Relying solely on Part 217 testing could leave gaps in your 243 oversight obligations—especially as scrutiny on compliance grows. Railroads may use their existing operational testing program to meet Part 243’s periodic oversight requirement—but only if it also addresses the specific scope and standards outlined in 243.205.
Under §243.205(a), employers must document and follow a program of periodic oversight that verifies safety-related employees are complying with applicable FRA regulations. This applies to both railroad and contractor personnel performing safety-sensitive duties.
“An employer shall adopt and comply with a program to conduct periodic oversight tests and inspections to determine if safety-related railroad employees comply with Federal railroad safety laws, regulations, and orders related to FRA-regulated personal and work group safety.” – §243.205(a)
Railroads with an existing operational testing program under Part 217 can often adapt it to meet the documentation requirements of Part 243—but adjustments will likely be needed. Your program must clearly show how oversight is being conducted in line with §243.205.
Contractors are also required to document their periodic oversight. If you don’t already have a formal program in place, using a structure similar to a 217 plan is a good starting point. For those with an internal audit or safety observation process, these can often be updated to meet 243 expectations without starting from scratch.
Periodic oversight in Part 243 is limited to three specific areas:
While you may already be performing operational tests under Part 217, those tests likely won’t cover everything required under 243. The oversight must align with observable employee behaviors found in Parts 214, 218, and 220.
If you’re an ASLRRA member, you may already be using updated templates that reflect these areas. It’s also a good idea to review your on-the-job training (OJT) checklists for each of the three rule parts. Look for any gaps or missing inspections or tests—particularly around areas like Roadway Maintenance Machine checks under 214 Subpart D, which are often overlooked.
Also worth noting: Employees certified under Part 240 (engineers) and Part 242 (conductors) are not required to be included in your 243 oversight program.
Under FRA Part 243, records of periodic oversight must be kept for a minimum of three years—a significant change from Part 217, which requires only one year of retention.
For every oversight test or inspection, employers must document:
Keeping these records complete and organized is critical—not only for compliance, but also for demonstrating the effectiveness of your training and oversight program during an FRA review.
Contractors covered by Part 243 must also conduct periodic oversight. FRA guidance makes one distinction: railroads are not required to oversee a contractor’s employees if the contractor:
When all three conditions are met, the contractor is responsible for its own program.
In practice, however, many railroads still assign oversight responsibility back to contractors through contract terms—regardless of company size. That means contractors should be prepared to manage oversight either way, and ensure their program is documented and compliant.
Related blog resource: https://www.sparkts.net/blogs/do-railroad-contractors-need-an-fra-approval-letter
It’s easy to confuse periodic oversight with on-the-job training, but the intent and outcomes are different if there is an exception:
Key takeaway: Oversight verifies that training was effective. OJT builds skills before an employee is considered qualified.
Read more about this topic in our blog here.
What the FRA Says About Periodic Oversight Under Part 243
The FRA’s 243 Compliance Guide (p. 22) provides detailed direction on the purpose and use of periodic oversight. Here’s the excerpt in full:
Periodic oversight seeks to accomplish two goals:
The annual review in 49 CFR § 243.207 is intended to spur a global review of training and trigger adjustments that improve the effectiveness of training courses. Taken together, these oversight and review actions should lead to significant improvements in compliance and the overall quality of training programs. Recording oversight and identifying problem areas are intended to compel each employer to focus on how a training course can be improved to place greater emphasis on the causes of such noncompliance. The essence of oversight and annual reviews is to assess the effectiveness of training programs and make curriculum adjustments to initial or refresher training programs to focus on problem areas.
Railroads are not required to conduct periodic oversight on supervisors who are responsible for conducting oversight. However, FRA inspectors may conduct oversight of supervisors to assess their knowledge, skills, and abilities related to the tests required by 49 CFR § 243.205. This is analogous to the oversight FRA conducts per 49 CFR § 217.9. Railroads may combine the operational test program required by 49 CFR § 217.9 with 49 CFR § 243.205 but must notify FRA of that fact in their training program submission.
Why This Matters
This section makes clear that FRA views oversight as a tool for continuous improvement, not just a compliance checkbox. Employers are expected to use oversight results—both individual and aggregated—to strengthen their training programs over time.
Next Steps: What This Means for Your Team
Whether you're overseeing a Class I railroad, short line, or contractor crew, your 243-oversight program needs to be aligned, documented, and auditable. That means:
Need Help Navigating 243 Oversight?
We’ve helped Class I, short line, and contractor clients successfully implement their 243 programs—from documentation to testing and recordkeeping.
If you’re unsure where to begin or want a second set of eyes on your oversight plan, we’re here to support you.
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