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Department of Labor LS-266 Update: What Small Business Owners and HR Managers Need to Know

On June 22, 2026, the Department of Labor issued a corrective notice regarding the Application for Continuation of Death Benefit for Student (LS-266) form. While this may sound technical, it’s important for small business owners and HR managers to understand how this regulatory update affects your workplace compliance obligations, particularly if you employ workers covered under the Longshore and Harbor Workers’ Compensation Act (LHWCA).

What Is the LS-266 Regulatory Update?

The Department of Labor’s Workers’ Compensation Programs Office published a correction to a previous notice from June 9, 2026. The original notice mistakenly referenced the Administration of the Longshore and Harbor Workers’ Compensation Act when discussing the LS-266 form. The correction clarifies that the form specifically pertains to applications for continuing death benefits for eligible students whose parents were covered workers under LHWCA protections.

This form is used when a covered employee passes away, and their dependent students need to apply for ongoing death benefit continuation. The Department of Labor is requesting public comment on extending this existing information collection without any changes to the current form requirements.

Which Businesses Does This Affect?

If your small business or organization operates in maritime, port, or harbor-related industries, this update directly impacts you. This includes:

• Shipping companies and port operators
• Stevedoring and longshore operations
• Marine construction companies
• Ship repair and maintenance businesses
• Other workers covered under federal LHWCA provisions

Even if you don’t operate in these specific industries, your HR department should review whether any employees are covered under LHWCA, as compliance is mandatory for affected employers.

What Employers Must Do to Comply

Your primary compliance responsibility involves understanding and properly administering death benefits when covered employees pass away. Specifically, you must:

• Ensure employees understand their LHWCA death benefit coverage and dependent protections
• Maintain accurate personnel records that document family and dependent information
• Provide eligible dependents with clear guidance on filing LS-266 applications when appropriate
• Cooperate with the Department of Labor’s Workers’ Compensation Programs Office when processing claims

3 Practical Compliance Steps for Your Business

Step 1: Audit Your Workforce Coverage

Review your employee roster to identify which workers are covered under LHWCA. Document this information in your HR system. Using cloud-based HR software like BambooHR HR software can help you maintain compliant employee records and easily track benefit eligibility across your organization.

Step 2: Update Your Employment Agreements

Ensure your employment agreements clearly outline LHWCA protections and death benefit provisions. Consider using templates from LegalZoom employment agreements to create legally compliant documentation that covers all necessary compliance elements and protects both your business and employees.

Step 3: Create a Death Benefit Resource Guide

Develop an internal guide explaining the LS-266 application process for beneficiaries. Include contact information for the Department of Labor’s Workers’ Compensation Programs Office and clear instructions on how dependents should proceed when filing claims. Make this information easily accessible to all affected employees and their families.

Stay Compliant Moving Forward

The Department of Labor’s correction underscores the importance of precise compliance documentation. By taking these three practical steps now, you’ll be better positioned to manage this regulatory requirement effectively while protecting both your employees and your business from potential compliance violations.