Maryland Workers Compensation - minimum and maximum payrolls,laws,rules,subrogation,statutes,state contacts and detailed policy information

State: Maryland

Authority/Rating Bureau: NCCI, National Council on Compensation Insurance. While Maryland is technically a NCCI state, and the Injured Workers Insurance Fund, IWIF, uses the NCCI classification system, IWIF uses it's own interpretation of the class assignments. This can differ greatly from NCCI. So be aware there are differences. Also note that IWIF does not report payroll and loss information to NCCI.

Compulsory: Yes

Private Insurance: Allowed

Self-Insurance: Allowed

State Fund: Injured Workers Insurance Fund, replaced the prior state fund, operates in competition with private insurers in the state. Contact at: http://www.iwif.com/

Assigned Risk: Injured Workers Insurance Fund, also operates the assigned risk plan. Contact at: http://www.iwif.com/

Numerical Exceptions: None

Individual Waivers Allowed: Yes

Sole Proprietor: Excluded from coverage/may elect to be included - must complete Maryland's Sole Proprietor Status as a Covered Employee Form. If included Sole Proprietors are rated on $49,300 per year as of 1-1-2011.

Partners: Excluded from coverage/may elect to be included. If included the rating payroll used is $49,300 per year as of 1-1-2011.

Corporate Officers: Included in coverage/may elect to be exempt. If included the minimum weekly payroll used for rating is $950 and the maximum is $3,800 as of 1-1-2011.

LLC Members: Members who provide a service for monetary compensation are statutorily covered. Members statutorily covered and owning 20% or more interest may elect to be exempt. If included the minimum weekly payroll used for rating is $950 and the maximum is $3,800 as of 1-1-2011.

Contractors: If you hire a subcontractor who does not have workers’ compensation insurance (or is not deemed to be an independent contractor), you will be assessed premium based on the amounts paid to the subcontractor. The amounts assessed will not be less than:

50% of the contract price when the contract specifically requires the subcontractor to provide all the material and labor to complete the entire job;
100% of the contract price where labor only is provided; or
331/3% of the contract price where mobile equipment with operators is provided.

If a subcontractor claims to be insured, get an original version of the workers’ compensation certificate of insurance. A written statement from the subcontractor is not adequate proof of coverage. Keep original certificates of insurance (not photocopies) on file as we will review them during the audit. Be sure that the period of coverage on the certificate matches the period when the work was performed, as closely as possible.

IWIF Guidelines for Validating Independent Contractor Status

IWIF recommends that you, as the hiring contractor, gather and retain the following documents for each individual presented as an independent contractor:

Certificate of insurance for general liability coverage
A copy of the independent contractor’s business license
Written subcontract in place for each job conducted by the individual contract laborer, per Title 9-508 of the Maryland Workers’ Compensation Statute
A signed copy of the “Sole Proprietor’s Status as a Covered Employee” form

Even if all four items are provided, the individual in question could still be considered an uninsured subcontractor if he or she performs work that is normally considered a “crew” activity (for example., framing, siding, roofing, drywall, or concrete work).

If you answer “yes” to any of the following questions, the individual contract laborer is most likely an employee:

Is the person paid hourly (or by the piece, day, or week)?
Does the person perform work that regular employees of your business perform?
Is all (or a majority) of the work that is the general nature of your business performed by contract labor?
Do you provide the material for the job(s)?
What does the subcontract specify?

In all cases, if the individual/contractor (without workers’ compensation coverage) in question hires labor to help perform the work, the individual would be considered an uninsured contractor and the amounts he or she was paid would rightfully be included with payroll/wages on your audit.

Special Notes: Coverage for Agriculture: Covers agricultural employees whose employer has 3 or more full-time employees or a yearly payroll for full-time employees of $15,000. Office workers are exempt from coverage. Independent contractors on farms, other than migrant workers, do not have coverage. Owner-operators of large tractor-trailer vehicles are excluded from coverage. Coverage of Domestic Employees: Any domestic worker whose earnings are $750 or more in any calendar quarter from a private household is covered. Domestic servants and their employers jointly may elect for the employee to be covered, even if the individual does not meet the earnings requirement.

Maryland Workers Compensation Subrogation: Maryland Statute 9-901 to 903 is where you will find information about workers compensation subrogation for the State of Maryland. It's not exactly easy to view this information online but if you follow these directions you should be able to get to the actual statute. Use the link we provided below to access the Lexis Nexis look up service they provide for Maryland. Once there read and click the I Agree button and you will then be taken to a screen with a list. Scroll down to "Labor and Employment" and hit the "+" to expand the section. Scroll down til you find Title 9 Workers Compensation and expand this section by clicking the "+" the scroll down to Subtitle 9 Liability of Third Parties and click the "+" to expand that section. At this point you can click on and read section 9-901, 9-902 and 9-903. To get started just use this link. Maryland Statute On Subrogation

Maryland Workers Working In Other States; Other States Workers Working In Maryland, Extraterritorial, Reciprocity and Non-Compliance: IfMaryland workers are working temporarily in another state, then workers compensation coverage for that worker is governed by the extraterritorial provisions found in Maryland statutes. When allowed, extraterritorial provisions allow benefits for an injured worker to apply as if the worker was in their primary state. Not all states provide Extraterritorial Provisions. It's reciprocity that governs coverage for a worker from another state who is working temporarily in Maryland. A certificate must be filed with the Workers Compensation Commission. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. We've provided the below general information about extraterritorial and reciprocity as a basic guide. Please contact your state authority with your specific questions concerning this topic!

Extraterritorial:
- Provisions: Yes
- Duration: Not Specified
Reciprocity:
- Allowed: Yes
Specific Statute: Maryland 9-203; Use this link to go to the Maryland statute look up page. From there you need to navigate to "codes" then go to Title 9, Section 203 to view the statute.
For More Information Contact: Maryland Workers Compensation Commission shown below.

Regulated By:

Maryland Workers' Compensation Commission

10 East Baltimore Street

Baltimore, MD 21202-1641

(410) 864-5100

1 (800) 492- 0479

http://www.wcc.state.md.us/

Workers Compensation Statute:

Search this site for Maryland Code, Labor and Employment, Title 9 Workers Compensation

http://www.michie.com/maryland/lpext.dll?f=templates&fn=main-h.htm&2.0

Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.

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WORKERS COMPENSATION CONSULTANT
Voice: (931) 292-2633
Fax: (573) 447-4998
email: rks@workcompconsultant.com

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Maryland Workers Compensation Laws

Workers compensation policy information for the State of Maryland