Maryland's Legislative Updates in the Workers' Compensation Field

        The Uninsured Employers’ Fund (UEF) – a State organization responsible for compensating employees who have been unable to claim worker’s compensation awards due to employers neglecting to maintain their insurance – has recently come into the state spotlight due to a handful of notable bills championed by the Maryland General Assembly. These bills include: Senate Bill 830, SB 695, SB 227, SB 219 and House Bill 193; however, despite passing both chambers, the majority of these bills ultimately ended their bid on the Governor’s desk with the brand of a veto.

        One of the bills which survived the scrutiny of the Governor and the legislative assembly, Maryland Senate Bill 830, is slated to take effect on October 1^st, 2025. Maryland Senate Bill 830 modifies the workers’ compensation claims process by expanding the authorization requirements for the release of claimant information. Under this bill, individuals filing a claim with the Maryland Workers’ Compensation Commission (WCC) must now authorize the release of their records not only to traditional parties like employers and insurers, but also to the UEF and the Subsequent Injury Fund (SIF). This expanded access allows these entities to more efficiently evaluate their potential involvement in a claim. By granting broader access to a claimant’s prior filings and Commission-held records, this bill is expected to streamline claim processing, reduce delays related to information requests, and facilitate quicker resolution of cases. It also increases transparency and oversight, as these additional funds can now more readily participate in claims where their support may be needed. However, these expanded disclosure requirements raise implications for claimant privacy, as more entities will be authorized to access potentially sensitive information. To address this, the bill clarifies and formalizes the language used in the claims application form, ensuring that claimants are explicitly informed about what information will be shared and with whom. Furthermore, for employers, insurers, and legal representatives, the law introduces a new layer of compliance—they must now verify that the revised authorization is included with every claim to avoid procedural delays or rejection. Overall, SB 830 enhances the administrative efficiency and inter-agency cooperation within Maryland’s workers’ compensation system, removing hurdles for both employers and insurers in obtaining information on pre-existing and subsequent WCC claims.

        Another bill approved by Governor Moore, Senate Bill 695, seeks to ensure financial stability for the UEF by altering the membership structure of the board from three to five and making it mandatory—not optional—for the board to establish reserves sufficient to cover potential losses for the fund. This bill is slated to take effect beginning Fiscal Year 2026.

        Another set of bills which did not receive the same warm welcome from the Governor’s office, Maryland House Bill 193 and Senate Bill 219, would have originally allowed for the UEF to increase its assessments against employers by 1% should it be deemed necessary to maintain solvency. However, these bills were cut to just 0.5% after significant pushback by key stakeholders, who felt as though this increase in revenue streams would allow the UEF to increase its assessments against businesses who do consistently maintain worker’s compensation insurance. Ultimately, however, both bills were vetoed upon crossing the desk of Governor Moore.

         Finally, Maryland Senate Bill 227 set its sights on improving efficient operating procedures within the UEF and expediting the payout process for injured workers. This bill contained a significant number of reforms, such as decreasing the period for the payment of awards, removing the requirement that the WCC notify an employer that they are in default, and various changes to reimbursement rules in cases of overlapping payments. Governor Moore cited this double-payment concern as a key reason for vetoing SB 227.

        Despite a majority of these bills being struck down, Senate Bill 830, in particular, emphasizes Maryland’s continued commitment to improving the efficiency and efficacy of key organizations within the state and streamlining operational procedures. 

    - Vincent Bedessem, Law Clerk