An Act To Reduce Workers' Compensation Costs for Small Business Employers
Maine Legislature, Session 122, LD 0054
Committee: Labor
Sponsors: PATRICK, SMITH, TRAHAN
Amends: 39-A MRSA §401

Legislative Document 
No. 54 
H.P.50 
House of Representati ves, January 11, 2005 
An Act To Reduce Workers' Compensation Costs for Small 
Business Employers 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by Representati ve WATSON of Bath. 
'17/~ /J7. 7J!u:~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: PATRICK of Rumford, SMITH of Van Buren, TRAHAN of 
Waldoboro. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 39-A MRSA §401, sub-§I. 1I1IB and C. as amended by PL 
2001, c. 235, §2, are further amended to read: 
B. 
Employers 
of 
employees 
engaged 
in 
agriculture 
or 
aquaculture as seasonal or casual laborers, if the employer 
maintains 
coverage 
by 
an 
employer's 
liability insurance 
policy with total limits 
of not 
less 
than $25,000 
and 
medical payment coverage of not less than $5,000. 
(1) 
As 
used 
in 
this 
subsection, 
"casual" 
means 
occasional 
or 
incidental. 
"Seasonal" 
refers 
to 
laborers 
engaged 
in 
agricultural 
or 
aquacultural 
employment beginning at or after the commencement of 
the planting or seeding season and ending at or before 
the completion of the harvest season; aae 
c. 
Employers of agricultural or aquacultural laborers, if: 
(3) 
The 
employer 
has 
or 
fewer 
agricultural 
or 
aquacultural laborers or the employer has more than 6 
such laborers but the total number of hours worked by 
all such laborers in a week does not exceed 240 and has 
not exceeded 
at 
any 
time 
during 
the 
weeks 
immediately preceding the injury; and 
(4) 
The 
employer maintains 
an 
employer's liability 
insurance policy with total limits of not less than 
$100,000 
multiplied 
by 
the 
number 
of 
full-time 
equivalent 
agricultural 
or 
aquacultural 
laborers 
employed by that employer and medical payment coverage 
of not less than $5,000. 
For purposes of this paragraph, seasonal and casual workers, 
immediate 
family members 
of unincorporated employers 
and 
immediate family members of bona fide owners of at least 20°" 
of the voting stock of an incorporated employer are not 
considered 
agricultural 
or 
aquacultural 
laborers. 
"Immediate family members" means parents, spouses, brothers, 
sisters and childrenT; and 
Sec. 2. 39-A MRS A §401. sub-§l, 1ID is enacted to read: 
D. Employers of 6 or fewer employees if: 
(1) 
The 
employer maintains 
an employer's liability 
insurance policy with total limits of not less than 
$100,000 
multiplied 
by 
the 
number 
of 
full time 
equivalent 
employees 
employed 
by 
that 
employer 
and 
medical payment coverage of not less than $5,000; and 
(2) 
The employer provides health care coverage for its 
employees through enrollment in Dirigo Health Insurance 
pursuant to Title 
24-A, 
section 6910 
or 
through 
a 
health 
insurance 
policy with benefits 
equal 
to 
or 
~reater 
than 
those 
provided 
through 
Dirigo 
Health 
Insurance. 
SUMMARY 
This bill provides employers of 6 or fewer employees with 
exempt status under the Workers' Compensation Act of 1992 if the 
employer maintains employer's liability insurance 
and medical 
payments coverage and provides health coverage for its employees 
through Dirigo Health Insurance or through a policy that provides 
benefits equal to or greater than those provided through Dirigo 
Health Insurance.