Changes in the Uninsured Employers Fund

SB0219 recently went into effect on July 1, 2025, which altered the circumstances under which the Uninsured Employers’ Fund must collect or suspend a certain assessment. This alteration allows for an additional assessment of up to 1.5%, previously 1%, on awards against employers/insurers if the UEF’s reserves are deemed inadequate and requires a special monitor to assess the UEF’s financial condition. However, SB0219 was vetoed by Governor Moore.

SB0227 would revise payment from the Uninsured Employer’s Fund. SB0227 would authorize the Worker’s Compensation Commission to offset or credit against an award certain benefits paid by the Uninsured Employer’s Fund; requiring the Worker’s Compensation Commission to make the fund a party to a claim filed against an uninsured employer, authorizing a covered employee or the dependents of a covered employee to apply to the Directory of the Fund for payment from the Fund, and would require the Fund to pay certain additional awards under certain circumstances. Governor Moore also vetoed SB0227.

Governor Moore approved SB0695 Chapter 0309, and it went into effect on October 1, 2025. These changes included altering the membership of the Uninsured Employers’ Fund Board and required, instead of authorizing, the Board to establish reserves to meet potential losses of the Uninsured Employers’ Fund.

While the Governor vetoed two of these proposed legislation changes, it’s important to take note of the discussions within the Maryland Legislature. By investigating the discussions currently taking place, we can prepare for future legislation to address these issues and plan accordingly in our practice.

Written by Bryce L. Gartner, Esq.