2013 Maryland Code
LABOR AND EMPLOYMENT
§ 9-402 - Coverage required [Subject to amendment effective October 1, 2013; amended version follows this section]

§9-402. IN EFFECT

(a) Subject to subsections (b) through (f) of this section, each employer shall secure compensation for covered employees of the employer by:

(1) maintaining insurance with the Injured Workers’ Insurance Fund;

(2) maintaining insurance with an authorized insurer;

(3) participating in a governmental self-insurance group that meets the requirements of § 9-404 of this subtitle;

(4) participating in a self-insurance group of private employers that meets the requirements of Title 25, Subtitle 3 of the Insurance Article;

(5) maintaining self-insurance for an individual employer in accordance with § 9-405 of this subtitle; or

(6) having a county board of education or private noncollegiate institution secure compensation under § 8-402(c) or § 7-114(d) of the Education Article.

(b) The State shall secure compensation for jurors by maintaining insurance with the Injured Workers’ Insurance Fund and paying into the Fund the premiums set by the Board of the Fund as necessary to provide compensation for jurors.

(c) The Adjutant General shall secure compensation for officers and enlisted members of the organized militia of the State by maintaining insurance with the Injured Workers’ Insurance Fund or an authorized insurer.

(d) A licensed owner or trainer of a racehorse who is considered an employer under § 9-212 of this title is in compliance with the requirements of this subtitle if the owner or trainer is in compliance with the requirements of § 11-906 of the Business Regulation Article.

(e) The Secretary of Human Resources shall secure compensation for a recipient of public assistance who is a covered employee under § 9-224 of this title by maintaining insurance with the Injured Workers’ Insurance Fund and paying into the Fund the premiums set by the Board of the Fund as necessary to provide compensation for those individuals.

(f) Anne Arundel, Kent, and Prince George’s counties shall secure compensation for members of a volunteer fire company or volunteer rescue squad by maintaining insurance with the Injured Workers’ Insurance Fund or an authorized insurer.

9-402. ** TAKES EFFECT OCTOBER 1, 2013 PER CHAPTER 570 OF 2012 **

(a) Subject to subsections (b) through (f) of this section, each employer shall secure compensation for covered employees of the employer by:

(1) maintaining insurance with the Chesapeake Employers’ Insurance Company;

(2) maintaining insurance with an authorized insurer;

(3) participating in a governmental self-insurance group that meets the requirements of § 9-404 of this subtitle;

(4) participating in a self-insurance group of private employers that meets the requirements of Title 25, Subtitle 3 of the Insurance Article;

(5) maintaining self-insurance for an individual employer in accordance with § 9-405 of this subtitle; or

(6) having a county board of education or private noncollegiate institution secure compensation under § 8-402(c) or § 7-114(d) of the Education Article.

(b) The State shall secure compensation for jurors by maintaining insurance with the Chesapeake Employers’ Insurance Company and paying to the Company the premiums set by the Board for the Company as necessary to provide compensation for jurors.

(c) The Adjutant General shall secure compensation for officers and enlisted members of the organized militia of the State by maintaining insurance with the Chesapeake Employers’ Insurance Company or an authorized insurer.

(d) A licensed owner or trainer of a racehorse who is considered an employer under § 9-212 of this title is in compliance with the requirements of this subtitle if the owner or trainer is in compliance with the requirements of § 11-906 of the Business Regulation Article.

(e) The Secretary of Human Resources shall secure compensation for a recipient of public assistance who is a covered employee under § 9-224 of this title by maintaining insurance with the Chesapeake Employers’ Insurance Company and paying to the Company the premiums set by the Board for the Company as necessary to provide compensation for those individuals.

(f) Anne Arundel, Kent, and Prince George’s counties shall secure compensation for members of a volunteer fire company or volunteer rescue squad by maintaining insurance with the Chesapeake Employers’ Insurance Company or an authorized insurer.

§ 9-402 - Coverage required (Amendment effective October 1, 2013.)

(a) In general. -- Subject to subsections (b) through (f) of this section, each employer shall secure compensation for covered employees of the employer by:

(1) maintaining insurance with the Chesapeake Employers' Insurance Company;

(2) maintaining insurance with an authorized insurer;

(3) participating in a governmental self-insurance group that meets the requirements of § 9-404 of this subtitle;

(4) participating in a self-insurance group of private employers that meets the requirements of Title 25, Subtitle 3 of the Insurance Article;

(5) maintaining self-insurance for an individual employer in accordance with § 9-405 of this subtitle; or

(6) having a county board of education or private noncollegiate institution secure compensation under § 8-402(c) or § 7-114(d) of the Education Article.

(b) Jurors. -- The State shall secure compensation for jurors by maintaining insurance with the Chesapeake Employers' Insurance Company and paying to the Company the premiums set by the Board for the Company as necessary to provide compensation for jurors.

(c) Organized militia. -- The Adjutant General shall secure compensation for officers and enlisted members of the organized militia of the State by maintaining insurance with the Chesapeake Employers' Insurance Company or an authorized insurer.

(d) Owner or trainer of racehorse. -- A licensed owner or trainer of a racehorse who is considered an employer under § 9-212 of this title is in compliance with the requirements of this subtitle if the owner or trainer is in compliance with the requirements of § 11-906 of the Business Regulation Article.

(e) Recipient of public assistance. -- The Secretary of Human Resources shall secure compensation for a recipient of public assistance who is a covered employee under § 9-224 of this title by maintaining insurance with the Chesapeake Employers' Insurance Company and paying to the Company the premiums set by the Board for the Company as necessary to provide compensation for those individuals.

(f) Volunteer fire company or rescue squad -- Anne Arundel, Kent, and Prince George's counties. -- Anne Arundel, Kent, and Prince George's counties shall secure compensation for members of a volunteer fire company or volunteer rescue squad by maintaining insurance with the Chesapeake Employers' Insurance Company or an authorized insurer.

§ 9-402 - 1. Failure to properly classify employee

(a) "Knowingly" defined. -- In this section, "knowingly" means having actual knowledge, deliberate ignorance, or reckless disregard for the truth.

(b) Prohibited. -- An employer may not fail to properly classify an individual as an employee.

(c) Order to secure compensation. -- If the Commission determines that an employer failed to properly classify an individual as an employee, the Commission shall order the employer to secure compensation for the covered employee in accordance with § 9-407 of this subtitle.

(d) Civil penalty. -- If the Commission determines that an employer knowingly failed to properly classify an individual as an employee, the Commission shall, in conformance with § 9-310 of this title, assess a civil penalty of not more than $ 5,000.

(e) Knowing advisement to take action to violate section prohibited. --

(1) A person may not knowingly advise an employer to take action for the purpose of violating this section.

(2) A person found in violation of this subsection shall be subject to a civil penalty of not more than $ 20,000.

(f) Double administrative penalties. -- An employer found to have knowingly violated this section who has also been found previously to have knowingly violated this section by a final order of a court or administrative unit may be assessed double the administrative penalties set forth in subsection (d) of this section for the new violation.

(g) Number of orders. --

(1) An employer may be assessed civil penalties by only one order of a court or administrative unit for the same actions constituting a knowing failure to properly classify an individual as an employee.

(2) Notwithstanding paragraph (1) of this subsection, an employer may be ordered to make restitution, pay any interest due, and otherwise comply with all applicable laws and regulations by orders of a court, the Commission, and all other relevant administrative units, including the Comptroller, the Office of Unemployment Insurance, the Insurance Administration, and the Division of Labor and Industry.

(h) Notice of violation to other agencies. -- If the Commission determines that an employer has failed to properly classify an individual as an employee, the Commission shall promptly notify the Office of Unemployment Insurance, the Division of Labor and Industry, the insurer, if any, the Insurance Administration, and the Comptroller.

(i) Cooperation with other agencies. -- As authorized by State and federal law, units within the Department of Labor, Licensing, and Regulation and the Department of Budget and Management, the Secretary of State, the Comptroller, the Insurance Administration, and other State agencies shall cooperate and share information concerning any suspected violation of this title.

(j) Regulations. -- The Commission may adopt regulations to carry out this section.