When a dock worker, harbor worker, or maritime employee gets hurt on the job in Paducah, the benefits available to them don’t come from Kentucky’s workers’ compensation system. They come from a federal statute: the Longshore and Harbor Workers’ Compensation Act. And the way that Act calculates disability benefits works very differently from what most workers expect if they’ve only dealt with state comp before.
Understanding the four categories of disability under the LHWCA, and how benefits are calculated within each one, helps injured workers know what they’re entitled to and recognize when they’re being shortchanged.
The Average Weekly Wage: The Foundation of Every Calculation
Before getting into the disability categories, it’s worth understanding the average weekly wage calculation, because it’s the foundation every benefit amount builds on. Under 33 U.S.C. § 910, the AWW is generally calculated using the employee’s actual earnings during the 52 weeks before the injury. If that calculation doesn’t produce a fair result, the Act allows for alternative calculations based on what a similarly situated worker would have earned.
Getting the AWW right matters. A miscalculated AWW means every benefit payment that flows from it is wrong. Workers who accepted initial AWW calculations from employers or their insurers without scrutiny often discover later that their benefits were based on a lower number than the law required.
Temporary Total Disability
Temporary total disability benefits apply when an injury leaves a worker completely unable to work while they’re still in the recovery process. It’s a temporary condition with the expectation of eventual improvement, though temporary can mean months or even years depending on the severity of the injury.
Under 33 U.S.C. § 908(b), TTD benefits are paid at two-thirds of the worker’s average weekly wage. The LHWCA also sets a maximum benefit amount that adjusts annually based on the national average weekly wage. For 2025, the maximum TTD rate is substantial, and workers earning above the threshold receive the capped amount rather than two-thirds of their actual wage.
TTD benefits continue until the worker reaches maximum medical improvement, returns to work, or the condition is reclassified into one of the other disability categories.
Temporary Partial Disability
Temporary partial disability applies when a worker can return to work in a reduced capacity during recovery but earns less than they did before the injury. Maybe they’re doing lighter duty. Maybe they’re working fewer hours. The injury still affects their earnings, just not completely.
TPD benefits under 33 U.S.C. § 908(e) are calculated at two-thirds of the difference between the worker’s pre-injury AWW and their actual post-injury earnings. The idea is to bridge the gap created by the reduced earning capacity during the recovery period.
Permanent Partial Disability
Permanent partial disability is where the LHWCA’s framework gets more involved. When a worker reaches maximum medical improvement but is left with a permanent impairment that limits but doesn’t eliminate their earning capacity, PPD benefits apply.
The LHWCA uses two different approaches depending on the nature of the impairment. For scheduled injuries, meaning specific body parts listed in the Act including arms, legs, hands, feet, fingers, toes, and hearing and vision losses, 33 U.S.C. § 908(c) prescribes a fixed number of weeks of compensation at two-thirds of the AWW for each body part or function.
For unscheduled injuries, including back injuries and other conditions affecting the body as a whole, the benefit is based on the difference between the worker’s pre-injury AWW and their post-injury wage-earning capacity. This calculation is frequently contested and often requires vocational expert testimony about what the worker can realistically earn given their limitations.
A Paducah longshore lawyer evaluates whether an injury falls into a scheduled or unscheduled category, what the correct benefit calculation is, and whether the employer’s calculation actually reflects what the law requires.
Permanent Total Disability
Permanent total disability benefits apply when a worker’s injury leaves them permanently and completely unable to engage in gainful employment. PTD benefits are paid at two-thirds of the AWW for the remainder of the worker’s life, subject to the annual maximum. These are among the most significant and most contested benefits under the LHWCA because of their long-term financial impact.
Employers and their insurers frequently contest PTD claims by arguing the worker retains some earning capacity, even if limited. Vocational experts play a central role in these disputes, with each side presenting opinions about what work, if any, is realistically available to the injured worker given their physical limitations, age, education, and work history.
Getting Your Calculation Right
The difference between a correctly calculated benefit and an incorrectly calculated one can amount to thousands of dollars per year. Over the years that a serious injury’s benefits run, that gap becomes enormous.
Katz Law has represented maritime and harbor workers along the western Kentucky river system since 1998. If you’ve been injured on the job and aren’t sure whether your LHWCA benefits are being calculated correctly, reach out to a Paducah longshore lawyer to have your situation reviewed before you accept less than what you’re legally owed.