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Shipping Firm Ordered to Pay $707K After Terminating Employment of Whistleblower for Raising Safety Concerns

The shipping giant, Maersk Line Limited, has been ordered to reinstate a seaman who was terminated after alerting the U.S. Coast Guard about safety concerns on board a Maersk container ship, without first notifying his employer and must pay more than $707,000 in back pay and damages.

The man had been working aboard the Safmarine Mafadi, a 958-foot U.S. registered 50,000-ton container ship. In December 2020, he contacted the U.S. Coast Guard and reported several safety concerns, including defective gear for releasing lifeboats; crew members in possession of and potentially consuming alcohol; rusted, corroded, and broken deck sockets that needed replacing or repairing; leaks that were causing flooding in the cargo holds; and that on several occasions, a trainee was left alone and unsupervised on the ship’s watch, including during an incident involving a fuel and oil spill that could potentially have resulted in an environmental spill.

In December 2020, when Maersk learned that the employee had reported the safety concerns to the U.S. Coast Guard without first informing the company, the employee was suspended and was then terminated in March 2021. The federal Seaman’s Protection Act allows seamen to report safety concerns directly to the US Coast Guard, and they are not required to adhere to company policy and first report their concerns to the company. The Seaman’s Protection Act prohibits retaliation against seaman for engaging in protected activities, which include reporting safety and health concerns.

The Department of Labor’s Occupational Safety and Health Administration (OSHA) enforces the whistleblower protections of the Seaman’s Protection Act and launched an investigation in partnership with the U.S. Coast Guard. OSHA determined that Maersk had violated the employee’s rights by terminating employment and ordered the shipping firm to reinstate the employee and pay $457,759 in back wages, interest, compensatory damages, and $250,000 in punitive damages.

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Policies and procedures must also be revised to ensure they do not prohibit seamen from reporting safety concerns without first notifying the company, and those policies and procedures must be distributed to the workforce. Workforce members must also be provided with an OSHA Fact Sheet on the whistleblower protections of the Seaman’s Protection Act and Maersk must ensure future compliance.

“Federal law protects a seaman’s right to report safety concerns to federal regulatory agencies, a fact every maritime industry employer and vessel owner must know,” said OSHA Regional Administrator Eric S. Harbin in Dallas. “Failure to recognize these rights can instill a culture of intimidation that could lead to disastrous or deadly consequences. The order underscores our commitment to enforcing whistleblower rights that protect seamen.”

Author: Steve Alder is the editor-in-chief of The HIPAA Journal. Steve is responsible for editorial policy regarding the topics covered in The HIPAA Journal. He is a specialist on healthcare industry legal and regulatory affairs, and has 10 years of experience writing about HIPAA and other related legal topics. Steve has developed a deep understanding of regulatory issues surrounding the use of information technology in the healthcare industry and has written hundreds of articles on HIPAA-related topics. Steve shapes the editorial policy of The HIPAA Journal, ensuring its comprehensive coverage of critical topics. Steve Alder is considered an authority in the healthcare industry on HIPAA. The HIPAA Journal has evolved into the leading independent authority on HIPAA under Steve’s editorial leadership. Steve manages a team of writers and is responsible for the factual and legal accuracy of all content published on The HIPAA Journal. Steve holds a Bachelor’s of Science degree from the University of Liverpool. You can connect with Steve via LinkedIn or email via stevealder(at)hipaajournal.com

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