In the recent Sort in VB topic there was talk about the flags in the second and third bytes of some variable length records that are spanned. Koluso can provide the definitive answer, but I believe the discussion was incorrect.
The flags as mentioned in the Sort in VB topic exist to allow data management to connect segments of a variable length record that exist in 2 or more physical records together into a complete record. Programmers that use QSAM and specify BFTEK=A in their DCB macro never see these flags; QSAM collects all the record segments into complete logical records. Assembler programmers that use BSAM to process data sets with spanned records will see the flags, but their programs should be connecting the segments into whole records.
Of course I have no idea about how sort processes data sets with spanned records, but I'm reasonably certain it will collect the segments into whole logical records as I just described for QSAM with BFTEK=A, and the spanned record flags for the first segment will be discarded, and that's what wil be sorted.