---
kind: "section"
citation: "49 U.S.C. § 11326"
title: "49"
title_heading: "Transportation"
number: "11326"
heading: "Employee protective arrangements in transactions involving rail carriers"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/49/11326"
units:
  - "Subtitle IV — Interstate Transportation"
  - "Part A — Rail"
  - "Chapter 113 — Finance"
  - "Subchapter II — Combinations"
---

# §11326. Employee protective arrangements in transactions involving rail carriers

- (a) Except as otherwise provided in this section, when approval is sought for a transaction under sections [11324](/usc/49/11324.md) and [11325](/usc/49/11325.md) of this title, the [Board](/usc/49/10102.md?p=1) shall require the [rail carrier](/usc/49/10102.md?p=5) to provide a fair arrangement at least as protective of the interests of employees who are affected by the transaction as the terms imposed under section 5(2)(f) of the Interstate Commerce Act before February 5, 1976, and the terms established under [section 24706(c)](/usc/49/24706.md?p=c)[^1] of this title. Notwithstanding this part, the arrangement may be made by the [rail carrier](/usc/49/10102.md?p=5) and the authorized representative of its employees. The arrangement and the order approving the transaction must require that the employees of the affected [rail carrier](/usc/49/10102.md?p=5) will not be in a worse position related to their employment as a result of the transaction during the 4 years following the effective date of the final action of the [Board](/usc/49/10102.md?p=1) (or if an employee was employed for a lesser period of time by the [rail carrier](/usc/49/10102.md?p=5) before the action became effective, for that lesser period).
- (b) When approval is sought under sections [11324](/usc/49/11324.md) and [11325](/usc/49/11325.md) for a transaction involving one Class II and one or more Class III [rail carriers](/usc/49/10102.md?p=5), there shall be an arrangement as required under [subsection (a)](#a) of this section, except that such arrangement shall be limited to one year of severance pay, which shall not exceed the amount of earnings from the [railroad](/usc/49/10102.md?p=6) employment of that employee during the 12-month period immediately preceding the date on which the application for approval of such transaction is filed with the [Board](/usc/49/10102.md?p=1). The amount of such severance pay shall be reduced by the amount of earnings from [railroad](/usc/49/10102.md?p=6) employment of that employee with the acquiring [carrier](/usc/49/13102.md?p=3) during the 12-month period immediately following the effective date of the transaction. The parties may agree to terms other than as provided in this subsection.
- (c) When approval is sought under sections [11324](/usc/49/11324.md) and [11325](/usc/49/11325.md) for a transaction involving only Class III [rail carriers](/usc/49/10102.md?p=5), this section shall not apply.

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Added Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 842.)

## Notes

### Editorial Notes

### References in Text

Section 5(2)(f) of the Interstate Commerce Act, referred to in subsec. (a), was classified to section 5(2)(f) of former Title 49, Transportation, prior to repeal and reenactment as section 11347 of this title by Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1439. Section 11347 of this title was subsequently omitted in the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

Section 24706(c) of this title, referred to in subsec. (a), was repealed by Pub. L. 105–134, title I, § 142(a), Dec. 2, 1997, 111 Stat. 2576.

### Prior Provisions

Provisions similar to those in this section were contained in section 11347 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Jan. 1, 1996, except as otherwise provided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title.