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§ 9-402.1. Failure to properly classify individual prohibited

West's Annotated Code of MarylandLabor and EmploymentEffective: July 1, 2019

West's Annotated Code of Maryland
Labor and Employment
Title 9. Workers' Compensation (Refs & Annos)
Subtitle 4. Insurance Coverage (Refs & Annos)
Effective: July 1, 2019
MD Code, Labor and Employment, § 9-402.1
§ 9-402.1. Failure to properly classify individual prohibited
Knowingly defined
(a) In this section, “knowingly” means having actual knowledge, deliberate ignorance, or reckless disregard for the truth.
Prohibit act
(b) An employer may not fail to properly classify an individual as an employee.
Order to secure compensation
(c) 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.
Civil penalty
(d) 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.
Advising violation of section; civil penalty
(e)(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.
Double administrative penalty
(f) 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.
Assessment of civil penalty by one order
(g)(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.
Notice of failure to properly classify
(h) 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.
Cooperation among agencies
(i) As authorized by State and federal law, units within the Maryland Department of Labor 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.
Regulations
(j) The Commission may adopt regulations to carry out this section.

Credits

Added by Acts 2009, c. 188, § 1, eff. Oct. 1, 2009. Amended by Acts 2009, c. 60, § 5, eff. April 14, 2009; Acts 2019, c. 8, § 5.
MD Code, Labor and Employment, § 9-402.1, MD LABOR & EMPLY § 9-402.1
Current through legislation effective through June 1, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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