An Act To Amend the Laws Governing the Knowing Misclassification of Construction Workers
Maine Legislature, Session 124, LD 1565
Committee Amendment CA_A-HA_C_H826 (House)

HOUSE AMENDMENT ,,0-:, to COMMITTEE AMENDMENT "A" to H.P. 1102, 
L.D. 1565, Bill, "An Act To Amend the Laws Governing the Knowing Misclassification 
of Construction Workers" 
Amend the amendment in section 1 by striking out all of subsection 5 and inserting 
the following: 
"5. 
Stop-work orders. 
In addition' to any penalty imposed under section 324, 
subsection 3, if after a hearing the executive director determines that a hiring agent or 
construction subcontractor has knowingly failed to secure' the payment to that hiring 
agent's or construction subcontractor's employees ofthecompensation provided~ for by 
this Act: the executive director or·the'executive diiector'sdesigneeshall issue a stop-work 
order pursuant to this subsection. The issuance of a stop-work order by the executive 
director or the executive director's designee constitutes final agency action. 
A. A hiring agent or construction subcontractor must receive at least 3 business days' 
notice of a hearing regarding a stop-work order. The executive director or the 
executive director's designee shall stay the issuance of a stop-work order if the hiring 
agent or subcontractor provides evidence acceptable to the executive director or the 
executive director's designee that the hiring agent or subcontractor has provided and 
will continue to provide workers' compensation coverage for the employees of that 
hiring agent or subcontractor or for the individuals whose status as employees or 
independent contractors is in question. Providing such coverage may not be evidence 
at the hearing that the hiring agent or subcontractor was required to do so under this 
Act. 
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B. If the executive director or the executive director's designee finds at the hearing 
that the hiring agent or construction subcontractor knowingly failed to provide a 
workers' compensation insurance policy, the executive director or the executive 
director's designee shall issue a stop-work order effective' immediately on the 
conclusion of the hearing to that hiring agent or construction subcontractor at the 
construction site at which the executive director or executive director's designee has 
determined a violation occurred, unless the hiring agent or subcontractor has 
provided coverage and will continue to do so pursuant to paragraph A. 
C. A stop-work order issued pursuant to this subsection remains in effect until the 
executive director or the executive director's designee issues an order releasing the 
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HOUSE AMENDMENT 
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HOUSE AMENDMENT "6 to COMMITTEE AMENDMENT "A" to H.P. 1102, L.D. 1565 
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stop-work order upon finding that the hiring agent or construction subcontractor has 
come into compliance with the requirements of this subsection and has paid any 
penalty assessed under section 324, subsection 3 or has entered into a penalty 
payment agreement with the board. 
D. 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. 
E. Any payment or performance bond issued on or in relation to a construction 
project subject to a stop-work order may not cover any exposure arising out of or 
during the shutdown of that project. 
For purposes of this subsection, a violation is considered knowing if the hiring agent or 
construction subcontractor has previously obtained workers' compensation insurance and 
the insurance has been cancelled or the insurance has not been continued or renewed; has 
been notified in writing by the board of the need for workers' compensation insurance; or 
has had one or more previous violations of the requirement to secure the payment to that 
hiring agent's or construction subcontractor's employees of the compensation provided for 
by this Act.' 
SUMMARY 
This amendment authorizes the Executive Director of the Workers' Compensation 
Board or the executive director's designee to stay a stop:'work order if a hiring agent or 
construction subcontractor provides evidence that the hiring agent or subcontractor has 
complied with the provisions of the Maine Workers' Compensation Act of 1992. It also 
extends the notice of hearing provision from 48 hours to 3 business days. 
This amendment also protects an issuer of surety bonds from liability when a 
payment or a performance bond is required of a hiring agent or construction 
subcontractor and that hiring agent or construction subcontractor is subject to a stop-work 
order from the Executive Director of the Workers' Compensation Board. 
This amendment also defines what will be considered a knowing violation of the 
provision requiring that workers' compensation insurance be obtained for the purpose of 
issuing a stop-work order. 
SPONSOREDBY: __ ~\~7~~~~~~~ __ =-__ 
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(Representative 
HOUSE AMENDMENT 
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