Workplace Fraud Penalties – MD SB 838

Hello Fellow Association Members,

As mentioned in my introduction letter recently, one of the most essential business-related functions of our Association is our legislative services. I need to report that there is a Maryland Senate Bill that has been proposed by a group of nine Senators.  Senate Bill 838 once again targets worker classification and proposes imprisonment not exceeding 60 days for any employer who “knowingly” misclassifies workers.  As many in our industry found out in 2013 – when this type of targeting happens, our industry suffers.   In 2013, our Association was instrumental in working with DLLR to map out a clear path to compliance for dealers using subcontractors.  This proposed penalty is clearly a scare tactic to try to dissuade businesses from the use of subcontractors.

This bill is scheduled for a hearing in the Finance Committee on March 2nd, 2023 at 1:00 pm.  Please see the attached link to review the details.  I encourage you to review the bill and contact your senator to voice your objections. Click here for more information on the bill.   Additionally, reach out to the Senators who proposed this bill and let them know your stance and the potential impact on your business.

Sponsoring MD Senators:  Kramer, Augustine,  Beidle,  Gile,  Klausmeier,  McCray, Muse, Salling, and Waldstreicher

The Association Board has discussed the Bill and will be prepared to act if necessary.  We certainly will keep you informed of any actions that need to be taken on behalf of the Association. If there are questions you have, please feel free to raise them.  We certainly will not be alone in this discussion and will coordinate all necessary resources and other affected parties. 

I would also encourage you to review your agreements with your sub-contractors to make sure they are all updated and in order.  Remember this isn’t just Maryland-based dealers – but ANY dealer doing business in the state of Maryland.  Click here for a recap of worker classification requirements.

Steve Weidner