Defense Base Act Claims: What Civilian Contractors Need to Know

Bottom line: The Defense Base Act claims process exists to protect civilian contractors and employees who are injured while working overseas under U.S. government contracts. If that describes your situation, federal law protects you.

Working overseas as a civilian contractor is demanding and sometimes dangerous. Whether you’re supporting military operations, working on a government construction project, or providing other services under a U.S. government contract abroad, you face risks that most American workers never encounter. And if something goes wrong — an accident, an illness, a psychological injury from working in a war zone — the question of what you’re entitled to and how to pursue it may not feel like it has a clear answer.

The Defense Base Act exists specifically for situations like yours. After more than 50 years representing injured workers, including civilian contractors working overseas under U.S. government contracts, I’m committed to making sure you understand the process so you can pursue the coverage you need. Here’s a plain-language breakdown of how it works.

What Is the Defense Base Act?

The Defense Base Act is a federal workers’ compensation law enacted in 1941, during World War II, when the U.S. government recognized that the thousands of civilian contractors supporting American military operations overseas needed protection. It’s an extension of the Longshore and Harbor Workers’ Compensation Act,  the federal law that covers maritime workers and longshore workers in the United States. 

The Defense Base Act has been expanded several times since then and remains the primary source of workers’ compensation coverage for civilian contractors working abroad under U.S. government contracts.

Unlike standard workers’ compensation, which is governed by state law and administered by state agencies, the Defense Base Act is federal law, administered by the U.S. Department of Labor’s Office of Workers’ Compensation Programs. 

The question most contractors have next is: does it cover me?

Who Does the Defense Base Act Cover?

The Defense Base Act covers a broader range of workers than most contractors realize. Coverage applies to:

• Civilian employees working on U.S. military bases outside the United States
• Employees working under contracts with the U.S. government for public works projects overseas
• Employees working for American employers providing welfare or morale services to the U.S. Armed Forces abroad, like recreational facilities, canteen services, and similar support functions
• Employees working under contracts approved or funded by the U.S. government in connection with national defense or war activities

Coverage isn’t limited to American workers. The Defense Base Act covers all employees working under qualifying contracts regardless of nationality — if the work qualifies, the worker is covered. Non-U.S. citizens are entitled to the same benefits, though the way in which certain permanent disability and death benefits are paid out may differ.

And it’s vital to note that employers engaged in qualifying government contracts overseas are legally required to carry Defense Base Act insurance. The requirement cannot be waived simply because a contract fails to mention it. Only the Secretary of Labor has the authority to grant exemptions, and those are rare.

If you’re unsure whether your work qualifies, err on the side of assuming it does and speak with a workers’ compensation attorney.

Defense Base Act Claims and the Zone of Special Danger

One important aspect of the Defense Base Act is something called the Zone of Special Danger doctrine. It’s worth understanding because it significantly expands the coverage available to overseas contractors.

Under standard workers’ compensation, you generally have to be injured while actively performing work duties to be covered. Coverage under The Defense Base Act, on the other hand, goes further. If you’re working in a dangerous overseas location like a combat zone, a politically unstable region, or a location with significant security risks, injuries that occur during off-duty hours may still be covered.

The reasoning is straightforward: when your work takes you to a dangerous part of the world, the risk doesn’t end when your shift does. The Zone of Special Danger doctrine recognizes that reality and extends coverage accordingly.

This matters enormously for contractors working in places like Iraq, Afghanistan, or other high-risk locations. An injury that happens during off-duty hours may be covered under the Defense Base Act even if it doesn’t fit the traditional definition of a workplace injury.

What Benefits Are Available Under the Defense Base Act?

Defense Base Act benefits are modeled on the Longshore and Harbor Workers’ Compensation Act and cover the full range of losses a serious injury can cause:

• Medical benefits: All reasonable and necessary medical treatments related to your injury or illness are covered, including emergency care, surgery, hospitalization, physical therapy, prescription medication, and ongoing treatment.
• Wage replacement: If your injury prevents you from working, you are entitled to two-thirds of your average weekly wage while you are disabled. If you can work but only in a reduced capacity, you may be entitled to two-thirds of the difference between your pre-injury wages and your current earning capacity.
• Permanent disability benefits: If your injury results in a lasting impairment, you may be entitled to permanent partial or permanent total disability benefits depending on the nature and extent of your condition.
• Vocational rehabilitation: If you cannot return to your previous work, the Defense Base Act provides for vocational rehabilitation services to help you find suitable employment.
• Death benefits: If a contractor is killed overseas, surviving family members, including a spouse and dependent children, are entitled to death benefits equal to two-thirds of the deceased worker’s average weekly wage, up to certain maximums. Reasonable funeral expenses are also covered.
• Post-Traumatic Stress Disorder (PTSD) and psychological injuries: Contractors who develop PTSD, anxiety, depression, or other psychological conditions as a result of working in a war zone or other dangerous environment are entitled to the same benefits as those with physical injuries. The psychological toll of working in conflict zones is real, and the law recognizes it.

Knowing what benefits you’re entitled to is the foundation. The next step is understanding how to actually access them.

How Defense Base Act Claims Work

The Defense Base Act claims process is administered by the U.S. Department of Labor and follows a specific set of procedures that differ significantly from the standard workers’ comp process. Here’s how it typically unfolds:

Report the injury. As with any workers’ compensation claim, the first step is reporting your injury to your employer as soon as possible. Delays in reporting can complicate your claim.

Step 1: File a claim with the Department of Labor. A formal claim must be filed with the U.S. Department of Labor’s Office of Workers’ Compensation Programs. The statute of limitations for filing a Defense Base Act claim is generally one year from the date of injury or from the date the claimant knew or should have known the injury was work-related. For occupational diseases, the deadline runs from the date of disability or the date the worker knew the disease was work-related.

Step 2: Insurance company review. Your employer’s Defense Base Act insurance carrier will investigate the claim and make an initial determination. As with standard workers’ comp, the insurer’s decision is not final. Insurers have a strong financial incentive to minimize or deny claims.

Step 4: Informal conference. If a dispute arises, the Department of Labor may schedule an informal conference to try to resolve the disagreement without a formal hearing.

Step 5: Formal hearing before an Administrative Law Judge. If the dispute isn’t resolved informally, it proceeds to a formal hearing before an Administrative Law Judge. In this hearing, evidence is presented, testimony is given, and the case is decided. As with standard workers’ comp, this is the most critical moment in the process.

Step 6: Appeals to the Benefits Review Board. Either party may appeal the Administrative Law Judge’s decision to the U.S. Department of Labor Benefits Review Board. I have argued cases before the Benefits Review Board and can tell you firsthand that this is specialized territory — and that the attorneys on the other side know it well.

Step 7: Federal court appeals. Appeals don’t stop at the Benefits Review Board. Either party can take the case to the U.S. Courts of Appeals — and in some cases, to the U.S. Supreme Court. 

The insurance companies defending Defense Base Act claims are experienced in this specific federal system and represented by attorneys who know it well. Most standard workers’ comp attorneys have never argued before the Benefits Review Board or the U.S. Courts of Appeals — the venues where contested DBA claims are ultimately decided. That’s why it’s vital to choose a Defense Base Act lawyer.

Frequently Asked Questions

Closing Thoughts on Defense Base Act Claims

You took on a difficult job in a difficult place. If you’ve been injured as a result, the Defense Base Act exists to protect you. Navigating the claims process alone, against experienced insurance companies, can be complex, but there is help.

Our team at Gammon & Grange has represented Defense Base Act claimants for more than 50 years, including cases before the Benefits Review Board and the U.S. Courts of Appeals. Because the Defense Base Act is federal law, geography is no barrier. We can represent injured contractors from any state. The consultation is free, and you pay nothing unless we win.

This blog is for informational purposes only and does not constitute legal advice. Defense Base Act claims involve complex federal law and procedures. For guidance specific to your situation, please consult a qualified attorney with experience in Defense Base Act claims.