October Term 2018 · Docket 17-1042
Does Railroad Compensation Include Sick Leave and Vacation Pay?
BNSF Railway seeks to deduct federal taxes from a jury award. The award includes sick leave and vacation pay. The lower court excluded these items from the deduction.
Verified source milestones
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Ms. Blatt argued the statute must be read as written. She rejected the opposing side's preferred interpretation.
Ms. Kovner argued the Eighth Circuit misconstrued the law. She noted the lower court excluded sick leave and vacation pay.
Justice Gorsuch described compensation as a voluntary employer package. He included sick time and vacation in this definition.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 20-23 — Transcript, file page 10, lines 20-23
- Official Supreme Court Transcript — file page 11, lines 16-16 — Transcript, file page 11, lines 16-16
- Official Supreme Court Transcript — file page 11, lines 34-34 — Transcript, file page 11, lines 34-34
- Official Supreme Court Transcript — file page 12, lines 10-28 — Transcript, file page 12, lines 10-28
- Official Supreme Court Transcript — file page 12, lines 30-32 — Transcript, file page 12, lines 30-32
- Official Supreme Court Transcript — file page 15, lines 11-14 — Transcript, file page 15, lines 11-14
- Official Supreme Court Transcript — file page 15, lines 19-24 — Transcript, file page 15, lines 19-24
- Official Supreme Court Transcript — file page 15, lines 26-30 — Transcript, file page 15, lines 26-30
- Official Supreme Court Transcript — file page 19, lines 32-34 — Transcript, file page 19, lines 32-34
- Official Supreme Court Transcript — file page 28, lines 25-16 — Transcript, file page 28, lines 25-16
- Official Supreme Court Transcript — file page 4, lines 13-13 — Transcript, file page 4, lines 13-13
- Official Supreme Court Transcript — file page 4, lines 30-5 — Transcript, file page 4, lines 30-5
- Official Supreme Court Transcript — file page 4, lines 8-11 — Transcript, file page 4, lines 8-11
- Official Supreme Court Transcript — file page 5, lines 32-9 — Transcript, file page 5, lines 32-9
- Official Supreme Court Transcript — file page 7, lines 28-32 — Transcript, file page 7, lines 28-32
- Official Supreme Court Transcript — file page 9, lines 25-6 — Transcript, file page 9, lines 25-6
A citizen's guide to the whole case
What this case is about
The dispute centers on the definition of compensation under the Railroad Retirement Tax Act. BNSF argues the term covers all employee benefits. Loos argues it covers only active work hours.
Official sources for this section
- Official Supreme Court Transcript — file page 19, lines 32-34 — Transcript, file page 19, lines 32-34
- Official Supreme Court Transcript — file page 28, lines 25-16 — Transcript, file page 28, lines 25-16
- Official Supreme Court Transcript — file page 4, lines 13-13 — Transcript, file page 4, lines 13-13
How the case got here
The Supreme Court heard oral argument in this case on November 6, 2018.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 8-11 — Transcript, file page 4, lines 8-11
What each side wants
BNSF wants the Court to define compensation broadly. This allows BNSF to deduct federal taxes from the full award.
Loos wants the Court to define compensation narrowly. This prevents BNSF from deducting taxes from non-work benefits.
Official sources for this section
- Official Supreme Court Transcript — file page 19, lines 32-34 — Transcript, file page 19, lines 32-34
- Official Supreme Court Transcript — file page 28, lines 25-16 — Transcript, file page 28, lines 25-16
- Official Supreme Court Transcript — file page 4, lines 13-13 — Transcript, file page 4, lines 13-13
What each side says
BNSF argues the statute covers all voluntary employer payments. This includes sick time, vacation, and severance pay.
Loos argues the statute covers only payments for active service. This excludes benefits tied to absence or termination.
Official sources for this section
- Official Supreme Court Transcript — file page 19, lines 32-34 — Transcript, file page 19, lines 32-34
- Official Supreme Court Transcript — file page 28, lines 25-16 — Transcript, file page 28, lines 25-16
- Official Supreme Court Transcript — file page 4, lines 13-13 — Transcript, file page 4, lines 13-13
What the justices asked
Justice Sotomayor asked if BNSF actually paid federal taxes beforehand. She questioned the practical credit mechanism.
Justice Kagan asked why pain and suffering damages would not count as compensation. She linked the injury to the job context.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 20-23 — Transcript, file page 10, lines 20-23
- Official Supreme Court Transcript — file page 11, lines 16-16 — Transcript, file page 11, lines 16-16
- Official Supreme Court Transcript — file page 11, lines 34-34 — Transcript, file page 11, lines 34-34
- Official Supreme Court Transcript — file page 12, lines 10-28 — Transcript, file page 12, lines 10-28
- Official Supreme Court Transcript — file page 12, lines 30-32 — Transcript, file page 12, lines 30-32
- Official Supreme Court Transcript — file page 15, lines 11-14 — Transcript, file page 15, lines 11-14
- Official Supreme Court Transcript — file page 15, lines 19-24 — Transcript, file page 15, lines 19-24
- Official Supreme Court Transcript — file page 15, lines 26-30 — Transcript, file page 15, lines 26-30
- Official Supreme Court Transcript — file page 4, lines 30-5 — Transcript, file page 4, lines 30-5
- Official Supreme Court Transcript — file page 5, lines 32-9 — Transcript, file page 5, lines 32-9
- Official Supreme Court Transcript — file page 7, lines 28-32 — Transcript, file page 7, lines 28-32
- Official Supreme Court Transcript — file page 9, lines 25-6 — Transcript, file page 9, lines 25-6
Why it matters
The ruling defines the scope of federal tax deductions. It affects how railroads calculate employee benefits. It determines the final amount workers receive after taxes.
Official sources for this section
- Official Supreme Court Transcript — file page 19, lines 32-34 — Transcript, file page 19, lines 32-34
- Official Supreme Court Transcript — file page 28, lines 25-16 — Transcript, file page 28, lines 25-16
- Official Supreme Court Transcript — file page 4, lines 13-13 — Transcript, file page 4, lines 13-13
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 20-23 — Transcript, file page 10, lines 20-23
- Official Supreme Court Transcript — file page 11, lines 16-16 — Transcript, file page 11, lines 16-16
- Official Supreme Court Transcript — file page 11, lines 34-34 — Transcript, file page 11, lines 34-34
- Official Supreme Court Transcript — file page 12, lines 10-28 — Transcript, file page 12, lines 10-28
- Official Supreme Court Transcript — file page 12, lines 30-32 — Transcript, file page 12, lines 30-32
- Official Supreme Court Transcript — file page 15, lines 11-14 — Transcript, file page 15, lines 11-14
- Official Supreme Court Transcript — file page 15, lines 19-24 — Transcript, file page 15, lines 19-24
- Official Supreme Court Transcript — file page 15, lines 26-30 — Transcript, file page 15, lines 26-30
- Official Supreme Court Transcript — file page 4, lines 30-5 — Transcript, file page 4, lines 30-5
- Official Supreme Court Transcript — file page 4, lines 8-11 — Transcript, file page 4, lines 8-11
- Official Supreme Court Transcript — file page 5, lines 32-9 — Transcript, file page 5, lines 32-9
- Official Supreme Court Transcript — file page 7, lines 28-32 — Transcript, file page 7, lines 28-32
- Official Supreme Court Transcript — file page 9, lines 25-6 — Transcript, file page 9, lines 25-6
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 19, lines 32-34 — Transcript, file page 19, lines 32-34
- Official Supreme Court Transcript — file page 28, lines 25-16 — Transcript, file page 28, lines 25-16
- Official Supreme Court Transcript — file page 4, lines 13-13 — Transcript, file page 4, lines 13-13
- Official Supreme Court Transcript — file page 19, lines 32-34 — Transcript, file page 19, lines 32-34
- Official Supreme Court Transcript — file page 28, lines 25-16 — Transcript, file page 28, lines 25-16
- Official Supreme Court Transcript — file page 4, lines 13-13 — Transcript, file page 4, lines 13-13
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.