The Jones Act, formally the Merchant Marine Act of 1920, is a federal law that does two very different things. It restricts shipping between U.S. ports to vessels that are American-built, American-owned, American-flagged, and American-crewed, and it gives injured maritime workers the right to sue their employers for negligence.1Maritime Administration. The Maritime Administrations First 100 Years 1916-2016 More than a century after it was signed into law, both halves remain in force and both remain contested.
What the Shipping Rules Require
The commercial side of the Jones Act lives at 46 U.S.C. § 55102. To carry goods by water between two points in the United States, a vessel has to clear four separate requirements.2Office of the Law Revision Counsel. 46 USC 55102 – Transportation of Merchandise
- The vessel must be built in the United States. A related statute, 46 U.S.C. § 12112, requires domestic construction as a condition for the coastwise endorsement that authorizes domestic trade.3Office of the Law Revision Counsel. 46 USC 12112 – Coastwise Endorsement
- It must be wholly owned by U.S. citizens for coastwise trade purposes.
- It must carry a U.S. flag through a coastwise endorsement, which subjects it to domestic inspections and safety rules.
- It must be American-crewed. Under 46 U.S.C. § 8103, every officer on a documented vessel must be a U.S. citizen or national. Unlicensed crew must be citizens, nationals, or lawful permanent residents, and permanent residents cannot exceed 25 percent of the unlicensed crew.4Office of the Law Revision Counsel. 46 USC 8103 – Citizenship and Naval Reserve Requirements
The rules apply to every kind of waterborne cargo moved between domestic points, from petroleum to consumer goods to industrial equipment. They also apply when a shipment moves between two U.S. ports by way of a foreign stopover.
Penalties and Advance Rulings
Cargo shipped in violation is subject to seizure and forfeiture. As an alternative, the government can recover the greater of the value of the merchandise or the actual cost of the transportation.2Office of the Law Revision Counsel. 46 USC 55102 – Transportation of Merchandise For a large energy or industrial shipment, that number can run into the millions.
Because the stakes are high, companies unsure whether a particular voyage complies can ask U.S. Customs and Border Protection for a ruling under 19 C.F.R. Part 177 before the shipment moves.5U.S. Customs and Border Protection. The Jones Act Informed Compliance Publication It is an advance opinion on whether a specific route and vessel combination passes.
When the Rules Can Be Waived
The cabotage rules are not absolute. Under 46 U.S.C. § 501, the federal government can waive them when national defense requires it, through two separate paths.6Office of the Law Revision Counsel. 46 USC 501 – Waiver of Navigation and Vessel-Inspection Laws
The Secretary of Defense can direct a waiver to address an immediate adverse effect on military operations. Within 24 hours, the Secretary must send Congress a written explanation confirming that qualified U.S.-flag vessels are not available. Congress added the “immediate adverse effect” language in 2021 to tighten this authority.
The President can also determine that a waiver is necessary in the interest of national defense outside strictly military situations. Before that happens, the Maritime Administrator must find that Jones Act-qualified vessels cannot meet the need, and the request has to be published at least 48 hours before it takes effect. Individual presidential waivers last up to 10 days, extendable to no more than 45 days total.
Waivers exist for defense, not commercial convenience. The most visible recent examples came in September 2017, when the Department of Homeland Security issued multiple waivers during Hurricanes Harvey and Irma to move fuel to affected regions.7Department of Homeland Security. September 2017 Jones Act Waivers
Why the Law Is Controversial
Supporters say the Jones Act preserves a domestic shipbuilding base and a pool of trained American mariners the military can draw on in wartime. It also keeps thousands of shipyard jobs in the United States, and the Department of Defense, shipbuilders, and maritime unions have all been reliable defenders.
Critics point to the costs. American-built ships cost several times what comparable foreign-built vessels do, and operating a U.S.-flagged ship costs far more per day than operating a foreign competitor. The domestic fleet has shrunk over the decades despite the law’s protections, which critics say shows the policy failing on its own terms. The heaviest burden falls on Alaska, Hawaii, Puerto Rico, and other island territories, which depend on shipping for basic goods but must use the pricier Jones Act fleet. Sending a container from the East Coast to Puerto Rico runs roughly double what it costs to send the same container to a nearby Caribbean destination not covered by the Act. Repeated attempts to reform or repeal the law have failed.
Who Counts as a Seaman
The injury protections at 46 U.S.C. § 30104 apply only to “seamen,” a narrower category than everyone who works around the water.8Office of the Law Revision Counsel. 46 USC 30104 – Personal Injury to or Death of Seamen Longshoremen who load and unload cargo on the docks are covered by a separate federal compensation system and cannot bring a Jones Act claim.
The Supreme Court set the test in Chandris, Inc. v. Latsis (1995). A worker’s duties must contribute to the function of a vessel or help it accomplish its mission, and the worker must have a connection to a vessel in navigation, or an identifiable group of vessels, that is substantial in both duration and nature.9Cornell Law Institute. Chandris Inc v Latsis, 515 US 347 (1995)
Duration follows what courts call the 30-percent rule of thumb. A worker who spends less than roughly 30 percent of their time in the service of a vessel in navigation generally will not qualify. The Court called it a guideline, not a hard cutoff, but falling below the line makes a claim significantly harder.
The craft matters too. A “vessel in navigation” has to be a structure whose purpose is, to some reasonable degree, moving passengers, cargo, or equipment across navigable waters. A floating casino permanently moored to shore is not one. Neither is a barge bolted to pilings with no propulsion, crew quarters, or navigation gear. A vessel hauled out for major dry-dock repairs loses that status while it sits there.
What an Injured Seaman Can Recover
A qualifying seaman injured on the job can pursue three separate remedies at once, and together they go well beyond what most land-based workers receive.
Employer Negligence
The Jones Act borrows its causation standard from federal railroad worker law, and courts call it a “featherweight” burden. A seaman does not need to show the employer’s negligence was the primary cause of the injury, or even a substantial one. Even the slightest proof that employer carelessness played some part is enough to keep the claim alive.10Ninth Circuit District and Bankruptcy Courts. 7.4 Jones Act Negligence Claim – Causation Defined This is the sharpest departure from ordinary personal injury law.
Comparative negligence still applies. If the seaman’s own carelessness contributed, damages get reduced in proportion to the seaman’s share of fault. A jury finding the employer 70 percent responsible and the seaman 30 percent responsible cuts the award accordingly. But a seaman is not barred from recovery even when mostly at fault.
Maintenance and Cure
Regardless of who was at fault, an injured seaman is entitled to maintenance and cure under general maritime law. Maintenance is a daily living allowance for food and housing during recovery. Cure is the employer’s obligation to pay for necessary medical treatment until the seaman either recovers fully or reaches the point where further improvement is no longer expected. These payments start immediately and do not depend on proving negligence or an unsafe vessel. The obligation exists because the injury happened in the service of the ship.
Unseaworthiness
A separate claim lies against the vessel’s owner if the ship was not reasonably fit for its intended use. Broken equipment, missing safety gear, an incompetent crew member, or dangerous structural conditions can all support the claim. Owner negligence is not required; the question is whether the vessel and its equipment were adequate for the work. The causation standard here is higher than for Jones Act negligence, requiring traditional proximate cause.
Awards across the three categories can cover lost wages, future earnings, pain and suffering, and ongoing medical costs.
What Happens When Employers Refuse to Pay
Employers who cut off maintenance and cure without a legitimate reason face escalating exposure. In Atlantic Sounding Co. v. Townsend (2009), the Supreme Court confirmed that punitive damages remain available under general maritime law when the denial is willful and wanton.11Justia Law. Atlantic Sounding Co v Townsend, 557 US 404 (2009) Courts describe three tiers. A reasonable refusal, backed by investigation and a legitimate factual or legal basis, exposes the employer only to the maintenance and cure actually owed. An unreasonable refusal adds compensatory damages for any harm the delay caused, such as a worsened medical condition. A willful or callous refusal opens the door to punitive damages and attorney’s fees, based on conduct that is arbitrary, persistent, or in reckless disregard of the seaman’s rights.
Death Claims
When a seaman dies from a work-related injury, the seaman’s personal representative can sue the employer under the Jones Act.8Office of the Law Revision Counsel. 46 USC 30104 – Personal Injury to or Death of Seamen Because the statute incorporates federal railroad worker law, the same beneficiary order applies: surviving spouse and children first, then parents if there are none, then dependent next of kin.12Office of the Law Revision Counsel. 45 USC 51 – Liability of Common Carriers by Railroad If the death occurs more than three nautical miles from U.S. shores, the Death on the High Seas Act may also come into play alongside the Jones Act claim.
Filing Deadline and Where to Sue
A Jones Act personal injury or wrongful death claim has to be filed within three years of the date the cause of action arose.13Office of the Law Revision Counsel. 46 USC 30106 – Time Limit on Bringing Maritime Action for Personal Injury or Death Miss it and the claim is gone.
The seaman also gets a choice of court. Federal admiralty jurisdiction is exclusive under 28 U.S.C. § 1333, but that same statute contains a “saving to suitors” clause preserving common-law remedies in other courts.14Office of the Law Revision Counsel. 28 USC 1333 – Admiralty, Maritime, and Prize Cases A Jones Act claim can be brought in federal or state court, and the seaman picks. State courts hearing these cases still apply federal maritime law, including the featherweight causation standard and the right to a jury. That choice of forum can matter: local juries in port cities sometimes view maritime cases quite differently than a federal bench in a landlocked district.