LHWCA vs. State Workers’ Comp: What Dock and Shipyard Workers Need to Know
If you load ships, repair vessels, or work on a dock or in a shipyard and you get hurt, one threshold question decides almost everything about your recovery: are you covered by federal law or by your state’s workers’ compensation system? For most maritime workers who are not seamen, the federal answer is the better one, often by a wide margin.
In short: For a maritime worker who is not a seaman, the LHWCA almost always pays more than state workers’ comp. It replaces two-thirds of average weekly wage (versus roughly 60 percent in many states), lets you choose your own doctor, covers all medical care with no cap, and adjusts annually for wage growth. You generally cannot collect both; the federal claim offsets the state one.
This article is for general informational purposes only and does not constitute legal advice. Which system applies turns on your job and where you were hurt, so consult a licensed maritime attorney about your situation.
Key Facts at a Glance
- The LHWCA covers maritime workers who are not seamen, such as dock, harbor, and shipyard workers, based on the “status” and “situs” tests (Source: Nolo).
- LHWCA disability pays two-thirds of average weekly wage, while many state systems pay about 60 percent (Source: Uliase & Uliase).
- Under the LHWCA you may choose your own treating doctor; many state systems require an approved list (Source: Brodsky Micklow Bull & Weiss).
- The LHWCA pays for all necessary medical care with no dollar or time cap (Source: Congressional Research Service).
- LHWCA benefits adjust annually for national wage growth; most state benefits do not (Source: Congressional Research Service).
- For October 1, 2025 through September 30, 2026, the LHWCA maximum benefit is $2,082.70 per week (Source: U.S. Department of Labor).
- You cannot collect LHWCA and state comp for the same injury; the federal claim offsets any state benefits (Source: Uliase & Uliase).
Why the Right System Matters So Much
Two injured workers on the same dock can end up with very different recoveries depending solely on which law governs their claim. The LHWCA is a federal workers’ compensation system for maritime workers who are not seamen, and on the dimensions that matter most, wage replacement, medical coverage, doctor choice, and inflation protection, it generally outperforms state systems (Source: Nolo). This guide explains who falls under each system, exactly how the benefits compare, what the LHWCA pays, and the rules on collecting from more than one source.
Not sure whether the LHWCA or state comp governs your injury?
Who Does the LHWCA Cover, and Who Gets State Comp?
Coverage turns on two tests. The “status” test asks whether your work is maritime in nature, loading, unloading, building, repairing, or breaking down vessels; the “situs” test asks whether you were injured on or adjacent to navigable waters, such as a pier, dock, terminal, or shipyard (Source: Nolo). Meet both and the LHWCA applies. Two groups fall outside it: seamen, who are crew members of a vessel in navigation and are instead covered by the Jones Act (Source: Cornell LII, 46 U.S.C. § 30104); and land-based workers with no maritime connection, who fall under ordinary state workers’ compensation. If your work touched the water, it is usually worth determining whether the LHWCA reaches you, because the benefits are typically better.
Is the LHWCA Better Than State Workers’ Comp?
For most covered workers, yes. The LHWCA generally pays more and covers more than state systems, which is why electing federal benefits, when you have the choice, is usually the stronger move (Source: Maintenance and Cure). The table below lays out the core differences.
| Feature | LHWCA (federal) | Typical state workers’ comp |
|---|---|---|
| Wage replacement | 66.67% of AWW | Often about 60% (source) |
| Choice of doctor | You choose your own | Often an approved list (source) |
| Medical coverage | All necessary care, no cap | Frequently capped or managed (source) |
| Annual inflation adjustment | Yes, tied to wage growth | Usually none (source) |
| Permanent partial disability | Scheduled or wage-loss based, can run for life | Often a fixed-duration schedule (source) |
| Administered by | U.S. DOL, OWCP | State board or agency (source) |
How Much Does the LHWCA Pay?
Disability compensation is calculated at two-thirds of your average weekly wage, subject to a federal cap set at 200 percent of the National Average Weekly Wage, which the Department of Labor adjusts each October (Source: Cornell LII, 33 U.S.C. § 908). For October 1, 2025 through September 30, 2026, the NAWW is $1,041.35, so the maximum benefit is $2,082.70 per week, about $108,300 per year, and the minimum is $520.68, though a worker whose actual wage is lower receives the full two-thirds of that wage (Source: U.S. Department of Labor). Permanent total disability and death benefits get an annual cost-of-living increase capped at five percent. And like other workers’ compensation, LHWCA disability benefits are not subject to federal income tax (Source: Congressional Research Service).
What Disability Categories Does the LHWCA Use?
The LHWCA sorts benefits into four disability categories based on how much, and how long, the injury limits your ability to work (Source: Cornell LII, 33 U.S.C. § 908).
| Category | What it means | Benefit basis |
|---|---|---|
| Temporary total (TTD) | Cannot work at all while recovering | 2/3 of AWW (§ 908) |
| Temporary partial (TPD) | Some work at reduced pay while recovering | 2/3 of wage loss (source) |
| Permanent total (PTD) | Cannot return to any gainful work | 2/3 of AWW for life, annual COLA (source) |
| Permanent partial (PPD) | Permanent, but some work possible | Scheduled award or 2/3 of wage-loss difference (§ 908) |
Can You Choose Your Own Doctor Under the LHWCA?
Yes, and it is one of the most practical advantages over state comp. Under the LHWCA you have the right to select your own treating physician, rather than being limited to an insurer-approved panel as many state systems require (Source: Brodsky Micklow Bull & Weiss). That matters because the treating doctor’s opinion drives the medical evidence that supports your benefits, and a doctor you chose, rather than one chosen by the carrier, is more likely to document your condition fully. All reasonable and necessary treatment is covered without a dollar or time limit, so the choice is not constrained by an arbitrary cap (Source: Congressional Research Service).
If a state claim was opened but you may qualify for the LHWCA, the difference can be large.
Can You Collect Both LHWCA and State Benefits?
No, not in full for the same injury. If you have a potential claim under both systems, you generally must pursue one, and a federal LHWCA claim will offset any state benefits you have already received; likewise, the LHWCA takes prior state payments into account when it determines federal eligibility (Source: Uliase & Uliase). Because the systems coordinate rather than stack, the practical decision is which one to elect, and given the LHWCA’s higher wage-replacement rate, uncapped medical care, doctor choice, and annual adjustment, the federal route is usually the better election when it is available.
Can You Sue a Third Party in Addition to the LHWCA Claim?
Yes, and this is where the largest recoveries often come from. The LHWCA is a no-fault benefit, but it does not bar a separate lawsuit against a negligent third party, most importantly a vessel owner. Under Section 905(b), a covered worker injured by a vessel’s negligence can sue the vessel owner in tort, which opens the door to damages a workers’ compensation claim does not provide, such as pain and suffering (Source: Cornell LII, 33 U.S.C. § 905). Third-party claims against equipment manufacturers or other contractors may also be available. So an injured longshore worker can collect LHWCA benefits and separately pursue a 905(b) or other third-party claim, a combination state comp rarely matches.
How Do You File, and What Are the Deadlines?
The LHWCA runs through the Department of Labor, not a state board. You generally must give written notice of the injury within 30 days and file a claim within one year, and your employer must report the injury to the Office of Workers’ Compensation Programs (Source: U.S. Department of Labor). If the insurer disputes the claim, it proceeds to an informal conference at OWCP, then to a formal hearing before an administrative law judge, with appeal to the Benefits Review Board (Source: Cornell LII, 33 U.S.C. § 919). Missing the notice or claim deadline can bar benefits, so prompt reporting protects the claim.
Frequently Asked Questions
Is the LHWCA better than state workers’ comp?
For most covered maritime workers, yes. It pays two-thirds of wages versus roughly 60 percent in many states, lets you choose your doctor, covers uncapped medical care, and adjusts annually for wage growth (Source: Maintenance and Cure).
Who is covered by the LHWCA instead of state comp?
Maritime workers who are not seamen and who meet the status and situs tests, such as longshore, harbor, shipyard, and ship-repair workers injured on or near navigable waters (Source: Nolo).
How much does the LHWCA pay per week?
Two-thirds of your average weekly wage, capped at $2,082.70 per week for October 2025 through September 2026, with uncapped medical care (Source: U.S. Department of Labor).
Can I pick my own doctor under the LHWCA?
Yes. Unlike many state systems that require an approved list, the LHWCA lets you choose your own treating physician (Source: Brodsky Micklow Bull & Weiss). If you are unsure which system applies, get a free case review.
Are LHWCA benefits taxable?
No. Like other workers’ compensation, LHWCA disability benefits are not subject to federal income tax (Source: Congressional Research Service).
Can I collect both LHWCA and state benefits?
No. You cannot collect both in full for the same injury; a federal claim offsets state benefits already paid (Source: Uliase & Uliase).
Can I sue someone in addition to my LHWCA claim?
Yes. Under Section 905(b) you can sue a negligent vessel owner in tort for damages like pain and suffering, on top of your LHWCA benefits (Source: Cornell LII, 33 U.S.C. § 905).
How long do I have to file an LHWCA claim?
Generally notice within 30 days and a claim within one year, filed through the Department of Labor’s OWCP (Source: U.S. Department of Labor).
The Bottom Line
For a maritime worker who is not a seaman, the LHWCA versus state-comp question usually has a clear answer: the federal system pays more, covers more, and protects against inflation in ways most state programs do not, two-thirds of wages instead of roughly 60 percent, your own doctor, uncapped medical care, and an annual adjustment, all tax-free. Add the ability to bring a separate Section 905(b) claim against a negligent vessel owner, and the gap widens further. The threshold issue is simply confirming which system reaches you, because if the LHWCA applies, electing it is usually worth far more than the state claim.
Find out whether the LHWCA covers your injury and what it could be worth versus a state claim.
References and Sources
- LHWCA compensation for disability, 33 U.S.C. § 908: Cornell Legal Information Institute
- LHWCA liability of vessels (third-party suits), 33 U.S.C. § 905: Cornell Legal Information Institute
- LHWCA claims procedure, 33 U.S.C. § 919: Cornell Legal Information Institute
- Jones Act, 46 U.S.C. § 30104: Cornell Legal Information Institute
- National Average Weekly Wage and maximum rate, effective October 1, 2025 (Bulletin 25-01): U.S. Department of Labor, OWCP
- Division of Longshore and Harbor Workers’ Compensation: U.S. Department of Labor
- LHWCA overview, annual adjustment, and tax treatment: Congressional Research Service, Report R41506
- LHWCA overview, status and situs tests: Nolo
- LHWCA benefits vs. state workers’ compensation: Maintenance and Cure
- State comp vs. LHWCA (60% vs. 66.67%, offset rule): Uliase & Uliase
- LHWCA vs. California comp (doctor choice, tax-free): Brodsky Micklow Bull & Weiss
- LHWCA vs. state workers’ compensation (differences): Law Offices of Joshua M. Stahley
Editorial Standards and Review
This article follows a zero-hallucination policy. The statutes are cited to the U.S. Code; benefit rates to the Department of Labor’s current industry bulletin; and the annual-adjustment and tax-treatment points to the Congressional Research Service. Benefit figures are current for October 1, 2025 through September 30, 2026 and are adjusted by the Department of Labor each October. OffshoreInjuryHelp.com is an informational resource, not a law firm, and does not provide legal representation; it connects injured maritime workers and their families with experienced maritime attorneys. Learn more on our Editorial Standards page. Last reviewed: June 1, 2026.
