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Overview of Defense Base Act / DBA Coverage
The Defense Base Act provides disability, medical, and death benefits to covered employees injured or killed in the course of employment, whether or not the injury or death occurred during work hours. Compensation for total disability is two-thirds of the employee’s average weekly earnings, up to a current maximum of $1,114.44 per week. Compensation also is payable for partial loss of earnings under the Defense Base Act. Death benefits are half of the employee’s average weekly earnings to the surviving spouse or to one child, and two-thirds of earnings for two or more such survivors, up to the current maximum weekly rate. Permanent total disability and death benefits may be payable for life, and are subject to annual cost of living adjustments. There is no minimum compensation rate under the Defense Base Act..
The injured employee is entitled to medical treatment by a physician of his/her choice, as the injury may require. Medical benefits may not be commuted..
Background:
Established in 1941, the primary goal of the Defense Base Act was to cover workers on military bases outside the United States. The Act was amended to include public works contracts with the government for the building of non-military projects such as dams, schools, harbors and roads abroad. A further amendment added a vast array of enterprises revolving around the national security of the U.S. and its allies. Today, almost any contract with an agency of the U.S. government, for work outside the U.S., weather military in nature or not, will likely require Defense Base Act coverage.
In the current version of the Defense Base Act, there are five provisions that prompt coverage:
- Any employee working on a military base or reservation outside the U.S
- Any employee engaged in U.S. government funded public works business outside the U.S.
- Any employee engaged in public works or military contract with a foreign government which has been deemed necessary to the U.S. National Security
- Those employees that provide services funded by the U.S. government outside the realm of regular military issue or channels
- Any employees of any sub-contractors of the prime of letting contractor involved in a contract like numbers 1 - 4 above
Waivers:
One should note that DBA coverage makes no reference to the nationality of covered employees: thus, local nationals or third country nationals are automatically covered under the DBA. Waivers can be granted, but they need to follow certain criteria, and only the Secretary of Labor is able to authorize any such waiver.
We are here to help.
At Black Fox International, we want to be sure that our clients get the Defense Base Act coverage they must have and we also want to make sure that we fill any and all gaps that could cause our clients unexpected losses. Travel Accident, War Risk and assistance services to employees are just a few of the areas to cover; Let us put our experience to work for you.
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