New independent contractor regs take effect
Maine's Labor Department says the state's new definition of an independent contractor takes effect today.
The state’s new independent contractor definition clarifies the conditions under which a worker should be classified as an “employee” or as an “independent contractor.”
The Associated Press reported that the new standard will be applied uniformly across unemployment, wage and hour and workers’ compensation laws. 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.
Maine Labor Commissioner Jeanne Paquette says the new law also establishes penalties to deter businesses from intentionally misclassifying people as independent contractors when in fact they're employees.
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