Letter from the President – Worker Classification

Hello Fellow Association Members,

I wanted to report on a couple of events that are happening with our membership.  The first event is our Annual Golf Outing at Whiskey Creek on October 24, 2024. I want to thank all the companies that have offered their generous sponsorship and are looking for golfers to sign up for a great day to support the association and the legislative activity in Annapolis.  To that end, we have once again contracted with the premier lobbyist firm of Harris, Jones, and Malone to represent our industry. As always, we do expect some activity that has the potential to affect all our businesses.

On a more serious note, I would like to inform all members about the increased activity in random audits from the Maryland Department of Labor regarding worker classification under the Maryland Workplace Fraud Act. While there has been a decline in audits during the previous administration, the current administration appears to be intensifying these efforts. Businesses need to stay vigilant, ensure all records are up to date, and be prepared for potential reviews. We strongly recommend that all businesses review their worker classification documentation and consult legal advisors to ensure compliance.

As a refresher, under Maryland’s Workplace Fraud Act, individuals working in the construction and landscaping industries are automatically presumed to be employees of the business or person they work for unless properly classified otherwise. Employers in these industries are required to provide individuals classified as independent contractors or exempt persons with formal notice of their classification, along with an explanation of what the classification entails. An “exempt person” refers to someone who runs their own business and has no employees apart from family members. I have attached the Department of Labor’s Workplace Fraud Notice Posting and Notice to Independent Contractors and Exempt Persons below in the hopes of providing more context.

We will continue to keep you informed about any developments related to these audits and how they may impact our industry.

Steve Weidner

President