52.228-3 Workers’ Compensation Insurance (Defense Base Act)
Source: FAR 52.228-3 on acquisition.gov
Contractors must secure and maintain Defense Base Act workers’ compensation insurance, promptly report injuries, and comply with all Department of Labor requirements for covered employees.
Overview
FAR 52.228-3 requires contractors performing work subject to the Defense Base Act (DBA) to secure and maintain workers’ compensation insurance or qualify as a self-insurer for covered employees. The clause mandates strict compliance with the Longshore and Harbor Workers’ Compensation Act (LHWCA) as extended by the DBA, including timely reporting, payment, and documentation of employee injuries, illnesses, or deaths. Contractors must also flow down these requirements to applicable subcontractors.
Key Rules
- Insurance Requirement
- Contractors must secure workers’ compensation insurance or qualify as a self-insurer before starting contract performance and maintain coverage throughout the contract period.
- Timely Reporting
- Injuries or deaths must be reported to the Department of Labor within 10 days using Form LS-202.
- Compensation Payments
- All compensation for disability or death must be paid within the timeframes specified by the LHWCA.
- Medical Care
- Contractors must provide medical care as required by the LHWCA.
- Controversion and Payment Notices
- If disputing compensation, submit Form LS-207; upon first payment, submit Form LS-206; and upon suspension or final payment, submit Form LS-208 to the Department of Labor.
- Subcontractor Flowdown
- The clause must be included in all subcontracts subject to the DBA.
Responsibilities
- Contracting Officers: Ensure inclusion of this clause in applicable contracts and subcontracts.
- Contractors: Obtain and maintain required insurance, comply with all reporting and payment requirements, and flow down the clause to subcontractors.
- Agencies: Oversee contractor compliance and ensure proper clause implementation.
Practical Implications
- This clause ensures that employees working on overseas government contracts are protected by workers’ compensation insurance.
- Failure to comply can result in penalties, contract disputes, or loss of contract.
- Contractors must be diligent in timely reporting, documentation, and communication with the Department of Labor.
As prescribed in 28.309(a), insert the following clause:
Workers’ Compensation Insurance (Defense Base Act) (Jul 2014)
(a) The Contractor shall
(1) Before commencing performance under this contract, establish provisions to provide for the payment of disability compensation and medical benefits to covered employees and death benefits to their eligible survivors, by purchasing workers’ compensation insurance or qualifying as a self-insurer under the Longshore and Harbor Workers’ Compensation Act (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section932&num=0&edition=prelim" target="_blank">33 U.S.C. 932) as extended by the Defense Base Act (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1651&num=0&edition=prelim" target="_blank">42 U.S.C.1651, etseq.), and continue to maintain provisions to provide such Defense Base Act benefits until contract performance is completed;
(2) Within ten days of an employee’s injury or death or from the date the Contractor has knowledge of the injury or death, submit Form LS-202 (Employee’s First Report of Injury or Occupational Illness) to the Department of Labor in accordance with the Longshore and Harbor Workers’ Compensation Act (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section930(a)&num=0&edition=prelim" target="_blank">33 U.S.C. 930(a), 20 CFR 702.201 to 702.203);
(3) Pay all compensation due for disability or death within the time frames required by the Longshore and Harbor Workers’ Compensation Act (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section914&num=0&edition=prelim" target="_blank">33 U.S.C. 914, 20 CFR 702.231 and 703.232);
(4) Provide for medical care as required by the Longshore and Harbor Workers’ Compensation Act (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section907&num=0&edition=prelim" target="_blank">33 U.S.C. 907, 20 CFR 702.402 and 702.419);
(5) If controverting the right to compensation, submit Form LS-207 (Notice of Controversion of Right to Compensation) to the Department of Labor in accordance with the Longshore and Harbor Workers’ Compensation Act (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section914(d)&num=0&edition=prelim" target="_blank">33 U.S.C. 914(d), 20 CFR 702.251);
(6) Immediately upon making the first payment of compensation in any case, submit Form LS-206 (Payment Of Compensation Without Award) to the Department of Labor in accordance with the Longshore and Harbor Workers’ Compensation Act (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section914(c)&num=0&edition=prelim" target="_blank">33 U.S.C. 914(c), 20 CFR 702.234);
(7) When payments are suspended or when making the final payment, submit Form LS-208 (Notice of Final Payment or Suspension of Compensation Payments) to the Department of Labor in accordance with the Longshore and Harbor Workers’ Compensation Act (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section914(c)&num=0&edition=prelim" target="_blank">33 U.S.C. 914(c) and (g), 20 CFR 702.234 and 702.235); and
(8) Adhere to all other provisions of the Longshore and Harbor Workers’ Compensation Act as extended by the Defense Base Act, and Department of Labor regulations at 20 CFR Parts 701 to 704.
(b) For additional information on the Longshore and Harbor Workers’ Compensation Act requirements see http://www.dol.gov/owcp/dlhwc/lsdba.htm" target="_blank">http://www.dol.gov/owcp/dlhwc/lsdba.htm.
(c) The Contractor shall insert the substance of this clause, including this paragraph (c), in all subcontracts to which the Defense Base Act applies.
(End of clause)