High Court Creates Split among States on Taxability of FELA Awards

The Missouri Supreme Court has created a split among the states as to whether an injured worker's recovery under the Federal Employer's Liability Act is taxable compensation for purposes of the Railroad Retirement Tax Act.According to the Supreme Courts of Nebraska and Iowa, an employer can make tax withholdings from a worker's FELA award, but Missouri's highest court on Tuesday said "no."Defense attorney William A. Brasher of Boyle Brasher said the Missouri Supreme Court's ruling in Mickey v. BNSF Railway Co. places his client "between a rock and a hard place." He exp...