An Act To Modify the Laws Regarding Status as an Independent Contractor
Maine Legislature, Session 125, LD 1420
Committee Amendment CA_A_S150 (Senate)
Amends: 26 MRSA §1043

COMMITTEE AMENDMENT" A" to S.P. 437, L.D. 1420, Bill, "An Act To 
Modify the Laws Regarding Status as an Independent Contractor" 
Amend the bill by striking out everything after the title and before the summary and 
inserting the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective unti190 days after adjournment unless enacted as emergencies; and 
Whereas, the meaning of "independent contractor" in unemployment law is 
confusing to employers and employees, who seek clarity and uniformity; and 
Whereas, the issue of classification of workers transcends many decades of 
legislative discussion and needs to be addressed to encourage the spirit of 
entrepreneurship in the State; and 
Whereas, it is in the best interests of the State, employees and employers to 
eliminate this confusion as soon as possible and, to that end, the stakeholder group 
authorized by this legislation needs to meet as soon as possible to formulate a test to 
determine independent contractor status; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
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. 26 MRSA §1043, sub-§U, ~E, as amended by PL 1979, c. 651, §45, is 
further amended to read: 
E. 
Services performed by an individual for remuneration shall be deemed are 
considered to be employment subject to this chapter unless and liBtil it is shown to the 
satisfaction of the bureau that the individual has been and will continue to be free 
COMMITTEE AMENDMENT 
~q, 
~O 
COMMITTEE AMENDMENT" A" to S.P. 437, L.D. 1420 
from control or direction over the performance of such services, both under the 
individual's contract of service and in fact, and: 
(1) 
Such individual has been and 'Nill continue to be free from control or 
direction over the performance of SUGh services, both under his contract of 
service and in fact; 
(2) Such service is either outside the usual course of the business for which such 
service is performed; or that such service is performed outside of all the places of 
business of the enterprise for which such service is performed; and or 
(3) Such That individual is customarily engaged in an independently established 
trade, occupation, profession or business. 
This paragraph is repealed December 31, 2012. 
Sec. 2. Report. The Commissioner of Labor or the commissioner's designee shall 
convene a stakeholder group with representatives from the Workers' Compensation Board 
and the Department of Administrative and Financial Services, Maine Revenue Services 
and shall invite the participation of representatives from the Maine Merchants 
Association, Maine State Chamber of Commerce, National Federation of Independent 
Business, Maine Employers' Mutual Insurance Company, American Federation of Labor -
Congress of Industrial Organizations, Maine Women's Lobby, Maine Equal Justice 
Partners, Associated Builders and Contractors, Inc., Technology Association of Maine 
and Maine Immigrant Rights Coalition. 
The stakeholder group shall develop an 
employment test to be used in the administration of, without limitation, unemployment 
compensation law, workers' compensation law and programs of the Department of Labor, 
Bureau of Labor Standards to determine whether a person is an employee or independent 
contractor. The commissioner or the commissioner's designee shall submit a report with 
recommendations to the Joint Standing Committee on Labor, Commerce, Research and 
Economic Development by January 15, 2012. The joint standing committee is authorized 
to introduce a bill related to the report to the Second Regular Session of the 125th 
Legislature. 
Emergency clause. 
In view of the emergency cited m the preamble, this 
legislation takes effect when approved.' 
SUMMARY 
This amendment adds an emergency preamble and clause to the bill and creates a 
stakeholder group of interested parties to develop an employment test that can be used 
across all occupations and in the administration of unemployment compensation law, 
workers' compensation law and labor standards programs. This amendment also repeals, 
effective December 31, 2012, the presumption that services performed by an individual 
for remuneration are considered employment unless certain conditions are met. 
FISCAL NOTE REQLlItED 
{See attached) 
' .. -.~,,~""--.-
COMMITTEE AMENDMENT 
Approved: 05/19/11 
;:t!;!?a~ 
LD 1420 
LR 1456(02) 
An Act To Modify the Laws Regarding Status as an Independent Contractor 
Fiscal Note for Bill as Amended by Committee Amendment" A" 
Committee: Labor, Commerce, Research and Economic Development 
Fiscal Note Required: Yes 
Fiscal Detail and Notes 
Fiscal Note 
Current biennium savings - Federal Funds 
Current biennium revenue decrease - Federal Funds 
S-JSO 
Reducing the number of workers potentially covered by the employment security laws may reduce the amount of 
benefits paid from the Unemployment Compensation Trust Fund beginning in fiscal year 2011-12 as well as the 
amount of contributions paid in to the Trust Fund. The net impact to the Trust Fund as well as to the contribution rate 
schedule can not be determined at this time but is not expected to be significant. 
LRI456(02) - Fiscal Note - Page 1 of 1