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July 28th, 2010 ManagementForums and Publications Highlight Worker Misclass ProblemBy Maine.gov The Maine Joint Enforcement Task Force on Employee Misclassification has announced a series of information and outreach initiatives aimed at educating Maine businesses and workers on laws pertaining to the hiring of independent contractors. The forums are set to take place at these locations and times: Machias CareerCenter – 5:00 PM, Tuseday, September 21 Rockland CareerCenter – 5:00 PM, Tuesday, October 5 Biddeford (location TBA) – 5:00 PM, Tuesday, October 19 Augusta CareerCenter – 5:00 PM, Tuesday, November 16 “Worker misclassification is a growing problem, although the laws regulating the practice are not new,” said Maine Labor Commissioner Laura Fortman. “Many employers just aren’t aware of their legal obligations when they hire independent contractors.” A 2005 study by the Construction Policy Institute at Harvard University estimated that eleven percent of Maine employers misclassify workers. The Maine Department of Labor will release updated audit findings later this summer. The Task Force was established by Executive Order by Governor Baldacci in 2009 and the panel is charged with developing strategies to increase public awareness of misclassification and to coordinate state response. A majority of states, including every New England state, have developed similar Task Forces to address worker misclassification. The Maine Task Force recently developed new publications for employers and workers explaining laws covering the employment of independent contractors and highlighting the effect of worker misclassification on the greater economy. Those brochures have been distributed at regional information sessions recently held for Maine businesses and tax professionals. They are also available on the Task Force website. Worker misclassification often leads to employers or workers evading legal obligations under employment and tax laws, including laws governing minimum wage, overtime, prevailing wage, unemployment insurance, income taxes, workers’ compensation insurance, temporary disability, wage payment, and child support. “Misclassification is harmful to Maine businesses that are playing by the rules,” said Maine Labor Commissioner Laura Fortman. “Companies that misclassify workers place law-abiding businesses at a competitive disadvantage by shifting the cost of unpaid taxes and insurance premiums to businesses that are complying with the law, as well as the general public.” Misclassified workers may lose out on state and federal employment protections, including Unemployment Insurance, minimum wage and overtime, Family and Medical Leave, and Occupational Safety and Health regulations. Misclassified workers may not be covered by Workers’ Compensation Insurance and are not be covered by employer-provided benefits like health insurance, retirement plans and vacation and sick leave. For more information about worker misclassification or to report misclassification tips anonymously, visit the Maine worker misclassification website at www.maine.gov/labor/misclass.
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