This is the decision of the Railroad Retirement Board regarding whether the
services performed by Mr. RCM for the Claremont Concord Railroad Corp. (CCRR)
and Eagle Leaf Transload, LLC (ELT) constitute employee service under the
Railroad Retirement and Railroad Unemployment Insurance Acts. CCRR is an
employer (B.A. 4113) under the Acts administered by the Board. ELT has been
found not to be an employer under the Acts.
RCM filed a claim for unemployment
benefits under the Railroad Unemployment Insurance Act in 2006. During the
course of the interview in the Board's district office, RCM advised that he
worked full time as an engineer, with his employer reporting his earnings as
both railroad retirement earnings as well as social security earnings. Contact
with the State of New Hampshire's Employment Security Department indicated that
Mr. Madeja's wages were reported as 25% from CCRR and 75% from ELT. According to
an Employee Questionnaire regarding his activities, RCM worked for CCRR from
October 9, 2000 through September 15, 2006. He also worked for ELT from April
2003 to September 15, 2006. RCM stated that he performed services for CCRR,
There was no clear definition as to when I was a railroad employee and an
Eagle Leaf Transload employee as I performed work at all times that were (sic)
related to both employers. This was not optional.
When asked to provide a breakdown of time spent with each employer, RCM
It was so intermingled it is impossible to do so. There is no clear job
description at either place so how can I tell you when there was no difference
between working for either company.
According to RCM, all work was performed on railroad property. The services
he performed included work as an engineer and as conductor; maintaining and
operating two rail-to-truck facilities.
Information was also obtained from Ms. Lori L. Barnes, President of CCRR,
regarding the services RCM provided to CCRR and ELT. In a letter dated November
20, 2006, Ms. Barnes explained that RCM was considered a full time employee of
ELT, and provided customer service (loaded customer trucks with salt or cement,
loaded and unloaded lumber trucks, scheduled loads for customer delivery, and
weighed trucks), equipment maintenance (daily maintenance of loading equipment
and scales), and inventory control for ELT as of June 14, 2004. RCM worked in
the West Lebanon and Claremont facilities, and averaged approximately 168 hours
per month. RCM was paid hourly and submitted a
timecard to the supervisor at ELT.
Ms. Barnes also explained that RCM was initially a full time employee of CCRR
from October 1, 2000 until June 14, 2004. After June 14, 2004, he was employed
on a part time basis as either a conductor or engineer as needed to provide
switching services and commodity unloading for various CCRR customers.
When working for CCRR, RCM worked out of Claremont Junction and White River
Junction, on CCRR property. As a part-time employee, RCM worked approximately 50
hours per month. RCM was paid hourly by the CCRR,
submitting his timecard to the train service coordinator at the CCRR for
verification. RCM's wages were reported to the Railroad Retirement Board (RRB),
and calculated into the quarterly RUI payment by the CCRR to the RRB.
Ms. Barnes provided additional information in a letter dated June 11, 2007.
She explained that RCM was initially hired as a laborer in 2000 for a
restoration project at CCRR. Between 2000 and 2003 while working on this project
for CCRR, RCM was trained as a conductor. When the restoration project came to
an end in 2004, RCM filled a vacancy at ELT. He then worked part-time at CCRR
when CCRR needed an additional conductor. CCRR has only three individuals who
are certified locomotive engineers and conductors. Of those three, one is a
locomotive mechanic and electrician, another is a mechanic and certified welder,
and the third is a track inspector. In those instances when CCRR needed to
operate two crews at the same time, or when CCRR's mechanics were doing
mechanical work, RCM could work with the third engineer.
Section 1(b) of the Railroad Retirement Act and section 1(d)(1) of the
Railroad Unemployment Insurance Act both define a covered employee as an
individual in the service of an employer for compensation.
Section 1(d) of the Railroad Retirement Act further defines an individual as
"in the service of an employer" when:
(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; and
(ii) he renders such service for compensation * * *.
Section 1(e) of the Railroad Unemployment Insurance Act contains a definition
of service substantially identical to the above, as do sections 3231 (b) and
3231 (d) of the Railroad Retirement Tax Act (26 U.S.C. § 3231 (b) and (d)).
With respect to his part-time employment with the CCRR, RCM provided services
to the CCRR, and those services were directly integrated into the management and
operation of the railroad employer. Therefore, the Board finds that RCM was
integrated into the employer's staff or operations, as is specified in paragraph
(B) and (C). Accordingly, it is the decision of the Board that RCM's services
for the Claremont Concord Railroad Corp. were properly treated as employee
Regarding the services which RCM provided to ELT, as Eagle Leaf Transload has
been found not to be an employer under the Railroad Retirement and Railroad
Unemployment Insurance Acts, services performed for ELT by RCM did not
constitute employee service under the Railroad Retirement and Railroad
Unemployment Insurance Act.
||Original signed by:
||Michael S. Schwartz
||V.M. Speakman, Jr.
||Jerome F. Kever
One facility was in
Claremont, New Hampshire dispensing bulk ice control (BIC) salt, and one
facility was in West Lebanon, New Hampshire dispensing powdered cement.
Hours varied due to customer
These customers included, but
were not limited to, Eagle Leaf Transload customers.
RCM's hours varied due to the
needs of the railroad for part-time train crew help and RCM's availability from
his full time employment.