EMPLOYEE STATUS DETERMINATION

Professional/Technical Provider Assistants

State Relation Consultants

CSX Transportation

This is the determination of the Railroad Retirement Board

concerning the status of Prof ess ional/Technical Provider Assistants

(PTPAs) and State Relation Consultants (SRCs) under the Railroad

Retirement Act (RRA) and Railroad Unemployment Insurance Act

(RUIA). These individuals perform services for CSX Transportation

(CSXT). Information about these individuals was obtained through

a compliance audit of CSXT for calendar years 1991, 1992, and

1993 .

CSXT uses three categories of state relations personnel;

1) State Relation Representatives (SRRs) who are CSXT

employees,

2) Professional/Technical Provider Assistants (PTPAs), and

3) State Relation Consultants (SRCs).

The persons performing services under categories 2 and 3 are

considered by CSXT to be independent contractors.

SRR's (CSXT employees) perform the following work duties:

1) Represent CSX interests before governmental agencies and

legislative bodies at state and/or local level;

2) Facilitate relationships between all corporate entities

and state and local governmental agencies, and

legislative bodies;

3) Promote CSX with business, civic and public affairs

organizations, and;

4) Assume public relations activities to enhance corporate

image and visibility.

PTPAs perform the following services for CSXT:

1) Legislative bill tracking, monitoring and research;

2) Attendance at meetings/ sessions of governmental agencies

and or legislative bodies;

3) Compilation of information and preparation of various

reports and correspondence, and;

4) A variety of routine office functions.

Although the duties of SRCs vary, they consist primarily of the

following:

1) Assist in representing CSX interests before governmental

agencies and legislative bodies at state and/or local

level;

BCD 1996-85.1 BA # 1524
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Professional/Technical Provider Assistants

State Relation Consultants

CSX Transportation

2) Maintain legislative and regulatory administrative

contacts sufficient to monitor legislative developments

and administrative regulations of interest to CSX;

3) Assist in coordinating and facilitating relationships

with state and local governmental agencies; and

4) Development of programs and financial sources for public

grade crossing construction and maintenance programs.

Both the PTPAs and SRCs work under written contracts which declare

them to be independent contractors and make them responsible for

all applicable taxes. Both groups are paid a monthly salary or

retainer and are ultimately responsible to CSXT's Director of State

Relations. Both are presumably free to offer their services to

other clients but, as will be seen, in the case of the PTPAs this

would not appear to be practicable. None of the PTPAs or SRCs

operate consulting businesses.

The PTPAs' function is generally to assist the SRRs who are CSXT

employees. PTPAs perform a combination of administrative functions

and clerical functions. They work on CSXT leased premises and use

CSXT equipment and supplies. They receive operating instructions

from SRR managers. Their hours generally coincide with CSXT

business hours although their work time is flexible depending on

their arrangement with their SRR manager.

SRCs do not work on CSXT premises and maintain no set hours. They

work as much as needed to accomplish their objectives as dictated

by the SRC to whom they report. They are essentially monitored

only with respect to results. SRCs are not provided offices or

supplies by CSXT. They are reimbursed for out of pocket travel and

telephone expenses.

Section 1(b) of the RRA defines the term "employee" to mean "any

individual in the service of one or more employers for

compensation." Section 1(d)(1) of the RRA provides in pertinent

part that an individual is in the service of an employer if:

(i) (A) he is subject to the continuing authority of the

employer to supervise and direct the manner of rendition of

his service, or (B) he is rendering professional or technical

services and is integrated into the staff of the employer, or

(C) he is rendering, on the property used in the employer's

operations, personal services the rendition of which is

integrated into the employer's operations. [45 U.S.C. §

231(d)(1)(i)].
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Professional/Technical Provider Assistants

State Relation Consultants

CSX Transportation

Section 1 of the RUIA continues essentially the same definition.

Applying the above definition to the facts with respect to

the PTPAs, it is the Board's determination that they are employees

of CSXT. Their job is essentially to assist the SRRs and they are

supervised by an SRR manager, an employee of CSXT. Accordingly,

PTPAs are "subject to the continuing authority of [CSXT] to

supervise and direct the manner of rendition of [their services] . "

SRCs are not, in the Board's opinion, employees of CSXT. Rather

their role, as their name suggests, is closer to that of a true

consultant who is not controlled as to the manner in which he or

she renders services, but only with respect to results. Their mode

of operation is that of an independent contractor in that they do

not work on employer premises or use employer supplies and

equipment and generally set their own hours.

For the reason discussed above, a majority of the Board finds that

the PTPAs are employees of CSXT while the SRCs are not.

Glen L. Bower

rome F. Kever (Dissenting)