As a maritime lawyer, I’ve known for a while that maritime companies are trying to get arbitration agreements that release a seaman from his Jones Act rights in exchange for advancing wages.

One such employer is tanker company OSG. The company is reportedly trying to get employees to give up their rights to a Jones Act claim, or a claim of unseaworthiness in exchange for what they call a Salary Continuation Plan. Under the Salary Continuation Plan, OSG agrees to pay a Jones act seamen 50% of his basic wages for two months, and all union benefits. In return, the Seaman is expected to agree not to have any surgery after the injury, unless the company gets a second opinion. If the two medical opinions clash, then the seaman would be required to get a third opinion.

Moreover, if the employee recovered from his injuries and became fit for duty within the two-month period, he would receive no compensation.

If he was not fit for duty within two months, the company would offer one of two options.

• The company would either continue paying him 50% of the wages until he recovered fully and reported for duty again, and the worker would be expected to waive off his rights to a Jones Act claim.
• The company would stop paying him compensation, and he would retain his right to sue under the Jones Act.

It’s important for workers to understand that waiving off their Jones Act rights can severely impact their ability to claim damages in the event of a serious injury caused by their employer’s negligence.