A Maine independent contractor agreement establishes the client-contractor relationship and defines the services to be performed, pay, timeline, and other conditions. The document is legally binding and can offer contractual protections to both parties.
In Maine, individuals who perform services on a self-employed basis are generally considered independent contractors.
- Worker Classification: ABC Test
- Tax Structure: Graduated-Rate Income Tax
- Definition: 26 M.R.S.A. §1043.11.E
- At-Will Employment: Yes
Independent Contractor Definition
Maine defines an independent contractor as an individual who performs services temporarily. These individuals are not under the management direction or control of the individual who hires them.
Employees are typically engaged in a more traditional employment relationship, where they work on a permanent, ongoing basis under the control of their employer.
Worker Classification Test
Maine uses a multi-pronged test to determine whether an individual should be classified as an independent contractor rather than an employee. To establish independent contractor status, an individual must meet all of the following:
- They must be free from direction/control of their work.
- They must be customarily engaged in an independent trade, occupation, or business.
- They must have the opportunity to profit from the project.
- If the worker has assistants, they must be solely responsible for paying and supervising these assistants.
- The worker’s services must be made available to a client/customer.
Additionally, individuals must meet any three of the following conditions:
- Substantive investment in the tools/materials used to complete the work.
- No requirement to work exclusively for the client.
- Responsibility for the successful completion of the work.
- Possession of a contract that defines the employment relationship.
- Payment based on factors other than time worked.
- Services performed that are outside of the employer’s usual course of business.
Rights and Responsibilities
Independent contractors in Maine are not subject to many of the same protections employees enjoy. For example, independent contractors are not entitled to:
- Unemployment benefits
- Workers’ compensation benefits
- Minimum wage payment
- Overtime pay
- Rests or breaks
- Family or medical leave
Additionally, non-discrimination laws, which prevent an employer from discriminating against a worker based on their race, gender, age, etc., do not apply to independent contractors.
State Taxes
Maine statutes do not explicitly indicate the tax obligations of independent contractors, so these workers should follow IRS guidance. The IRS requires that independent contractors are solely responsible for collecting and paying income taxes on the payment they receive [1] .
Filing for Unemployment
Only employees are permitted to receive unemployment benefits in Maine. Since employers only pay unemployment taxes on employees but not on independent contractors, independent contractors are not entitled to these benefits.
Sample
Below, you can download a free Maine independent contractor agreement in PDF or Word format:
