By G. Robert Mowell on
2/4/2011 3:38 PM
Principal contractors in Maryland can breathe a sigh of relief – the Maryland Workers’ Compensation law does not make them responsible for the injuries that a subcontractor’s employees suffer on an out-of-state jobsite. Nor do they have to ensure the subcontractor maintains workers’ compensation insurance policies in multiple states. You may find yourself asking what the big deal is – after all, principal contractors have never had these requirements.
Maryland’s highest court recently decided that a principal contractor was not liable for the workers' compensation benefits of an employee of its subcontractor, when the employee suffered an accidental injury while working on a jobsite in the District of Columbia. The employee filed a claim for worker’s compensation benefits in Maryland. The subcontractor had workers' compensation insurance coverage in the District of Columbia but not in Maryland. The court had to decide whether the principal contractor or Maryland’s Uninsured Employers' Fund would pay the employee’s benefits. ...