COVID-19 Economic Relief Bill Extends Unemployment Insurance Guarantees for Railroaders

While the $2 trillion relief package is designed to alleviate impacts of the economic downturn that has resulted from the COVID-19 pandemic, the legislation also includes a number of provisions that impact railroad employees, specifically in the area of unemployment insurance. President Trump signed the bill later the same day.

March 27, 2020

The United States Congress March 27 approved the Coronavirus Aid, Relief, and Economic Security (CARES) Act. President Trump signed the bill later the same day.

While the $2 trillion relief package is designed to alleviate impacts of the economic downturn that has resulted from the COVID-19 pandemic, the legislation also includes a number of provisions that impact railroad employees, specifically in the area of unemployment insurance.

Railroad employees are covered under the Railroad Unemployment Insurance Act (RUIA), implemented by the U.S. Railroad Retirement Board. Under the CARES Act:

  • The current 7-day waiting period will be waived for unemployment and sick leave benefits under the RUIA, through Dec. 31, 2020.
  • Unemployed railroad workers will receive the same $600 per week enhanced benefit that would be received by unemployed non-railroad workers, through July 31, 2020.
  • Unemployment benefits under RUIA are temporarily extended to allow for an additional 13 weeks of payments.

“Ultimately, this legislation places railroad employees on the same footing as non-railroad employees in regard to government unemployment insurance benefits,” said Printz Bolin, vice president-External Relations, whose staff worked closely with the Association of American Railroads (AAR) to ensure Congress included the provisions in the final bill.

The legislation also helps financially support continued operation of passenger rail service throughout the country during the pandemic emergency.

In addition, the Federal Railroad Administration (FRA) granted railroads regulatory flexibility to continue operations should a COVID-19 outbreak result in reduced staffing levels, affecting the railroads’ ability to keep freight trains carrying critical goods and materials necessary for the country’s welfare operating during this emergency.