December 31, 2012

New Maine contractor law goes into effect

The law clarifies the conditions under which a worker is classified as an employee or as an independent contractor.

The Associated Press

AUGUSTA — Maine's Labor Department says the state's new independent contractor definition is going into effect.

Officials say the new law that goes becomes effective Monday clarifies the conditions under which a worker should be classified as an employee or as an independent contractor. It also applies the independent contractor standard uniformly across unemployment, wage and hour, and worker's compensation laws.

Labor Commissioner Jeanne Paquette said under the old rules, a business could classify a worker as an employee under worker's compensation rules, but as an independent contractor for unemployment taxes.

Paquette says the new law also establishes penalties to deter businesses from intentionally misclassifying people as independent contractors when in fact they're employees.

Click here to read more about the new law.

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