B.C.D. 01-80 OCT 1 0 2001

EMPLOYER STATUS DETERMINATION

InterSys Technology, Inc.

This is the determination of the Railroad Retirement Board

concerning the status of InterSys Technology, Inc., as an employer

under the Railroad Retirement Act (45 U.S.C. § 231 et se^.) and

the Railroad Unemployment Insurance Act (45 U.S.C. § 351 et

sea-)-

Information regarding InterSys was provided by Donald R. Mader,

President of InterSys, and also from the InterSys website.

According to Mr. Mader, InterSys was incorporated August 30,

1995, and began doing business the following month. InterSys is

a privately held company owned by Donald R. Mader, Tracey

Mader, and Fletcher Bornschlegl. None of these individuals is an

officer or director of, or has a controlling interest in, a rail carrier.

No railroad has a financial interest in InterSys. InterSys reports

that it currently has three employees, although it hires other

individuals to staffits projects on a per contract basis.

InterSys does consulting work regarding information technology.

It consults on testing methodology and processes, system and

process training, implementation strategies, and mainframe

programming. A recently obtained contract with the Metropolitan

Transportation Authority in New York involves the provision of 

permanent personnel to that company.1 About 98 percent of 

InterSys’ business has been with the rail industry, including

Burlington Northern and Santa Fe, the Canadian National

Railroad, etc. and others.

1 Although it is not a covered employer under the RRA and the RUIA, the

Metropolitan Transportation Authority (MTA) has a BA number for

accounting and payroll purposes for reporting its employees who work at

Metro-North Railroad, which is a covered employer under the Acts. The

Board’s office ofAudit and Compliance is reviewing whether individuals 

working under the InterSys contract with MTA are working for Metro-North 

Railroad.
InterSys Technology, Inc.

Section 1(a)(1) of the 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 of the Surface Transportation Board under

Part A of subtitle IV of title 49, United States Code;

(ii) any company which is directly or indirectly

owned or controlled by, or under common control with,

one or more employers as defined in paragraph (i) of

this subdivision, and which operates any equipment or

facility or performs any service (except trucking service,

casual service, and the casual operation of equipment or

facilities) in connection with the transportation of

passengers or property by railroad * * *.

Sections 1(a) and 1(b) of the Railroad Unemployment Insurance

Act (45 U.S.C. §§ 351(a) and (b)) contain substantially the same

definition, as does section 3231 of the Railroad Retirement Tax Act

(26 U.S.C. § 3231).

InterSys clearly is not a carrier by rail. Further, the evidence

establishes that it is not under common ownership with any rail

carrier nor is it controlled by officers or directors who control a 

railroad. Therefore, InterSys is not a covered employer under the

Acts.

CherryFT. Thomas