---
kind: "section"
citation: "33 U.S.C. § 938"
title: "33"
title_heading: "Navigation and Navigable Waters"
number: "938"
heading: "Penalties"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/33/938"
units:
  - "Chapter 18 — Longshore and Harbor Workers’ Compensation"
---

# §938. Penalties

- (a) **Failure to secure payment of compensation—** Any [employer](/usc/33/902.md?p=4) required to secure the payment of [compensation](/usc/33/902.md?p=12) under this chapter who fails to secure such [compensation](/usc/33/902.md?p=12) shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than $10,000, or by imprisonment for not more than one year, or by both such fine and imprisonment; and in any case where such [employer](/usc/33/902.md?p=4) is a corporation, the president, [secretary](/usc/33/902.md?p=6), and treasurer thereof shall be also severally liable to such fine or imprisonment as herein provided for the failure of such corporation to secure the payment of [compensation](/usc/33/902.md?p=12); and such president, [secretary](/usc/33/902.md?p=6), and treasurer shall be severally personally liable, jointly with such corporation, for any [compensation](/usc/33/902.md?p=12) or other benefit which may accrue under the said chapter in respect to any [injury](/usc/33/902.md?p=2) which may occur to any [employee](/usc/33/902.md?p=3) of such corporation while it shall so fail to secure the payment of [compensation](/usc/33/902.md?p=12) as required by [section 932 of this title](/usc/33/932.md).
- (b) **Avoiding payment of compensation—** Any [employer](/usc/33/902.md?p=4) who knowingly transfers, sells, encumbers, assigns, or in any manner disposes of, conceals, secretes, or destroys any property belonging to such [employer](/usc/33/902.md?p=4), after one of his [employees](/usc/33/902.md?p=3) has been injured within the purview of this chapter, and with intent to avoid the payment of [compensation](/usc/33/902.md?p=12) under this chapter to such [employee](/usc/33/902.md?p=3) or his dependents, shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than $10,000, or by imprisonment for not more than one year, or by both such fine and imprisonment; and in any case where such [employer](/usc/33/902.md?p=4) is a corporation, the president, [secretary](/usc/33/902.md?p=6), and treasurer thereof shall be also severally liable to such penalty of imprisonment as well as jointly liable with such corporation for such fine.
- (c) **Effect on other liability of employer—** This section shall not affect any other liability of the [employer](/usc/33/902.md?p=4) under this chapter.

## Source credit

(Mar. 4, 1927, ch. 509, § 38, 44 Stat. 1442; June 25, 1938, ch. 685, § 14, 52 Stat. 1168; Pub. L. 98–426, § 22, Sept. 28, 1984, 98 Stat. 1653.)

## Notes

### Editorial Notes

### Amendments

1984—Subsecs. (a), (b). Pub. L. 98–426 substituted “$10,000” for “$1,000” wherever appearing.

1938—Act June 25, 1938, amended section generally, designating first sentence as subsec. (a) and inserting provisions respecting liability of corporate officers, adding subsec. (b), and designating second sentence as subsec. (c).

### Statutory Notes and Related Subsidiaries

### Effective Date of 1984 Amendment

Amendment by Pub. L. 98–426 effective Sept. 28, 1984, see section 28(e)(1) of Pub. L. 98–426, set out as a note under section 901 of this title.