Title 49TransportationRelease 119-73

§22404 Employee protection

Title 49 › Subtitle SUBTITLE V— - RAIL PROGRAMS › Part PART B— - ASSISTANCE › Chapter CHAPTER 224— - RAILROAD REHABILITATION AND IMPROVEMENT FINANCING › § 22404

Last updated Apr 6, 2026|Official source

Summary

Railroads must provide fair protections for any workers affected when the railroad gets federal financial help. Those protections must be written in an agreement between railroad and employee representatives no later than 120 days after February 5, 1976. If no agreement is reached by then, the Secretary of Labor must set the protections by 150 days after February 5, 1976. Protections cover every employee employed when the railroad first applies for the money. The parties must agree how the protections will be applied, including notice rules, and sign the agreement before work paid with the funds starts. If no agreement is reached within 30 days after the aid is approved, either side can ask for arbitration. The arbitrator must decide within 30 days. That decision cannot reduce the protections, is final, must be followed, and becomes part of the agreement. Protections must preserve pay (including raises and monthly guarantees), vacations, and fringe benefits like pensions and health care; allow final arbitration for disputes; offer reassignment and retraining when seniority does not protect an employee; and exclude employees who benefit only because of the funded work. Agreements must also set rules for subcontracting work paid for with the funds.

Full Legal Text

Title 49, §22404

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(a)Fair and equitable arrangements shall be provided, in accordance with this section, to protect the interests of any employees who may be affected by actions taken pursuant to authorizations or approval obtained under this chapter. Such arrangements shall be determined by the execution of an agreement between the representatives of the railroads and the representatives of their employees, not later than 120 days after February 5, 1976. In the absence of such an executed agreement, the Secretary of Labor shall prescribe the applicable protective arrangements, not later than 150 days after February 5, 1976.
(b)The arrangements required by subsection (a) of this section shall apply to each employee who has an employment relationship with a railroad on the date on which such railroad first applies for applicable financial assistance under this chapter. Such arrangements shall include such provisions as may be necessary for the negotiation and execution of agreements as to the manner in which the protective arrangements shall be applied, including notice requirements. Such agreements shall be executed prior to implementation of work funded from financial assistance under this chapter. If such an agreement is not reached within 30 days after the date on which an application for such assistance is approved, either party to the dispute may submit the issue for final and binding arbitration. The decision on any such arbitration shall be rendered within 30 days after such submission. Such arbitration decision shall in no way modify the protection afforded in the protective arrangements established pursuant to this section, shall be final and binding on the parties thereto, and shall become a part of the agreement. Such arrangements shall also include such provisions as may be necessary—
(1)for the preservation of compensation (including subsequent general wage increases, vacation allowances, and monthly compensation guarantees), rights, privileges, and benefits (including fringe benefits such as pensions, hospitalization, and vacations, under the same conditions and so long as such benefits continue to be accorded to other employees of the employing railroad in active service or on furlough, as the case may be) to such employees under existing collective-bargaining agreements or otherwise;
(2)to provide for final and binding arbitration of any dispute which cannot be settled by the parties, with respect to the interpretation, application, or enforcement of the provisions of the protective arrangements;
(3)to provide that an employee who is unable to secure employment by the exercise of his or her seniority rights, as a result of actions taken with financial assistance obtained under this chapter, shall be offered reassignment and, where necessary, retraining to fill a position comparable to the position held at the time of such adverse effect and for which he is, or by training and retraining can become, physically and mentally qualified, so long as such offer is not in contravention of collective bargaining agreements relating thereto; and
(4)to provide that the protection afforded pursuant to this section shall not be applicable to employees benefited solely as a result of the work which is financed by funds provided pursuant to this chapter.
(c)The arrangements which are required to be negotiated by the parties or prescribed by the Secretary of Labor, pursuant to subsections (a) and (b) of this section, shall include provisions regulating subcontracting by the railroads of work which is financed by funds provided pursuant to this chapter.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification The text of section 836 of Title 45, Railroads, which was transferred to this section and amended by Pub. L. 117–58, div. B, title I, § 21301(a)(6), (f), was based on Pub. L. 94–210, title V, § 504, formerly § 516, Feb. 5, 1976, 90 Stat. 82; renumbered § 504, Pub. L. 105–178, title VII, § 7203(a)(5), June 9, 1998, 112 Stat. 477.

Amendments

2021—Pub. L. 117–58, § 21301(a)(6), transferred text of section 826 of Title 45, Railroads, to this section. Subsec. (a). Pub. L. 117–58, § 21301(f)(1), in first sentence, struck out “not otherwise protected under title V of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 771 et seq.),” after “any employees” and substituted “under this chapter” for “under this title”; in second sentence, substituted “not later than 120 days after
February 5, 1976” for “within 120 days after the date of enactment of this title”; and in third sentence, substituted “not later than 150 days after
February 5, 1976” for “within 150 days after the date of enactment of this title”. Subsec. (b). Pub. L. 117–58, § 21301(f)(2)(A), substituted “applicable financial assistance under this chapter” for “applicable financial assistance under this title” and “from financial assistance under this chapter” for “from financial assistance under this title” in introductory provisions. Subsec. (b)(3). Pub. L. 117–58, § 21301(f)(2)(B), substituted “under this chapter” for “under this title”. Subsec. (b)(4). Pub. L. 117–58, § 21301(f)(2)(C), substituted “to this chapter” for “to this title”. Subsec. (c). Pub. L. 117–58, § 21301(f)(3), substituted “to this chapter” for “to this title”.

Reference

Citations & Metadata

Citation

49 U.S.C. § 22404

Title 49Transportation

Last Updated

Apr 6, 2026

Release point: 119-73