B.C.D. 04-20

EMPLOYER STATUS DETERMINATION APR 0 6 2004

The Railroad Associates Corporation

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

Railroad Associates Corporation (TRAC) as an employer under the Railroad Retirement

Act (45 U.S.C. § 231 et seq.) and the Railroad Unemployment Insurance Act (45 U.S.C. §

351 et sea.).

TRAC is a privately held company which was incorporated in October 2000 to perform

consulting and engineering for private industries. TRAC’s website states that TRAC

specializes in “railroad feasibility studies, design and construction management services 

for railroads, industry, and government facilities” and that its “’turnkey’ service is

utilized * * * to take rail projects from concept to completion in a very efficient and

economical manner.” A representative ofTRAC states that TRAC has four employees,

none ofwhom perform work on railroad company owned property. The representative

reports that TRAC owns computers and survey equipment. He states that TRAC does

not provide services for a rail carrier, but does submit plans on behalf ofprivate

industries to be approved by railroad officials. The Surface Transportation Board has

not issued any ruling regarding TRAC.

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 fv oftitle 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) ofthis 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 i(a) and i(b) ofthe Railroad Unemployment Insurance Act (45 U.S.C. §§ 351(a)

and (b)) contain substantially similar definitions, as does section 3231 ofthe Railroad

Retirement Tax Act (26 U.S.C. § 3231).
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The Railroad Associates Corporation

The evidence of record establishes that TRAC is not a carrier operating in interstate

commerce. There is also no evidence in the record that it is under common ownership

with any employer under the Acts. Accordingly, it is determined that TRAC is not an

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

U.S.C. § 231(a)(1)) and the corresponding provision ofthe Railroad Unemployment

Insurance Act.

V. M. Speakman, Jr.

(Separate concurring opinion attached)

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Concurring Opinion of V. M. Speakman. JR

Employer Status Determination

The Railroad Associates Corporation

I concur with the result in this case, but less the public think the Board has nothing better

to do than to issue decisions on enterprises over which it clearly has no jurisdiction, I

feel I should note that Railroad Associates did request a ruling from the Board on its

status under our statutes. I have previously indicated that we should state in our Board

coverage decisions why we are issuing a decision.

Qt-.

V. M. Speakman, Jr.

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