An Act To Simplify Standards for Determining Independent Contractor Status for Unemployment Compensation Purposes
Maine Legislature, Session 123, LD 1345
Committee: Labor
Sponsors: MILLS
Amends: 26 MRSA §1043, 26 MRSA §1052

Legislative Document 
No. 1345 
H.P.954 
House of Representati yes, March 12, 2007 
An Act To Simplify Standards for Determining Independent 
Contractor Status for Unemployment Compensation Purposes 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by Representative MILLS of Farmington. 
Printed '"'11 recycled raper 
Ir/~ 
/J?7J?~ 
MILLICENT M. MacFARLAND 
Clerk 
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. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 26 MRSA §1043, sub-§l1, ~, as amended by PL 1979, c. 651, §45, is 
further amended to read: 
E. 
Services performed by an individual for remuneration sAall be are deemed to be 
employment subject to this chapter unless aRd HRtil it is shown to the satisfaction of 
the bureau that.,. the individual is an independent contractor. 
(I) 
SHeA iRdiyidHal Aas beeR aRd 'Nill eORtiRHe to be free from eORtrol or 
direetioR over tAe f)erformaRce of SHCA services, botA HRder Ais cORtract of 
seryice aRd iR faet; 
(2) SHCA service is eitAer oHtside tAe HSHal COHrse of tAe bHsiRess for wAicA sHcA 
service is f)erformed, or tAat SHCA service is f)erformed oHtside of all tAe f)laces of 
bHsiRess oftAe eRterprise for wAicR SHeA service is f)erformed; aRd 
(3) SHCA iRdividHal is eHstomaril)' eRgaged iR aR iRdef)eRdeRtl)' establisHed trade, 
oC6Hf)atioR, f)rofussioR or bHsiRess. 
Sec. 2. 26 MRSA §1043, sub-§14-A is enacted to read: 
14-A. Independent contractor. 
"Independent contractor" means a person who 
performs services for another under contract, but who is not under the essential control or 
superintendence of the other person while performing those services. 
In determining 
whether such a relationship exists, the bureau shall consider: 
A. Whether or not a contract exists for the person to perform a certain piece or kind 
of work at a fixed price; 
.' 
B. Whether or not the person employs assistants with the right to supervise their 
activities; 
C. 
Whether or not the person has an obligation to furnish any necessary tools, 
supplies and materials; 
D. Whether or not the person has the right to control the progress of the work, except 
as to final results; 
E. Whether or not the work is part of the regular business of the employer; 
F. Whether or not the person's business or occupation is typically of an independent 
nature; 
G. The amount oftime for which the person is employed; and 
H. The method of payment, whether by time or by job. 
In applying these factors, the bureau may not give any particular factor a greater weight 
than any other factor, nor may the existence or absence of anyone factor be decisive. 
The bureau shall consider the totality of the relationship in determining whether an 
employer exercises essential control or superintendence of the person. 
Sec. 3. 26 MRSA §1052 is enacted to read: 
Pag" I - 123UU991{OlH 
§1052. Predetermination of independent contractor status 
1. Predetermination permitted. A worker or an employer may apply to the bureau 
for a predetermination of whether the status of an individual worker, group of workers or 
a job classification associated with the employer is that of an employee or an independent 
contractor. 
A. 
The predetermination by the board creates a rebuttable presumption that the 
determination is correct in any later claim for benefits under this chapter. 
B. 
Nothing in this section requires a worker or an employer to request 
predetermination. 
2. Predetermination submission. A party may submit, on forms approved by the 
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bureau, a request for predetermination regarding the status of a person or job description 
as an employee or independent contractor. The status requested by a party is deemed to 
have been approved if the bureau does not deny or take other appropriate action on the 
submission within 14 days. 
IS 
3. Rulemakinl:. The bureau may adopt rules to implement the intent of this section, 
which is to afford speedy and equitable predetermination of employee and independent 
contractor status. Rules adopted pursuant to this subsection are routine technical rules as 
defined in Title 5, chapter 375, subchapter 2-A. 
SUMMARY 
This bill defines "independent contractor" under the laws governing unemployment 
compensati.on to make it consistent with the definition of .that term under the laws 
governing workers' compensation. 
In addition, this bill authorizes the Bureau of 
Unemployment Compensation to issue a predetermination of independent contractor 
status. 
Pag;,; 2 - !23LRI991(Ol)-1