Whether a passenger, driver at a crossing or a railroad worker the negligence or carelessness in the operation of a railway system entitles the person injured to compensation. Railroad employees are covered under a separate federal law FELA (Federal Employer’s Liability Act).

Before FELA was enacted in 1908, thousands of railroad workers died every year on the job. Unlike most other workers, railroad employees are generally exempt from coverage under state workers' compensation statutes. FELA allows injured railroad workers to recover compensation based on the negligence of the railroad company, in lieu of workers' compensation. FELA defines negligence as the railroad company's failure to use reasonable care.

The railroad companies have been opposed to FELA since its enactment and have tried unsuccessfully for almost a century to limit its reach or have it repealed. Instead, they have adopted a strategy of simply not paying damages due. Many injured railroad employees have gone years without compensation, even though liability has been clearly established.