Sponsor
James Moylan
Representative · R-GU
Representative · R-GU
The bill reduces federal administrative obligations for contractors operating in Guam but does so by removing federal DBA/LHWCA protections for those workers, shifting risk and potential costs onto workers, local/private systems, and possibly taxpayers.
Government contractors and employers in Guam would face reduced administrative obligations under the Defense Base Act/Longshore and Harbor Workers' Compensation Act for Guam work, lowering federal compliance burden and potentially reducing employer costs.
Employees and contractors performing covered work in Guam would lose DBA/LHWCA coverage, reducing their access to federal workers' compensation benefits for work-related injuries.
Injured workers in Guam would likely need to rely on local or private compensation schemes, creating potential gaps in benefits and increasing litigation to determine coverage and recover damages.
Taxpayers and federal programs could face higher contingency costs or indirect liabilities if employers purchase private insurance or face lawsuits, shifting costs away from the federal LHWCA system.
Based on analysis of 2 sections of legislative text.
Excludes Guam from the Defense Base Act's territorial definition, removing LHWCA coverage tied to that definition for employees working in Guam.
Official title: To amend the Defense Base Act to exclude Guam.
Introduced January 31, 2025 by James Moylan · Last progress January 31, 2025
Removes Guam from the Defense Base Act’s statutory list of "territory or possession outside the continental United States," which means the Longshore and Harbor Workers’ Compensation Act (LHWCA) provisions that apply through that definition would no longer apply to employees working in Guam under the covered circumstances. The change is narrowly targeted to the statutory definition and affects coverage and compensation law that have applied to certain workers in Guam.