28.305
Overseas workers’ compensation and war-hazard insurance
Contractors performing overseas public-work contracts must secure appropriate workers’ compensation and war-hazard insurance, or provide alternative coverage if the Defense Base Act is waived.
Overview
FAR 28.305 addresses the requirements for overseas workers’ compensation and war-hazard insurance for employees working outside the United States under certain government contracts. It defines what constitutes a "public-work contract" and explains the application of the Defense Base Act (DBA), which extends the Longshoremen’s and Harbor Workers’ Compensation Act to employees engaged in public-work contracts or contracts financed under the Foreign Assistance Act (with some exceptions). The section also covers the extension of war-hazard protection through the War Hazards Compensation Act and outlines procedures for waivers and contractor obligations if the DBA is waived.
Key Rules
- Definition of Public-Work Contract
- Includes construction, alteration, repair, and related activities for U.S. or allied public use, both fixed and non-fixed projects.
- Application of the Defense Base Act (DBA)
- DBA applies to employees working overseas on public-work contracts or certain Foreign Assistance Act contracts, except for those financed by the Development Loan Fund or exclusively for materials/supplies.
- War-Hazard Insurance Coverage
- When DBA applies, employees are automatically covered for war hazards through the War Hazards Compensation Act if the contractor provides required workers’ compensation insurance.
- Waiver Provisions
- The Secretary of Labor may waive DBA coverage upon agency head recommendation, affecting both DBA and war-hazard coverage.
- Contractor Obligations if DBA is Waived
- Contractors must provide alternative workers’ compensation and assume liability for war-hazard risks, with costs allowable under the contract.
Responsibilities
- Contracting Officers: Ensure contracts include appropriate insurance requirements and address waivers as needed.
- Contractors: Obtain required insurance or provide alternative coverage if DBA is waived; assume liability for war-hazard risks when applicable.
- Agencies: May recommend DBA waivers and must ensure compliance with insurance provisions.
Practical Implications
- Ensures overseas employees are protected against work-related and war-hazard risks.
- Contractors must carefully assess insurance obligations and costs, especially if waivers are involved.
- Failure to comply can result in significant liability and contract noncompliance.