Possible Changes to the Defense Bases Act

The Obama administration has laid the groundwork for replacing the Defense Bases Act (DBA) with a new federal government-run system. The proposal would replace the current program with a new benefit program called the Overseas Contractors Compensation Act (OCCA), under which benefits would be paid directly from a federal fund administered by the Department of Labor.

To pay for the system, federal agencies would be billed for their share of benefits and administrative costs. In the president’s fiscal year 2014 budget, $2 million has been set aside to start implementation.

The DBA provides workers’ compensation coverage to federal contract employees working overseas on defense bases and public works projects. The number of claimants over the years has sky rocketed. Since 2002, the DBA caseload has increased from 430 cases in 2002 to over 11,600 in 2011. Not surprisingly, the Department of Labor (DOL) has experienced administrative problems due to the increased workload.

Under the current system, DBA claimants are entitled to benefits under the Longshore and Harbor Workers’ Compensation Act. It appears this proposal will pull DBA claims away from the Longshore Act and into the purview of a new set of rules and procedures.

The details of a new system have yet to be published, so the impact on claimants is unknown. Potentially, this could be good or bad for contract employees. A streamlined system that may more thoroughly compensate claimants for their injuries would be a benefit, but there are potential costs as well. There are claimant-friendly provisions in current law and it’s not known if those would continue in this new legislation.

  • Under the Longshore Act there is
    • An initial legal presumption that a claimant’s injury entitles them to treatment and compensation that must be rebutted by the defense,
    • The right to an attorney who is paid by the insurance company if benefits are awarded, and
    • The right to a trial before an impartial judge.
  • The DBA covers injuries in the “Zone of Special Danger.” This is a legal concept that essentially states that unusual things happen in faraway places, helping claimants prove “unusual” injuries like post-traumatic stress disorder, diseases like hepatitis and injuries or deaths that would not have happened but for the remoteness of a work location.

Contact Uliase & Uliase

We represent workers employed overseas by government contractors. We have learned firsthand the deficiencies of the current system, but compensation for injured workers should not be limited for the sake of administrative efficiency.

For an appointment with an experienced New Jersey federal workers’ compensation lawyer, contact us online or call our office at (856) 310-9002. We meet with clients weekdays between 9 a.m. and 5 p.m. We offer a free consultation for injured workers.