Maryland Amends Employee/Contractor Classification Law

The governor of Maryland recently signed a bill to amend the state's Workplace Fraud Act so that the burden of proof to show a worker is an employee now falls on the state if certain requirements are met, according to a release from the Maryland/Northern Virginia Floor Covering Association. Previously, nearly all subcontractors in the flooring industry were presumed to be employees unless the business could prove otherwise.

Now, the amendment gives businesses more time to comply with audit requests and gives businesses the option of providing auditors with document copies instead of having an auditor occupy their place of business for the duration of the audit. What's more, the amendment requires Maryland's Department of Labor, Licensing and Regulation to issue citations under the act, hold hearings and close audits within a reasonable amount of time.

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