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Text Box: How About Some Good News! The Governor and the Executive Director of the Maine Workers’ Compensation Board formulated a plan to assist employers in these difficult economic times. The purpose of the plan was to reduce the workers’ compensation assessment to employers of the State which would serve as a stimulus package to the Maine economy. The proposal was presented to the Legislature’s Appropriations Committee through the testimony of the Executive Director and read as follows: In keeping with the Governor’s policy to make operations of state agencies more efficient and streamlined, and further in keeping with the Governor’s policy of state agencies contributing to improving the economy, the Workers’ Compensation Board (the “Board”) would like to make the following proposal that would benefit the employers of the State, through a reduction in their annual assessment. In a public statement, MEMIC’s Board of Trustees said, “Including this year’s dividend of $15 million to Maine employers, MEMIC has directed $100 million back into the economy since 1998… and that is good news for Maine just when we need it.” This will be a real boon to Maine’s economy. Section 355 of the Workers’ Compensation Act creates an Employment Rehabilitation Fund. The main purpose of the Fund is to pay for rehabilitation programs for injured employees. Due to a number of factors, including the fact that injury frequency in Maine has dropped dramatically, requests for reimbursement from the Fund have also dropped. The primary source of revenue for the Fund is penalties paid by employers that did not purchase required workers’ compensation coverage. The Fund also receives payments from insurers in cases involving the death of an employee when there is no person entitled to compensation. (As a matter of last resort, the Board can also levy an assessment to maintain an adequate balance in the Fund, although this has never been done and it is not anticipated that such step will be necessary any time in the foreseeable future.) The current balance in the Fund is $2,876,415. In light of the drop in frequency of cases and the penalties received from employers that do not have coverage, I am recommending that the Fund be reduced by the sum of $2,376,415 over the course of FY 2010 and FY 2011. This would result in a reduction of the assessment to employers of $1,188,207 per fiscal year. The recommendation was approved by the Legislature and included within its 2010-2011 budget. Subsequently, the Workers’ Compensation Board, at its meeting of June 23, 2009, approved by a vote of 7-0 the recommended reduction of the assessment. The maximum allowed assessment of $10,400,000 was reduced to $7,350,000. In an attempt to give employers relief during difficult economic times, the Board recommended a transfer from this fund for a two year period and applied audit revenues commencing this fiscal year to further reduce the assessment. The net result is that the rate added to premiums for insured employers will be 2.04%. This compares to last year’s rate of 2.10% when the premium market was l0% greater than this year’s market. This reduction of over $3 million from the maximum assessment is the largest such reduction since the Board commenced this process in l993. The reduction in assessment of $3,050,000 is a direct benefit to employers of the State, and, in conjunction with the MEMIC dividend ($15 million), should have a powerful effect on the Maine economy. *****

Newly Elected Board Members	2
Summary-WC related bills-First Regular Session of the 124th Legislature	2
Employee Misclassification	4
Criminal Convictions of Fraud in Workers’ Compensation	4
Independent Medical Examiner Expense/Reimbursements	5
Facility Fee Schedule	6

Applications for Independent Contractor Status - New Forms

As of July 29, 2009 the Applications for Predetermination of Independent Contractor Status forms have been revised. You may obtain the most recent copies of forms WCB-260, WCB261 and WCB-262 at www.maine.gov/wcb/departments/board.htm.

Please destroy all previous copies of the forms and replace them with the newest versions. Thank you.

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