New Lead Paint Requirements for Contractors
Beginning in April 2010, contractors performing work that disturbs lead-based paint in homes, child care facilities and
schools built before 1978 must be EPA certified by the U.S. Environmental Protection Agency (EPA) and follow specific
work practices to prevent lead contamination. Contractors can find out more about these requirements by contacting
the National Lead Information Center at 1-800-424-LEAD. The EPA was also holding public hearings on the agency's
proposal to strengthen the nation's air quality standards for lead. (Source: www.epa.gov/lead)
Frequently Asked Questions
Q: When is a license required as a Residential Builder or Maintenance & Alteration Contractor?
Q: What's the difference between a "Residential Builder" license and a "Residential Maintenance & Alteration
Contractor" license?
Q: Do I need a license to do ...?
Independent Contractors - What the law says:
This issue is covered under Section 42(5) of the Michigan Employment Security Act. The law says that if a person
performs service under the "direction and control" of another person, then there is an "employer-employee"
relationship. Under those circumstances, the worker is "covered" by the Michigan Employment Security Act and will
probably be entitled to unemployment benefits chargeable to that employer (if other eligibility factors are met). On the
other hand, if a person is an "independent contractor", he or she will be considered to be self-employed. A self-
employed person is not entitled to unemployment benefits. What court cases have said: The fact that both the employer
and the employee state that there is an independent contractor relationship, or the fact that there is actually a written
contract, is not binding on the Unemployment Insurance Agency (UIA). The Agency must look to the "reality" of the
situation and determine if the relationship is really that of independent contractor, or that of an employer-employee.
The courts have developed a test called the "economic reality test" to determine if a person is an independent
contractor, or is actually an employee, even though he or she may be considered by the employer to be an independent
contractor. No one consideration used in the test answers the question; they must all be considered together:
Weighing those factors which will most favorably effectuate the purposes of the Michigan Employment Security Act.
Examples: A worker performs services as a painter. He/she advertises in the local newspaper in order to get jobs;
maintains his/her own brushes, ladders, and drop cloths, and buys his/her own paint; and maintains his/her own
business hours. He/she is paid by the job. This worker would be an independent contractor and would not be covered
for unemployment benefits. The "employer"/contractor would not be taxed for the remuneration paid to the worker.
Another worker, also a painter, comes to work every day at the same company, which maintains a large office building.
The company provides the paint, brushes, ladders, and other materials to do the painting. The company also sets the
worker's hours, and the worker does not do any painting work for anyone else because the job is full-time. This painter
is an employee of the company. This would be true even if the company and the worker consider the worker to be an
independent contractor, and even if they have a written "contract".
Proof at the Hearing: The employer will have to show that, based on the economic reality test, the worker satisfies most
of the criteria to be regarded as an independent contractor. For Further Help: The Unemployment Insurance Agency
(UIA) Advocacy Program can provide assistance to employers and claimants in preparing for Administrative Law Judge
and Board of Review hearings on this issue. Call (800) 638-3994 for more information.
NOTE: The information on this sheet is intended to provide a general understanding of the subject matter. It does not
have the force of law or regulation.
Beginning in April 2010, contractors performing work that disturbs lead-based paint in homes, child care facilities and
schools built before 1978 must be EPA certified by the U.S. Environmental Protection Agency (EPA) and follow specific
work practices to prevent lead contamination. Contractors can find out more about these requirements by contacting
the National Lead Information Center at 1-800-424-LEAD. The EPA was also holding public hearings on the agency's
proposal to strengthen the nation's air quality standards for lead. (Source: www.epa.gov/lead)
Frequently Asked Questions
Q: When is a license required as a Residential Builder or Maintenance & Alteration Contractor?
- A: In general, a person who contracts with a property owner to do residential construction or remodeling on a
project whose total value is $600 or more, including material and labor, is required to be licensed as either
Residential Builder or a Maintenance and Alteration Contractor.
Q: What's the difference between a "Residential Builder" license and a "Residential Maintenance & Alteration
Contractor" license?
- A: The Residential Builder may build a new home from the ground up or may do any kind of repairs. The builder
may contract for the whole job, but will have to subcontract for plumbing, electrical, and mechanical (heating,
ventilation, air conditioning) work. The Residential Maintenance & Alteration (M&A) Contractor is licensed to
perform only specific trades and services and may accept contracts only in the services they are licensed for
(whether or not the building is new construction or remodeling). Each residential builder licensee receives a
wall license and a pocket card showing that he or she is properly licensed. For the residential maintenance &
alteration contractor, the pocket card contains only a letter code representing the trade or trades in which that
contractor is licensed. The M&A trades and their equivalent letter codes are:
- Carpentry (A)
Concrete (B)
Excavation (D)
Insulation Work (G)
Masonry (I)
Painting & Decorating (J)
Siding (K)
Roofing (M)
Screen & Storm Sash (N)
Gutters (O)
Tile & Marble (P)
House Wrecking (R)
Swimming Pools (S)
Basement Waterproofing (T)
- NOTE: Each of these trades must be performed by a licensee.
Q: Do I need a license to do ...?
- A: Generally we suggest you look at the definition of a Residential Builder and the list of specialty trades for a
Residential Maintenance and Alteration Contractor to see what is definitely required to be licensed. You may
wish to review Article 24 of the Occupational Code and read sections 339.2401, 339.2403, and 339.2404.
However, over the years some specific services have been removed from the licensing law or rules. Here is a
basic list; call the Builders Unit at (517) 241-9288 for items not shown.
- New construction/remodeling of homes, apartment buildings, condominiums, townhouses, etc.
- Required:
Carpentry
Concrete
Excavation
Insulation Work
Masonry
Painting & Decorating
Siding
Roofing
Screen & Storm Sash
Gutters
Tile & Marble
House Wrecking
Swimming Pools
Replacement windows/doors/garage doors
Laying wood floors
Basement Waterproofing
- Not Required:
Drywalling
Fences
Awnings
Sewer and septic, water lines, sprinklers
Pavers without mortar
Asphalt paving
House moving
Carpeting and vinyl floors (not wood)
Plaster and Lath
Independent Contractors - What the law says:
This issue is covered under Section 42(5) of the Michigan Employment Security Act. The law says that if a person
performs service under the "direction and control" of another person, then there is an "employer-employee"
relationship. Under those circumstances, the worker is "covered" by the Michigan Employment Security Act and will
probably be entitled to unemployment benefits chargeable to that employer (if other eligibility factors are met). On the
other hand, if a person is an "independent contractor", he or she will be considered to be self-employed. A self-
employed person is not entitled to unemployment benefits. What court cases have said: The fact that both the employer
and the employee state that there is an independent contractor relationship, or the fact that there is actually a written
contract, is not binding on the Unemployment Insurance Agency (UIA). The Agency must look to the "reality" of the
situation and determine if the relationship is really that of independent contractor, or that of an employer-employee.
The courts have developed a test called the "economic reality test" to determine if a person is an independent
contractor, or is actually an employee, even though he or she may be considered by the employer to be an independent
contractor. No one consideration used in the test answers the question; they must all be considered together:
- Whether the employer will incur liability if the relationship terminates at will
Whether the work performed is an integral part of the employer's business
Whether the employee depends upon the wages for living expenses
Whether the employee furnishes equipment and materials
Whether the employee holds himself out to the public as able to perform the same tasks
Whether the work involved is customarily performed by an independent contractor
The factors of control, payment of wages, maintenance of discipline, and the right to hire and fire employees
Weighing those factors which will most favorably effectuate the purposes of the Michigan Employment Security Act.
Examples: A worker performs services as a painter. He/she advertises in the local newspaper in order to get jobs;
maintains his/her own brushes, ladders, and drop cloths, and buys his/her own paint; and maintains his/her own
business hours. He/she is paid by the job. This worker would be an independent contractor and would not be covered
for unemployment benefits. The "employer"/contractor would not be taxed for the remuneration paid to the worker.
Another worker, also a painter, comes to work every day at the same company, which maintains a large office building.
The company provides the paint, brushes, ladders, and other materials to do the painting. The company also sets the
worker's hours, and the worker does not do any painting work for anyone else because the job is full-time. This painter
is an employee of the company. This would be true even if the company and the worker consider the worker to be an
independent contractor, and even if they have a written "contract".
Proof at the Hearing: The employer will have to show that, based on the economic reality test, the worker satisfies most
of the criteria to be regarded as an independent contractor. For Further Help: The Unemployment Insurance Agency
(UIA) Advocacy Program can provide assistance to employers and claimants in preparing for Administrative Law Judge
and Board of Review hearings on this issue. Call (800) 638-3994 for more information.
NOTE: The information on this sheet is intended to provide a general understanding of the subject matter. It does not
have the force of law or regulation.
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CONTRACTOR LUNCHEON
Time: 11:30 - 1:30
Purpose: Increase your business through
knowledge.
None Scheduled at this time !
Check Back Middle of Month (March 2010)
Time: 11:30 - 1:30
Purpose: Increase your business through
knowledge.
None Scheduled at this time !
Check Back Middle of Month (March 2010)
BM LeatherBinder 35 PPG Clock 20 PPG Clipboard 8 PPG Calculator 5 PPG SteelTumbler 12
PPG Black/Blue 10 PPGBlackLeather 14 PPG Green Hat 8 PPG Navy Hat 8 PPG Plastic Mug 6
PPG Black Hat 8 PPG Khaki/Green 10 PPG White Hat 4 PPG Carabiners 3
“FRESH BUCKS” Merchandise
PPG Insulated BM Zip Up Hooded BM Crew Neck BM Twill Button Up BM Blue Duffel 24
Navy Jacket 75 Sweatshirt 30 Sweatshirt 18 Shirts 42
PPG T-Shirts 14 Graham T-Shirts 14 BM T-Shirts 14 PPG Red Duffel 45 PPG Blue Duffel 16
Pittsburgh Fan Deck 25 Aura Fan Deck 25 Color Preview 25 Classic Fan Deck 25 Muralo/Graham 25
BM Black/Red 12 BM Blue Hat 10 BM Orange Hat 10 BM Khaki Hat 6
How to earn "FRESH BUCKS"
** Simply purchase 1 gallon of Benjamin Moore, Graham or Pittsburgh paint and receive 1 Fresh Buck
**
** Items listed and "FRESH BUCKS" required to obtain item are subject to change without notice.
** To redeem "FRESH BUCKS" customer account must be in good standing.
** We reserve the right to modify this program as needed at anytime.
