13.4 Other States, USL&H, and Federal Acts

The Multistate Coverage Problem

Workers compensation is governed state by state, so an employer with operations crossing state lines must ensure every state of operation is covered. The policy handles this through the Information Page:

• Item 3.A lists the states where Part One coverage applies on the effective date.
• Item 3.C — Other States Insurance lists additional states where the employer might expand. If the employer begins work in a 3.C state, Part Three automatically extends Part One coverage there.

A worker injured in a state listed in neither 3.A nor 3.C may have no coverage, leaving the employer to pay benefits directly — the classic other-states gap the exam tests.

USL&H: The Longshore Act

The Longshore and Harbor Workers' Compensation Act (USL&H) is a federal law covering maritime employees injured on the navigable waters of the United States or on adjoining piers, docks, and terminals used in loading, unloading, building, or repairing vessels. It fills the gap between state comp (which covers land workers) and the Jones Act (which covers seamen).

USL&H benefits are generally higher than state comp. Standard state workers comp policies exclude USL&H exposure unless the USL&H endorsement (NCCI form) is attached. Trap: a dockworker or ship repairer is not covered by the unendorsed state policy.

The Jones Act and Maritime Seamen

A seaman — a crew member with a substantial connection to a vessel in navigation — is not covered by workers comp or USL&H. Instead, the Jones Act (Merchant Marine Act of 1920) lets an injured seaman sue the employer for negligence, much like the old common-law tort remedy. This is a fault-based system, unlike no-fault comp.

The Jones Act exposure is handled through maritime employers liability coverage (often the Maritime Coverage Endorsement on the comp policy or a separate Protection & Indemnity / marine policy), because the standard comp policy does not respond to a seaman's negligence suit.

Other Federal Compensation Acts

Several other federal statutes provide comp-type benefits to specific worker groups; the exam expects recognition of each:

Note that FELA (railroads) and the Jones Act (seamen) are negligence-based, while FECA, the DBA, and USL&H are no-fault benefit systems.

Putting the Federal Pieces Together

The distinguishing question on the exam is always who is the worker and where is the injury?

• Land worker, single state → state workers comp (Part One).
• Land worker, multiple states → state comp with Other States (3.C) coverage.
• Dock/pier/ship-repair worker on navigable waters → USL&H endorsement.
• Vessel crew member (seaman) → Jones Act, handled by maritime employers liability.
• Railroad worker → FELA (sue for negligence).

Quick Answer: No-fault for land and dock workers; negligence suits (FELA, Jones Act) for railroad workers and seamen.

Extraterritorial and Reciprocity Rules

When a worker normally employed in one state is temporarily injured in another, extraterritorial provisions and state reciprocity agreements determine which state's law applies. Most states extend their comp law to residents temporarily working out of state, and reciprocity agreements prevent double assessment. If the employer has not listed the temporary state in Item 3.C, a gap can arise — the reason multistate employers should add likely expansion states to Other States Insurance.

The Defense Base Act (DBA) extends USL&H to civilian contractors on overseas U.S. military bases, and the Outer Continental Shelf Lands Act extends USL&H to offshore energy workers. Worked example: a contractor sends a crew from its home state to install equipment in a neighboring state not listed in Item 3.C, and a worker is hurt. Coverage may fail unless the policy's Other States provision or that state's extraterritorial rule reaches the injury. Trap: assuming a single-state policy follows workers anywhere — coverage tracks the listed states and statutory reach.

Choosing the Right System: A Decision Walkthrough

The surest way to answer multistate/federal comp questions is to classify the worker and the situs of injury, then map to a system:

1. Land worker, one state — state workers comp (Part One), states in Item 3.A.
2. Land worker who may expand — add the state to Item 3.C (Other States, Part Three).
3. Maritime worker on navigable waters/piers (loading, ship repair, longshoring) — USL&H endorsement on the comp policy; benefits exceed state comp.
4. Vessel crew member (seaman) — Jones Act: a negligence suit, handled by maritime employers liability, not comp.
5. Interstate railroad worker — FELA: a negligence suit, not comp.
6. Overseas U.S. government-contract civilian — Defense Base Act (USL&H extended abroad).
7. Civilian federal employee — FECA.

Worked example: a stevedore loading cargo on a dock is hurt — USL&H (endorsement required); a tugboat deckhand on the same harbor is a seaman — Jones Act. Trap: identical-looking maritime jobs split between USL&H (dock/shore-based) and the Jones Act (vessel crew) based on the worker's connection to a vessel in navigation.