Understanding How the Defense Base Act Waiver Works
Wednesday, February 12, 2025
The Defence Base Act was enacted in 1941 and extended to worker's compensation coverage under the LHWCA. The essence of this act was to provide benefits to civilian contractors working in the U.S. base in case of injury, death, or kidnapping in the course of their work for U.S. government agencies. It is mandatory for contractors to file for DBA coverage before they can begin operating overseas. However, in certain situations, contractors can file for a DBA waiver, thus eliminating the need for them to spend extra to get coverage. Join us in this article as we explain how the DBA waiver works.
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Who Has The Authority To Issue A DBA Waiver?
The authority to issue a DBA waiver lies primarily with the U.S. Department of Labor, specifically the Secretary of Labor. However, the head of any U.S. agency can recommend a waiver for DBA coverage to the Department of Labor.
The Secretary of Labor can waive the application for a DBA with respect to any contract, work location, or class of employee. If you’re unsure whether your contract with the U.S. government allows you to apply for a DBA waiver for your employees, you can reach out to our Defence Base Act Law Firm for consultations.
How Do You Obtain A DBA Waiver?
The contractor must submit a written request to the U.S. Department of Labor for a DBA waiver. Note that the waiver only remains valid as long as alternative workers' compensation is offered to the waived employee.
A waiver request can be made by submitting an original copy of the DBA waiver package to the Director, Office of Workers’ Compensation Programs, Division of Longshore and Harbor Workers’ Compensation, U.S. Department of Labor, Washington, D.C. 20210.
When a U.S. Agency or Department recommends a DBA waiver, it is granted under Section 1(e) of the Defense Base Act (42 USC 1651 (e)). Note that a complete DBA waiver package includes the following:
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A duly filled Form BEC 565 – Request for Waiver – Defence Base Act
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A translated copy of the applicable workers’ compensation law for the country in question
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Comparison of the workers’ compensation benefit available in the country to the DBA benefit
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Website addresses if the information were obtained via the internet
Limitations On The DBA Waiver
The DBA was enacted to protect and compensate employees working on U.S. bases abroad from trafficking, injuries, and even death. While contractors can apply for waivers, there are limitations to protecting the DBA's integrity. Firstly, the DBA waiver does not apply to all types of government employees or contracts.
Also, a waiver request is typically approved on the basis that the local law provides sufficient workers' compensation coverage and the agency agrees with the terms. Contractors cannot use the DBA waiver to circumvent the DBA provision and provide lesser benefits than those civilian employees covered under the act. Also, with the policy of the Department of Labor, waivers do not apply to legal residents and citizens of the U.S. or employees hired in the U.S.