Longshoremen's and Harbor Workers' Compensation Act Needs Amending
HRD-82-25
Published: Apr 01, 1982. Publicly Released: Apr 05, 1982.
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Highlights
GAO evaluated the effect of the 1972 amendments to the Longshoremen's and Harbor Workers' Compensation Act and reviewed the Department of Labor's administration of the Act.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Labor | The Secretary of Labor should direct the Deputy Under Secretary for Employment Standards to require that employers obtain proper insurance coverage or become authorized self-insurers to reduce the potential for defaulted claims which could become special fund liabilities. Actions should be initiated to prosecute employers who do not comply with the insurance requirements. |
Labor is negotiating with one insurance carrier on the requirements that need to be met before the carrier can become authorized. Employees have been notified of their potential liability in this case. GAO believes that Labor is not likely to take action against employers who are insured by this unauthorized carrier. All claims to this now unauthorized carrier have been paid.
|
| Department of Labor | The Secretary of Labor should direct the Deputy Under Secretary for Employment Standards to revise the letter, LS-504, designed to inform injured workers of their rights, so that it provides more information on compensation payments and should discontinue the use of the post cards, LS-504a and LS 504b. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Labor | The Secretary of Labor should direct the Deputy Under Secretary for Employment Standards to require that districts send the LS-504 letter, as revised, to workers upon receipt of a notice of injury when it appears that compensation will be due. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Labor | The Secretary of Labor should direct the Deputy Under Secretary for Employment Standards to require that district offices assess penalties and interest. |
While Labor concurred with the recommendations, it stated that it would continue its current policy of only assessing penalties in cases involving habitual offenders. In the opinion of GAO, Labor is unlikely to take any action as a result of this recommendation.
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