Maersk Line Ltd., the U.S.-flag arm of Danish shipping giant Maersk, has agreed as part of a settlement with the Department of Labor to change its safety reporting policies and compensate a whistleblower who reported safety concerns to the U.S. Coast Guard without first notifying the company.

The action stems from the Occupational Safety and Health Administration’s finding last year that Maersk Line Ltd., which provides maritime transport for U.S. government agencies, violated the crew member’s rights under the Seaman’s Protection Act by retaliating against the employee. The agency also determined the policy forbidding employees from contacting government agencies without first notifying the company violated federal law.

OSHA launched an investigation after the seaman alerted the Coast Guard about safety concerns aboard the Safmarine Mafadi, a 50,000-ton, 958-foot containership, in December 2020. Safmarine was formerly a Maersk subsidiary. Alleged safety issues included lifeboat equipment in need of repair and replacement, crew members on board in possession of, and possibly consuming, alcohol, and improper supervision of cadet seamen, as well as the emergency fire pump not working 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 in a news release issued on Thursday. “No employer may violate whistleblower regulations or...

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