The Maryland Senate has passed legislation that would expand the state’s authority to investigate employers who may not be paying for workers’ comp insurance, including giving investigators the power to enter businesses unannounced.
The legislation would authorize hiring more investigators for the Workers’ Compensation Commission and allow them to enter any place of business — including small and home businesses — and examine and copy business records to make sure employers are properly paying for workers’ comp insurance for their workers.
Senate Republicans said the measure would mean state investigators could barge into the homes of small business owners and demand records with little warning.
“Why hire more … people in government to harass our small businesses?” said Sen. J. Lowell Stoltzfus, R-Somerset County.
But supporters of the legislation said it would help the commission protect workers and help eliminate work-place fraud. They said the legislation is needed to give the agency power to properly investigate whether an employer has properly secured workers’ compensation insurance.
Supporters added that Republican fears that the increased number of fraud investigators would lead to unannounced visits by state workers to small business owners’ homes were overblown.
“We don’t have the staff to run around harassing folks,” said Sen. Delores Kelley, D-Baltimore County.
Investigators would be allowed to visit companies only during business hours.
In the Senate’s version of the legislation, which passed earlier this week, the governor would be required to include money for at least five extra staffers to help investigate workers’ compensation fraud. The extra costs could be up to $356,900, most of which would be paid for by the increased number of fines.
The Senate’s version also would double the fine the commission could levy against employers who don’t have workers compensation insurance from $2,500 to $5,000.
The maximum fine in the House’ s version, which is still in committee, would be $10,000.
