EMPLOYER STATUS DETERMINATION

Respondek Railroad Corporation (RRC)

SEP 1 9 2000

This is a determination of the Railroad Retirement Board concerning the status

ofthe Respondek Railroad Corporation (RRC) as an employer under the

Railroad Retirement Act (45 U.S.C. §231 et and the Railroad

Unemployment Insurance Act (45 U.S.C. §351 el seq.). The Board previously

determined in B. C. D. 96-13, that RRC was not a rail carrier employer under

the Acts and further, that service performed by employees ofRRC, under

contract with the SEMO Port Railroad, Inc. (SEMO) (B. A. No. 2870), was

creditable as service as employees of SEMO. RRC contacted the Board’s Office

ofAudit and Compliance regarding a change in its business operations.

Information regarding RRC was furnished by Terry L. Respondek , owner and

Chief Executive Officer ofRRC. According to Mr. Respondek , RRC does

interplant switching for Equillon (Shell Oil) and B. P. Amoco Oil in Wood River,

Illinois and G. E. Plastic at Burkville, Alabama. Mr. Respondek stated that he

and his brother, Jerry Respondek, together no longer operate SEMO in Scott

City, Missouri. Jerry Respondek took over the entire operation at the Semo

Port and now operates his own private company under the name Motive Rail,

according to Mr. Respondek.1 Mr. Respondek indicated that in August of 1999,

RRC was awarded a contract to operate about IV2 miles of rail line for the Bi

State Development Agency (BSDA), a non-carrier employer under the Acts.

See Legal Opinion L-91-86, Notice No. 91-42. Mr. Respondek stated that RRC is 

not “paid anything by the railroad for the handling of railcars,” but that RRC

“bill[s] the customers on the line directly.”

Additional information regarding RRC was furnished by Debby Respondek,

Office Manager of RRC. According to Ms. Respondek, RRC has a total of nine

employees who were first compensated on August 10, 1999. Ms. Respondek

stated that RRC has individually contracted with each ofthe shippers on the

line by service agreements to provide service “cost structured according to the

volume of rail cars moved per year.” RRC interchanges with the Union Pacific

Railroad Company (B. A. No. 1715).

Section 1(a)(1) ofthe Railroad Retirement Act (45 U.S.C. §231(a)(1)), insofar as

relevant here, defines a covered employer as:

(i) any carrier by railroad subject to the jurisdiction ofthe

Surface Transportation Board under part A ofsubtitle IV of Title

49, United States Code.

'Audit and Compliance is investigating SEMO and Motive Rail.

BA# 2882
Respondek Railroad Corporation (RRC)

The evidence of record establishes that RRC now operates as a rail carrier

subject to the jurisdiction ofthe Surface Transportation Board. Accordingly, it

is determined that Respondek Railroad Corporation became an employer

within the meaning ofsection l(a)(l)(i) ofthe Railroad Retirement Act (45

U.S.C. §23 l(a)(l)(i)) and the corresponding provision ofthe Railroad

Unemployment Insurance Act effective August 3, 1999, the date on which it

commenced railroad operations. The Board also finds that RRC is a new rail

carrier employer for purposes of experience rating under the RUIA. See 20

CFR §345.304.