In the 1980 case of Potomac Electric Power Co. v. Director, Office of Workers' Compensation Programs, U.S. Department of Labor et al., the Supreme Court ruled on whether an employer could be held liable for compensation under the Longshoremen's and Harbor Workers' Compensation Act (LHWCA) if a worker was injured while performing duties that were not directly related to loading or unloading a ship but were still essential to these operations. The court decided in favor of broadening the interpretation of "maritime employment" within LHWCA to include such tasks as maintenance work which are integral parts in ensuring smooth maritime operations even though they do not involve direct engagement with ships or their cargo. This decision expanded protections for workers who may suffer injuries during such activities by making it possible for them to claim compensation from their employers under LHWCA.

In the dissenting opinion for Potomac Electric Power Co. v. Director, Office of Workers' Compensation Programs, U.S. Department of Labor et al., Justice Rehnquist disagreed with the majority's interpretation that a disability resulting from an occupational disease which becomes manifest after retirement is compensable under the Longshoremen's and Harbor Workers' Compensation Act (LHWCA). He argued that this interpretation was inconsistent with both the language and intent of Congress when it enacted LHWCA in 1927 and amended it in 1972. According to him, these laws were designed to compensate for wage loss due to injury or illness occurring during employment rather than post-retirement diseases not causing any wage loss because they manifested after retirement. Therefore, he believed that such claims should be addressed through social security benefits or other forms of public assistance instead.