SSR 67-12: SECTION 218(s). -- STATE AND LOCAL COVERAGE -- COMMISSIONER'S RULING ON STATE'S REQUEST FOR REVIEW -- INDIANA SCHOOL BUS DRIVERS

20 CFR 404.1270-404.1274

SSR 67-12

Section 218(s) of the Social Security Act, as amended, provides that

where an assessment of an amount due by a State under a Federal-State

agreement has been made pursuant to section 218 or a State's claim for a

credit or refund of an overpayment under such agreement has been

disallowed or a State has been allowed a credit or refund of an

overpayment under such agreement, the Secretary shall, upon written

request filed by the State within a stipulated time, review such

assessment, disallowance or allowance stating the basis therefor. The

Secretary has delegated to the Commissioner of Social Security authority

to make reviews and findings and to give notice of his findings as

required by section 218(s).

The State of Indiana timely requested a review pursuant to section 218(s)

of the assessments made pursuant to determinations that services performed

by drivers in township-owned school buses were performed as employees of

the townships and covered under the Federal-State agreement made pursuant

to section 218.

The facts in the matter are that the drivers were engaged under standard

written contracts pursuant to the Indiana School Bus Act to transport

children to and from school; the drivers were required to perform the

services personally; the hours of service and the routes followed were

established by the townships, which also had the right to make changes in

such matters; the townships had first call on the drivers' time and

efforts; compensation for the services was in the form of a daily wage;

the drivers had no investment in the business or opportunity for profit

and loss, as the townships owned the buses and paid all the maintenance

costs; the drivers were required to comply with rules and regulations

issued by the townships; and the townships had the right to change the

drivers' methods and to direct them otherwise on how to do the work.

ces was in the form of a daily wage;

the drivers had no investment in the business or opportunity for profit

and loss, as the townships owned the buses and paid all the maintenance

costs; the drivers were required to comply with rules and regulations

issued by the townships; and the townships had the right to change the

drivers' methods and to direct them otherwise on how to do the work.

The Administration's assessments were made on the basis of its finding

that the school bus drivers were employees under the usual common-law

rules. (Regulations No. 4, sec. 404.1104 (c) sets out the rules.)

The Commissioner found, on review pursuant to the State's request, that

under these circumstances the school bus drivers were subject to control

by the townships to the extent necessary to constitute an

employer-employee relationship under the usual common-law rules. On the

basis of this finding, the Commissioner affirmed the assessments made.