Maryland 2025 Regular Session

Maryland House Bill HB1096

Introduced
2/5/25  

Caption

Property Tax Credits - Notice Through Property Tax Bill

Summary

HB1096 is a broad worker-protection and fraud-prevention bill that expands and reorganizes several Maryland labor and employment enforcement provisions. It enlarges the scope of the Maryland False Claims Act to cover certain unemployment insurance-related false statements or records, and directs some recovered penalties and damages to the Unemployment Insurance Fund. The bill also changes prevailing wage recovery rules so that, in cases involving prevailing wage violations, collected civil penalties and damages are used to provide restitution directly to affected workers. A major part of the bill rewrites Maryland’s workplace misclassification laws. It expands those laws beyond construction and landscaping to apply across industries and to employers, general contractors, higher-tier contractors, subcontractors, and other persons engaging workers in the State. It creates a broader presumption of employee status, defines general contractor, higher-tiered contractor, subcontractor, worker, successor, and economic damages, and makes private agreements to classify a worker as an independent contractor ineffective as a defense. The bill also adds stronger investigative tools, citation procedures, civil penalties, restitution authority, and rules for administrative hearings and judicial review. HB1096 further gives the Attorney General a larger role in wage and worker-rights enforcement. It authorizes the Attorney General to bring actions for wage theft, misclassification, prevailing wage, wage payment, and retaliation matters in specified larger cases, and to investigate before filing. It also creates a new Worker Protection Unit in the Office of the Attorney General to investigate and prosecute violations of workers’ rights laws, including wage and hour laws, prevailing wage laws, wage payment laws, and misclassification laws. The unit is given subpoena, inspection, and warrant-related authority, along with anti-retaliation enforcement powers. The bill also strengthens collateral consequences for employers found in violation. It expands debarment grounds under State procurement law, requires notice to public bodies and general contractors in certain cases, and authorizes licensing authorities to suspend or revoke licenses for certain misclassification violations, with reinstatement tied to compliance. It also makes final orders effective against successors in some circumstances and allows information-sharing among state agencies, the Comptroller, and law enforcement entities. The overall sentiment reflected by the bill text is strongly pro-worker and enforcement-oriented, with the Attorney General’s office positioned as a central enforcement actor. Because there are no committee transcripts or recorded votes provided, there is no direct evidence of opposition or support from debate, but the structure and breadth of the bill suggest a policy goal of aggressive deterrence of wage theft, misclassification, and retaliation. The main likely points of contention are the expanded liability for general contractors and higher-tier contractors, the broader employee-presumption standard, the new licensing and debarment consequences, and the increased enforcement powers granted to the Attorney General and Commissioner.

Impact

HB1096 would substantially amend Maryland labor, procurement, and false claims law by expanding enforcement authority, increasing penalties, and broadening the reach of worker-protection statutes. It would repeal and replace portions of the workplace fraud/misclassification subtitle, extend misclassification rules statewide across industries, authorize Attorney General-led enforcement in larger wage cases, create a Worker Protection Unit in the Office of the Attorney General, and add new remedies including restitution, treble damages, civil penalties, license suspension or revocation, and procurement debarment consequences. It also redirects certain recovered funds to the Unemployment Insurance Fund and affected workers, altering how penalties are distributed under the False Claims Act and prevailing wage laws.

Sentiment

The bill’s overall tone is assertive and enforcement-heavy, reflecting a strong pro-worker posture and an intent to give state agencies more tools to combat wage theft, misclassification, retaliation, and related fraud. In the materials provided, there are no committee transcripts or roll-call votes showing explicit support or opposition, so the available context does not reveal a recorded debate. Based on the text alone, the bill appears designed to be protective of workers and to strengthen state enforcement capacity rather than to create a compromise approach.

Contention

The most notable likely points of contention are the bill’s expansion of liability beyond direct employers to general contractors and higher-tier contractors, its statewide presumption that workers are employees unless a person proves otherwise, and its prohibition on using private independent-contractor agreements as a defense. Employers and contracting entities may also object to the new licensing consequences, debarment exposure, and the Attorney General’s expanded authority to investigate, subpoena, inspect, and bring civil actions. Worker advocates, by contrast, would likely support the bill’s broader remedies, stronger anti-retaliation protections, and direct restitution provisions.

Companion Bills

MD SB938

Crossfiled Fraud Prevention and Worker Protections - Prohibitions, Penalties, and Enforcement

Similar Bills

No similar bills found.