The regulations, which originally took effect on Dec. 31, 2009, require all construction subcontractors and independent contractors to carry workers' comp insurance on themselves. The regulations are an attempt to level the playing field in the industry, officials said. Larger contractors, who are already required to pay for coverage of their employees, have argued that they are often hurt during the bidding process by smaller contractors who claim to be sole proprietors and aren't bound by workers' comp laws. Insurance officials believe some contractors ask their workers to declare themselves as sole proprietors to avoid paying for comp coverage.
The delay was enacted after many small construction contractors voiced concerns that the law will result in a significant financial burden that could threaten their businesses in the midst of an already challenging economy. Lawmakers said they need more time to consider some of the recommendations from smaller employers. Business advocates hope the law is revised by including an opt-out provision for individual contractors and partnerships with three or fewer individuals.
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February 11, 2010
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