Court ruling sends strong signal: CSX ordered to pay $453,000

CSX Transportation, a leading American railroad company, was ordered by a U.S. Department of Labor administrative judge to pay a total of $453,000 to two former employees. The two employees were dismissed in 2017 after raising safety concerns about a blue warning signal at a railroad yard in Waycross, Georgia. The compensation includes $248,856 in back wages plus interest and $100,000 each for emotional distress and punitive damages. Additionally, one of the employees will receive $4,654 for health insurance premiums paid after his termination. The decision resulted from an investigation by the Occupational Safety and Health Administration (OSHA), which found that CSX violated federal regulations by removing the employees from their positions. Blue safety flags are essential to protecting maintenance personnel on rail tracks and indicate that the affected tracks must not be moved. "The risk for maintenance workers under such conditions is extremely high, and a clear signal is critical for worker safety," according to the guidelines of the Federal Railroad Administration. Despite these protective measures, CSX removed the employees from service and eventually terminated them, leading to the conviction. OSHA also found that CSX had repeatedly been found guilty of similar violations in recent years. For example, the company was ordered to pay $221,976 to a dismissed employee in New Orleans in July 2021 and to reinstate an employee in Rebecca, Georgia, in October 2020, providing him with more than $95,000 in back wages and $75,000 in punitive damages. Since CEO Joe Hinrichs took over in 2022, the company has focused on increased employee orientation. Hinrichs emphasizes the importance of valuing and recognizing employees to promote safety and efficiency.