marine industry professionals
NMMA: Workers’ comp changes could affect boatbuilders
The U.S. Department of Labor is proposing new regulations that implement amendments to the Longshore & Harbor Workers' Compensation Act and will have a direct impact on recreational boatbuilders and repairers, according to the National Marine Manufacturers Association.
Since 1984, the law has excluded from coverage people employed to build, repair or dismantle any recreational vessel under 65 feet in length. In 2009, Congress removed the 65-foot limitation for repair work only.
The proposal will implement that change by revising the definition of recreational vessel in the law's program regulations. The definition change, as drafted, would affect boatbuilders and boat repairers.
The new definition of recreational vessel attempts to exclude non-recreational uses (e.g., passenger, commercial). As crafted, this new definition could create problems for manufacturers who are producing boats intended for the recreational market, but have no way of knowing the retail purchaser's ultimate use, the NMMA said.
In addition, the Department of Labor has included a clarification that workers who perform qualifying maritime employment and excluded work are covered under the law.
In a letter to the NMMA, the department explained that "[b]ecause an employer may use a common work force to perform both excluded and non-excluded work, the proposed rule codifies existing case law holding that the LHWCA covers a worker so long as he or she engages in at least some maritime employment within the meaning of the statute and even if injured while performing excluded work."
Because of the potential impact of this proposal on boatbuilders, the NMMA has requested a 60-day extension of the comment period, which is now slated to end Oct. 18.
For information or to provide feedback for NMMA's comments, contact Cindy Squires at (202) 737-9766; This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
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Those of us in the insurance world have been fighting this battle for years.
As we would understand the proposed language of these regulations - the fact that a recreational marina, repair facility or boat builder works on one commercial vessel a year, their employees would be allowed to pursue a claim for Longshore benefits, even if the employee was not working on a commercial vessel at the time.
So if you haul a 26' Water Taxi to change the zincs or if you haul or store a part time six pack charter boat, the insurance world is going to be increasing your Workers Compensations rates to include USL&H benefits. This will have the effect of increasing your premiums substaitially. In some states the rates could be 50% to 80% higher. Not something most of the marinas in America are equipped to handle in this economy. Similar situation for Recreational Boat Builders. IMO You must fight to avoid this change.
Rick Traskos
While the spirit of the law looks to be beneficial to workers, the effect of the law only passes along more cost and regulatory adminstrative work to US companies who are already have an unlevel playing field in the world market. The net result will be lost jobs and manufacturing in the US. Why is it we can't rely on employees to determine a good employer from a bad when it comes to chosing a safe place to work?