Monday, October 02, 2017

Maryland Misclassification Cases Often Start with a Claim for Unemployment

Where can Maryland employees misclassified as independent contractors go to file a claim?  The unemployment office is one place they can go (after they are terminated from the job).

Maryland's unemployment law has a restrictive test for employment status.  You are a presumed to be an employee unless:


  • You are free from direction and control;
  • You are engaged in an independent business that is of the same nature as the work your are performing; and
  • You are performing the work is outside the usual course of business of the person for whom it is performed OR the work is performed outside any place of business of the person for whom it is performed.
A 2016 law, called the "Recovery of Benefits and Penalties for Fraud Act," provides for penalties if an employer knowingly misclassifies an employee.    In addition, the Act requires that if Maryland's Unemployment Office finds that an employer has misclassified an employee it must notify the tax collector (the Comptroller) and the Workers Compensation Commission.  

Thursday, September 28, 2017

Maryland Paid Sick Leave Law Vetoed by Govenor Hogan

  On May 25, 2017, Governor Hogan vetoed the "Maryland Healthy Working Families Act."  This Act would have mandated that private-sector employers who employ more than 15 employees provide paid sick leave.    Employees would have earned 1 hour of paid sick leave for every 30 hours that they worked.  But, as noted, Governor Hogan vetoed the Act.

  Had the bill not been vetoed, it would have preempted the one Maryland jurisdiction that has a paid sick leave law.  That is Montgomery County, which has passed the Earned Sick and Safe Leave Law.

  Governor Hogan claims to support a version of paid sick leave, but would limit it to employers with more than 50 employees and would offset the costs through tax incentives.    Governor Hogan established a "Committee on Paid Leave" to study how best to implement paid leave.   

 Maryland's leave laws are summarized in this chart