Workers’ Compensation
Manual

12th Edition

Theodore B. Cornblatt, Esq.

H. George Meredith, Jr., Esq.

Bernard J. Sevel, Esq.

Table of Contents

Chapter One

The Maryland Workers’ Compensation Act

I. Introduction to the Maryland Workers’ Compensation Act............................................................ 1

A. Background and General Purpose of the Act........................................................................................................... 1

B. Basic Statutory Scheme..................................................................................................................................................... 1

1. Strict liability................................................................................................................................................................. 1

2. Tort immunity.............................................................................................................................................................. 1

3. Intentional actions of employer................................................................................................................................ 2

C. Insurance Requirements.................................................................................................................................................... 2

1. Uninsured Employers’ Fund..................................................................................................................................... 2

D. Retaliation by Employer................................................................................................................................................... 3

E. Wrongfully Obtaining or Affecting the Payment of Benefits................................................................................ 3

F. Settlements and Other Agreements Affecting Workers’ Compensation Rights............................................... 3

G. Frivolous Proceedings....................................................................................................................................................... 3

H. Liberal Construction.......................................................................................................................................................... 3

II. Jurisdiction..................................................................................................................................... 4

A. Injuries Occurring in Maryland....................................................................................................................................... 4

1. Navigable waters.......................................................................................................................................................... 4

2. Non-residents............................................................................................................................................................... 4

B. Injuries Occurring Outside Maryland........................................................................................................................... 4

1. When Act does not apply........................................................................................................................................... 4

2. Exception to when Act does not apply................................................................................................................... 4

3. When Act does apply.................................................................................................................................................. 4

C. Effect of Receipt of Workers’ Compensation Benefits in Another State.......................................................... 4

D. Applicability of Insurance Coverage Outside Maryland to a Maryland Claim................................................ 5

III. The Employer‑Employee Relationship.......................................................................................... 5

A. Criteria................................................................................................................................................................................... 5

B. Independent Contractors................................................................................................................................................. 6

1. Definition...................................................................................................................................................................... 6

2. Reservation of right to supervise or inspect.......................................................................................................... 6

3. If worker is a specialist............................................................................................................................................... 6

C. Employments Subject to the Workers’ Compensation Act................................................................................... 6

1. Casual employment..................................................................................................................................................... 6

2. Elective coverage......................................................................................................................................................... 7

D. Statutory Employment..................................................................................................................................................... 7

E. Illegal Employment........................................................................................................................................................... 8

F. Injuries Before Hiring or After Termination.............................................................................................................. 8

IV. Injuries Covered by the Act............................................................................................................ 8

A. Compensability Requirements in General................................................................................................................... 8

B. Accidental Personal Injury................................................................................................................................................ 8

C. Arising Out of and In the Course of Employment................................................................................................. 9

1. Separate requirements................................................................................................................................................ 9

2. Definition of terms..................................................................................................................................................... 9

a. “In the course of” the employment ............................................................................................................... 9

b. “Out of” the employment ................................................................................................................................ 9

D. Rules and Guidelines for Determining Compensability.......................................................................................... 9

1. Going and coming rule............................................................................................................................................... 9

2. Exceptions to going and coming rule...................................................................................................................... 9

a. Premises exception .......................................................................................................................................... 10

b. Traveling on public street on direct route between employer’s parking lot
and the employer’s plant ................................................................................................................................ 10

c. Special hazard exception (also known as the Proximity Rule) ............................................................... 10

d. Transportation paid, furnished, or required by employer ...................................................................... 10

e. Special errands or missions ............................................................................................................................ 10

f. Dual purpose doctrine .................................................................................................................................... 11

3. Deviations................................................................................................................................................................... 11

4. Risk or condition personal to employee (personal idiopathy)......................................................................... 12

5. Act of third party...................................................................................................................................................... 12

6. Horseplay.................................................................................................................................................................... 12

7. Coffee breaks/lunch................................................................................................................................................ 13

8. Social/recreational.................................................................................................................................................... 13

9. Traveling employees................................................................................................................................................. 13

10. Hernias........................................................................................................................................................................ 13

11. Additional injuries resulting from effects of a compensable injury............................................................... 14

12. Injuries during medical treatment or vocational rehabilitation....................................................................... 14

E. Causal Relationship.......................................................................................................................................................... 14

1. In general.................................................................................................................................................................... 14

2. Proximate cause......................................................................................................................................................... 14

3. Aggravation or acceleration of a pre-existing condition................................................................................... 14

4. Necessary evidence................................................................................................................................................... 14

V. Occupational Diseases................................................................................................................. 15

A. In General.......................................................................................................................................................................... 15

B. Compensation Benefits.................................................................................................................................................. 15

C. The Responsible Employer and Insurer.................................................................................................................... 15

D. Compensability................................................................................................................................................................. 16

E. Presumption in Favor of Police Officers, Fire Fighters and Members of Rescue Squads......................... 16

F. Occupational Deafness................................................................................................................................................... 17

G. Occupational Mental Stress........................................................................................................................................... 17

H. Aggravation of Pre-existing Condition...................................................................................................................... 17

I. Reopening of Claim........................................................................................................................................................ 17

VI. Defenses....................................................................................................................................... 18

A. In General.......................................................................................................................................................................... 18

1. Willful misconduct.................................................................................................................................................... 18

2. Intoxication or drug use........................................................................................................................................... 18

B. Presumptions..................................................................................................................................................................... 18

VII.   Average Weekly Wage.............................................................................................................. 18

A. In General.......................................................................................................................................................................... 18

B. Determination of Amount............................................................................................................................................ 18

VIII.   Compensation Benefits............................................................................................................ 19

A. In General.......................................................................................................................................................................... 19

1. Benefits outline.......................................................................................................................................................... 19

2. Periodic payments..................................................................................................................................................... 19

3. Date to be used in determining benefits.............................................................................................................. 20

4. Wage loss not required............................................................................................................................................. 20

5. Credit for overpayment........................................................................................................................................... 20

6. Rounding up............................................................................................................................................................... 20

7. Penalty for late payment.......................................................................................................................................... 20

B. Temporary Total Disability........................................................................................................................................... 20

1. Definition.................................................................................................................................................................... 20

2. Benefits........................................................................................................................................................................ 21

3. Duration...................................................................................................................................................................... 21

C. Permanent Total Disability............................................................................................................................................ 21

1. Definition.................................................................................................................................................................... 21

2. Presumption of permanent total disability........................................................................................................... 21

3. Benefits........................................................................................................................................................................ 21

4. Duration...................................................................................................................................................................... 22

D. Temporary Partial Disability......................................................................................................................................... 22

E. Permanent Partial Disability.......................................................................................................................................... 22

1. Definition.................................................................................................................................................................... 22

2. Benefits........................................................................................................................................................................ 22

3. Duration: scheduled members............................................................................................................................... 23

4. Duration: other cases............................................................................................................................................... 23

5. Duration: serious disability...................................................................................................................................... 23

6. Duration: mutilation/disfigurement...................................................................................................................... 24

7. Duration: hernia........................................................................................................................................................ 24

8. Reopening for additional compensation for permanent partial disability..................................................... 24

a. Awards of less than 250 weeks of compensation ..................................................................................... 24

b. Awards of 250 weeks or more (serious disability) .................................................................................... 24

F. Apportionment for Pre‑existing or Unrelated Conditions.................................................................................. 24

1. Applicability of apportionment to employer’s other obligations..................................................................... 25

2. Subsequent Injury Fund involvement.................................................................................................................. 25

3. Rate of payment in permanent total cases.......................................................................................................... 25

4. Apportionment of disability arising after the accidental injury....................................................................... 25

G. Survival of Right to Compensation............................................................................................................................ 25

H. Credit Allowed for Pension of Government Employee..................................................................................... 26

1. General rule................................................................................................................................................................ 26

2. Employee contribution to pension fund.............................................................................................................. 26

3. Retirement pension that has no relation to injury.............................................................................................. 26

4. Firefighters and police officers.............................................................................................................................. 26

5. Offset of vocational rehabilitation benefits......................................................................................................... 27

6. Salary not offset........................................................................................................................................................ 27

IX.  Death Benefits............................................................................................................................ 27

A. In General.......................................................................................................................................................................... 27

1. Death is separate compensable event................................................................................................................... 27

2. Time limitation........................................................................................................................................................... 27

B. Dependency....................................................................................................................................................................... 27

1. Total v. partial dependency..................................................................................................................................... 27

2. Time for determining dependency........................................................................................................................ 28

C. Benefits Payable................................................................................................................................................................ 28

1. Total dependents....................................................................................................................................................... 28

2. Partial dependents..................................................................................................................................................... 29

3. Combination of total and partial dependents...................................................................................................... 29

4. Remarriage of surviving spouse............................................................................................................................. 29

D. Survival of Right to Compensation............................................................................................................................ 29

E. Funeral Expenses............................................................................................................................................................. 29

X. Medical Expenses........................................................................................................................ 29

A. In General.......................................................................................................................................................................... 29

B. Amounts Payable............................................................................................................................................................. 30

C. Refusal to Accept Medical Treatment........................................................................................................................ 30

D. Termination of Medical Benefits................................................................................................................................. 30

XI. Vocational Rehabilitation............................................................................................................. 30

A. In General.......................................................................................................................................................................... 30

B. Benefits Payable................................................................................................................................................................ 31

XII. Third Party Cases....................................................................................................................... 31