Maryland Eases Rules on Contractor Status

Annapolis, MD, May 8, 2012 -- Legislation signed into law May 2 makes it easier for Maryland flooring firms to classify installers as subcontractors.

The amendments to the Workplace Fraud Act take effect July 1.  The intent of the amendments was to create a clear path to compliance for businesses and improve compliance.

Under the Act as it was enacted in 2009, nearly all subcontractors in the flooring industry were presumed to be employees unless the business could prove otherwise.

Under the new amendments, if certain relatively simple requirements are met, the installer is considered to be a contractor and the burden of proof is on the state to show otherwise.

In addition, the amended Act gives businesses more time to comply with auditors requests for documents and gives businesses the option of providing auditors with copies of documents rather than having auditors occupy their place of business for the duration of the audit.