20 CFR 404.1270-404.1274
Section 218(s) of the Social Security Act, as amended, provides that where assessment of an amount due by a State under a Federal-State agreement pursuant to section 218 has been made, 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 Michigan timely requested a review pursuant to section 218(s) of the assessment made pursuant to a determination that the wage earner's services as an employee of the Michigan Department of Conservation were performed in a full-time position and were covered under the State's agreement with the Secretary made pursuant to section 218. When social security coverage was extended under this agreement to employees of the State of Michigan in positions not under a retirement system, services in part-time positions (which are defined for purposes of this coverage group as positions normally requiring performance of service for less than 600 hours in a calendar year) were excluded.
The facts in the matter are that the wage earner worked for the Michigan Conservation Department from March 17, 1953, until the second calendar quarter of 1956, except for one period of general layoffs. This work was performed as called for by work orders issued by the State or the Department of Conservation. Each work order set forth a project to be accomplished and authorized payment for the materials and labor used in the project. The wage earner was paid at a specified hourly rate which applied to work done under any work order. During this 3-year period, the wage earner usually worked 8 hours a day, 5 or 6 days a week, with little or no loss of time between projects. There is no disagreement as to these facts. It is the State's view however that the wage earner occupied a different part-time position with respect to each work order project with which he was associated.
The Administration's assessment was made on the basis of its findings that the wage earner's services as an employee of the Michigan Department of Conservation were performed in a single full-time position, and thus such services were covered under the State's section 218 agreement.
The Commissioner reviewed the assessment made and determined that the evidence in file did not establish a reasonable basis on which to distinguish the services performed by the wage earner in connection with one work order project from the services he performed in connection with any other project. Accordingly, the Commissioner found that the wage earner occupied a single position with respect to all work order projects and this position normally required full-time services. On the basis of this finding, the Commissioner affirmed the assessment.
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