Maersk settles case with US Department of Labor

As part of a settlement with the US Department of Labor, Maersk Line Limited – Maersk’s American subsidiary – will change its safety reporting policies and compensate a seaman the company terminated after they reported safety concerns to the US Coast Guard without first notifying their employer.

The actions follow a three-day hearing in June 2024 where Maersk challenged the findings of a whistleblower investigation by the department’s Occupational Safety and Health Administration found the company violated the employee’s rights under the federal Seaman’s Protection Act by retaliating against the seaman. OSHA found the company policy, which forbid employees from contacting the USCG or other federal, state or local regulatory agencies without first notifying the company, violated federal law. Workers have the right to report safety concerns directly to authorities without fear of retaliation.

The investigation began after the seaman alerted the US Coast Guard about safety concerns aboard the Safmarine Mafadi boxship in December 2020. They included lifeboat equipment in need of repair and replacement, crewmembers onboard in possession of, and possibly consuming alcohol, improper supervision of cadet seamen, and a bilge system not preventing cargo holds from flooding.

“The Department of Labor will enforce workers’ protected rights as whistleblowers under federal law,” said Solicitor of Labor Seema Nanda. “No employer may violate whistleblower regulations or create policies that require employees to notify their employer before they report concerns to federal regulatory agencies. This seaman showed the kind of bravery for which mariners have long been known by raising concerns that, left unchecked, could have endangered everyone aboard the Safmarine Mafadi.”

In a settlement reached after the hearing in Boston, Maersk agreed to remove any requirement that workers notify the company before contacting the coast guard as well as refraining from retaliation against seamen who contact the USCG.

“This case is an important affirmation that all mariners have the option to contact the US Coast Guard directly for addressing a safety concern,” said Rear Admiral and Assistant Commandant for Prevention Policy for the US Coast Guard Wayne Arguin. “Safety requires a team approach. The size, complexity and importance of the marine transportation system demand that everyone work together to prevent casualties and minimize supply chain disruptions.”

Maersk also agreed to future compliance with all applicable regulations and to compensate the terminated seaman for lost wages and damages. Under the terms of the settlement, Maersk did not admit to violations of the Seaman’s Protection Act.