New Maine Law Will Presume All Workers on Construction Sites to Be Employees
PORTLAND, Maine, December 17, 2009 – A new law which takes effect on January 1, 2010 in Maine will presume that all workers on construction sites are employees for purposes of workers' compensation unless they meet a new 12-part test set forth by the law, or operate a piece of equipment weighing over 7,000 pounds.
As a result, MEMIC is alerting all of its customers in the construction industry about the law so that they understand its implications for their business. As has been the case for several years, MEMIC requires that its customers provide proof of that any subcontractor they hire has either workers' compensation insurance for the full duration of the work, or has received an approved Predetermination of Independent Contractor Status from the Maine Workers' Compensation Board. Failure to do so will likely result in the policyholder being charged premium for these subcontractor workers.
Because of the new law, existing predetermination approvals for construction subcontractors will be invalid as of January 1, 2010. New forms under the new law will be required.
The company urges its policyholders who believe they may be affected by the new law to take the time to read the attached alert as well as other information from the Maine Workers' Compensation Board. Further questions may be directed to their insurance agent.
"This is a new Maine law that we all must comply with," said Greg Jamison, MEMIC Assistant Vice President for Underwriting. "If you are a subcontractor or if you hire subcontractors in the construction industry, it's very important that you take the time to understand this law change."
Below is the full alert as well as a copy of the 12-part test. To obtain the Application for Predetermination of Construction Subcontractor (WCB-264) from the Maine Workers' Compensation Board, you can go to their website forms page.
Alert to All MEMIC Construction Policyholders
A super-regional workers’ compensation specialty insurer rated “A” (Excellent) by A.M. Best, The MEMIC Group insures more than 20,000 employers and their estimated 300,000 employees. Licensed across the country with more than $1.2 billion in assets, The MEMIC Group is a leading carrier in the Northeast with a growing profile across the Eastern Seaboard. Offices are located in New Hampshire, Connecticut, New York, New Jersey, Pennsylvania, Virginia and Florida, in addition to the headquarters in Portland, Maine.