An Act To Clarify the Construction Subcontractor Status of the Maine Workers' Compensation Act of 1992
Maine Legislature, Session 124, LD 1815

Legislative Document 
No. 1815 
H.P. 
House of Representatives, March 9, 2010 
An Act To Clarify the Construction Subcontractor Status of the 
Maine Workers' Compensation Act of 1992 
(EMERGENCY) 
Reported by Representative TUTTLE of Sanford for the Joint Standing Committee on 
Labor pursuant to Public Law 2009, chapter 452, section 6. 
Prinlt:d on recycled pap!.!!" 
71/dlwJd frl.17!ILC;::f~{. 
MILLICENT M. MacFARLAND 
Clerk 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, in order to ensui'e a smooth transition for the pr~determination of the 
employment status of construction subcontractors celiain changes in the law must be put 
into effect as soon as possible; an'd 
. 
. 
Whereas, i'n the judgment of tbe Legislature, these facts create an emergency with in 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 39-A MRS A §l05, as amended by PL 1993, c.6S, § 1 and c. 120, § 1 and 
12· 
affected' by §6, is further amended to read: 
§105. Predetermination' of independent contractor' and construction subcontractor 
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status' 
. 1. 
Predetermination permitted. 
A worker, an employer or a workers' 
compensation insiJrance carrier, or any together, may apply to the board for a 
predetermination of whether the status of an individual ~orker, group of workers or a job 
classification associated with the employer is that of an employee or an independent 
contractor. 
A. 
The predeterriIination by the board creates a rebuttable presumption that the 
determination is correct in any later claim for benefits under this Act. 
B. 
Nothing in this section subsection requires a worker, an employer or a workers' 
compensation insurance carrier to request predetermination .. 
I-A. Predetermination permitted for construction subcontractors. A person, as 
defined in section lOS-A, subsection 1, paragraph E, may apply to the ·board for a 
predetermination that the person performs construction work in a manner that would not 
make the person an employee of a hiring agent, as defined in section 10S-A, subsection 1, 
paragraph D. 
A. The predetermination issued by the board pursuant to this.subsection. is, valid for 
one year and creates a rebuttable presumption thatthe· determination is correct in: any 
. 
later claim for benefits. under this.Act. 
B. 
Nothing in this subsection requires; a person\ as; defined: in. section! I:OS:-A, 
subsection I, paragraph: E, a, worker;. an empl'oyer or a· wOl'kers~' compensati'l'l)]1 
insurarlce carrier to, request predeterm ination. 
2. 
Premium adjustment. If it is determined that a predetermination. does not 
withstand board or judiCial scrutiny when raised in a subsequent workers" compensation: 
claim, then, depending on the finai outcome of that subsequent proceeding, e'ither the 
workers' compensation insurance carrier shall return excess premfum ~oltected or the 
Page I - 124LR2627(OJ)-1 . 
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employer shaIl remit premium subsequently due in order to put the parties in the same 
position as if the final outcome under the contested claim were predetermined correctly. 
3. Predetermination submission. A party may submit, on forms approved by the 
board, a request for predetermination regarding the status of a person or job description as 
an employee, construction subcontractor, as defined in section 105-A, subsection \, 
paragraph B, or iridependent contractor. The status requested by a party is deemed to 
have been approved if the board does not deny or take other appropriate action on the 
submission within 14 days. 
4. Hearing. A hearing, if requested by a party within 10 days of the board's decision 
on a petition, must be conducted under the Maine Administrative Procedure Act. 
5. Certificate. The board shalI provide the petitioning party a certified copy of the 
decision regarding predetermination that is to be used as evidence at a later hearing on 
-benefits. 
6. Rulemaking. The board is authorized to adopt reasonable rules pursuant to the 
Maine Administrative Procedure Act to implement the intent of this section, which is to 
afford speedy and equitable predetermination of employee, construction subcontractor, as 
defined in section 105-A, subsection 1 , paragraph B, and independent contractor status. 
Sec. 2. Implementation. The Workers' Compensation Board shalI implement the 
provisions of _ this Act by updating the predetermination application using existing 
departmental personnel and resources. The Workers' Compensation Board shalI submit 
the predetermination application for review by the Joint Standing Committee on Labor by 
March 10, 20 I O. 
Sec. 3. Appropriations and allocations. The foIlowing appropriations and-, 
alIocations are made. 
WORKERS' COMPENSATION BOARD' 
Administration - Workers' Compensation Board 0183 
Initiative: 
Allocates 
funds 
to 
enhance 
enforcement of laws 
prohibiting 
the 
misclassification of workers by the Workers' Compensation Board Abuse Investigation 
Unit by providing arange change from 24 to 27 for 2 Workers' Compensation Specialist 
positions and reclassifying one Sec~etary Legal range 13 position to a Paralegal range 20 
position. 
OTHERSPEClALREVENUEFUNDS 
Personal Services 
OTHER SPECIAL REVENUE FUNDS TOTAL 
2009-10 
$5,443 
$5,443 
2010-11 
$21,769 
$21,769 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
Pursuant to Public Law 2009, chapter 452, this bill clarifies construction 
subcontraCtor status for purposes of the Maine Workers' Compensation Act of 1992 by 
making the predetermination status valid for one year. The predetermination creates a 
rebuttable presumption that the determination is correct in any later claim for benefits 
under the Maine Workers 1 Compensation Act of 1992. 
The bill does not require a 
worker, 
an 
employer or workers' compensation 
insurance carrier to 
request 
predetermination. 
The bill directs the Workers' Compensation Board to update the 
predetermination application, within existing resources, and submit it for review by the 
Joint Standing Committee on Labor. 
The bill also includ.es an app~opriations and 
allocations section. 
FfSC-\L .'d)ft: kJ:.Vl H<kU 
(See attached) 
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Approved: 03/03/10 .frac 
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LD Ii 16 
LR 2627(01) 
An Act To Clarify the Construction Subcontractor Status of the Maine Workers' Compensation Act of 
1992 
Appropriations/Allocations 
Other Special Revenue Funds 
Fiscal Note for Original Bill 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
2009-10 
$5,443 
2010-11 
$21,769 
Projections 
2011-12 
.$22,439 
Projections 
2012-13. 
$23,131 . 
~\iscal Detail and Notes 
. 
. (~) This bill includes Other Special Revenue Funds allocations of $5,443 in fiscal year 2009-10 and $21,769 in fiscal year 
2010-11 for the Adm in istration - Workers'Compensation Board program within the Worker's Compensation Board to 
fund the range changes for two Workers' Compensation Specialist positions and the reclassification of one Secretary 
Legal positi'on to a Paralegal position in order to enhance the enforcement of laws prohibiting the misclassification of 
L) 
. workers by the Workers' Compensation Board Abuse Investigation Unit. 
Additional costs to .the Workers' Compensation Board to update the predetermination application can be absorbed 
within existing budgeted resources. 
LR2627(0 1) - Fiscal Note - Page 1 of 1