The defense base act is a federal law that pays workers’ comp to civilian contractors hurt while working overseas. It covers people on U.S. military bases abroad and on U.S. government contracts outside the country. If you were hurt in Iraq, Kuwait, Afghanistan, Guam, or elsewhere abroad on a U.S. contract, this law likely applies to you. It pays for medical care, part of your lost wages, and death benefits for families. You do not have to prove anyone was at fault.
Who the Defense Base Act Covers
The law covers employees of private companies working outside the United States under certain contracts. In most cases, that includes work on U.S. military bases abroad. It also covers U.S. government contracts for construction, public works, and related services overseas. Contracts under the Foreign Assistance Act are covered too. So are some U.S. service groups working with the military abroad. Subcontractors are covered just like prime contractors.
You do not need to be a U.S. citizen. U.S. citizens, local hires, and third-country nationals can all be covered. However, the Labor Department can waive coverage for some local or foreign workers. Coverage is also broad in another way. Courts use a “zone of special danger” idea. For example, an injury during off-duty time may still count, because the overseas job put you there. Typically, every case turns on its own facts.
Your employer must carry defense base act insurance. The insurance company usually pays your benefits. The Department of Labor’s Office of Workers’ Compensation Programs (OWCP) supervises claims. Its Division of Longshore and Harbor Workers’ Compensation handles them day to day. Here are the key facts in one place.
| Topic | Key Fact |
|---|---|
| Who is covered | Civilian contractor employees working abroad on U.S. military bases, U.S. government contracts, or approved foreign aid contracts |
| The law | 42 U.S.C. 1651–1655, which extends the Longshore Act (33 U.S.C. 901–950) |
| Agency | U.S. Department of Labor, OWCP, Division of Longshore and Harbor Workers’ Compensation |
| Weekly disability pay | 66 2/3% of your average weekly wage |
| Maximum weekly rate (Oct. 1, 2026 – Sept. 30, 2027) | $2,163.92 (200% of the $1,081.96 national average weekly wage) |
| Medical care | All reasonable and necessary treatment, with your choice of doctor |
| Notice to employer | Within 30 days of injury or of learning it is work-related (Form LS-201) |
| Claim filing deadline | 1 year for injuries; 2 years for occupational disease (Form LS-203) |
| Employer’s injury report | Within 10 days of learning of the injury (Form LS-202) |
| Death benefits claim | Form LS-262 |
What the Defense Base Act Pays
Medical care. The insurer pays for reasonable and necessary treatment for your work injury. That includes doctor visits, surgery, hospital care, prescriptions, and therapy. You generally have the right to choose your own doctor at the start. There is no copay or deductible. As a result, many injured contractors get treated back home in the United States.
Wage loss. If you cannot work, you may be entitled to two-thirds of your average weekly wage. Your overseas pay is often much higher than stateside pay. Hazard pay and overseas bonuses can be part of that wage. The weekly cap is $2,163.92 for workers newly disabled from October 1, 2026 through September 30, 2027. In most cases, the Longshore Act’s weekly minimum does not apply to defense base act claims. There is no pay for the first 3 days unless you are disabled more than 14 days.
Schedule awards. Lose a body part or its use, and the law sets a number of weeks of pay. An arm is 312 weeks. A leg is 288 weeks. A hand is 244 weeks. A foot is 205 weeks. An eye is 160 weeks. Total hearing loss in both ears is 200 weeks. For example, a worker paid the maximum who loses a hand could see 244 x $2,163.92 = $527,996.48. These figures are illustrative only. Every case is different.
Death benefits. If a worker dies from a covered injury, a surviving spouse typically gets 50% of the worker’s average weekly wage. With children, total family benefits can reach 66 2/3%. The law also pays up to $3,000 toward funeral costs.
How to File and the Deadlines
First, tell your employer in writing. Use Form LS-201, Notice of Employee’s Injury or Death. Keep a copy. Next, file your claim with the Department of Labor on Form LS-203, Employee’s Claim for Compensation. Survivors file Form LS-262 instead. Your employer must send in Form LS-202 within 10 days of learning about your injury. Forms are on dol.gov, and many filings can be made online through the agency’s SEAPortal.
If the insurer refuses to pay, it files Form LS-207, Notice of Controversion. Do not panic if this happens. You can ask for an informal conference with a Labor Department claims examiner. If that does not settle it, you can ask for a hearing before an administrative law judge. Form LS-18, the Pre-Hearing Statement, starts that step.
How the Defense Base Act Differs From State Workers Comp
State workers’ comp is run by each state’s board, with its own rules and caps. However, the defense base act is one federal system with one set of rules. It does not matter where you live or where you were hired. The weekly cap is also tied to the national average wage. As a result, it is often higher than many state caps. Appeals go from a judge to the Benefits Review Board, then to a federal appeals court.
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There are other key differences. Coverage reaches injuries far from your actual job site, under the zone of special danger. If you win a disputed claim, the insurer may have to pay your approved attorney fees. In most cases, you cannot sue your employer for the injury. Defense base act benefits are your main remedy against the employer.
Frequently Asked Questions
Does the Defense Base Act cover PTSD and other mental injuries?
Yes, psychological injuries can be covered. Many overseas contractors have filed claims for PTSD, depression, and anxiety tied to their work. You will typically need medical records linking the condition to your job.
I am not a U.S. citizen. Am I covered?
Many foreign nationals and local hires are covered. However, the Labor Department can waive coverage for some non-U.S. workers. Some benefits for nonresident survivors may also be paid differently. Check with the Department of Labor to confirm your status.
Do I need a lawyer to file a claim?
No, you can file on your own. Still, many workers get help when an insurer disputes or stops payments. Fees must be approved by the agency or a judge. In a won dispute, the insurer may have to pay them.
Defense base act: Quick Recap
If you remember one thing about defense base act, make it this: the rule is set by the state (or the federal program), not by the insurer, and the official source is linked above. Every figure on this page about defense base act should be confirmed with the agency before you act on it.
Questions about defense base act that this page does not answer are usually answered for free by the state workers’ comp agency’s information line — and, for a disputed claim, by a licensed attorney in a first consultation.
See your state’s exact numbers
What you are owed depends on your state’s benefit caps and deadlines. Start with your state’s settlement and claim guides for the exact figures.
Sources & How to Verify
The figures on this page come from official government and industry sources. Workers’ comp benefit caps, deadlines, and rules change, so always confirm the exact figure with your state’s workers’ comp board or a licensed attorney before acting. Settlement estimates are illustrative, and every case is different.
- Your state workers’ comp board, division, or commission: the official source for your state’s exact caps, deadlines, and forms — search “[your state] workers compensation board”
- U.S. Department of Labor (OWCP): dol.gov — federal workers’ compensation overview
- NCCI: ncci.com — workers’ comp rating and benefit data
- Social Security Administration: ssa.gov — benefit-cap and SSDI offset data
- Insurance Information Institute: iii.org — neutral workers’ comp background
Content last reviewed October 2026. If you notice an outdated figure, please contact us.
Related Guides
- Workers Comp Settlements by State (All 50)
- Workers Comp Claims by State (All 50)
- More in This Category
- Settlements by Injury
- Benefits Explained
- Workers Comp Glossary
Informational only — not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm, insurer, or medical or financial advisor, and this page does not provide legal, medical, or financial advice. Workers’ compensation benefits, deadlines, and rules vary by state and change over time, and settlement estimates are illustrative only. Always confirm the exact figure and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.