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Avondale Shipyard May Shut Down; Laid Off Injured Workers Should First Seek Reinstatement of Longshore and Harbor Workers Compensation Payments

Governor Bobby Jindal of Louisiana said yesterday that Northrop has advised the State of Louisiana that Avondale Shipyard near New Orleans may shut down due to lack or orders beyond 2012. This move would put about 5,000 employees out of work.

Shipfitters and other Avondale employees who have been injured on the job and who have returned to work with restrictions and then are laid off for economic reasons may have their wage loss indemnity benefits reinstated because the resulting job loss is of no fault of their own.

Longshore and Harbor Workers Compensation Act, 33 U.S.C.A. §§ 901 et seq (“LHWCA”) provides that if an alternative position within an injured employees work restrictions becomes unavailable with the employer of injury due to an economic layoff, full indemnity payments must be reinstated until such time as suitable alternative employment can be established by the employer.

Additional Resources:

Gov. Jindal: We Will Do Everything to Save Avondale Shipyard

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