ME Law Will Presume All Workers On Construction Sites To Be Employees

Portland, ME - A new law which takes effect on January 1, 2010 in Maine will presume that all workers on construction sites are employees for purposes of workers' compensation unless they meet a new 12-part test set forth by the law, or operate a piece of equipment weighing over 7,000 pounds.

As a result, MEMIC is alerting all of its customers in the construction industry about the law so that they understand its implications for their business. As has been the case for several years, MEMIC requires that its customers provide proof of that any subcontractor they hire has either workers' compensation insurance for the full duration of the work, or has received an approved Predetermination of Independent Contractor Status from the Maine Workers' Compensation Board. Failure to do so will likely result in the policyholder being charged premium for these subcontractor workers.

Because of the new law, existing predetermination approvals for construction subcontractors will be invalid as of January 1, 2010. New forms under the new law will be required.

The company urges its policyholders who believe they may be affected by the new law to take the time to read the attached alert as well as other information from the Maine Workers' Compensation Board. Further questions may be directed to their insurance agent.

"This is a new Maine law that we all must comply with," said Greg Jamison, MEMIC Assistant Vice President for Underwriting. "If you are a subcontractor or if you hire subcontractors in the construction industry, it's very important that you take the time to understand this law change."

Source: MEMIC 

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