Three Federal Workers' Compensation Systems You Probably Never Heard About

Three federal compensation systems - FELA, the Jones Act, and the LHWCA - protect millions of railroad workers, seamen, and harbor employees whose jobs fall outside traditional state workers' compensation coverage. These systems operate under entirely different rules than state programs, with different claim requirements, burden of proof standards, and benefit structures that determine what you can recover after a workplace injury.

While the national workers' compensation system wrote more than forty-six billion dollars in premiums in 2024 through state programs, workers in rail and maritime industries don't participate in that system at all. If you're a guy working on the railroad, aboard a vessel, or along the docks, understanding which federal system applies to your job isn't just useful information - it determines what you need to prove after an injury, what damages you can recover, and how your claim will be processed.

FELA: The Federal System for Railroad Workers

The Federal Employers' Liability Act stands as one of the oldest worker-protection systems in the United States, passed by Congress in 1908 to address what President Benjamin Harrison called conditions comparable to "a soldier at war."

During the decades when the steam-engine train rides we love today were part of everyday transportation, rail work was among the most dangerous occupations in the country. Between 1889 and 1920, railroad use expanded six-fold, and injuries and deaths climbed with it. Workers had no consistent pathway for compensation when unsafe conditions caused accidents.

FELA changed that by creating a negligence-based system that allows railroad employees to seek recovery when employer negligence contributes to an injury. Unlike state workers' compensation where benefits are automatic regardless of fault, FELA requires the worker to show that the railroad played some role in causing the injury - though the burden of proof is notably lower than in typical personal injury cases.

Consulting a FELA lawyer before filing a claim helps employees navigate procedural requirements that differ significantly from state workers' comp. In return for proving some degree of employer negligence, FELA allows employees to pursue a wider range of damages than traditional workers' compensation, including compensation for pain, suffering, and long-term impacts on quality of life. If a buddy at work tells you his settlement was higher than what state workers' comp pays, this is why - FELA damages aren't limited to a statutory schedule.

Here's what many workers don't realize: comparative negligence works in your favor under FELA. Even if you were partially at fault for your injury, you can still recover damages reduced only by your percentage of fault. In most states, being 50% or more at fault bars recovery entirely.

The Jones Act: The Federal System for Injured Seamen

The Jones Act, formally Section 27 of the Merchant Marine Act of 1920, provides injury protections to seamen working on vessels in navigation. This includes crew members on tugboats, barges, cargo ships, dredges, ferries, commercial fishing vessels, and offshore service boats.

Congress enacted the Merchant Marine Act primarily to support the development of the American merchant marine industry following World War I and to require that vessels transporting goods between U.S. ports be built, owned, and crewed by Americans. Within this broader framework, Section 27 extended the FELA protections already available to railroad workers directly to seamen - recognizing that maritime work carried similar dangers and that workers spending significant time at sea or in waters between state jurisdictions needed federal protection.

Because these workers operate outside the reach of state workers' compensation programs, the Jones Act provides a clear pathway for recovery when unsafe conditions or employer negligence contribute to an accident. A key feature is that it allows injured seamen to file claims directly against their employers and provides the right to a jury trial - a right not typically available in maritime lawsuits.

To qualify as a "seaman" under the Jones Act, a worker must spend at least 30% of their working time aboard a vessel on navigable waters. This threshold determines whether you're covered by the Jones Act or by the Longshore and Harbor Workers' Compensation Act, which we'll cover next.

In addition to compensation for lost wages and medical care, seamen covered under the Jones Act can also pursue damages for pain, suffering, and long-term impacts on their ability to work. The Act also provides "maintenance and cure" benefits - daily living expenses and medical costs that continue until the worker reaches maximum medical improvement, regardless of who was at fault.

For guys working offshore or on commercial vessels, this combination of negligence-based recovery plus maintenance and cure makes the Jones Act one of the most comprehensive federal protection systems available. If you're unsure whether your duties qualify you as a seaman, the determination is fact-specific and often worth discussing with a maritime attorney.

LHWCA: The System for Longshore and Harbor Workers

The Longshore and Harbor Workers' Compensation Act was enacted in 1927 to protect employees who work in maritime zones but do not qualify as "seamen" under the Jones Act.

These roles include dockworkers, shipyard employees, cargo handlers, harbor crews, and marine construction teams - jobs that sit at the intersection of land-based and maritime operations where state workers' compensation programs often don't apply. Before LHWCA, these workers faced significant coverage gaps because their duties frequently crossed jurisdictional boundaries between navigable waters and adjoining areas like piers, terminals, and docks.

The LHWCA was designed to close that gap by establishing a federal no-fault workers' compensation system. Unlike negligence-based systems like FELA and the Jones Act, the LHWCA doesn't require workers to prove employer fault. If you're injured on the job and you meet the coverage criteria, you're entitled to benefits.

The system provides medical care, wage replacement at two-thirds of your average weekly wage during disability periods, and rehabilitation services for qualifying injuries. LHWCA also covers occupational illnesses stemming from long-term exposure to chemicals, heavy machinery, and industrial maritime environments - an important protection for workers who develop conditions over time rather than through a single accident.

Workers must notify their employer within 30 days of an injury and file a claim within one year. Missing these deadlines can result in claim denial, so understanding the timeline matters, especially for occupational diseases where the date of injury isn't always clear.

For workers in Texas guys trips industries like offshore oil and gas support, the distinction between LHWCA coverage and Jones Act coverage often comes down to how much time you spend aboard vessels. If you're primarily working on fixed platforms or docks, LHWCA likely applies; if you're spending 30% or more of your time on vessels in navigation, you may qualify under the Jones Act instead.

What Workers Should Understand About Their Coverage

If you're employed in a job covered by one of these federal systems, understanding the benefits and limitations of your coverage can make a significant difference when you need to file a claim.

These programs operate differently from state workers' compensation in several important ways: different definitions of who qualifies, different documentation requirements, different claim review processes, and - in the case of FELA and the Jones Act - the need to prove some degree of employer negligence rather than simply documenting a work-related injury.

While general information helps you understand the basics and avoid early mistakes, many workers benefit from consulting with a qualified professional who specializes in their specific system. The rules are technical enough that procedural errors can affect your claim outcome.

One detail worth knowing: federal workers' compensation claims generally have a three-year statute of limitations, longer than the two years common in most state systems. But don't let that extended timeline create complacency - documenting injuries promptly and identifying negligence factors early strengthens your position regardless of which system covers you.