Railroad workers who are injured on the job seek compensation for their injuries under the provisions of the Federal Employers Liability Act of 1908 (FELA). This report assesses the injury compensation system that has evolved under Federal Employer's Liability Act (FELA) and compares it with the no-fault compensation systems that cover US workers.

Examines the issues associated with changing how railroad workers are compensated for their work-related injuries. In particular, it identifies the potential implications for railroad costs & railroad workers of: (1) replacing the Federal Employers' Liability Act (FELA) with a no-fault compensation system, or (2) modifying FELA. Also discusses FELA's effects on small railroads & the availability & affordability of insurance to protect small railroads against large FELA payouts. Charts, tables & graphs.

Pursuant to a congressional request, GAO examined how replacing the Federal Employers' Liability Act (FELA) with a no-fault compensation system would affect the railroad industry. GAO found that: (1) the cost of replacing FELA with a nationwide no-fault compensation system depends on the number of injured railroad workers permanently disabled and the number of workers unable to return to work at preinjury wages; (2) the costs under a no-fault compensation system would be the same as or lower than FELA costs; (3) overall injury compensation costs would be lower under a no-fault system if fewer than 70 percent of injured rail workers are able to return to work; (4) railroads would save an average of $100 per employee if injured workers continue to work after receiving settlement; (5) a no-fault compensation system would reduce railroads' administrative costs, but limit the amount of compensation and legal counsel that injured workers receive; (6) small railroads have fewer lost workdays and lower injury rates than large railroads; (7) small railroads have lower FELA costs than large railroads and rely on insurance payments to avoid high FELA payouts; (8) railroads could reduce their administrative costs by placing a cap on compensation for noneconomic losses and limiting plaintiff's legal fees; (9) railroad management and labor disagree over how well FELA is working and whether it should be replaced or changed; and (10) FELA is no more burdensome for passenger and small freight railroads than it is for large freight railroads.

RCED-96-199 Federal Employers' Liability Act: Issues Associated With Changing How Railroad Work-Related Injuries Are Compensated