Cruise Ship Accidents & Injuries: Calculating Lost Tips as Part of Wages in a Claim


March 21, 2013     By The Young Firm

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Workers injured in cruise ship accidents may recover lost wages if employer negligence is to blame. Tips may be estimated based on averages and income tax returns.
If a worker is injured in a cruise ship accident, s/he is entitled to maintenance and cure benefits under the Jones Act regardless of fault to cover living expenses and medical treatment until maximum medical cure is reached. But a New Orleans Jones Act lawyer may help injured workers pursue a Jones Act lawsuit if the accident was caused by the employer’s negligence.

Employees may recover medical bills, pain and suffering, and other damages like lost wages in a claim after a cruise ship accident. However, one of the concerns that may come up when determining lost wages is how tips are factored. For many cruise ship workers, this is the bulk of their income.

Cruise Ship Workers Who Receive Tips as Part of Earnings

The following are examples of workers on a cruise ship who may receive tips as a large part of their salary:

• bartenders;
• cocktail waitresses;
• casino workers;
• waiter/waitresses;
• cabin stewards; and
• busboys.

Some of these workers receive specified amounts when it comes to tipping. This depends on the position and the cruise line. Others are given whatever the customer feels obliged to tip.

Calculating Lost Tips in a Jones Act Claim

With certain positions relying heavily upon tips, it’s important to calculate this into a lost wages if filing a claim following a cruise ship accident. It is generally much easier to do if tips are reported on the worker’s income taxes.

All that will be required in calculating the loss is showing a copy of the tax returns. Lost tips may be averaged based on tips reported on the income tax return and the amount of time away from work to arrive at a fair amount.

However, complications can arise if an employer refuses to compensate for lost tips. If there is nothing in the employee’s contract that states tips are guaranteed, there could be difficulty including these in a claim. This may be argued against, however, since the base income is generally very low and with many cruise ship workers guaranteed a certain amount in tips.

Lost base pay, meanwhile, may be calculated based on the worker’s hourly wages and the amount of time missed. If the worker’s hours vary from week to week, an average may be taken by documenting previous pay stubs. The base pay and the tips may be included when estimating lost wages in a claim.

With so many complex situations that can arise under these circumstances, it can be very helpful for workers injured in cruise ship accidents to seek legal counsel.

ABOUT THE AUTHOR: Timothy Young
Maritime and admiralty lawyer Timothy J. Young graduated cum laude from Tulane Law School in 1993. Licensed to practice in both Louisiana and Texas, he is an active member of the American Association for Justice and the Louisiana Association for Justice, including the admiralty sections of both associations. Mr. Young has given talks to lawyers in other states regarding the practice of maritime law.

At The Young Firm, our maritime and admiralty attorneys are dedicated to providing superior legal counsel to clients injured as a result of another party's reckless, careless, or negligent conduct. We meticulously prepare each case and are committed to protecting the rights of the catastrophically injured. For more than 50 years, our attorneys have been focusing on the practice of maritime / admiralty law.

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Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.