|
New Construction Subcontractor Law Update
Many of you have contacted MEMIC after receiving our alert
last week regarding the new
Maine
law about construction subcontractors that will take effect
on January 1, 2010. As a result, we wanted to clarify a
concern regarding a person's right to waive coverage.
The new law, PL 452, does not affect a person's right to
waive coverage provided the person (1) is not working on a
construction site for a hiring agent or (2) meets the new
12-part definition of construction contractor. However, if a
person - regardless of whether he or she owns a business -
works for a hiring agent and does not meet the 12 part test,
then the person will be deemed the employee of the hiring
agent and the hiring agent will be charged premium on wages
paid to that person.
We have added the following "notes" to
our alert which is attached, and is also available on
our website.
-
Note to individuals, sole proprietors, partnerships, LLC
members, corporate owners, shareholders of professional
corporations and family members: You may still waive
coverage for yourself under your own policy. However, if
you perform construction work on a construction site for
a hiring agent, and you do not meet the 12 part test or
own and operate a piece of equipment weighing over 7,000
pounds, you will be presumed to be an employee of the
hiring agent.
-
Note to hiring agents: the new law treats as your
employees (unless they meet the new 12 part test or they
own and operate a piece of equipment weighing over 7,000
pounds) individuals, sole proprietors, members of
partnerships and LLCs , owners and part owners of
corporations, shareholders of professional corporations
and family members who perform construction work on your
construction site(s).
Due to the complexity of the Workers' Compensation Board's
(WCB) new Predetermination form, MEMIC will provide a grace
period for obtaining approved Predeterminations under the
new law. For work performed during the first 90 days of
2010, MEMIC will accept valid and current predeterminations
issued under the old law provided that, on or before March
31, 2010, the policyholder obtains an updated and approved
Predetermination of Construction Subcontractor form
under the new law and provided there were no material
changes in the nature of the work the subcontractor was
performing for the policyholder or the nature of the
relationship between the subcontractor and contractor.
_________________________________________________________________________
Links and Documents
Alert to All MEMIC Construction Policyholders pdf
Maine Workers' Comp Board's Application for
Predetermination- Construction pdf
MEMIC's Construction Supplemental Questionnaire pdf
_________________________________________________________________________
|
