OSG Attempts to get Seaman to Release “Jones Act” Rights

Many maritime companies are now making attempts to get their seamen to sign arbitration agreements, releasing workers of their rights to file a Jones Act or unseaworthiness suit in exchange of advancing wages. One such company is OSG.

According to a recent report, OSG is requiring a maritime employee to forgo his rights to file a Jones Act or unseaworthiness claim if he elects to participate in the company’s “Salary Continuation Plan.”

The unidentified employee claimed that under the plan, OSG agreed to pay him half of his base wage for 2 months, which includes all union benefits. However, in return, the seaman had to agree that he would not have any surgery without a second opinion. If there was a dispute between the two opinions, then the situation would require a third opinion.

Additionally, if the worker became fit for duty within the two month period, then OSG would continue paying half of his wages until he was fit for duty. At this point, the worker would waive all further rights to file a Jones Act suit. However, OSG could elect to stop paying his wages, which would allow him to pursue a claim.

The concern is if the employee challenges the validity of the release and loses he might be liable for OSG’s legal fees.