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DOL Updates Funeral Expense Certification Requirements: A Guide for Small Business Employers

The U.S. Department of Labor recently issued a correction to its Longshore and Harbor Workers’ Compensation Act (LHWCA) regulations regarding the Certification of Funeral Expenses form (LS-265). If your business operates in maritime, dock, or harbor industries, this update affects how you handle employee death benefits and funeral expense claims. Here’s what you need to know.

Understanding the Department of Labor Regulatory Update

On June 22, 2026, the Labor Department’s Workers’ Compensation Programs Office published a corrected notice clarifying the collection of information requirements for funeral expense certification under the LHWCA. The original notice, released June 9, 2026, contained an administrative error that required immediate correction.

This regulatory update addresses the LS-265 form specifically—the official certification document employees and employers must complete when claiming funeral expenses under LHWCA coverage. While this might seem like a minor bureaucratic correction, it’s essential for maintaining compliance with federal workers’ compensation requirements and ensuring benefits reach grieving families without unnecessary delays.

Which Businesses Are Affected

This rule primarily impacts employers in maritime-related industries, including:

• Longshore and harbor workers’ employers
• Shipping companies and port operators
• Shipbuilding and ship repair facilities
• Stevedoring companies
• Businesses with federal contract work involving maritime operations

If your small business operates in these sectors and employs workers covered under LHWCA, you must understand these funeral expense certification requirements. Non-compliance can delay death benefits to employees’ families and expose your company to federal penalties.

What Employers Must Do to Comply

Under this corrected regulation, employers must ensure proper funeral expense certification procedures are in place. This means having accurate, updated processes for submitting and processing LS-265 forms when an employee death occurs. Your HR team needs to understand eligibility requirements, documentation procedures, and submission deadlines to protect both your employees and your company.

Compliance also requires maintaining detailed records of all funeral expense claims and certifications. The Department of Labor may request documentation during audits, making accurate record-keeping critical for your business’s regulatory standing.

Three Practical Compliance Steps

Step 1: Update Your LHWCA Documentation and Procedures

Review your current funeral expense certification procedures immediately. Ensure your HR team has access to the corrected LS-265 form from the Department of Labor website. Document your internal processes for handling death claims, including notification procedures, form completion responsibilities, and submission timelines. Consider using BambooHR HR software to maintain organized records of all LHWCA-related documentation and compliance deadlines.

Step 2: Train Your HR and Management Team

Schedule training sessions to ensure your team understands the updated certification requirements. Your managers and HR staff should know the proper procedures for completing LS-265 forms, required supporting documentation, and submission protocols. Proper training prevents costly delays that can strain relationships with grieving families during difficult times.

Step 3: Review and Update Employment Agreements

Examine your employment agreements and employee handbooks to ensure they accurately reflect LHWCA funeral benefit processes. Consider using LegalZoom employment agreements templates designed for maritime industries to ensure your documentation meets federal requirements and clearly explains employee benefits.

Moving Forward

Regulatory compliance protects your business while ensuring your employees receive the benefits they deserve. Take action today to implement these three practical steps and keep your LHWCA procedures current.