In the 1981 case U.S. Industries/Federal Sheet Metal, Inc., et al., v. Director, Office of Workers' Compensation Programs, United States Department of Labor, et al., the Supreme Court ruled on a dispute regarding workers' compensation for employees who had developed lung diseases due to exposure to asbestos at work. The court held that under the Longshoremen's and Harbor Workers' Compensation Act (LHWCA), employers are liable for disability benefits if an employee’s disease became permanently disabling while they were working for them - even if it was not caused by that employment alone but rather cumulative exposure over time with multiple employers. This ruling clarified how liability should be determined in cases where occupational diseases develop gradually over time due to conditions in different workplaces.

In the dissenting opinion for U.S. Industries/Federal Sheet Metal, Inc., v. Director, Office of Workers' Compensation Programs, United States Department of Labor et al., 1981 case, Justice Rehnquist disagreed with the majority's interpretation that a "person" under Section 8(f) of Longshoremen's and Harbor Workers' Compensation Act includes an employer who is self-insured. He argued that this interpretation was inconsistent with both the language and legislative history of the statute. According to him, Congress intended to limit relief under Section 8(f) only to insurance carriers and not extend it to self-insured employers as well because they are capable enough financially to bear their own risks without government assistance or protection against extraordinary liability for workers’ compensation benefits.