Alaska Railroad and FELA: Understanding FELA for small and state-owned railroads

Across many rulings, courts have found FELA applicable when a railroad participates in cross-state movement of goods or passengers, connects to interstate rail networks, or handles freight on a continuous interstate journey. The Supreme Court has consistently favored a broad reading of the law, holding that workers are covered if their duties further or directly affect interstate commerce, even at a railroad that operates entirely within one state.

FELA applies to railroads that only run a few miles of track or serve one region or industry. It also applies to railroads that connect to a larger rail network or move freight that is part of interstate shipments. The number of miles of track or workers a railroad has does not matter; what matters is whether its operations are part of a larger interstate transportation system. Many short-line and regional railroads meet this standard and are subject to FELA as a result.

The unique case of the Alaska Railroad

The Alaska Railroad Corporation is state-owned, operates almost entirely within Alaska, and is not part of the contiguous U.S. rail network, which leads many workers to assume it falls outside the reach of federal railroad law. Federal courts have examined this question directly and determined that the Alaska Railroad is subject to FELA because of its role in interstate commerce.

Despite its structure, the Alaska Railroad transports goods that are part of interstate and international commerce and connects with shipping systems that move freight between Alaska and other U.S. states. Freight may arrive in Alaska by ship, move along the railroad, and continue its journey elsewhere, or goods may originate in Alaska and be shipped out to other states. Because of this continuous flow, courts have placed the Alaska Railroad within the scope of interstate commerce for FELA purposes.

The Supreme Court ruled in Parden v. Terminal Railway of Alabama State Docks Department that state-owned railroads that do business across state lines are still subject to federal laws like FELA. Federal courts have used the same logic to rule on the Alaska Railroad, confirming that state ownership and geographic isolation do not remove a railroad from federal jurisdiction when its operations are tied to the movement of goods across state lines.

What this means for injured railroad workers

If you work for a short-line railroad, a regional carrier, or a state-owned railroad like the Alaska Railroad, you may still have rights under FELA. Workers on smaller or local railroads often assume they fall outside these protections, and because coverage is determined by the railroad's role in interstate commerce rather than its geography or size, that assumption can cost injured workers the full compensation they are entitled to.

FELA offers protections that look quite different from standard workers' compensation, including:

• You must prove employer negligence, but if successful, you can recover full damages, including pain and suffering.
• Your recovery is reduced by your percentage of fault rather than eliminated entirely, which is a meaningful distinction from workers' compensation systems that cap or restrict what injured workers can recover.
• Because FELA coverage is tied to interstate commerce and not geography, workers on smaller or regional railroads may have federal protections they are unaware of.

Get expert legal assistance for your FELA claim

Determining whether your railroad falls under FELA requires a close look at how it operates, what it transports, and how its freight connects to the broader interstate system. Railroads may dispute coverage to avoid liability, and resolving those disputes requires a thorough understanding of how courts have applied FELA's interstate commerce standard across different types of carriers.

ELG Law has been representing railroad workers for more than 35 years, including workers at smaller and state-owned railroads. If you got hurt on the job and aren't sure whether FELA applies to you, get in touch for a free consultation.