Mickey v. BNSF Ry. Co.

At issue in this case was whether the Railroad Retirement Tax Act (RRTA) requires employers to withhold RRTA taxes on a personal injury plaintiff’s Federal Employers’ Liability Act (FELA) suit. Plaintiff in this case received a judgment on his FELA claim against Burlington Northern Santa Fe Railway Company (BNSF). BNSF tendered less than what it owed on the judgment, claiming that it was required to treat the judgment as if it were for lost wages and therefore subject to RRTA withholding taxes. The trial court concluded that BNSF failed to satisfy the judgment and ordered Safeco Insurance Company, BNSF’s surety, to pay Plaintiff the withheld amount. The Supreme Court affirmed, noting that damages received through a suit or settlement for personal injuries are normally not subject to retirement taxes, and holding that BNSF was incorrect in arguing that the RRTA creates an exception to this law for railroad retirement taxes. View "Mickey v. BNSF Ry. Co." on Justia Law