Bill Positions

Bill Number: SB 297

Bill Title: Workers Compensation - Sole Proprietors - Coverage

Bill Sponsor(s): Senator Exum

Subject: Workers' Compensation

Committee: FIN

Bill Summary: This bill would have established that a sole proprietor is a covered employee under workers' compensation law unless the sole proprietor elects to be exempt from coverage.

History: This bill was withdrawn by its sponsor.

Chamber Position: Oppose

Position Summary: This bill would have established unnecessary burdens for contractors who use sole proprietors to undertake portions of contracted jobs. Currently, a sole proprietor with no employees is not required to have workers' compensation insurance. This would have complicated the contractor/sole proprietor relationship by requiring the contractor to cover the sole proprietor as an employee and assume responsibility for workers compensation claims. This requirment would likely have resulted in lose of work for sole proprietors, due to contractor reluctance to enter into business with them. This is another unnecessary attempt to establish a presumption that anyone who does any work for any employer is presumed to be an employee. For these reasons, the Maryland Chamber opposed this bill.

Position Statement:

Chamber Staff: Allyson Black

General Assembly: Click here to view the bill on the Maryland General Assembly's website.