In the 1916 case of Atlantic City Railroad Company v. Parker, the U.S Supreme Court ruled in favor of Parker, a railroad employee who was injured on the job and sought compensation from his employer. The court held that under New Jersey's Workmen's Compensation Act, an employee could recover damages for injuries sustained during employment without proving negligence on part of their employer. This ruling upheld the constitutionality of workers' compensation laws which provided benefits to employees hurt at work regardless of fault. It also affirmed that states have power to regulate businesses within their jurisdiction for welfare purposes even if it may affect interstate commerce indirectly.

In the dissenting opinion for Atlantic City Railroad Company v. Parker, it was argued that the plaintiff should not be awarded damages because he willingly assumed risk when he chose to ride on a platform of a train car rather than inside where seats were available. The justice contended that there was no evidence presented showing negligence by the railroad company and thus, they should not be held liable for injuries sustained in such circumstances. Furthermore, it was pointed out that if passengers are allowed to recover damages under these conditions, then railroads would essentially become insurers of passenger safety even when those passengers disregard their own personal safety by choosing risky behavior like riding on platforms instead of using provided seating within cars. This could potentially lead to an increase in reckless behavior among passengers as they would have no incentive to act responsibly while traveling on trains.