This
is the decision of the Railroad Retirement
Board regarding the continued status of
the Emergent Group, Inc., as an employer
under the Railroad Retirement Act (45 U.S.C.
§ 231, et seq.) (RRA) and the Railroad
Unemployment Insurance Act (45 U.S.C. §
351, et seq.) (RUIA).
National Railway Utilization Corporation
was held to be an employer under the Acts
effective April 1, 1977 (B.A. Number 2244).
As of August 23, 1991, its name was changed
to Emergent Group, Inc. The Pickens Railway
Company (B.A. No. 5564) purchased rail assets,
including the name, Pickens Railway, from
Emergent Group in May 1996. Emergent Group
has never reported rail service. Its name
is now HomeGold, Inc., and it has no rail-related
operations.
Section 202.11 of the Board’s regulations
provides that:
The employer status of any company or
person shall terminate whenever such company
or person loses any of the characteristics
essential to the existence of an employer
status.
Through the sale of rail assets and its
cessation of rail operations, Emergent Group
has lost the characteristics essential to
the existence of an employer status. Accordingly,
the Board holds that Emergent Group ceased
to be an employer under the Railroad Retirement
and Railroad Unemployment Insurance Acts
effective with the close of business on
May 31, 1996. Cf. Rev Ruling 82-99, 1982-2
C.B. 154, wherein the Internal Revenue Service
ruled that a railroad ceases to be an employer
subject to taxes under the Railroad Retirement
Tax Act when the railroad’s employees
stop performing services in connection with
the railroad’s carrier activities. |