810  What weekly minimum rates apply to compensation for 
permanent total disability?

    (a) The weekly minimum compensation payable for the fiscal year in 
which the employee became permanently and totally disabled is the lower 
of:
    (1) The minimum rate in effect on the date of disability, or
    (2) The employee's average weekly wage on the date of disability.
    (b) For all periods the employee is permanently and totally 
disabled in subsequent fiscal years, the weekly minimum compensation 
payable is the lower of:
    (1) Each subsequent fiscal year's minimum rate, or
    (2) The employee's average weekly wage on the date of disability.
    (c) Example: Employee A suffers a covered workplace injury on April 
1, 2003, and is permanently totally disabled from that day forward. He 
was earning $250.00 a week when he was injured. His calculated 
compensation rate is $166.67 ($250 x 2 / 3). The FY 2003 minimum rate 
is $249.14. Because A's calculated compensation rate is below the FY 
2003 minimum rate, and his actual weekly wage is above that rate, he is 
entitled to compensation at the minimum rate of $249.14 from April 1, 
2003, to September 30, 2003. The FY 2004 minimum rate is $257.70. 
Because A's actual weekly wages on the date of disability are lower 
than the FY 2004 minimum rate, A's minimum weekly compensation rate for 
FY 2004 is $250.00. His weekly compensation rate for FY 2004, however, 
is higher because of a section 10(f) adjustment. For FY 2004, A's 
compensation rate is increased by a 3.44% section 10(f) adjustment, 
raising his compensation level to $258.00 ($249.14 x .0344 = $8.57; 
$249.14 + $8.57 = $257.71, rounded to the nearest dollar).


Sec.  702.811  What weekly minimum rates apply to death benefits?

    (a) The average weekly wage used to compute death benefits is the 
greater of--
    (1) The deceased employee's average weekly wages; or
    (2) The national average weekly wage in effect at the time of the 
employee's death.
    (b) The weekly minimum rate does not apply to death benefits.

    Signed at Washington, DC, on April 13, 2018.
Julia K. Hearthway,
Director, Office of Workers' Compensation Programs.
[FR Doc. 2018-08133 Filed 4-18-18; 8:45 am]
 BILLING CODE 4510-CR-P



                                                                                                                                                                                             17287

                                             Rules and Regulations                                                                                         Federal Register
                                                                                                                                                           Vol. 83, No. 76

                                                                                                                                                           Thursday, April 19, 2018



                                             This section of the FEDERAL REGISTER                    LHWCA’s provisions on maximum and                     receiving’’ clauses, and relatedly, how
                                             contains regulatory documents having general            minimum amounts of compensation                       the Act’s minimum compensation
                                             applicability and legal effect, most of which           payable. 81 FR 58878–90 (Aug. 26,                     provisions apply. Additionally, the
                                             are keyed to and codified in the Code of                2016). The comment period closed on                   proposed rules implement section
                                             Federal Regulations, which is published under           October 25, 2016.                                     10(f)’s annual adjustment provision
                                             50 titles pursuant to 44 U.S.C. 1510.
                                                                                                        As explained in the NPRM, 81 FR                    generally and address how section 10(f)
                                             The Code of Federal Regulations is sold by              58878–79, the LHWCA establishes a                     integrates with section 6’s maximum
                                             the Superintendent of Documents.                        federal workers’ compensation system                  and minimum compensation rates.
                                                                                                     for an employee’s disability or death                    As the NPRM discussed, these rules
                                                                                                     arising in the course of covered                      are primarily based on the Supreme
                                             DEPARTMENT OF LABOR                                     maritime employment. 33 U.S.C. 903(a),                Court’s controlling decision in Roberts
                                                                                                     908, 909. LHWCA compensation is                       v. Sea-Land Services, Inc., 566 U.S. 93
                                             Office of Workers’ Compensation                         generally based on the employee’s                     (2012), the Ninth and Eleventh Circuits’
                                             Programs                                                average weekly wages at the time of his               decisions in Roberts v. Dir., OWCP, 625
                                                                                                     or her disabling injury or death. 33                  F.3d 1204 (9th Cir. 2010), and Boroski
                                             20 CFR Part 702                                         U.S.C. 910. Section 6 of the Act caps                 v. Dyncorp Intern., 700 F.3d 446 (11th
                                             RIN 1240–AA06                                           compensation at a maximum of twice                    Cir. 2012), and the Benefits Review
                                                                                                     the applicable fiscal year’s national                 Board’s decisions in Reposky v. Int’l
                                             Longshore and Harbor Workers’                           average weekly wage (NAWW). 33                        Transp. Servs., 40 BRBS 65 (2006), and
                                             Compensation Act: Maximum and                           U.S.C. 906(b)(1). Section 6 also                      Lake v. L–3 Communications, 47 BRBS
                                             Minimum Compensation Rates                              establishes a minimum below which                     45 (2013). Aside from one small
                                                                                                     compensation may not fall. The                        exception, those decisions and this rule
                                             AGENCY:  Office of Workers’                                                                                   comport with the Director’s
                                             Compensation Programs, Labor.                           minimum rate is the lower of fifty
                                                                                                     percent of the NAWW or the employee’s                 longstanding interpretation and
                                             ACTION: Final rule.                                                                                           application of the maximum and
                                                                                                     actual average weekly wages. 33 U.S.C.
                                                                                                     906(b)(2). The Secretary of Labor                     minimum compensation provisions. 81
                                             SUMMARY:   This final rule contains                                                                           FR 58887. Additionally, the Department
                                             regulations implementing the Longshore                  determines the NAWW for each fiscal
                                                                                                     year, and that determination applies to               has been following the Ninth Circuit’s
                                             and Harbor Workers’ Compensation                                                                              construction of the statute since 2012
                                             Act’s provisions on maximum and                         employees or survivors ‘‘currently
                                                                                                     receiving’’ compensation for permanent                and the regulations reflect this
                                             minimum amounts of compensation                                                                               construction as well.
                                             payable. These regulations clarify how                  total disability or death, as well as those
                                                                                                                                                              The Department received only six
                                             the Department interprets and applies                   ‘‘newly awarded’’ compensation of any
                                                                                                                                                           written comments in response to the
                                             these provisions in accordance with                     type, including for partial and
                                                                                                                                                           NPRM from a variety of entities in the
                                             several court decisions to ensure injured               temporary disability. 33 U.S.C.
                                                                                                                                                           longshore industry. The commenters
                                             workers are compensated properly and                    906(b)(3), (c).
                                                                                                                                                           included longshore employer
                                             insurers and employers are aware of                        In addition to the provisions in
                                                                                                                                                           associations, insurance-industry
                                             their responsibilities. In addition, the                section 6 that allow for adjustments to
                                                                                                                                                           members, and longshore claims
                                             rule implements the Act’s annual                        the maximum and minimum
                                                                                                                                                           administrators associations. These
                                             compensation-adjustment mechanism                       compensation rates based on the
                                                                                                                                                           comments are addressed in Section III
                                             for permanent total disability                          NAWW, section 10(f) of the Act
                                                                                                                                                           below.
                                             compensation and death benefits.                        provides another mechanism for                           This rule is not an Executive Order
                                                                                                     adjusting compensation amounts so that                13771 regulatory action because this
                                             DATES: This rule is effective May 21,
                                                                                                     their value is not eroded over time.                  rule is not significant under Executive
                                             2018.
                                                                                                     Benefits payable for permanent total                  Order 12866.
                                             FOR FURTHER INFORMATION CONTACT:                        disability or death are increased at the
                                             Douglas Fitzgerald, Director, Division of               beginning of each fiscal year by the                  II. Statutory Authority
                                             Longshore and Harbor Workers’                           same percentage as any increase in the                   Section 39(a) of the LHWCA, 33
                                             Compensation, Office of Workers’                        NAWW, but no more than five percent                   U.S.C. 939(a), authorizes the Secretary
                                             Compensation Programs, 202–354–9620                     per year. 33 U.S.C. 910(f). Section 10(f)             of Labor to prescribe rules and
                                             (this is not a toll-free number),                       applies to all claimants receiving                    regulations necessary for the
                                             Fitzgerald.Douglas@dol.gov. TTY/TDD                     compensation for permanent total                      administration of the Act.
                                             callers may dial toll free 1–877–889–                   disability or death, while section 6
                                             5627 for further information.                           applies only to those whose                           III. Response to Significant Comments
                                             SUPPLEMENTARY INFORMATION:                              compensation is affected by the                       and Explanation of Changes
                                                                                                     maximum or minimum rates.                                Most commenters provided general
                                             I. Background of This Rulemaking
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                                                                                                        The Department proposed rules to                   remarks about the rulemaking rather
                                                On August 26, 2016, the Department                   implement the minimum and maximum                     than comments on specific proposed
                                             issued a Notice of Proposed Rulemaking                  compensation rate provisions of section               regulations. Thus, rather than including
                                             (NPRM) under the Longshore and                          6(c), specifically clarifying which                   a full section-by-section analysis in the
                                             Harbor Workers’ Compensation Act, 33                    maximum compensation rates apply to                   discussion below, the Department’s
                                             U.S.C. 901 et seq. (LHWCA or Act),                      any particular injury under the section’s             response is organized by the broader
                                             proposing rules implementing the                        ‘‘newly awarded’’ and ‘‘currently                     issues raised. The Department


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                                             17288              Federal Register / Vol. 83, No. 76 / Thursday, April 19, 2018 / Rules and Regulations

                                             appreciates these comments and has                      Smiley v. Citibank (South Dakota), N.A.,              argues that because the Supreme Court
                                             made one change to the final rule in                    517 U.S. 735, 740–41 (1996) (fact that                declined to address the application of
                                             response.                                               agency regulation was prompted by                     the ‘‘currently receiving’’ clause in
                                                                                                     litigation does not undermine deference               Roberts, the Board’s approach in
                                             A. Application of ‘‘Newly Awarded
                                                                                                     agency is due; ‘‘That it was litigation               Pittman would dictate that the
                                             Compensation’’ Clause
                                                                                                     which disclosed the need for the                      Department should not address the
                                                Several commenters stated that the                   regulation is irrelevant.’’) Here, the                application of the clause. This ignores
                                             proposed rules addressing the                           litigation in Roberts, Boroski, Reposky,              two facts. First, Pittman says nothing
                                             application of section 6(c)’s ‘‘newly                   Lake and other cases highlighted the                  about the Department’s authority to
                                             awarded’’ clause were unnecessary                       need for regulations in this area. And                issue a rule. Second, while the Supreme
                                             because the Supreme Court had already                   this rule falls well within the scope of              Court did not interpret the ‘‘currently
                                             clearly addressed how to apply the                      the Secretary of Labor’s authority to                 receiving’’ clause, the Ninth and
                                             clause in Roberts, 132 U.S. 1350. The                   prescribe rules and regulations                       Eleventh Circuits did, and this rule is
                                             fact that the Supreme Court has                         necessary for the administration of the               consistent with both those rulings. See
                                             addressed the issue does not make this                  LHWCA. 33 U.S.C. 939(a).                              Boroski, 700 F.3d 446; Roberts, 625 F.3d
                                             part of the rule unnecessary. The rule                     Furthermore, as explained in the                   1204.
                                             seeks to ensure a consistent application                NPRM, the rule does not mark a change                    The rule is also consistent with the
                                             of section 6(c) in its entirety by                      in the Director’s longstanding                        Board’s decision in Lake, 47 BRBS 45,
                                             addressing the proper application of                    interpretation and application of the                 which adopted the same interpretation
                                             both the ‘‘newly awarded’’ and                          maximum and minimum compensation                      of section 6(c)’s ‘‘currently receiving’’
                                             ‘‘currently receiving’’ clauses. Codifying              provisions. 81 FR 58887. The                          clause as the Ninth and Eleventh
                                             the Supreme Court’s ruling in a                         Department has been following the                     Circuits. In Lake, the Board held that a
                                             regulation clarifies and informs all                    Ninth Circuit’s construction of the                   claimant is ‘‘currently receiving
                                             stakeholders of the proper interpretation               statute in its entirety since 2012, and               compensation’’ under section 6(c)
                                             of the provision. The rule also provides                aside from one small exception, had                   ‘‘during a period in which he is entitled
                                             additional guidance with concrete                       been following this construction since                to receive compensation, regardless of
                                             examples of how the Roberts decision                    the Board’s 2006 decision in Reposky,                 whether his employer actually pays it.’’
                                             applies in a variety of factual situations.             40 BRBS 65. That exception involved                   Id. at 48. The Board also held that when
                                             Accordingly, the Department believes                    cases in which the employee’s disability              a claimant’s temporary total disability
                                             the regulations implementing the                        was initially something other than                    changes to permanent total disability
                                             ‘‘newly awarded’’ clause are important                  permanent total—temporary total,                      during a fiscal year, the maximum rate
                                             and has retained them in the final rule.                permanent partial, or temporary                       in effect during that year applies
                                             B. Application of ‘‘Currently Receiving’’               partial—and in a later fiscal year                    immediately. Id. Thus, the rule’s
                                             Clause                                                  became permanently totally disabling.                 implementation of the section 6(c)
                                                                                                     In Reposky, the Department took the                   ‘‘currently receiving’’ clause is
                                                Several commenters objected                          view that the employee’s compensation                 consistent with the precedent from the
                                             generally to the proposed rules                         amount should remain at the maximum                   Board and all courts of appeals that
                                             clarifying the application of the                       rate in effect on the date of disability              have ruled on the issue.
                                             ‘‘currently receiving’’ clause of section               until the next October 1, at which time                  Two commenters stated that Congress
                                             6(c). These commenters argued that the                  the employee would become subject to                  did not intend the ‘‘currently receiving’’
                                             rule is premature because the Supreme                   the new fiscal year’s maximum rate. But               clause to have any effect beyond the
                                             Court declined to address the                           the Ninth Circuit held in Roberts that                four-fiscal-year period after the 1972
                                             application of that clause in Roberts,                  the employee need not wait until the                  amendments to the LHWCA, which
                                             564 U.S. 1066, and to date, only two                    next October 1 and is instead                         annually increased the maximum
                                             Courts of Appeals have addressed it. See                immediately subject to the maximum                    compensation rate until it reached 200
                                             Boroski, 700 F.3d 446, Roberts, 625 F.3d                rate in effect on the day he or she                   percent of the national average weekly
                                             1204. Some of these commenters                          becomes permanently totally disabled                  wage in 1975. They contended that
                                             expressed concerns that the rule would                  under section 6(c)’s ‘‘currently                      Congress intended section 6(c) to apply
                                             preempt further development through                     receiving’’ clause. Roberts, 625 F.3d at              only to claimants who were ‘‘currently
                                             the courts on matters that were not                     1208–09. The rule reflects this                       receiving compensation for permanent
                                             considered at any stage of the Roberts                  construction and clarifies the                        total disability or death’’ during the
                                             litigation, namely, the computation of                  Department’s longstanding                             four-year phase-in period.
                                             the minimum compensation rate under                     interpretation of the other aspects of                   Later statutory enactments, however,
                                             section 6(b), computation of weekly                     section 6(c).                                         demonstrate that Congress intended to
                                             compensation payable for death under                       One commenter contended that the                   apply the ‘‘currently receiving’’ clause
                                             section 9(e), or the computation of a                   rule is inconsistent with the Benefit                 beyond the phase-in period. In 1984,
                                             claimant’s average weekly wage under                    Review Board’s approach in Pittman v.                 Congress amended section 6 again to
                                             section 10. On the other hand, one                      New Century Fabricators, Inc., 50 BRBS                remove the phase-in provisions yet
                                             commenter commended the Department                      17 (2016). In Pittman, the Board                      retained the ‘‘currently receiving’’
                                             for using the rulemaking process to                     declined to extend the Supreme Court’s                clause and reenacted it as section 6(c).
                                             resolve legal issues arising from judicial              reasoning in Estate of Cowart v. Nicklos              If Congress had intended the outcome
                                             statutory interpretations.                              Drilling Co., 505 U.S. 469 (1992), to an              urged by the commenters—to have
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                                                The Department is not required to                    issue not directly addressed by the                   section 6(c)’s ‘‘currently receiving
                                             wait for an issue to be adjudicated by                  Court. The Board held that ‘‘absent a                 clause’’ apply only to the phase-in
                                             the Supreme Court or any other court                    Supreme Court or circuit court decision               years—it could have drafted section 6(c)
                                             before it can promulgate regulations to                 to the contrary,’’ prior Board decisions              to say exactly that. Instead, Congress
                                             administer the LHWCA. Indeed,                           on the specific issue in the case                     removed the phase-in provisions,
                                             litigation often demonstrates the need                  established the precedent that bound                  making reference to them impossible. It
                                             for an agency regulation. See generally                 the Board. 50 BRBS at 20. The comment                 nonetheless retained section 6(c) and


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                                                                Federal Register / Vol. 83, No. 76 / Thursday, April 19, 2018 / Rules and Regulations                                        17289

                                             changed the text of the provision to                    the Board rejected this very argument in              Court of Appeals and Supreme Court
                                             make clear that all claimants ‘‘currently               Marko v. Morris Boney, Inc., 23 BRBS                  precedent. See Nat’l Mining Assoc., 292
                                             receiving compensation for permanent                    353 (1990), a decision the Board                      F.3d at 860. The rules implementing the
                                             total disability or death’’ are subject to              reaffirmed in Lake, 47 BRBS at 48–50.                 minimum compensation provisions and
                                             the maximum rate based on the national                  Finally, this approach would treat those              section 10(f) similarly ensconce the
                                             average weekly wage as set under                        receiving compensation for permanent                  Department’s longstanding positions
                                             section 6(b)(3). Congress knew that,                    total disability or death the same as                 and are not inconsistent with any Court
                                             under section 6(b)(3), the national                     those receiving compensation for any                  of Appeals precedent.
                                             average weekly wage is determined                       other type of disability, while the statute              But given the commenters’ expressed
                                             anew every year, and thus must be                       clearly treats permanent total disability             concern, the Department has decided to
                                             deemed to have understood that the                      and death differently.                                apply the rule only to injuries and
                                             maximum rate applicable to those                        C. Impact on Average Weekly Wage                      deaths occurring after the rule’s
                                             currently receiving compensation for                    Calculations                                          effective date and has added a clause to
                                             permanent total disability or death                                                                           § 702.802(a) to make this clear. Because
                                             would also change annually. See                            A few commenters expressed concern                 the current case law interpreting these
                                             generally Pucetti v. Ceres Gulf, 24 BRBS                that the rule could adversely affect how              provisions and the rule reach the same
                                             25, 31 (1990) (considering phase-in                     an individual’s average weekly wage is                conclusions, the Department sees little
                                             provisions in context of 1984                           calculated under section 10, 33 U.S.C.                difference in applying the rule
                                             amendments and holding that ‘‘during a                  910. The Department does not intend                   retroactively and applying it only
                                             yearly period when a given national                     this rule to govern the basic average                 prospectively. The Department makes
                                             average weekly wage is in effect, those                 weekly wage calculation necessary to                  this change, however, to emphasize its
                                             ‘currently receiving’ benefits for                      determine the amount of compensation
                                                                                                                                                           intent not to upset any settled
                                             permanent total disability or death are                 payable. As explained in the NPRM,
                                                                                                                                                           expectations the regulated parties may
                                             entitled to that year’s new maximum.’’);                ‘‘[t]he proposed regulations do not
                                                                                                                                                           hold.
                                             see Dir., OWCP v. Perini North River                    govern general compensation
                                                                                                     calculations.’’ 81 FR 58881. Instead, the                Despite the Department’s decision on
                                             Assoc., 459 U.S. 297 (1983) (where                                                                            this issue, parties should be aware that
                                             Congress amended the Act to extend                      maximum and minimum regulations
                                                                                                     apply only once that calculation (called              existing case law construing section 6(c)
                                             coverage to land-based workers if they                                                                        still governs injuries, disabilities and
                                             met a status test for maritime                          the ‘‘calculated compensation rate’’ in
                                                                                                     the rule) is made.                                    deaths occurring before the rule’s
                                             employees, it was presumed to know                                                                            effective date. The Department will
                                             that the law already covered those                      D. Application of the Rule to Existing                continue to administer claims in
                                             injured on navigable waters, and its                    Injuries, Disabilities, and Deaths                    accordance with those precedents.
                                             amendment of the Act was not intended                      Two commenters stated that the                     Rivers v. Roadway Exp., Inc., 511 U.S.
                                             to require those ‘‘traditionally covered’’              Department should limit the proposed                  298, 312–313 and n.12 (‘‘A judicial
                                             employees to also prove status).                        rule’s applicability to future injuries.              construction of a statute is an
                                                Several commenters stated that                       They contended applying the new rules                 authoritative statement of what the
                                             section 6 does not allow for the                        to currently existing matters could lead              statute meant before as well as after the
                                             maximum compensation rate applicable                    to large additional liabilities (which are            decision of the case giving rise to that
                                             to a claimant to change each year, i.e.,                not fully secured) if claimants with                  construction,’’ and thus ‘‘of what the
                                             that even a permanently totally disabled                pending cases seek increased                          statute has meant continuously since
                                             claimant is forever subject to the                      compensation under the new standards.                 the date when it became law.’’).
                                             maximum rate in effect at the time of his                  In general, an agency may apply a                     Finally, the examples in the
                                             injury. First, this is contrary to the text             new regulation to existing matters when               regulations continue to use maximum
                                             of the provision. Section 6 sets the                    it does not change the legal landscape.               and minimum compensation rates for
                                             maximum rate at 200 percent of the                      Thus, a rule that ‘‘is substantively                  injuries or deaths that occurred in fiscal
                                             national average weekly wage, 33 U.S.C.                 consistent with prior regulations or                  years prior to the effective date of this
                                             906(b)(1), requires a new national                      prior agency practices, and has been                  rule. This is done out of necessity; the
                                             average weekly wage to be determined                    accepted by all Courts of Appeals to                  Department cannot calculate with any
                                             each October 1, 33 U.S.C. 906(b)(3), and                consider the issue,’’ may be applied to               certainty future maximum and
                                             provides that a given year’s                            matters pending at the time the                       minimum compensation amounts
                                             determination ‘‘shall apply to                          regulation is promulgated. Nat’l Mining               because they are based on the NAWW,
                                             employees . . . currently receiving                     Assoc. v. Dept. of Labor, 292 F.3d 849,               which is determined anew each year.
                                             compensation for permanent total                        860 (D.C. Cir. 2002). Conversely,                     The Department believes using concrete
                                             disability’’ during that year. As a                     agencies are not required ‘‘to apply rules            numbers from past fiscal years will
                                             claimant can be ‘‘currently receiving                   retroactively even where it would be                  better inform the regulated parties about
                                             compensation for permanent total                        permissible for them to do so.’’ Grant                how the regulations should be applied.
                                             disability’’ in more than one year, it is               Medical Center v. Hargan, 875 F.3d 701,               Of course, because the examples apply
                                             apparent that he can be subject to a                    706 (D.C. Cir. 2017).                                 the current state of the law, they may be
                                             different national average weekly                          Under these principles, the                        instructive in calculating compensation
                                             wage—and, thus, a different maximum                     Department believes it could choose to                for disabilities and deaths occurring
                                             rate as determined by that national                     apply the rule to all matters, including              before the rule’s effective date even
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                                             average weekly wage—for each year in                    those injuries, disabilities, and deaths              though not explicitly governed by the
                                             which he is being compensated for                       occurring before the rule’s effective                 rule.
                                             permanent total disability. Second, the                 date. The Department’s interpretation of
                                                                                                                                                           IV. Collection of Information (Subject to
                                             commenter’s approach is contrary to the                 the ‘‘newly awarded’’ and ‘‘currently
                                                                                                                                                           the Paperwork Reduction Act)
                                             legislative history of the 1972                         receiving’’ clauses is longstanding (since
                                             Amendments. See H.R. Report 92–1441                     at least 1979 for the former and 2012 for               This rulemaking imposes no new
                                             at 3; S. Report 92–1125 at 5–6. Third,                  the latter) and fully consistent with all             collections of information.


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                                             17290              Federal Register / Vol. 83, No. 76 / Thursday, April 19, 2018 / Rules and Regulations

                                             V. Executive Orders 12866 and 13563                     substantial number of small entities’’ or             IX. Executive Order 12988 (Civil Justice
                                             (Regulatory Planning and Review)                        to certify that the proposed regulations              Reform)
                                                Executive Orders 12866 and 13563                     will have no such impact, and to make
                                                                                                                                                              This rule meets the applicable
                                             direct agencies to assess all costs and                 the analysis or certification available for
                                                                                                                                                           standards in sections 3(a) and 3(b)(2) of
                                             benefits of available regulatory                        public comment.
                                                                                                                                                           Executive Order 12988, Civil Justice
                                             alternatives and, if regulation is                        For the reasons set forth in the NPRM,              Reform, to minimize litigation,
                                             necessary, to select regulatory                         the Department determined that a                      eliminate ambiguity, and reduce
                                             approaches that maximize net benefits                   complete regulatory flexibility analysis              burden.
                                             (including potential economic,                          was not necessary, and certified that the
                                             environmental, public health and safety                 proposed rules would not have a                       List of Subjects in 20 CFR Part 702
                                             effects, distributive impacts, and                      significant economic impact on a                        Administrative practice and
                                             equity). Executive Order 13563                          substantial number of small entities. 81              procedure, Claims, Longshore and
                                             emphasizes the importance of                            FR 58887. The Department invited                      harbor workers, Maximum
                                             quantifying both costs and benefits,                    public comment on the certification and               compensation rates, Minimum
                                             reducing costs, harmonizing rules, and                  delivered a copy of the certification to              compensation rates, Workers’
                                             promoting flexibility. The Department                   the chief counsel for Advocacy of the                 compensation.
                                             has considered this rule with these                     Small Business Administration. See
                                                                                                                                                             For the reasons stated in the
                                             principles in mind and has concluded                    generally 5 U.S.C. 605.
                                                                                                                                                           preamble, the Department of Labor
                                             that the regulated community will                         The Chief Counsel for Advocacy has                  amends 20 CFR part 702 as follows:
                                             benefit from this regulation.                           not filed comments on the certification.
                                                This rule will provide the parties with              Although one commenter generally                      PART 702—ADMINISTRATION AND
                                             greater guidance on applying the Act’s                  stated that the Department had not                    PROCEDURE
                                             maximum and minimum compensation                        quantified the economic impact on
                                             provisions and section 10(f) adjustments                industry or the benefit to Longshore                  ■  1. The authority citation for part 702
                                             in determining the amount of disability                 employees, the commenter provided no                  is revised to read as follows:
                                             compensation or death benefits payable.                 additional information regarding the                    Authority: 5 U.S.C. 301, and 8171 et seq.;
                                             By clarifying how these provisions                      rule’s potential impact on small entities.            33 U.S.C. 901 et seq.; 42 U.S.C. 1651 et seq.;
                                             apply, the rule will also promote                       Because the comments provide no basis                 43 U.S.C. 1333; Reorganization Plan No. 6 of
                                             consistency so that similarly situated                  for departing from its prior conclusion,              1950, 15 FR 3174, 64 Stat. 1263; Secretary’s
                                             claimants receive similar compensation                  the Department again certifies that this              Order 10–2009, 74 FR 58834.
                                             or death benefits. In addition, the rule                rule will not have a significant
                                             will benefit the regulated community by                                                                       ■ 2. Add subparts G and H to read as
                                                                                                     economic impact on a substantial                      follows:
                                             forestalling further litigation over the                number of small entities. As a result, no
                                             ‘‘currently receiving’’ clause in cases                 regulatory flexibility analysis is                    Subpart G—Section 10(f) Adjustments
                                             governed by this rule. The Department                   required.                                             Sec.
                                             also sees no countervailing burden—                                                                           702.701 What is an annual section 10(f)
                                             economic or otherwise—other than                        VII. Unfunded Mandates Reform Act of                       adjustment and how is it calculated?
                                             those imposed by the statute itself that                1995
                                                                                                                                                           Subpart H—Maximum and Minimum
                                             would counsel against promulgating                                                                            Compensation Rates
                                             this rule.                                                 Title II of the Unfunded Mandates
                                                One commenter generally stated that                  Reform Act of 1995 (2 U.S.C. 1531 et                  General
                                             the Department had not fully addressed                  seq.) directs agencies to assess the                  Sec.
                                             the proposed rule’s financial impact on                 effects of Federal regulatory actions on              702.801 Scope and intent of this subpart.
                                             the industry or compensation claimants,                 State, local, and tribal governments, and             702.802 Applicability of this subpart.
                                             noting the importance of predictability                 the private sector, ‘‘other than to the               702.803 Definitions.
                                             for reserving funds to cover                            extent that such regulations incorporate              702.804 What are the weekly maximum and
                                                                                                     requirements specifically set forth in                     minimum rates for each fiscal year and
                                             compensation payments. The final rule                                                                              how are they calculated?
                                             sets out clear standards for applying the               law.’’ For purposes of the Unfunded
                                             LHWCA’s maximum and minimum                             Mandates Reform Act, this rule does not               Maximum Rates
                                             compensation provisions and will thus                   include any Federal mandate that may                  702.805 What weekly maximum rates apply
                                             provide the predictability the                          result in increased expenditures by                       to compensation for permanent partial
                                             commenter seeks.                                        State, local, and tribal governments, or                  disability, temporary total disability, and
                                                Finally, because this is not a                       increased expenditures by the private                     temporary partial disability?
                                             ‘‘significant regulatory action’’ within                sector of more than $100,000,000.                     702.806 What weekly maximum rates apply
                                                                                                                                                               to compensation for permanent total
                                             the meaning of Executive Order 12866,                   XIII. Executive Order 13132                               disability?
                                             the Office of Management and Budget                     (Federalism)                                          702.807 What weekly maximum rates apply
                                             waived its review.                                                                                                to death benefits?
                                                                                                        The Department has reviewed this
                                             VI. Regulatory Flexibility Act and                      rule in accordance with Executive Order               Minimum Rates
                                             Executive Order 13272 (Proper                           13132 regarding federalism, and has                   702.808 What weekly minimum rates apply
                                             Consideration of Small Entities in                      determined that it does not have                          to compensation for partial disability?
                                             Agency Rulemaking)                                                                                            702.809 What weekly minimum rates apply
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                                                                                                     ‘‘federalism implications.’’ The rule will
                                               The Regulatory Flexibility Act of                     not ‘‘have substantial direct effects on                  to compensation for temporary total
                                                                                                                                                               disability?
                                             1980, as amended (5 U.S.C. 601 et seq.),                the States, on the relationship between               702.810 What weekly minimum rates apply
                                             requires an agency to prepare a                         the national government and the States,                   to compensation for permanent total
                                             regulatory flexibility analysis when it                 or on the distribution of power and                       disability?
                                             proposes regulations that will have ‘‘a                 responsibilities among the various                    702.811 What weekly minimum rates apply
                                             significant economic impact on a                        levels of government.’’                                   to death benefits?



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                                                                Federal Register / Vol. 83, No. 76 / Thursday, April 19, 2018 / Rules and Regulations                                             17291

                                             Subpart G—Section 10(f) Adjustments                     regardless of when payment is actually                days after the date on which the
                                                                                                     made.                                                 employee first became incapable,
                                             § 702.701 What is an annual section 10(f)                                                                     because of an injury, of earning the
                                             adjustment and how is it calculated?                    § 702.802    Applicability of this subpart.
                                                                                                                                                           same wages the employee was receiving
                                                (a) Claimants receiving compensation                   (a) This subpart applies to all                     at the time of the injury.
                                             for permanent total disability or death                 compensation and death benefits paid                     Fiscal year or FY means the period
                                             benefits are entitled to section 10(f)                  under the Act as a result of injuries or              from October 1 of a calendar year until
                                             adjustments each fiscal year. A section                 deaths occurring on or after May 21,                  September 30 of the following calendar
                                             10(f) adjustment cannot decrease the                    2018 with the following exceptions:                   year.
                                             compensation or death benefits payable                    (1) Amounts payable under an                           Maximum rate means the maximum
                                             to any claimant.                                        approved settlement (see 33 U.S.C.                    weekly compensation rate calculated by
                                                (b) The section 10(f) adjustment for a               908(i));                                              the Department for a given fiscal year as
                                             given fiscal year is the lower of:                        (2) Amounts paid for an employee’s                  described in § 702.804(b).
                                                (1) The percentage by which the new                  death to the Special Fund (see 33 U.S.C.                 Minimum rate means the minimum
                                             fiscal year’s national average weekly                   944(c)(1));                                           weekly compensation rate calculated by
                                                                                                       (3) Any payments for medical
                                             wage exceeds the prior fiscal year’s                                                                          the Department for a given fiscal year as
                                                                                                     expenses (see 33 U.S.C. 907); and
                                             national average weekly wage as                           (4) Any other lump sum payment of                   described in § 702.804(c).
                                             determined by the Department (see                       compensation or death benefits,                          Section 10(f) adjustment means the
                                             § 702.804(b)); or                                       including aggregate death benefits paid               annual increase that certain claimants
                                                (2) 5 percent.                                       when a survivor remarries (see 33 U.S.C.              receiving compensation for permanent
                                                (c) Section 10(f) percentage increases               909(b)) or aggregate compensation paid                total disability or death are entitled to
                                             are applied each October 1 to the                       under a commutation (see 33 U.S.C.                    each fiscal year under 33 U.S.C. 910(f)
                                             amount of compensation or death                         909(g)).                                              and as calculated by the Department as
                                             benefits payable in the prior fiscal year.                (b) The rules in this subpart governing             described in § 702.701(b).
                                                (d) In applying section 10(f)                        minimum disability compensation and                   § 702.804 What are the weekly maximum
                                             adjustments—                                            death benefits do not apply to claims                 and minimum rates for each fiscal year and
                                                (1) Calculations are rounded to the                  arising under the Defense Base Act, 42                how are they calculated?
                                             nearest dollar; and                                     U.S.C. 1651 (see 42 U.S.C. 1652(a); 20                  (a) For each fiscal year, the
                                                (2) No adjustment is made if the                     CFR 704.103).                                         Department must determine a weekly
                                             calculated amount is less than one
                                                                                                     § 702.803    Definitions.                             maximum and minimum compensation
                                             dollar.
                                                                                                        The following definitions apply to                 rate. These amounts are called the
                                                (e) A section 10(f) adjustment must
                                                                                                     this subpart:                                         maximum and minimum rates in this
                                             not increase a claimant’s weekly
                                                                                                        Calculated compensation rate means                 subchapter. In combination with other
                                             compensation or death benefits beyond
                                                                                                     the amount of weekly compensation for                 factors, these rates are used to determine
                                             the applicable fiscal year’s maximum
                                                                                                     total disability or death that a claimant             compensation payments under the Act.
                                             rate.                                                                                                           (b) The maximum compensation rate
                                                (f) Section 10(f) adjustments do not                 would be entitled to if there were no
                                                                                                     maximum rates, minimum rates, or                      in effect for a given fiscal year is 200%
                                             apply to compensation for temporary or                                                                        of the national average weekly earnings
                                             partial disability.                                     section 10(f) adjustments.
                                                                                                        Date of disability. (1) Except as                  of production or nonsupervisory
                                             Subpart H—Maximum and Minimum                           provided in paragraph (2) of this                     workers on private, nonagricultural
                                             Compensation Rates                                      definition, the date of disability is the             payrolls, as calculated by the
                                                                                                     date on which the employee first                      Department, for the first three quarters
                                             General                                                 became incapable, because of an injury,               of the preceding fiscal year.
                                                                                                     of earning the same wages the employee                  (c) The minimum compensation rate
                                             § 702.801   Scope and intent of this subpart.                                                                 in effect for a given fiscal year is 50%
                                                                                                     was receiving at the time of the injury.
                                                (a) This subpart implements the Act’s                   (2) Exceptions:                                    of the national average weekly earnings
                                             provisions that affect the maximum and                     (i) For scheduled permanent partial                of production or nonsupervisory
                                             minimum rates of compensation and                       disability benefits under 33 U.S.C.                   workers on private, nonagricultural
                                             death benefits payable to employees and                 908(c)(1)–(20) that are not preceded by               payrolls, as calculated by the
                                             survivors. These statutory provisions                   a permanent total, temporary total, or                Department, for the first three quarters
                                             include sections 6(b) and (c), and 9(e).                temporary partial disability resulting                of the preceding fiscal year.
                                             33 U.S.C. 906(b), (c); 909(e). It is                    from the same injury, the date of
                                             intended that these statutory provisions                                                                      Maximum Rates
                                                                                                     disability is the date on which the
                                             be construed as provided in this                        employee first becomes permanently                    § 702.805 What weekly maximum rates
                                             subpart.                                                impaired by the injury to the scheduled               apply to compensation for permanent
                                                (b) These regulations implement                      member.                                               partial disability, temporary total disability,
                                             section 6(c), 33 U.S.C. 906(c), based on                   (ii) For an occupational disease that              and temporary partial disability?
                                             the following concepts:                                 does not immediately result in                          (a) The maximum rate in effect on the
                                                (1) An employee is ‘‘newly awarded                   disability, the date of disability is the             date of disability applies to all
                                             compensation’’ when he or she first                     date on which the employee becomes                    compensation payable for permanent
                                             becomes disabled due to an injury;                      aware, or in the exercise of reasonable               partial disability, temporary partial
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                                                (2) A survivor is ‘‘newly awarded                    diligence or by reason of medical advice              disability, and temporary total
                                             compensation’’ on the date the                          should have been aware, of the                        disability.
                                             employee died; and                                      relationship between his or her                         (b) Examples:
                                                (3) An employee or survivor is                       employment, the disease, and the                        (1) Employee A suffers a covered
                                             ‘‘currently receiving compensation’’                    disability.                                           workplace injury on April 1, 2000, is
                                             when compensation for permanent total                      (iii) For any disability lasting 14 or             temporarily totally disabled from that
                                             disability or death benefits is payable,                fewer days, the date of disability is 4               day through June 4, 2002, and is


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                                             17292              Federal Register / Vol. 83, No. 76 / Thursday, April 19, 2018 / Rules and Regulations

                                             thereafter permanently partially                        April 1, 2000, through June 3, 2002, is               disability occurred after the employee
                                             disabled. All compensation payable for                  subject to the FY 2000 maximum rate                   voluntarily retired—
                                             A’s disability is subject to the FY 2000                (see § 702.805(a)). B’s compensation for                 (1) Aggregate weekly death benefits
                                             maximum rate.                                           the period from June 4, 2002, through                 paid to all eligible survivors during the
                                               (2) Employee B suffers a covered                      September 30, 2002, is subject to the FY              fiscal year in which the employee died
                                             workplace injury on August 25, 2010,                    2002 maximum rate. Beginning October                  must not exceed the lower of:
                                             and is temporarily totally disabled until               1, 2002, B’s compensation for FY 2003                    (i) The maximum rate for that fiscal
                                             September 25, 2010, when he returns to                  is subject to the FY 2003 maximum rate,               year; or
                                             work. On January 3, 2011, he again                      compensation for FY 2004 is subject to                   (ii) One fifty-second part of the
                                             becomes temporarily totally disabled                    the FY 2004 maximum rate, etc.                        employee’s average annual earnings
                                             from the same injury. He ceases work                       (3) Employee C suffers a covered                   during the 52-week period preceding
                                             and is unable to return until November                  workplace injury in FY 2009 and is                    retirement.
                                             22, 2012. All compensation payable for                  permanently totally disabled from that                   (2) For subsequent fiscal years—
                                             B’s disability is subject to the FY 2010                day forward. He was earning $1,950.00                    (i) Aggregate weekly death benefits
                                             maximum rate.                                           a week when he was injured, making his                paid during each subsequent fiscal year
                                                (3) Employee C retires on May 6,                     calculated compensation rate $1,300.00                are subject to each subsequent year’s
                                             2011. She discovers on November 10,                     ($1,950.00 × 2 ÷ 3). His calculated                   maximum rate.
                                                                                                                                                              (ii) If death benefits were paid in the
                                             2012, that she has a compensable                        compensation rate exceeds the
                                                                                                                                                           first year at 1/52 part of the employee’s
                                             occupational disease. All compensation                  maximum rate from FY 2009–2012;
                                                                                                                                                           average annual earnings prior to
                                             payable for C’s occupational disease is                 thus, his compensation is limited to
                                                                                                                                                           retirement under paragraph (d)(1)(ii) of
                                             subject to the FY 2013 maximum rate.                    each year’s maximum rate. In FY 2013,
                                                                                                                                                           this section, the aggregate weekly death
                                             See § 702.601(b) (occupational diseases                 C’s calculated compensation rate of
                                                                                                                                                           benefits paid for each subsequent year
                                             discovered post-retirement are                          $1,300.00 is, for the first time, less than
                                                                                                                                                           may not exceed the current benefit rate
                                             compensated as permanent partial                        the FY 2013 maximum rate of $1,325.18.
                                                                                                                                                           plus the subsequent year’s section 10(f)
                                             disabilities).                                          Applying the FY 2013 2.31% section
                                                                                                                                                           adjustment (see § 702.701).
                                                                                                     10(f) adjustment to C’s FY 2012                          (e) Examples:
                                             § 702.806 What weekly maximum rates
                                                                                                     compensation rate of $1,295.20 results                   (1) Employee A suffers a covered
                                             apply to compensation for permanent total
                                             disability?                                             in a compensation rate of $1,325.00                   workplace injury on May 1, 2013, and
                                                                                                     ($1,295.20 × .0231 = $29.92, rounded to               is permanently and totally disabled
                                                (a) The maximum rate in effect on the
                                                                                                     the nearest cent; $1,295.20 + $29.92 =                from that date until August 1, 2014,
                                             date that the employee became totally
                                                                                                     $1,325.12, rounded to the nearest                     when he dies due to the injury. He has
                                             and permanently disabled applies to all
                                                                                                     dollar). This amount falls just below the             one eligible survivor and his average
                                             compensation payable for permanent
                                                                                                     FY 2013 maximum rate of $1,325.18.                    weekly wage at the time of injury was
                                             total disability during that fiscal year.
                                                                                                     Thus, C’s benefit rate for FY 2013 is                 $3,000.00. The calculated compensation
                                                (b) For all periods the employee is
                                                                                                     $1,325.00, and is not limited by the                  rate for A’s survivor is $1,500.00 (i.e.,
                                             permanently and totally disabled in
                                                                                                     maximum rate.                                         50% of A’s average weekly wage). A’s
                                             subsequent fiscal years, the weekly
                                             compensation payable is subject to each                 § 702.807 What weekly maximum rates                   weekly survivor’s benefits for the period
                                             subsequent year’s maximum rate.                         apply to death benefits?                              from August 2, 2014, to September 30,
                                                (c) If a claimant is receiving                          (a) The maximum rate in effect on the              2014, are limited to the FY 2014
                                             compensation for permanent total                        date that the employee died applies to                maximum rate of $1,346.68. Beginning
                                             disability at the maximum rate for the                  all death benefits payable during that                October 1, 2014, A’s survivor’s benefits
                                             current fiscal year, but the next fiscal                fiscal year.                                          for FY 2015 are subject to the FY 2015
                                             year’s maximum rate will be higher than                    (b) Aggregate weekly death benefits                maximum rate, benefits for FY 2016 are
                                             the claimant’s calculated compensation                  paid to all eligible survivors during the             subject to the FY 2016 maximum rate,
                                             rate, the claimant’s compensation for                   fiscal year in which the employee died                etc.
                                             the next fiscal year will increase by the               must not exceed the lower of—                            (2) Employee B suffers a covered
                                             amount of the 10(f) adjustment, subject                    (1) The maximum rate for that fiscal               workplace injury and dies on December
                                             to the maximum rate for the next fiscal                 year; or                                              1, 2012. She has one eligible survivor
                                             year.                                                      (2) The employee’s average weekly                  and her average weekly wage was
                                                (d) Examples:                                        wages.                                                $300.00. Because B’s average weekly
                                                (1) Employee A suffers a covered                        (c) For subsequent fiscal years—                   wage of $300.00 falls below the FY 2013
                                             workplace injury on April 1, 2000, and                     (1) Aggregate weekly death benefits                national average weekly wage of
                                             is permanently and totally disabled                     paid during each subsequent fiscal year               $662.59, death benefits are calculated at
                                             from that date forward. A’s                             are subject to each subsequent year’s                 50% of that national average wage (see
                                             compensation for the period from April                  maximum rate.                                         33 U.S.C. 909(e)). This yields a
                                             1, 2000, until September 30, 2000, is                      (2) If death benefits were paid in the             calculated compensation rate of
                                             subject to the FY 2000 maximum rate.                    first year at the employee’s full average             $331.30. But because this rate exceeds
                                             Beginning October 1, 2000, A’s                          weekly wage under paragraph (b)(2) of                 B’s actual average weekly wages, weekly
                                             compensation for FY 2001 is subject to                  this section, the aggregate weekly death              death benefits payable during FY 2013
                                             the FY 2001 maximum rate,                               benefits paid for each subsequent year                are limited to $300.00. In FY 2014, B’s
                                             compensation for FY 2002 is subject to                  may not exceed the current benefit rate               survivor is entitled to a 1.62% section
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                                             the FY 2002 maximum rate, etc.                          plus the subsequent year’s section 10(f)              10(f) adjustment, resulting in weekly
                                                (2) Employee B suffers a covered                     adjustment (see § 702.701).                           death benefits of $305.00 ($300.00 ×
                                             workplace injury on April 1, 2000, is                      (d) Post-retirement occupational                   .0162 = $4.86; $300.00 + $4.86 =
                                             temporarily totally disabled from that                  diseases: Notwithstanding paragraphs                  $304.86, rounded to the nearest dollar).
                                             day through June 3, 2002, and is                        (a) through (c) of this section, if an                B’s survivor would continue to receive
                                             thereafter permanently totally disabled.                employee’s death results from an                      section 10(f) adjustments in subsequent
                                             B’s compensation for the period from                    occupational disease where the date of                fiscal years.


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                                                                Federal Register / Vol. 83, No. 76 / Thursday, April 19, 2018 / Rules and Regulations                                              17293

                                                (3) Employee C retired on February 1,                § 702.810 What weekly minimum rates                     Signed at Washington, DC, on April 13,
                                             1998. During his last year of                           apply to compensation for permanent total             2018.
                                             employment, he earned $23,000. He                       disability?                                           Julia K. Hearthway,
                                             discovers on April 15, 2002, that he has                  (a) The weekly minimum                              Director, Office of Workers’ Compensation
                                             a compensable occupational disease                                                                            Programs.
                                                                                                     compensation payable for the fiscal year
                                             resulting in a 50% permanent                            in which the employee became                          [FR Doc. 2018–08133 Filed 4–18–18; 8:45 am]
                                             impairment. See § 702.601(b). Because                   permanently and totally disabled is the               BILLING CODE 4510–CR–P
                                             he retired more than one year before this               lower of:
                                             date, his payrate for calculating
                                             compensation is the FY 2002 national                      (1) The minimum rate in effect on the               DEPARTMENT OF LABOR
                                             average weekly wage, or $483.04. See                    date of disability, or
                                                                                                                                                           Mine Safety and Health Administration
                                             § 702.603(b). He is entitled to weekly                   (2) The employee’s average weekly
                                             compensation of $161.01 ($483.04 × 2 ÷                  wage on the date of disability.                       30 CFR Parts 56 and 57
                                             3 × 50%). C dies from the disease on                      (b) For all periods the employee is
                                             June 1, 2015, leaving two survivors. The                permanently and totally disabled in
                                             payrate for calculating death benefits is                                                                     [Docket No. MSHA–2014–0030]
                                                                                                     subsequent fiscal years, the weekly
                                             the FY 2015 national average weekly                     minimum compensation payable is the
                                             wage, or $688.51. See § 702.604(b). The                 lower of:                                             RIN 1219–AB87
                                             survivors’ aggregate calculated
                                             compensation rate is $459.01 ($688.51 ×                  (1) Each subsequent fiscal year’s                    Examinations of Working Places in
                                             2 ÷ 3). But because compensation                        minimum rate, or                                      Metal and Nonmetal Mines
                                             cannot exceed 1⁄52 part of C’s last year                 (2) The employee’s average weekly                    AGENCY:Mine Safety and Health
                                             of earnings, aggregate weekly death                     wage on the date of disability.                       Administration, Labor.
                                             benefits payable for FY 2015 are limited
                                                                                                        (c) Example: Employee A suffers a
                                             to $442.31 ($23,000 ÷ 52). For FY 2016,                                                                       ACTION:Announcement of public
                                                                                                     covered workplace injury on April 1,                  meetings.
                                             C’s survivors are entitled to a 2.10%
                                                                                                     2003, and is permanently totally
                                             section 10(f) adjustment resulting in
                                                                                                     disabled from that day forward. He was                SUMMARY:   The Mine Safety and Health
                                             weekly death benefits of $452.00
                                                                                                     earning $250.00 a week when he was                    Administration (MSHA) is announcing
                                             ($442.31 × .021 = $9.29, rounded to the
                                                                                                     injured. His calculated compensation                  the dates and locations of additional
                                             nearest cent; $442.31 + $9.29 = $451.60,
                                                                                                     rate is $166.67 ($250 × 2 ÷ 3). The FY                public stakeholder meetings on the
                                             rounded to the nearest dollar). C’s
                                                                                                     2003 minimum rate is $249.14. Because                 Agency’s standards for Examinations of
                                             survivors would continue to receive
                                                                                                     A’s calculated compensation rate is                   Working Places in Metal and Nonmetal
                                             section 10(f) adjustments in subsequent
                                                                                                     below the FY 2003 minimum rate, and                   Mines.
                                             fiscal years.
                                                                                                     his actual weekly wage is above that                  DATES:  The meeting dates and locations
                                             Minimum Rates                                           rate, he is entitled to compensation at               are listed in the SUPPLEMENTARY
                                                                                                     the minimum rate of $249.14 from April                INFORMATION section of this document.
                                             § 702.808 What weekly minimum rates                     1, 2003, to September 30, 2003. The FY
                                             apply to compensation for partial disability?                                                                 ADDRESSES:  Federal Register
                                                                                                     2004 minimum rate is $257.70. Because
                                               There is no minimum rate for                          A’s actual weekly wages on the date of                Publications: Access rulemaking
                                             compensation paid for partial disability,               disability are lower than the FY 2004                 documents electronically at http://
                                                                                                     minimum rate, A’s minimum weekly                      www.msha.gov/regsinfo.htm or http://
                                             whether temporary or permanent.
                                                                                                     compensation rate for FY 2004 is                      www.regulations.gov [Docket Number:
                                             § 702.809 What weekly minimum rates                     $250.00. His weekly compensation rate                 MSHA–2014–0030].
                                             apply to compensation for temporary total               for FY 2004, however, is higher because               FOR FURTHER INFORMATION CONTACT:
                                             disability?
                                                                                                     of a section 10(f) adjustment. For FY                 Sheila A. McConnell, Director, Office of
                                               (a) The minimum compensation                          2004, A’s compensation rate is                        Standards, Regulations, and Variances,
                                             payable for temporary total disability is               increased by a 3.44% section 10(f)                    MSHA, at mcconnell.sheila.a@dol.gov
                                             the lower of:                                           adjustment, raising his compensation                  (email), 202–693–9440 (voice), or 202–
                                               (1) The minimum rate in effect on the                 level to $258.00 ($249.14 × .0344 =                   693–9441 (fax). These are not toll-free
                                                                                                     $8.57; $249.14 + $8.57 = $257.71,                     numbers.
                                             date of disability, or
                                                                                                     rounded to the nearest dollar).                       SUPPLEMENTARY INFORMATION:
                                              (2) The employee’s average weekly
                                             wage on the date of disability.                         § 702.811 What weekly minimum rates                   I. Stakeholder Meetings
                                                                                                     apply to death benefits?
                                               (b) Example: Employee A suffers a                                                                              On April 9, 2018, MSHA published a
                                             covered workplace injury on May 6,                        (a) The average weekly wage used to                 document (83 FR 15055) announcing six
                                             2014. He is temporarily totally disabled                compute death benefits is the greater                 stakeholder meetings. To expand
                                             until November 6, 2015, when he                         of—                                                   stakeholder outreach, MSHA has
                                             returns to work. His average weekly                      (1) The deceased employee’s average                  scheduled another meeting in Seattle,
                                             wages at the time of disability were
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                                                                                                     weekly wages; or                                      Washington and two video
                                             $500.00. Because his calculated                                                                               teleconference (VTC) meetings to be
                                             compensation rate (i.e., 66 and 2⁄3% of                   (2) The national average weekly wage
                                                                                                                                                           broadcast to seven local offices from
                                             $500.00, or $333.34) is lower than the                  in effect at the time of the employee’s               MSHA headquarters in Arlington, VA.
                                             $336.67 FY 2014 minimum rate, A’s                       death.                                                For the convenience of the public, the
                                             compensation is raised to $336.67 for                     (b) The weekly minimum rate does                    complete list of stakeholder meetings is
                                             the entire period of his disability.                    not apply to death benefits.                          included in this document.


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Document Created: 2018-04-19 00:41:28
Document Modified: 2018-04-19 00:41:28
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule is effective May 21, 2018.
ContactDouglas Fitzgerald, Director, Division of Longshore and Harbor Workers' Compensation, Office of Workers' Compensation Programs, 202-354-9620 (this is not a toll-free number), [email protected] TTY/TDD callers may dial toll free 1-877- 889-5627 for further information.
FR Citation83 FR 17287 
RIN Number1240-AA06
CFR AssociatedAdministrative Practice and Procedure; Claims; Longshore and Harbor Workers; Maximum Compensation Rates; Minimum Compensation Rates and Workers' Compensation

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