Legislation that would address some of the business community’s concerns over the Workplace Fraud Act will be heard by the Senate Finance Committee tomorrow. The bill, SB 272, would repeal the presumption that an employee-employer relationship exists when payment is made for work performed and revise how the term “independent contractor” is defined within the Workplace Fraud Act.
Under the current law, a worker is defined as an employee or independent contractor using the ABC test. The Maryland Chamber believes the ABC test standards used under the Workplace Fraud Act make it virtually impossible for an employer to meet compliance, due to its presumption of an employer-employee relationship, and its burden of proof requirement for employers. The Chamber believes the IRS test is a better solution that creates a more level playing field. This legislation would adopt that standard.