An Act To Amend the Laws Governing the Knowing Misclassification of Construction Workers
Maine Legislature, Session 124, LD 1565
Committee: Labor
Sponsors: MARTIN, JACKSON
Amends: 39-A MRSA §105-A

Legislative Document 
No. 1565 
H.P. 1102 
Honse of Representatives, December 21,2009 
An Act To Amend the Laws Governing the Knowing 
Misclassification of Construction Workers 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Clerk of the House on December 17,2009. Referred to the Committee on 
Labor pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401. 
Presented by Representative MARTIN of Eagle Lake. 
Cosponsored by Senator JACKSON of Aroostook. 
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MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 39-A MRSA §105-A, sub-§3, as enacted by PL 2009, c. 452, §5, IS 
amended to read: 
3. Penalties. A person who is required to but fails to secure the payment of 
compensation with respect to persons deemed to be that person's einployees under this 
section is subject to the penalties under section 324, subsection 3. A person against 
whom a stop-work order is issued pursuant to subsection 5, in addition to any penalty 
imposed under section 324, subsection 3, is prohibited from contracting, directly or 
indirectly, with the State or any of its agencies, authorities or political subdivisions for the 
construction of any public building or other public work projects and from performing 
any work on any such public building or public work projects for a period of 3 years from 
the date of the issuance of the stop-work order. 
Sec. 2. 39-A MRS A §105-A. slllb-§5 is enacted to read: 
5. 
Stop-work orders. 
If th 
executive director of the board determines, after 
investigation, that a hiring agent or construction subcontractor knowingly failed to 
provide a workers' compensation insurance policy, knowingly misrepresented one or 
more employees as independent contractors or knowingly provided false, incomplete or 
misleading information to the board concerning the number of employees, the executive 
director shall issue, not later than 72 hours after making the determination, a stop-work 
order requiring the cessationof all business operations of that hiring agent or construction 
subcontractor at every construction site at which the executive director has detelmined a 
violation occurred. 
The order takes effect when served upon the hiring agent or 
construction subcontractor, who must immediately post the order at the relevant 
construction site. The order remains in effect until the executive director issues an order 
releasing the stop-work order upon finding that the hiring agent or construction 
subcontractor has come into compliance with the requirements of this section and has 
paid any penalty assessed under section 324, subsection 3. A stop-work order issued 
pursuant to this subsection against a hiring agent or construction subcontractor applies to 
any successor firm, corporation or partnership of the hiring agent or construction 
subcontractor in the same manner as it applies to the hiring agent or construction 
subcontractor. A hiring agent or construction subcontractor who is subject to a stop-work 
order may apply to the executive director, not more than 10 days after the order is issued, 
for a hearing to contest whether the hiring agent or construction subcontractor committed 
the violation on which the order was based, and the hearing must be afforded to the hiring 
agent or construction subcontractor and a decision rendered within 48 hours of the 
application. 
SUMMARY 
This bill authorizes the Executive Director of the Workers' Compensation Board to 
issue a stop-work order if a hiring agent or construction subcontractor has knowingly 
misrepresented one or more employees as independent contractors, knowingly failed to 
provide a workers' compensation insurance policy or knowingly provided false, 
incomplete or misleading information to the board concerning the number of employees. 
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This bill also prohibits that hiring agent or construction subcontractor from performing 
work on a public building or other public works for a period of 3 years. 
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