When a DBA Check Is Late, the Carrier Can Owe 10 Percent More

Section 14 of the Longshore and Harbor Workers’ Compensation Act, 33 U.S.C. § 914, sets when Defense Base Act compensation is due and what a carrier owes when it pays late. It reaches overseas contractor claims through 42 U.S.C. § 1651(a). Compensation is to be paid “periodically, promptly, and directly” to the injured worker without waiting for an award, unless the employer contests liability.

Under Section 14(e), the DBA late payment penalty is an added 10 percent on any installment not paid within 14 days after it becomes due, paid along with the late installment. It does not apply if the employer filed a notice contesting the claim under Section 14(d), or if the Labor Department excuses the delay as caused by conditions the employer could not control. A late payment under an award carries 20 percent instead.

Friedman, Rodman & Frank, P.A. represents civilian contractors in Defense Base Act claims, including claims where checks arrive late, stop without explanation, or start only after weeks of silence.

When the First DBA Payment Is Due

Section 14(b) makes the first installment due on the 14th day after the employer is notified of the injury or learns of it, and all compensation owed by then is due on that date. After that, payments are due twice a month unless the Labor Department sets a monthly or other schedule. Section 14(c) requires the employer to notify the Labor Department immediately when it makes the first payment and whenever it suspends payment for any reason.

A notice of controversion is the employer’s written statement to the Labor Department that it disputes the right to compensation, with the grounds for the dispute. Section 14(d) requires it to be filed on or before the 14th day after the employer learns of the injury, and it must name the claimant, the employer, and the date of the alleged injury.

The DBA Late Payment Penalty and Its Exceptions

The Section 14(e) addition applies to installments payable without an award, which covers the benefits a carrier is paying voluntarily early in a claim. If a $1,000 installment goes unpaid for more than 14 days past its due date, the carrier owes $1,100. The addition is compensation the contractor receives, not a fine paid to the government.

The carrier has two ways out. One is a notice of controversion filed under Section 14(d). The other is a showing to the Labor Department that conditions beyond the employer’s control prevented timely payment, which the Department must accept to excuse the delay. A carrier that did neither and paid late owes the addition.

Late Payments After an Award

Once an award is entered, Section 14(f) raises the addition to 20 percent on any compensation not paid within 10 days after it becomes due. The only exception is where the carrier seeks review of the award under Section 21 and the Benefits Review Board or a court issues an order staying payment. Section 14(h) separately requires the Labor Department, on notice from the contractor that payments have stopped or been suspended, to investigate, order medical examinations, or hold hearings as needed to protect the parties’ rights.

Tracking Late or Stopped DBA Payments

If your checks have arrived late, a simple log of each due date, each arrival date, and any notice from the carrier shows whether the 10 or 20 percent addition is owed. Friedman, Rodman & Frank, P.A. handles Defense Base Act claims for civilian contractors injured on overseas government contracts. Call (877) 448-8585 or contact our office for a free consultation about your Defense Base Act claim. There is no fee unless we recover for you.