Governor's Joint Enforcement Task Force on Misclassified Employees
Date: June 25, 2009
Time: 9:00 AM
Location:
Contact:
Joint Enforcement Task Force on Misclassified Employees
Thursday, June 25, 2009
9:00 a.m.
Vinalhaven Conference Room
Maine Department of Transportation – Region II
Central Maine Commerce Center
Present – Maine Department of Labor
Laura Fortman, Commissioner
Jane Gilbert, Deputy Commissioner
Laura Boyett, Director, Bureau of Unemployment Compensation/Administration
William Peabody, Director, Bureau of Labor Standards
Julie Armstrong, Policy Development Specialist, Bureau of Unemployment
Compensation, Administration
Support Staff
John L. Rioux, Director, Technical Services Division
Lloyd Black, Unemployment Compensation/Tax
Chris Boudreau, Senior Policy Analyst, Center for Workforce Research and
Information
Terry Hathaway, Technical Services Division, Secretary
Governor’s Office
Deb Friedman, Senior Policy Advisor
Workers’ Compensation Board
Steve Minkowsky, Deputy Director, Benefits Administration
Maine Department of Professional & Financial Regulation
Eric Cioppa, Deputy Superintendent, Bureau of Insurance
Benjamin Yardley, Staff Attorney, Bureau of Insurance
Attorney General’s Office
Janet T. Mills, Attorney General
Maine Revenue Services
Elaine Corrow, Tax Analyst
Maine Department of Administrative & Financial Services
Chip Gavin, Director, Bureau of General Services
Maine Human Rights Commission
Patricia Ryan, Executive Director
Maine Housing Authority
Dan Brennan, Director of Development
Interested Parties
Allen Muir, Maine Employers Mutual Insurance Company (MEMIC)
John Evans, International Brotherhood of Electrical Workers (IBEW), Local #7
John O’Dea, Executive Director, Associated General Contractors (AGC)
Commissioner Fortman, Chair, called the fifth meeting of the Joint Enforcement Task Force on Misclassified Employees to order at 9:08 a.m.
Introductions were made.
Web Based Task Force Information Demo – John Rioux. Mr. Rioux demonstrated the web based task force information. A hand-out was available in the members’ packets. The web site is www.maine.gov/labor/misclass. It is set up with a summary of how the task force was created, upcoming meetings, how employee misclassification impacts you, task force minutes, and background information. Terry and John will be able to add the subgroup meetings.
Mr. Rioux will relay any WEB suggestions to Adam Fisher.
Commissioner Fortman thinks this site does a good job directing the public to information about the task force and its activities within Labor. She added that the Governor wants to be sure that state agencies are working collaboratively to reduce incidences of worker misclassification and thought it would be helpful if there were lilnkages to this website to and from the websites of all agencies represented on the task force. Mr. Brennan added that the Maine Housing Authority has a “contractors’ compliance policy” and will send Terry the link to add to our web site.
Ms. Armstrong suggested a list of task force members be added to the web site as well as all subgroup information, including members.
Legislative Update of L.D. 1456 Regarding Independent Contractors – Steve Minkowsky. Mr. Minkowsky handed out a copy of An Act to Ensure That Construction Workers Are Protected by Workers’ Compensation Insurance and gave an overview of the legislation, which was signed into law on June 19, 2009. The law establishes a new definition of “independent contractor” for workers compensation coverage purposes which only applies to construction occupations. Mr. Minkowsky stated that the employer community and labor groups reached a consensus in support of the bill as amended.. Mr. Minkowsky pointed out that starting January 1, 2010, there will be a new ‘pre-determination’ application form, which will insure that a “construction subcontractor” meets the 12 criteria listed in this legislation. Currently, the Workers’ Compensation Boards receives well over 6,000 applications a year for an independent contractor pre-determination and waiver from coverage. Under the new law, applications connected to construction occupations will be required to be processed within 14 days.
He added that Paul Fortier, Agency Control Technician for Workers’ Compensation, has made “proof of ownership” data available on-line. Mr. Yardley stated that the Bureau of Insurance currently has direct access to Workers’ Compensation information to verify that employers are charged the correct premium.
Update on Massachusetts MisclassificationTask Force – Julie Armstrong. Ms. Armstrong met with her Massachusetts counterpart. According to the Massachusetts’ Misclass Task Force annual report, they have raised over 1.4 million dollars in State revenue for one year. Their task force is comprised of 17 agencies working together with an increase in membership and staff. They have spent a lot of time and energy working with other states to develop task forces as some employers are multi-state.
The annual report, Joint Task for Underground Economy and Employee Misclassification for Massachusetts can be accessed on-line at www.mass.gov
Ms. Boyett added that Massachusetts will be holding a “summit” in Holyoke, Massachusetts on October 2, 2009 for key departmental and task force members.
Task Force Sub-Groups – Julie Armstrong. Ms. Armstrong, who will be coordinating the three subcommittees, handed out a draft of the Task Force Subcommittees. There are three: Communication and Outreach, Legal and Inter-Agency Information, and Targeting, Enforcement, and Monitoring. The draft includes membership, responsibility, and deliverable of each subgroup. Ms. Armstrong would appreciate feedback on this draft. She thinks that each subcommittee should have a representative from Labor, Maine Revenue Service, and Workers’ Compensation.
Communication and Outreach Subcommittee. Mr. Gavin, Bureau of General Services, will serve on the, along with the following: Maine Department of Labor (Adam Fisher, Gaetane Johnson, Leslie Manning, and Tim Shea) and Workers’ Compensation Board (Paul Dionne and Steve Minkowsky). Ms. Corrow, Maine Revenue Service, is waiting approval from the Director to be a part of this subcommittee.
Legal and inter-Agency Information Subcommittee. Ben Yardley, Bureau of Insurance, will serve on this subcommittee along with Maine Department of Labor (Laura Boyett, Bill Peabody, and Lloyd Black), Workers’ Compensation Board (John Rohde, Dick Cote, Lisa Bachelder, and Linda Larrabee), Maine Revnue Service (John Sagaser?), and Attorney General’s Office.
Targeting, Enforcement, and Monitoring Subcommittee. Mr. Brennan, Maine Housing Authority, will serve on this subcommittee along with Maine Department of Labor (Lloyd Black, Kevin Concaugh, Verna Eldridge, Jorge Acero, and Chris Boudreau), Workers’ Compensation Board (Jan McNitt and Kimberley Barriere), Maine Revenue Services, and Attorney General’s Office.
Ms. Armstrong stressed that it is very important for the subcommittees to meet on a weekly basis and to report to the task force. The subcommittee meetings will be posted on the Maine Department of Labor website and in the Weekly Legislative Calendar. Over time, more people may be added. The responsibilities are found in the Executive Order.
Also, Ms. Armstrong added that the Massachusetts task force meets quarterly. Commissioner Fortman suggested that the Maine task force meet in July and then meet on a quarterly basis to give the subcommittees time to do their work and report back to the task force.
Commissioner Fortman stated that one of the goals of the task force is to put mechanisms in place to share information and identify barriers within the system that prohibit maximizing the ability of the agencies to do their jobs. If there are specific pieces of the statutes that prohibit sharing information that should be identified; if changes are to be made, then the task force could make this recommendation.
The task force discussed the planned work of the subcommittees and specifically whether these meetings should be open to the public. After in-depth discussion, the members agreed that all subcommittee meetings would be open to the public. The minutes and work products of these groups will be posted on the task force website. All subcommittee meeting schedules, including times and locations, will be posted on the state meeting announcement website as well as the task force’s website.
After further discussion, Attorney General Mills agreed that she would be a resource for the subcommittees.
Next Meeting – Thursday, July 23, 2009, 9:00 a.m., Frances Perkins Conference Room, Maine Department of Labor, Central Maine Commerce Center.
Commissioner Fortman adjourned the meeting at 10:34 a.m.
Respectfully submitted,
Terry M. Hathaway, Secretary
