Maine Makes Solid Subcontractor Rules For Workers Comp

Maine Solid Subcontractor Rules

The state of Maine makes solid subcontractor rules for Workers Compensation. The State of Maine has come up with a novel plan to identify companies/individuals that are construction subcontractors and not employees. The twelve rules for an business entity to be considered a subcontractor are spelled out in the: (more on this in the next post)

APPLICATION FOR PREDETERMINATION OF CONSTRUCTION SUBCONTRACTOR TO ESTABLISH A REBUTTABLE PRESUMPTION

A “construction subcontractor” is defined as a person who performs construction work on a construction site for a hiring agent if the person satisfies all of the following criteria:

(1) The person possesses or has applied for a federal employer identification number or social security number or has agreed in writing to carry out the responsibilities imposed on employers under this chapter;

(2) The person has control and discretion over the means and manner of performance of the construction work, in that the result of the work, rather than the means or manner by which the work is performed, is the primary element bargained for by the hiring agent;

(3) The person has control over the time when the work is performed and the time of performance is not dictated by the hiring agent. Nothing in this paragraph prohibits the hiring agent from reaching an agreement with the person as to a completion schedule, range of work hours and maximum number of work hours to be provided by the person;

(4) The person hires and pays the person’s assistants, if any, and, to the extent such assistants are employees, supervises the details of the assistants’ work;

(5) The person purports to be in business for that person’s self;

(6) The person has continuing or recurring construction business liabilities or obligations;

(7) The success or failure of the person’s construction business depends on the relationship of business receipts to expenditures;

(8) The person receives compensation for construction work or services performed and remuneration is not determined unilaterally by the hiring agent;

(9) The person is responsible in the first instance for the main expenses related to the service or construction work performed; however, nothing in this paragraph prohibits the hiring agent from providing the supplies or materials necessary to perform the work;

(10) The person is responsible for satisfactory completion of the work and may be held contractually responsible for failure to complete the work;

(11) The person supplies the principal tools and instruments used in the work, except that the hiring agent may furnish tools or instruments that are unique to the hiring agent’s special requirements or are located on the hiring agent’s premises; and

(12) The person is not required to work exclusively for the hiring agent.

A “hiring agent” is defined as a person that hires or contracts with a person to perform construction work, but excludes an owner or occupant of real property who hires a person or persons to perform construction work on that real property.

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