2017 Maryland Code
Labor and Employment
Title 9 - Workers' Compensation
Subtitle 2 - Covered Employees and Employers
§ 9-206. Corporate or limited liability company officer

  • (a) In general. -- Subject to subsection (b) of this section, an officer of a corporation or a member of a limited liability company is a covered employee if the officer or member provides a service for the corporation or limited liability company for monetary compensation.
  • (b) Election to be exempt. -- An individual who otherwise would be a covered employee under this section may elect to be exempt from coverage if:
    • (1) the individual:
      • (i) is an officer of a close corporation, as defined in § 4-101(b) of the Corporations and Associations Article; or
      • (ii) is an officer of a close corporation, as defined under the laws of the jurisdiction in which the corporation is incorporated;
    • (2) subject to subsection (c)(3) of this section, the individual is an officer of a corporation, other than a close corporation;
    • (3) the individual:
      • (i) is an officer of a corporation that earns at least 75% of its income from farm operations; and
      • (ii) owns at least 20% of the outstanding capital stock of the corporation;
    • (4) the individual:
      • (i) is an officer of a professional corporation, as defined in § 5-101(c) or (f) of the Corporations and Associations Article;
      • (ii) owns at least 20% of the outstanding capital stock of the corporation; and
      • (iii) performs for the corporation a professional service, as defined in § 5-101(g) of the Corporations and Associations Article; or
    • (5) the individual:
      • (i) is a member of a limited liability company, as defined in § 4A-101(k) of the Corporations and Associations Article; and
      • (ii) owns at least 20% of the outstanding interests in profits of the limited liability company.
  • (c) Notice of election. --
    • (1) A corporation or limited liability company shall submit to the Commission and to the insurer of the corporation or limited liability company a written notice that names the individual who has made an election to be exempt under subsection (b) of this section.
    • (2) An election under subsection (b)(1) or (b)(4) of this section is not effective until a corporation or limited liability company complies with this subsection.
    • (3) No more than five officers of a corporation described in subsection (b)(2) of this section may elect to be exempt under subsection (b)(2) of this section.
  • (d) Regulations. -- The Commission shall adopt regulations to carry out this section.
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