Bill Positions

Bill Number: SB 794

Bill Title: Unemployment Insurance - Exemption from Covered Employment - Passenger Motor Vehicle Drivers

Bill Sponsor(s): Sens. Pugh and Jones

Subject: Unemployment Insurance

Committee: FIN

Bill Summary: Exempts a passenger motor vehicle driver who owns or leases a passenger motor vehicle and uses it to transport passengers through a third party from covered employment for UI.

History:

Chamber Position: Oppose

Position Summary: The Maryland Chamber opposes the exemption of specific categories of employment from covered employment to avoid payment of unemployment insurance taxes. The Maryland Chamber understands why an employer would not desire to pay these taxes on an employee; however, the ability for an employer to exempt certain employees will result in no payroll tax being paid on these individuals, which ultimately weakens the Unemployment Insurance Trust Fund. This causes an undesired cyclical effect that would have negative consequences on businesses and the Trust Fund. For these reasons, the Maryland Chamber opposes this legislation.

Position Statement: To view the Chamber's complete position statement, click here (pdf).

Chamber Staff: Allyson Black

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