US railroads lose appeal over two-person crew rule

Six U.S. freight railroads and two industry groups have lost their appeal challenging a new Federal Railroad Administration rule that mandates at least two crew members on many trains. The U.S. Court of Appeals for the 11th Circuit upheld the rule on Tuesday, rejecting the railroads' arguments that it exceeded the agency's general rulemaking authority and failed to consider the costs associated with shifting from one-person crews.

The railroads, including Union Pacific and Berkshire Hathaway-owned BNSF, had opposed the Federal Railroad Administration's crew requirements. The rule was established following efforts by organized labor to maintain crew levels amid heightened scrutiny of railroad safety, particularly after a 2023 derailment in East Palestine, Ohio, involving hazardous chemicals.

One judge dissented from the majority opinion, stating that the FRA's research and evidence did not sufficiently support a minimum crew size. The dissenting judge also noted that the agency's cost-benefit analysis failed to account for the labor costs railroads would incur to comply with the new rule.