March/April 2002 - Legislation

Legislative Update

The Maine Legislature passed the following substantive workers' compensation-related laws in the recently concluded session. The major one, Public Law 712, addressed the issue of permanent impairment determinations in cases where the employee is disabled by a combination of work-related and preexisting injuries. See the Highlight Article on page for a full discussion of this issue.

PL 490 (LD 2052) - Wood Harvesting

This law clarifies that, in the wood harvesting industry, an "employee" for workers' compensation purposes includes a person who contracts directly with the landowner and obtains a certificate of independent status or a predetermination of independent contractor status.

PL 518 (LD 2053) - Limited Liability Companies

Limited liability companies are to be treated the same way as partnerships in that the parent, spouse or child of an LLC member may waive, in writing, their workers' compensation coverage as long as the waiver is not a prerequisite to employment.

PL 622 (LD 2077) - Cancellations

Employers in the wood harvesting industry must notify their employees and landowners if they are canceling their workers' compensation insurance within three business days of the cancellation. The penalty for noncompliance is a fine of $50 to $100.

The law also mandates the Workers' Compensation Board to study the enforcement of compensation coverage in the wood harvesting industry and to work with the industry in developing incentives to reduce accidents. A report on these matters must be filed by January 15, 2003.

PL 712 (LD 2202) - Permanent Impairment

This law addresses section 213 of the Act, which states that 25 percent of all workers with permanent partial work-related injuries be eligible to receive benefits for the duration of their disability. The remaining 75 percent of workers are subject to the durational limit of 364 weeks of benefits. The law clarifies that in determining which workers have permanent partial injuries, the Board is not to include permanent impairments that are not related to a work injury, even if the work and non-work injuries combine to create the permanent disability. For a complete discussion, see the Highlight Article on page 1 of this issue.