Sponsors
The bill reduces federal administrative burdens for contractors working in Guam but does so by removing federal workers' compensation protections for those workers, shifting risk and potential costs onto workers, local systems, private insurers, and taxpayers.
Government contractors and employers who operate in Guam would face reduced federal DBAct/LHWCA administrative obligations for work in Guam (fewer federal reporting, compliance, or benefits-administration requirements).
Employees and contractors working in Guam would lose DBA/LHWCA federal coverage for work previously protected, reducing their access to federal workers' compensation and likely creating gaps in benefits and increased litigation to determine or replace coverage.
Taxpayers and federal programs could face higher contingent costs if employers shift to private insurance or are sued, effectively moving some costs off the federal LHWCA system and creating potential fiscal exposure.
Based on analysis of 2 sections of legislative text.
Excludes Guam from the Defense Base Act’s definition of U.S. territories, removing DBA/LHWCA coverage for employees working in Guam.
Introduced January 31, 2025 by James Moylan · Last progress January 31, 2025
Removes Guam from the Defense Base Act’s definition of “Territory or possession outside the continental United States,” so employees working in Guam who would otherwise be covered under the Defense Base Act and the Longshore and Harbor Workers’ Compensation Act (LHWCA) will no longer be covered by those federal compensation rules. The change shifts the default workers’ compensation framework for affected workers in Guam away from the federal DBA/LHWCA regime and toward local/territorial law or other remedies.