Authors: U.S. General Accounting Office (GAO)

Date of Publication:  August 1996

Sponsoring Agency:  U.S. General Accounting Office (GAO)

Performing Organization:  U.S. General Accounting Office (GAO)

Report No: GAO/RCED-96-199

Abstract:

Purpose Unlike most American workers, railroad workers are not covered by state no-fault workers’ compensation insurance systems when they are injured on the job. Instead, railroad workers must recover their losses under the provisions of the Federal Employers’ Liability Act (FELA). Under FELA, an injured worker negotiates a settlement with the railroad. If the negotiations fail, the worker may file a lawsuit alleging negligence by the employer to recover losses. No-fault systems do not require that the parties demonstrate negligence. The Chairwoman, Subcommittee on Railroads, House Committee on Transportation and Infrastructure, asked GAO to identify the implications for railroad costs and railroad workers of (1) replacing FELA with a no-fault compensation system or (2) modifying FELA. GAO was also asked to assess how FELA particularly affects small railroads (those with annual revenues of less than $250 million) and determine the availability and affordability of insurance to protect small railroads against large FELA payouts.
 

No. of Pages:  76