Jones Act

Updated: 12 November 2024

What Does Jones Act Mean?

The Jones Act, also known as the Merchant Marine Act of 1920, is a law governing maritime commerce and trade within the shipping industry. It mandates that ships transporting goods and passengers within the United States must be built in the U.S. and owned by U.S. citizens. Additionally, the law requires that the crew and staff on these ships be U.S. citizens. The Jones Act also provides protection for ship workers who are injured while working at sea.

Insuranceopedia Explains Jones Act

This law has two major issues: cabotage regulations and seamen’s rights.

Cabotage laws require that ships engaged in domestic shipping be U.S.-owned and built in the United States. These regulations aim to protect the domestic shipping industry. However, critics argue that these requirements ultimately weaken the industry’s competitiveness, as ships built abroad are often less expensive and technologically more advanced.

In cases of national emergencies, such as a severe hurricane impacting a region, these regulations can be temporarily waived.

A “seaman” is defined as someone who works at sea for most of their time—by law, at least 30% of their time is required to qualify for certain claims. If a seaman is injured due to the actions of their superiors or colleagues, they have the right to sue their employer for compensation. Cases involving seamen’s rights are typically handled by a Jones Act lawyer, rather than a general maritime law attorney.

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