The U.S. Court of Appeals for the 11th Circuit ruled Tuesday that a federal requirement for freight trains to have at least two crew members will remain in place. The decision rejected an appeal brought by six U.S. railroads, including Union Pacific and BNSF, along with two industry groups.
The Federal Railroad Administration (FRA) introduced the crew-size rule following a 2023 derailment in East Palestine, Ohio. In that incident, a train carrying toxic vinyl chloride and other hazardous chemicals derailed, resulting in spills and a fire. Organized labor groups had advocated for the rule to maintain staffing levels amid heightened scrutiny of railroad safety.
Railroad companies argued in their appeal that the FRA exceeded its general rule-making authority by issuing the mandate. The companies also contended that the agency failed to consider the economic impact on railroads that intended to transition to one-person crews. They characterized the omission of these labor costs as making the final rule arbitrary and capricious.
The scale of the financial impact remains a point of contention between the court and the industry. While the source does not provide a specific total dollar amount for the entire industry, the railroads argued that the labor costs associated with maintaining two-person crews represent a "major category" of expense. For individual railroads, this translates to the ongoing cost of salary and benefits for a second crew member on every eligible freight train, rather than the lower operational costs of a single-pilot system.
The ruling sets a precedent for the FRA’s authority to regulate staffing levels in the interest of safety following major industrial accidents. One dissenting judge noted that the FRA's research did not clearly support the necessity of a two-person minimum and criticized the agency for not performing a full cost-benefit analysis regarding labor. Following this appellate court decision, the rule remains enforceable, though the source does not list a specific date for new compliance deadlines or further legal challenges.