Director, Office of Workers' Compensation Programs v. Rasmussen

440 U.S. 29, 99 S. Ct. 903, 59 L. Ed. 2d 122, 1979 U.S. LEXIS 25
CourtSupreme Court of the United States
DecidedFebruary 21, 1979
Docket77-1465
StatusPublished
Cited by41 cases

This text of 440 U.S. 29 (Director, Office of Workers' Compensation Programs v. Rasmussen) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Director, Office of Workers' Compensation Programs v. Rasmussen, 440 U.S. 29, 99 S. Ct. 903, 59 L. Ed. 2d 122, 1979 U.S. LEXIS 25 (1979).

Opinion

*31 Mr. Justice Rehnquist

delivered the opinion of the Court.

In May 1973 William Rasmussen was employed as a hydrologist by Geo Control, Inc., which was under contract with the United States to perform work in South Vietnam. Rasmussen was fatally injured during the course of his employment when the vehicle in which he was riding was blown up by a land mine. His employment was within the coverage of the Defense Base Act, 42 U. S. C. § 1651 et seq., which incorporates the provisions of the Longshoremen’s and Harbor Workers’ Compensation Act, 44 Stat. 1424, as amended, 33 U. S. C. § 901 et seq. (Act). It is undisputed that Rasmussen’s surviving widow and son, 1 respondents here, are entitled to death benefits under § 9 of the Act, 33 U. S. C. § 909; the issue dividing the parties and the Courts of Appeals 2 is whether death benefits payable under the Act are subject to the maximum limits expressly placed on disability payments by § 6 (b) (1). The Act’s language and legislative history persuade us that they are not.

I

Prior to passage of the Longshoremen’s and Harbor Workers’ Compensation Act Amendments of 1972, 86 Stat. 1251, both disability and death benefits payable under the Act were subject to the same minimum and maximum limitations. Former § 6 (b) limited disability benefits to no more than $70 per week and no less than $18 per week. Death benefits were limited under § 9 (b) to 66%% of the deceased’s “average weekly wages,” which were “considered to have been not more than $105 nor less than $27_” 33 U. S. C. § 909 (e) (1970 *32 ed.). Accordingly, weekly death benefits, like disability benefits, could not exceed $70 nor be less than $18. 3 The $70 maximum on death and disability benefits, established in 1961, gradually lost real value as inflation exacted its annual toll, 4 and in 1972 Congress moved to give covered workers added protection.

The basic formula for determining compensation for permanent total disability — 66%% of the employee’s average weekly wages — was left unchanged by the 1972 Amendments. The Amendments, however, replaced the $70 maximum limitation on disability benefits with an entirely new limitation scheme tied to the “applicable national average weekly wage.” New § 6 (b)(1) provides in pertinent part:

“[C]ompensation for disability shall not exceed the *33 following percentages of the applicable national average weekly wage as determined by the Secretary . . .
“(A) 125 per centum or $167, whichever is greater, during the period ending September 30, 1973.
“(B) 150 per centum during the period beginning October 1, 1973, and ending September 30, 1974.
“(C) 175 per centum during the period beginning October 1, 1974, and ending September 30, 1975.
“(D) 200 per centum beginning October 1, 1975.” 33 U. S. C. §906 (b)(1).

The “applicable national average weekly wage” is determined annually by the Secretary of Labor. 33 U. S. C. § 906 (b) (3). The Senate Committee on Labor and Public Welfare estimated that approximately 90% of the disabled workers covered under the amended Act would receive benefits equal to a full 66%% of their average weekly wages. S. Rep. No. 92-1125, p. 5 (1972), Legislative History of the Longshoremen’s and Harbor Workers’ Act Amendments of 1972 (Committee Print compiled for the Senate Committee on Labor and Public Welfare by the Subcommittee on Labor), p. 67 (1972) (hereinafter Leg. Hist.). The four-step phase-in of the section’s maximum limitation from 125% to 200% of the applicable national average weekly wage was designed to ease the impact on covered employers of the increase in compensation payments, which Congress expected to at least double for most covered workers. Ibid.

Section 9 (b) was amended in 1972 to increase death benefits to surviving spouses from 35% to 50% of the deceased’s average weekly wages. Death benefits to surviving children were increased from 15% to 16%% of the deceased’s average weekly wages. Total weekly death benefits payable to survivors, however, are still limited to 66%% of the deceased’s average weekly wage. 33 U. S. C. §909 (b). The 1972 Amendments deleted the specific dollar minimum and maximum limitations on average weekly wages and substi *34 tuted in their place a provision dealing only with a minimum limitation, which was tied to the applicable national average weekly wage. Section 9 (e) now provides:

“In computing death benefits the average weekly wages of the deceased shall be considered to have been not less than the applicable national average weekly wage as prescribed in section 6 (b) but the total weekly benefits shall not exceed the average weekly wages of the deceased.” 33 U. S. C. § 909 (e).

Pursuant to § 9, respondents claimed combined death benefits of $532 per week, two-thirds of Rasmussen’s average weekly wages of $798. Geo Control, its insurance carrier, and the Director of the Department of Labor’s Office of Workers’ Compensation Programs (OWCP), petitioners here, contended that the limitations on disability payments contained in § 6 (b)(1) of the Act — initially $167 per week and now $396.50 per week 5 — apply to death benefits in the same manner as to benefits for permanent total disability. 6 The *35 dispute was submitted to an Administrative Law Judge, who sustained respondents’ position. Petitioners appealed the adverse ruling to the Benefits Review Board, which affirmed. The legislative history of the 1972 Amendments convinced the Board that “elimination of the maximum benefit provision from Section 9 (e) of the Act . . . was done consciously and intentionally” and that “failure to substitute a new maximum was ... a deliberate action.” App. to Pet. for Cert. in No. 77-1465, pp. 22A-23A. Petitioners appealed the Board’s order directly to the United States Court of Appeals for the Ninth Circuit. 33 U. S. C. §

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440 U.S. 29, 99 S. Ct. 903, 59 L. Ed. 2d 122, 1979 U.S. LEXIS 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/director-office-of-workers-compensation-programs-v-rasmussen-scotus-1979.