In the 1950 case of O'Leary v. Brown-Pacific-Maxon, Inc., the U.S. Supreme Court ruled on a matter related to workers' compensation for federal employees working overseas. The plaintiff was an employee who drowned while swimming in the ocean during his off-duty hours at a remote Pacific island where he was stationed for work purposes. His widow sought death benefits under the Defense Base Act, which extends federal workers’ compensation law to persons employed at defense bases overseas. The key issue before the court was whether or not his death arose "out of and in course of employment" as required by law for awarding such benefits. The Deputy Commissioner had initially denied her claim but this decision was reversed by lower courts. The Supreme Court upheld these reversals, ruling that given their isolated location with limited recreational options, it could be reasonably expected that employees would engage in activities like swimming during their leisure time and hence such activities were within 'course of employment'. Therefore, they held that Mrs O’Leary’s husband's death did arise out of and in course of his employment making her eligible for receiving benefits.

The dissenting opinion in the case of O'Leary v. Brown-Pacific-Maxon, Inc., argued that the majority's decision to award compensation for a death occurring during an off-duty recreational activity was inconsistent with the intent and language of The Longshoremen's and Harbor Workers' Compensation Act. This act provides coverage for injuries or deaths "arising out of and in the course of employment." According to this view, it is not enough that an employer may provide facilities or encourage activities; there must be a direct connection between work duties and injury occurrence. The dissent held that Mr. Emile Camerino’s voluntary participation in horseplay on a beach during his free time did not meet these criteria, despite being located within employer-provided housing area on Johnston Island where he worked as part of war efforts during World War II.