Defense Base Act Waivers

Defense Base Act (“DBA”) insurance is a federal workers’ compensation law under the Longshore and Harbor Workers’ Compensation Act. The law requires insurance coverage for employees working under a U.S. Government contract or as a civilian on a military base abroad. Typical benefits under the DBA include medical expenses, disability compensation, and death benefits. In addition to standard DBA coverage, some employers maintain comprehensive protections. Employers may provide protection for travel accidents, kidnap/ransom, life insurance, and extended health coverage in these cases.

On the other end of the spectrum, some employers may attempt to waive the DBA insurance coverage. Contactors and other eligible employees should contact an attorney to determine whether their employee is lawfully waiving the DBA insurance requirements.

Mechanics and Types of DBA Waivers

Under Federal law, the head of any U.S. agency may request a DBA waiver from the Secretary of Labor. The Secretary of Labor may exercise their discretion in determining whether a waiver is appropriate.

There are two primary DBA insurance waivers, including specific and geographic.

Contract Specific Waivers: The Secretary of Labor may grant these waivers if a contractor is adequately “self-insured” or if the contractor purchased workers’ compensation insurance that offered benefits equivalent to the protections under the DBA coverage.

Geographic Waivers: The Secretary of Labor may grant these waivers if the host country offers workers’ compensation coverage to the foreign worker, local, or national employee working on a contract in the host county.

Government agencies who wish to waive their DBA protections must establish that they meet one of these waivers.

DBA Waiver Limitations

The law provides limitations to the DBA waiver under certain circumstances. Waivers do not typically apply to employees who are:

1. U.S. citizens,
2. Hired in the U.S., or
3. Bonafide residents of the U.S., regardless of nationality.

The Department of Labor (“DOL”) has long held the policy that coverage cannot be waived for U.S. citizens. As such, in May 2020, the DOL issued a new waiver that provides DBA coverage to U.S. citizens in Guam. The new permit only waives coverage for third-country nationals.

Active DBA Waivers

The waivers remain valid if the alternative workers’ compensation benefits remain available to the waived employee. The waiver will not affect foreign and local nationals working under U.S. contracts if a local workers’ compensation law does not cover the employee.

Advice Information and Representation for Defense Base Act Claims

If you or someone you know needs assistance understanding your workers’ compensation rights contact the DBA attorneys at Friedman Rodman & Frank. The experienced attorneys at our office have a long successful history of representing claimants in disputes arising from DBA coverage. In addition to DBA claims, our office handles claims under the Longshore Act and Jones Act. Our DBA attorneys fight for the rights of workers injured overseas, including but not limited to those injured in Guam, Cuba, Japan, Afghanistan, and Iraq. Contact our office at 877-448-8585 to learn about your rights, benefits, and remedies under the Defense Base Act.