"Capitol Update" piece on a subcontractor bill that is on the Legislature's agen

Mal Leary

Source

Mainebiz

Date

1-9-2006

Pages

13

Abstract

"Capitol Update" piece on a subcontractor bill that is on the Legislature's agenda. Rep. Janet Mills, D-Farmington, believes the Department of Labor is is being too strict with the test that determines whether a worker is a subcontractor or an employee under state law. This in turn determines whether an employer is responsible for paying the unemployment tax. Laura Fortman, labor commissioner, said most states use the same test as Maine, adding that there is a serious problem in some industries where the unemployment tax is not being collected. Fortman points to the construction industry, which paid about $13 million in unemployment taxes in 2002. That same year, the state's Unemployment Trust Fund paid out $20.7 million in benefits to people employed by the industry.

Subjects

Labor law and legislation, Mills, Janet T, Fortman, Laura

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