As the United States railroad industry grew at the turn of the 20th century, worker accidents followed closely behind. As a result of injuries and incidents illustrating obvious employer negligence, Congress drafted legislation that would govern workers' compensation regarding injuries in this specific field of work. Known as the Federal Employers Liability Act, or FELA, this legislation has protected railroad employees under a different set of legal guidelines compared to the remainder of the American workforce.

This alternative to regular state compensation laws, which are optional for railroad workers in particular, provides a significantly different system. While standard compensation law may grant benefits without necessary litigation, FELA compensation does not. Under this law, a railway laborer must prove the negligence of their employer. Although this can make the process of receiving compensation more difficult, it also means that compensatory funds are much more abundant for these workers.

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