PARRIS N. GLENDENING, Governor

Ch. 390

CHAPTER 390
(Senate Bill 537)

AN ACT concerning

Workers' Compensation - Owner Operator of Class F (Tractor) Vehicle

FOR the purpose of providing that an owner operator of a Class F (tractor) vehicle who
enters into a certain agreement with a motor carrier is not a covered employee of
himself or herself as subcontractor for certain purposes and is not entitled to
compensation from a principal contractor under a certain provision of the Workers'
Compensation Law,

BY repealing and reenacting, with amendments,
Article - Labor and Employment
Section 9-218

Annotated Code of Maryland
(1991 Volume and 1994 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Labor and Employment

9-218.

(a) An individual who is the owner operator of a Class F (tractor) vehicle, as
described in § 13-923 of the Transportation Article, is not a covered employee if:

(1)     the individual and motor carrier make a written agreement for
permanent or trip leasing;

(2)     under the agreement:
(i) there is no intent to create an employer-employee relationship;

and

(ii) the individual is paid rental compensation; and
(3) for federal tax purposes, the individual qualifies as an independent

contractor.

(b) (1) A motor carrier who enters into an agreement under subsection (a) of
this section is considered a principal contractor under § 9-508 of this title.

(2) An individual who is an owner operator of a Class F (tractor) vehicle
and enters into an agreement under subsection (a) of this section is;

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