This chapter sets out the reporting requirements, payment requirements, and related procedures for employers. In this chapter, the following terms have the meanings indicated. Terms Defined. “Administrative fee” means the fee due and owing on an employer's taxable wage base under §8-605.1 of the Unemployment Insurance Law. “Contributor” means an employing unit liable for contributions on taxable wages for covered employment. “Covered employment” means service performed for an employing unit that is subject to the Unemployment Insurance Law as determined by the Secretary. “Department” means the Maryland Department of Labor. “Reimburser” means a nonprofit organization or governmental unit, as defined in the Unemployment Insurance Law, that elects to finance its Unemployment Insurance liability through self-insurance. “Secretary” means the Secretary of Labor or the Secretary's designee. “Unemployment Insurance Law” means Labor and Employment Article, Title 8, Annotated Code of Maryland. Unless the context indicates otherwise, all other terms used in this chapter shall have the same meanings as in the Unemployment Insurance Law or in COMAR 09.32.02. Registration. An employer shall file a registration application with the Comptroller of the Treasury within 20 days after the first day the business begins operation. Further Information. Additional or supplemental reports to determine liability shall be filed at the Secretary's request. An employer that contends it is not liable under the Unemployment Insurance Law shall submit to the Secretary information to support that contention. Determination. The Secretary shall review the registration application and any additional or supplemental reports to determine the employer's liability pursuant to the Unemployment Insurance Law. Review. An employing unit that disputes the liability determination may seek review of the determination pursuant to Labor and Employment Article, §8-604, Annotated Code of Maryland. An employing unit currently assigned an account number shall post notices in a prominent place near the actual employment locations, in a number and form designated by the Secretary, informing employees: That the employing unit is liable for contributions or payments instead of contributions under the Unemployment Insurance Law; Of their rights to benefits under the Unemployment Insurance Law; and Of other information required by the Unemployment Insurance Law. Contributor. Benefit Payments Charged. Except as provided in §A(2) of this regulation or in the Unemployment Insurance Law, the earned-rate record of a contributor who is a base period employer shall be charged with all regular and work-sharing benefit payments, the appropriate share of extended benefit payments, and dependents' allowance. Benefit Payments Not Chargeable. Benefit payments may not be charged against the earned-rate record of a contributor who is a base period employer when the claimant: Voluntarily left employment: Without good cause, To accept better employment, or To enter a training program approved by the Secretary; Has been discharged by the employer for gross misconduct as defined in the Unemployment Insurance Law; Was employed by the employing unit on a continuous part-time basis as of the date of the claimant’s initial claim for benefits; or Was employed in a work release program as set forth in the Unemployment Insurance Law, if the separation was caused by the claimant's release from prison. Continuous Part-Time Basis. For the purposes of this regulation, employment is on a continuous part-time basis under Labor and Employment Article, Title 8, Subtitle 6, Annotated Code of Maryland if: The claimant was not employed by the employing unit on a full-time basis during the base period; The claimant continued to be employed by the employing unit on a part-time basis as of the date of the initial claim for benefits; and The employing unit did not cause the claimant’s part-time working hours to be reduced. When Charged. Benefit payments shall be charged to an employer's earned-rate record for the calendar quarter during which the benefits are paid. A notice of benefit payments charged to the contributor's earned-rate record shall be sent to the contributor at the end of each calendar quarter. Benefit Overpayment Credit. When an overpayment of benefits is established, the overpayment shall be credited to the contributor's earned-rate record in the calendar quarter in which the overpayment is established. Reimburser. A reimburser who is a base period employer shall reimburse the Unemployment Insurance Trust Fund for all regular and work-sharing benefit payments, the appropriate share of extended benefit payments, and dependents' allowance. A notice of benefit payments that must be reimbursed (Statement of Reimbursable Benefits) shall be sent to the reimburser at the end of each calendar quarter. Allocation. Reimbursers and Contributors. When not all of the claimant's base period employers are reimbursers, benefits paid to a claimant shall first be allocated to each reimburser in accordance with the Unemployment Insurance Law. The remainder of the claimant's benefit payments shall be charged to the earned-rate record of those base period employers who are contributors in the same ratio that each employer paid the claimant's total base period wages. When calculating the allocation, the percentage of the charge to each base period employer shall be rounded off to the nearest whole number. Contributors. When all the claimant's base period employers are contributors, benefits paid to a claimant shall be allocated to each contributor in accordance with the Unemployment Insurance Law. Reimbursers. When all the claimant's base period employers are reimbursers, benefits paid to a claimant shall be prorated to each reimburser in accordance with the Unemployment Insurance Law. Charging of Out-of-State Benefit Payments. Except as provided in §A(2) of this regulation, when the State reimburses another state for benefits paid by that other state based on Maryland wages, the earned-rate record of each contributor shall be charged, and each reimburser shall be charged in the same ratio that each employer paid the claimant's total Maryland wages. Review. An employer who disputes the charging determination may seek review of the determination pursuant to Labor and Employment Article, §8-604, Annotated Code of Maryland. Responsibility of Employing Unit. An employing unit shall record the Social Security number of each of its employees. If an employee does not have a Social Security number, the employing unit shall require the employee to execute the proper application form to acquire a Social Security number within 5 days of the first day of employment. Employment Records. An employing unit shall keep employment records safe and readily accessible at the place of business of the employing unit. The records shall be retained and preserved for a period of 5 years from the last day of the calendar quarter to which the records relate. An employing unit that discontinues business shall keep employment records safe and readily accessible. The records shall be retained and preserved for a period of 5 years from the last day of the calendar quarter to which the records relate. Employment records include but are not limited to wage records, payroll registers, check registers, cash disbursements journals, cancelled checks, federal income tax returns (Schedule 1040C for individual proprietors), forms 1096 and 1099, and general ledgers. Employment records shall be made available to the Department for inspection and copying. Prior notice to the employing unit is not required. Specific Contents of Wage Records. An employing unit shall include in its wage records: The dates of each pay period; All of the wages paid to each worker for each pay period and the total amount of wages paid for employment in the pay period, showing separately the amount of wages paid: In cash; and In any medium other than cash; The method by which wages are computed; Hire date, separation date, and reason for separation of each worker; Name, address, and Social Security number of each worker; and With respect to individuals who work less than full-time: The wage rate; The number of hours worked each day; Wages earned by calendar week; Whether the individual worked less than full-time during the week; and Whether the individual worked all available hours. Amount and Adjustment of Collateral. Nonprofit organizations that elect to make payments instead of contributions shall file collateral approved by the Secretary. The Secretary shall review the sufficiency of the collateral annually based on the previous year's taxable wages or on any other basis the Secretary deems appropriate. If the amount of existing collateral is less than the employer's average annual benefit costs for the preceding 2 years, the amount of the collateral shall be increased to equal the average annual benefit costs. The amount of the collateral may not exceed the maximum State tax rate multiplied by that employer's taxable payroll for the prior year. When the collateral is increased, the adjusted collateral shall be filed within 30 days of the Secretary's demand. Collateral shall be posted with the Secretary in a form acceptable to the Secretary, which may include one or more of the following forms: A corporation bond issued by a company licensed to issue surety-type bonds; Cash deposit; Treasury notes or other evidence of federal indebtedness; Bonds or other evidence of indebtedness insured by the State that bind the full faith and credit of the State; or Irrevocable and unconditional letters of credit. Two or more reimbursers may maintain employment records and report to the Secretary as a group, provided the: Reimbursers are engaged in essentially the same industry, occupation, or activity; and Secretary finds that the risk to the Unemployment Insurance Fund represented by each of the members of the group is approximately the same as the risk represented by other members of the group. An approved group of reimbursers shall maintain employment records as a group and report required information to the Secretary in one report covering the entire group. The group report shall designate which reimburser in the group received the services and paid the wages for each of the employees listed. The Secretary shall approve the method of designating the wages. Contributions and administrative fees are due and shall be paid on or before the last day of the month immediately following each calendar quarter. Contributions and administrative fees from an employer whose status is changed by cessation of business, or appointment of a receiver, trustee, trustee in bankruptcy, or other fiduciary are due and shall be paid within 5 days of the change in status. For payment of administrative fees, a fractional part of a cent: That is less than one-half cent shall be disregarded; and That is one-half cent or more shall be increased to 1 cent. Failure to pay the required contributions in the prescribed manner shall result in the imposition of interest charges as provided in Labor and Employment Article, §8-628, Annotated Code of Maryland. Failure to pay the required administrative fees in the prescribed manner shall result in the imposition of interest charges as provided in Labor and Employment Article §8-628, Annotated Code of Maryland, for the nonpayment of contributions. The Secretary shall pay interest collected on administrative fees into the Special Administrative Expense Fund established under Labor and Employment Article, §8-419, Annotated Code of Maryland. Collection by Assessment. If an employing unit fails to pay administrative fees or related interest due based on information the employing unit provided in a contribution report, the Secretary: May assess the amount of the payment or interest due as prescribed under Labor and Employment Article, §8-629, Annotated Code of Maryland, for the nonpayment of contributions; and Notwithstanding §(2) of this regulation, may make an additional assessment if the contribution report is later determined to be incorrect. An assessment under this regulation is final unless: An employing unit requests a review determination under Labor and Employment Article, §8-604, Annotated Code of Maryland; or On its own motion, the Board of Appeals grants a hearing to consider whether the amount should be reduced. Except in the case of a fraudulent contribution report or the failure to file a contribution report, written notice of an assessment under this regulation shall be sent to an employing unit within 3 years of the last day of the period at issue in the notice. If an employing unit fails to pay an assessment under this regulation, the Secretary may file a notice of lien in the circuit court of the county where the employing unit’s principal place of business is located, or a notice of lien in any other county that includes the information set forth in Labor and Employment Article, §8-629, Annotated Code of Maryland. If, after an assessment, an employing unit fails to pay administrative fees or interest, the Secretary may collect the amount due by filing a civil action or pursuing any other available legal means. Payments by reimbursers are due and shall be paid within 30 days from the date set forth on the Statement of Reimburseable Benefits. Failure to make the required payment in the prescribed manner shall result in the imposition of interest charges as set forth in the Unemployment Insurance Law. A reimburser who fails to reimburse the Unemployment Insurance Fund for benefits paid: May lose its reimburser status and become a contributor as of the next January 1st for a period of 2 years; and Shall forfeit its collateral to the extent of the unpaid benefits. A contributor shall file with the Secretary, on or before the contribution payment date, a complete and correct contribution report containing: Total quarterly wages paid by the contributor; Taxable quarterly wages paid by the contributor; Total wages in excess of $8,500 per year; Computation of contributions and administrative fees due; The employing unit's Maryland unemployment insurance account number; The employing unit's tax rate applicable to the quarter filed; The number of employees performing services for the employing unit in each month of the quarter; If applicable, penalties or interest as set forth in the Unemployment Insurance Law; The signature of the employing unit or authorized representative; and Other information the Secretary may require. Contribution reports shall be filed by an employing unit that operates its business during a calendar quarter, even though no wages were paid during that quarter. Exceptions to Filing Date. An employing unit that transfers its business to another employer shall file a contribution report within 15 days from the date of discontinuation or transfer. An employing unit who otherwise discontinues its business or whose status is changed by appointment of a receiver, trustee, trustee in bankruptcy, or other fiduciary, shall file a contribution report within 5 days from the date of this change in status. An employing unit shall file with the Secretary on or before the contribution payment date, a complete and correct employment report containing: Name and Social Security number of each employee; The employing unit's Maryland unemployment insurance account number; Total quarterly wages paid to each employee; Total quarterly wages paid by the employing unit; and Other information the Secretary may require. Exceptions to Filing Date. An employing unit that transfers its business to another employer shall file an employment report within 15 days from the date of the discontinuation or transfer. An employing unit that otherwise discontinues its business or whose status is changed by appointment of a receiver, trustee, trustee in bankruptcy, or other fiduciary, shall file an employment report within 5 days from the date of this change in status. An employing unit that anticipates that it will not report wages for a 12-month period shall notify the Secretary to close its account. An employing unit that has reported no wages for the 12-month period from July 1 through June 30 shall be presumed to no longer be an employing unit and its account shall be closed. Reporting. Wages to be reported on the quarterly employment report include: All remuneration paid to corporate officers for services rendered to the corporation. Corporation includes “subchapter S” corporations. Wages include draws, profit distributions, and dividends paid to corporate officers as remuneration for services rendered. The form in which remuneration for services is designated and the manner of payment is not determinative of what constitutes wages under the Unemployment Insurance Law. The value of meals provided to employees unless meals are provided on the employing unit's premises and for the convenience of the employing unit. The value of lodging provided to employees unless the lodging is provided on the employing unit's premises, for the employing unit's convenience, and as a condition of employment. The amount of tips paid to an employee by a customer of the employing unit and reported by the employee to the employing unit as required by the applicable provisions of the Internal Revenue Code. The value of payments, other than those received under a workers' compensation law, provided by a third-party insurer on account of sickness or accident disability, or medical or hospitalization expenses in connection with sickness or accident disability if the employer paid insurance premiums upon which the payments were made. Wages to be reported on the quarterly employment report do not include payments made by an employing unit: Into a deferred compensation plan that are not deducted from an employee's salary if the employee may withdraw money from the plan only on retirement or separation from employment; To, or on behalf of, former employees on active duty with the armed forces of the United States, if those payments are designed to supplement amounts received by them from the federal government. Time for Reporting. Wages shall be reported on the quarterly employment report when actually or constructively paid. Wages are constructively paid when they are credited to the account of an employee or set apart for an employee so that the employee may draw upon the wages without substantial limitation or restriction. Separation notices shall be requested and submitted in accordance with the Unemployment Insurance Law and COMAR 09.32.02.05. If an employer offers employment to an unemployed individual and the individual refuses the offer, the employer shall notify the Secretary in writing within 15 days after the refusal in order for the refusal to be considered in determining whether the individual is disqualified for benefits. Penalties. Contribution Reports. An employing unit that fails to file a timely contribution report in the prescribed manner shall pay a penalty of $35. Employment Reports. An employing unit that fails to file a timely employment report in the prescribed manner shall pay a penalty of $35. Separation Reports. An employing unit that fails to file a timely separation report in the prescribed manner upon the Secretary's request shall pay a penalty of $15. Earnings Reports. An employing unit that fails to file a timely earnings report in the prescribed manner upon the Secretary's request shall pay a penalty of $15. An employing unit that submits a check or other negotiable instrument that is returned for insufficient funds shall pay a penalty of $25. Interest on Past Due Contributions and Administrative Fees. An employing unit that fails to file a timely contribution report shall pay interest on contributions and administrative fees then due and unpaid at a rate in accordance with Regulation .09 of this chapter until the contribution report and payment is received. The Secretary may waive any penalties or interest for cause, upon the employer's request or upon the Secretary's review of the penalty or interest assessed. A payment made by an employing unit shall be applied in the following order to an amount due and owing at the time of payment: To any penalty imposed; To any interest due and owing on administrative fees; To any interest due and owing on contributions and reimbursement payments; To administrative fees; and To contributions or reimbursement payments. Application for refunds and adjustments of contributions, reimbursement payments, or related interest shall be processed in accordance with the Unemployment Insurance Law. Application for refunds and adjustments of administrative fees or related interest shall be processed in the manner set forth in the Unemployment Insurance Law for refunds and adjustments of contributions, except that the Secretary shall refund any such amounts erroneously collected from the Special Administrative Expense Fund. Refunds. Automatic Refund. In each quarter when the Secretary determines that a refund due an employing unit is less than $100, the Secretary shall automatically issue a refund to that employing unit. In each quarter when the Secretary determines that a refund due an employing unit is $100 or over, the refund may be applied to the employing unit's future indebtedness or refunded at the employing unit's request. Employee. A person performing services is presumed to be an employee, regardless of whether a common law master and servant relationship exists, unless specifically exempted under the Unemployment Insurance Law or these regulations. Independent Contractor. To overcome the employee presumption, an employing unit shall establish that the person performing services is an independent contractor. The Secretary shall determine that an employing unit has established that the person performing services is an independent contractor when the conditions in §B(3)(a)—(c) of this regulation are clearly shown. Circumstances evidencing the conditions mentioned in §B(2) of this regulation include, but are not limited to, the items listed after each condition: The person has been and will continue to be free from the employing unit's control or direction: The employing unit does not require the person to comply with detailed instructions about when, where, and how the person is to work, The employing unit does not train the person to perform the service in a particular manner or using a particular method determined by the employing unit, The employing unit does not establish set hours of work for the person performing the services, The employing unit does not establish a schedule or routine for the person performing the service, The employing unit may not discharge the person for failure to obey the employing unit's specific instructions on how the service is to be performed; The service is outside the usual course of business of the employing unit: The person performs the work off the employing unit's premises, The person performs work that is not integrated into the employing unit's operation, The service performed is unrelated to the employing unit's business; The person performing the service is customarily engaged in an independently established business: Maintains a business listing in the telephone directory, Has his or her own place of business, Has a financial investment in a related business and can incur a loss in the performance of the service, Has his or her own equipment needed to perform the service, Determines the price of the service to be performed, Employs others to perform the service, Carries his or her own liability or workers' compensation insurance, or both, Performs the service for more than one unrelated employer at the same time, Sets his or her own hours, Is paid by the job. Sole Proprietorships. Except as otherwise provided, a person performing services for wages for a sole proprietorship is engaged in covered employment. The following persons employed by a sole proprietor are not engaged in covered employment: The sole proprietor; A spouse of the sole proprietor; Children of the sole proprietor under the age of 21; and Parents of the sole proprietor. Partnerships. A partner in a partnership is not engaged in covered employment. If a partnership consists exclusively of spouses, then their children under 21 years old employed by the partnership are not engaged in covered employment. Corporations with Revoked Charters. When a corporate charter has been forfeited or revoked and the entity continues to operate, the entity shall be treated as a sole proprietorship or a partnership, as determined by the Secretary. Persons determined by the Secretary to be sole proprietors or partners are not engaged in covered employment. Any other employee of the entity is engaged in covered employment. Limited Liability Companies. If a limited liability company is automatically classified as a corporation or elects to be classified as a corporation for federal tax purposes, the limited liability company is treated as a corporation for Maryland unemployment insurance purposes. All persons, including members who receive remuneration from the limited liability company for services performed, are engaged in covered employment. If a limited liability company has a single member and is not classified as a corporation for federal tax purposes, the limited liability company is treated as a sole proprietorship for Maryland unemployment insurance purposes. The following persons employed by the single member limited liability company are not engaged in covered employment: The single member; The spouse of the member; Children younger than 21 years old of the member; and Parents of the member. If a limited liability company consists of two or more members and is not classified as a corporation for federal tax purposes, the limited liability company is treated as a partnership for Maryland unemployment insurance purposes. The following persons employed by the limited liability company are not engaged in covered employment: The members; and Children younger than 21 years old of the member, if the members of the limited liability company consist exclusively of spouses. The illustrations in this regulation provide guidance for the home health care industry in the application of Labor and Employment Article, §8-205, Annotated Code of Maryland and do not apply to any other State or federal labor law. Illustration 1. Extra Loving Care (“ELC”) is a Nursing Referral Service Agency (“NRSA”) licensed by the Maryland Department of Health (“MDH”) pursuant to COMAR 10.07.07. It has a registry of certified nursing assistants (“CNAs”), geriatric nursing assistants (“GNAs”) and licensed practical nurses (“LPNs”). The company verifies that all workers do not have a criminal background and are properly licensed before placing them on the registry. Before placing a worker on its registry, ELC requires that the worker attend mandatory training and receive a list of rules and policies to follow in clients’ homes. ELC assigns available workers on its registry to clients. ELC sets the workers’ schedules and requires documentation of the work performed, such as time sheets or notes. ELC determines the workers’ rates of pay and the workers cannot negotiate pay rates directly with ELC’s clients. Clients pay ELC and ELC deducts its fee and pays the workers. If a client is dissatisfied with a worker, the client contacts ELC directly. Each worker must sign an agreement with ELC that restricts his or her ability to enter into employment agreements with ELC’s clients, past or present. The workers on ELC’s registry are employees of ELC. Illustration 2. Loving Care (“LC”) is a Nursing Referral Service Agency (“NRSA”) licensed by the Maryland Department of Health (“MDH”) pursuant to COMAR 10.07.07. It has a registry of certified nursing assistants (“CNAs”), geriatric nursing assistants (“GNAs”) and licensed practical nurses (“LPNs”). The company verifies that all workers do not have a criminal background and are properly licensed before placing them on the registry. LC provides its clients with the names and contact information for available workers on its registry. Once contacted, a worker may then set and adjust their work hours and may negotiate their rates of pay directly with the client, unless otherwise established by a third party payor. The workers on LC’s registry, in conjunction with the client, determine the client’s needs and use their own tools and equipment to carry out their services. Workers are not required to report hours to LC, although some workers maintain notes for their own records. Workers on LC’s registry carry their own workers’ compensation insurance and/or professional liability insurance coverage. Workers have their own independent businesses that are demonstrated by Federal Employer Identification Numbers (“FEINs”), tax returns, business cards, invoices, advertising and/or other indicia of operating an independently established business. Workers are responsible for maintaining necessary licensures and certifications, however, LC performs periodic credential checks to confirm that workers’ licenses and certifications are current. The workers on LC’s registry invoice clients directly and are paid directly by the client. The workers are then responsible for remitting any referral fee directly to LC. LC only deviates from this payment system in limited circumstances when an alternative method of payment is necessitated by a third party payor or other legal arrangement established for the benefit of the care recipient. If dissatisfied with a worker, the client informs the worker directly. The workers are not bound by a non-solicitation provision. The workers on LC’s registry are independent contractors. A person is not engaged in covered employment when the person is employed by a church or convention or association of churches. A person is not engaged in covered employment when the person is employed by an organization which is: Operated, supervised, controlled, or principally supported by a church or convention or association of churches; and Operated primarily for religious purposes. Circumstances that may support the determination that the organization is operated primarily for religious purposes include, but are not limited to: Interrelationship between affiliation with the church and institutional autonomy, including: Composition of governing board, Degree of supervision of church, Sources of financial support; Extent of religious indoctrination, including: Stated purpose, Extent of encouragement of spiritual development, Composition of student body, Extent of religious exercises, Extent of prayer in the classroom, Extent of religion or theology classes, Degree of intellectual freedom in nontheology classes, Composition of faculty, Degree of academic freedom. Localized Service. A person is engaged in covered employment in the State when the person's service is localized within the State. Service is localized when it is performed: Entirely within the State. Both within and outside the State, but the service performed outside the State is incidental to the service performed within the State. Service is incidental if it is temporary or transitory in nature, or consists of isolated transactions. In determining whether the service of a worker is incidental or transitory, the Secretary shall consider the: Intention of the employing unit and employee as to whether the service is an isolated transaction or a regular part of the employee's work; Intention as to whether the employee will return to the State upon completion of the work outside the State; and Length of service with the employing unit within the State as compared to the length of service outside the State. Base of Operations. A person is engaged in covered employment in this State when the person's service is not localized in any state, but some services are performed in the State and the person's base of operations is in the State. The base of operations is the place or fixed center, of more or less permanent nature, from which the employee starts work and to which he or she customarily returns in order to receive instructions from the employing unit or communications from customers or other persons, to replenish stocks and materials, to repair equipment, or to perform other functions necessary to the exercise of the employee's trade or profession. The base of operations may be the employee's business office, or the employment contract may specify a particular place at which the employee is to receive directions and instructions. Place From Which Service is Directed or Controlled. A person is engaged in covered employment in this State when the person's service is not localized in any state and the person has no base of operations, or if the base of operations is in a state in which the employee performs no service, or if the base of operations moves from state to state, but the person's service is directed or controlled from this State. The place from which a person's service is directed or controlled is the place at which the basic authority exists and from which the general control emanates. Place of Residence. When application of §§A—D of this regulation does not establish where the person's employment is covered, a person is engaged in covered employment in this State if the person's residence is in this State, provided some of the service is performed in this State. Reciprocal Coverage Agreement. When application of §§A—E of this regulation does not establish where the person's employment is covered, a person is engaged in covered employment in this State if the employing unit elects to cover in this State all the person's service either through an election of coverage or under a reciprocal coverage agreement. Under the reciprocal coverage agreement the service may be covered in this State if: Some part of the person's service is performed in this State; The person's residence is in this State; or The employer maintains a place of business in this State. Common ownership, management, or control exists between the successor employer and the predecessor employer when any person serves in any of the following positions in both the predecessor and successor employer: Sole proprietor, which includes spouse, children, and parents of a sole proprietor; Partner of a partnership; Member of a limited liability company; Chief Executive Officer; Chief Financial Officer; Any corporate officer; or Any shareholder owning, directly or indirectly, more than 50 percent of a corporation's stock. An employer acquiring the assets, business, organization, or trade of a predecessor employer is not a successor employer for the purposes of attributing or assigning the rate of contribution if the acquiring employer: Has no common ownership, management, or control with the predecessor; Acquires less than 50 percent of the payrolls or employees of the predecessor; and Acquires less than 50 percent of the assets, business, organization, and trade of the predecessor. In acquisitions not involving common ownership, management, or control, the Secretary shall determine the proportionate value of assets, business, organization, and trade acquired by the successor based on a comparison to the total amount of assets, business, organization, and trade of the predecessor that existed on December 31 or, if the predecessor reported its financial performance based on a fiscal year (instead of calendar year), a comparison to the total amount of assets, business, organization, and trade of the predecessor that existed on the last day of the predecessor’s fiscal year immediately preceding the acquisition date. In acquisitions not involving common ownership, management, or control, the Secretary shall determine the proportionate share of the payrolls or number of employees acquired by the successor based on a comparison to the total payrolls or number of employees working for the predecessor on December 31 or, if the predecessor reported its financial performance based on a fiscal year (instead of calendar year), a comparison to the total payrolls or number of employees working for the predecessor on the last day of the predecessor’s fiscal year immediately preceding the acquisition date. In acquisitions not involving common ownership, management, or control, and subject to the limitation provided in §B of this regulation, if a person acquires a part of a business, trade, or organization and the employer is classified as a successor employer, the earned rate record of the acquired business, trade, or organization is transferred to the successor employer according to the percent of the payrolls or assets acquired. An employing unit that transfers all or part of its operations from another state to this State may be classified as a successor employer and assigned an earned rate in accordance with the Unemployment Insurance Law, provided the employing unit makes application to the Secretary for successor status effective upon the date of transfer. The transfer of a business from another state to this State within the meaning of the Unemployment Insurance Law occurs only when an operation maintained by an employing unit in another state has been closed, discontinued, or curtailed, in whole or in part, and that same operation is transferred into Maryland. The opening of new branches, new offices, or new retail outlets in this State does not constitute a transfer. In order to invoke the provisions of the Unemployment Insurance Law relating to an employer who transfers operations from another state in which the employer has had at least 3 years experience immediately preceding the transfer to this State, the employer shall submit the following on forms prescribed by the Secretary: Within 120 days of the transfer, written notice specifying the nature of the operations transferred and the state in which they were previously performed. Within 60 days from the date of this notice, a certification from the unemployment insurance agency of the state from which the employer's operations were transferred certifying all information required by the Unemployment Insurance Law for calculating an earned rate in this State, and any other additional information required by the Secretary. The certificate shall include information identifying wages paid in the other state together with the employer's annual payrolls and benefit charges as defined in the Unemployment Insurance Law, for the 3 years immediately preceding this computation date as defined in the Unemployment Insurance Law. Upon the request of the Secretary, a certification from the other state containing all the information that the Secretary requires relating to benefit charges for the 12 consecutive month period preceding each subsequent computation date on the basis of wages paid in the other state. When this information is required, the employer shall furnish it not later than 60 days after the Secretary's request. If the employer meets the conditions of this regulation, wages, remuneration, contributions, and benefits resulting in earned rate charges in connection with the transferred operations shall be deemed to have been paid in this State for the purpose of the Unemployment Insurance Law. Remuneration for services paid to employees in another state may not be considered wages with respect to any fiscal year for the purposes of this regulation or the provisions of the Unemployment Insurance Law unless the contributions due on the remuneration have been paid before the computation date for contribution rates in this State. Definitions. For the purpose of this regulation, “related corporation” means a member of a controlled group of corporations as the term is defined in the Internal Revenue Code. For purposes of this regulation, an individual is considered “concurrently employed” by two or more related corporations if the individual performs services for covered wages for the common paymaster for some portion of each calendar year. Payment through Common Paymaster. When two or more related corporations concurrently employ the same individual and compensate that individual through a common paymaster, and when the common paymaster is one of the related corporations that employs the individual, each corporation shall be considered to have paid only the remuneration it actually disburses to that individual. If all the remuneration to the individual from the related corporations is disbursed through the common paymaster, the total amount of wages disbursed by the common paymaster shall be deemed wages subject to contribution and administrative fees. The common paymaster shall be responsible for filing the contribution report and the employment report. When two or more related corporations employ different individuals and compensate the individuals through a common paymaster, but the individual performs no service for the common paymaster during the calendar year, each corporation shall be considered to have paid only the remuneration it actually disburses to the individuals. The related corporations that pay the remuneration to the individuals shall each be responsible for filing the contribution reports and the employment reports. The common paymaster shall notify the Secretary in writing, at least 30 days before the quarter for which the common paymaster reporting is to be effective, of the name and employer account number of each of the related corporations. The common paymaster shall notify the Secretary at least 30 days before any change or termination of the arrangement. If the common paymaster fails to remit contributions and administrative fees due, the common paymaster and each of the other related corporations shall be jointly and severally liable for the full amount of the unpaid portion of the contributions and administrative fees. When a claimant is disqualified from receiving benefits for reasons determined to constitute aggravated misconduct under the Unemployment Insurance Law, wages from the base period employer against whom the aggravated misconduct was committed shall be deleted as set forth in §B of this regulation. Wages shall be deleted for: Only the employing unit from which the claimant was discharged or suspended for reasons which are determined to constitute aggravated misconduct in connection with the work; and Any benefit years beginning with and following the disqualification for discharge or suspension for reasons which constitute aggravated misconduct in connection with the work, except that if the benefit year has been established before the date of the discharge or suspension, the deletion takes effect beginning with the week of the disqualification. A refund may not be made on any taxes paid on wages which are deleted as a result of the imposition of a disqualification for aggravated misconduct in connection with the work. Definition and Scope. Definition. “Unemployment insurance tax preparer” means a person who files quarterly unemployment insurance contribution reports or employment reports on behalf of employing units for compensation. Scope. Sections B and C of this regulation apply to unemployment insurance tax preparers who file on behalf of 100 or more employing units. Method of Filing Contribution Reports and Employment Reports. An unemployment insurance tax preparer shall file the information required in Regulations .11 and .12 of this chapter by mail or electronic means. A contribution report or an employment report is deemed returned when it is either received by the Division of Unemployment Insurance or postmarked by the United States Post Office. Method of Payment. An unemployment insurance tax preparer shall remit unemployment insurance contributions and administrative fees on behalf of employing units in one lump sum payment that covers in full the total contribution payments and administrative fees due for all the employing units that the preparer represents. Penalty and Interest. An employing unit whose unemployment insurance tax preparer fails to file the contribution reports, employment reports, or pay contributions or administrative fees in the prescribed manner is subject to the penalties and interest set forth in Regulations .09 and .16 of this chapter and the Unemployment Insurance Law. Professional Employer Organization. “Professional employer organization” means an employing unit which places all or part of a client company's workers on its payroll or payrolls and, by written agreement, assigns or leases the workers to the client company. “Professional employer organization” does not mean a temporary help firm within the meaning of this subtitle. Obligations of a Professional Employer Organization. A professional employer organization is subject to all of the rights and obligations of employing units under the Unemployment Insurance Law. Acquisitions. Upon the acquisition of all or part of a client company's workers: A professional employer organization is initially classified as a successor employer for purposes of assigning a contribution rate, assessing administrative fees and tax liability, and transferring the taxable wage base of the workers who were placed on the professional employer organization's payroll; and The client company is initially classified as a predecessor employer. A subsequent acquisition or transfer, by sale or otherwise, of all or part of a professional employer organization's assets, business, organization, or trade is treated in accordance with the Unemployment Insurance Law. Notification. A professional employer organization shall notify the Secretary in writing when the company places all or part of a client company's workers on its payroll. Notification shall be given within 30 days of placing the workers on the payroll and shall be provided in the form and manner required by the Secretary. Notification shall include, at a minimum, the following information: Name, address, and phone number of the professional employer organization; Name, address, and phone number of the client company; Date the professional employer organization acquired the client company's workers; and Total number of workers acquired from the client company. Annual Report. On or before December 31 of each year, a professional employer organization shall file an annual report of the company's clients with the Secretary. The annual report shall be in writing and shall include: Name, address, and phone number of the professional employer organization; and Names and addresses of client companies to whom the professional employer organization leases or assigns workers. Labor and Employment Article, §§8-101, 8-206, 8-305, 8-421, 8-601, 8-602, 8-605.1, 8-613, 8-614, 8-625, 8-626, 8-1002.1, and 8-1005, Annotated Code of Maryland Effective date: February 1, 1973 Regulation .02A amended effective March 1, 1982 (9:4 Md. R. 330) Regulation .04B amended effective July 28, 1978 (5:15 Md. R. 1187) Regulation .05A, D, F, G, H amended effective September 14, 1981 (8:18 Md. R. 1477) Regulation .05H amended effective March 30, 1977 (4:7 Md. R. 577); December 30, 1977 (4:27 Md. R. 2104) Regulation .08B amended effective September 14, 1981 (8:18 Md. R. 1477) Regulation .09 amended effective December 10, 1975 (2:28 Md. R. 1666) (Transferred from Department of Human Resources to Department of Employment and Training, effective October 1, 1983; recodified from COMAR 07.04.01 to 24.02.01) Chapter, Reporting Requirements of Employing Units, repealed effective June 24, 1991 (18:12 Md. R. 1340) Regulations .01—.23, Obligations of Employers, adopted effective June 24, 1991 (18:12 Md. R. 1340) Regulation .02B amended effective October 24, 1994 (21:21 Md. R. 1815) Regulation .06 amended effective January 2, 1994 (20:26 Md. R. 2029) Regulation .09C amended effective November 23, 1992 (19:23 Md. R. 2042) Regulation .11A amended effective November 23, 1992 (19:23 Md. R. 2042); January 2, 1994 (20:26 Md. R. 2029) Regulation .12A amended effective January 2, 1994 (20:26 Md. R. 2029) Regulation .14 amended effective October 24, 1994 (21:21 Md. R. 1815) Regulation .14A amended effective November 23, 1992 (19:23 Md. R. 2042) Regulation .15-1 adopted effective June 8, 1992 (19:11 Md. R. 1017) Regulation .16A and B amended effective November 23, 1992 (19:23 Md. R. 2042) Regulation .18-1 adopted effective October 24, 1994 (21:21 Md. R. 1815) Regulation .22B amended effective November 23, 1992 (19:23 Md. R. 2042) Regulation .24 adopted effective January 2, 1994 (20:26 Md. R. 2029) Regulation .25 adopted effective January 2, 1994 (20:26 Md. R. 2029) Chapter recodified from COMAR 24.02.01 to COMAR 09.32.01, May 1996 Regulation .05A amended effective March 11, 2019 (46:5 Md. R. 306) Regulation .06C amended effective May 4, 1998 (25:9 Md. R. 679) Regulation .12C amended effective May 4, 1998 (25:9 Md. R. 679) Regulation .13B amended effective May 4, 1998 (25:9 Md. R. 679) Regulation .14A amended effective January 1, 2007 (33:26 Md. R. 1996) Regulation .18-1 amended and recodified to Regulation .18-2, and new Regulation .18-1 adopted effective May 4, 1998 (25:9 Md. R. 679) Regulation .18-1 repealed effective January 7, 2013 (39:26 Md. R. 1664) Regulation .18-2D amended effective January 1, 2007 (33:26 Md. R. 1996) Regulation .18-3 adopted effective January 7, 2013 (39:26 Md. R. 1664) Regulation .21 repealed and new Regulation .21 adopted effective March 27, 2006 (33:6 Md. R. 578) Regulation .21 amended effective April 24, 2017 (44:8 Md. R. 402) Regulation .26 adopted effective May 4, 1998 (25:9 Md. R. 679) Regulation .26 repealed and new Regulation .26 adopted effective March 27, 2006 (33:6 Md. R. 578) Chapter revised effective December 11, 2025 (52:24 Md. R. 1197) This chapter sets out the registration and reporting requirements and procedures for individuals applying for unemployment insurance benefits. In this chapter, the following terms have the meanings indicated. Terms Defined. “Appointment” means reporting: By telephone, at a scheduled date and time, and at the telephone number provided by the claimant to the Secretary; or In person at a specific date, time, and place. “Basic weekly benefit amount” means the weekly benefit amount for a week of total unemployment excluding any allowance for dependents. “Benefits” means benefits pursuant to the Unemployment Insurance Law. “Claim” means an application for benefits that is filed with the Secretary, either for the purpose of beginning a claim period, or for the purpose of claiming benefits for a compensable week. “Claim notification” means written notification sent to a claimant, by mail or electronic means, that provides instructions to the claimant for the filing of a continued claim or claims. “Continued claim” means one of a series of claims filed, for one or more weeks of continuous unemployment, following an initial or a reopened claim. “Department” means the Maryland Department of Labor. “Dependent” means a claimant's child, stepchild, or legally adopted child who, at the beginning of a claimant's benefit year, is wholly or partially supported by the claimant and is younger than 16 years old. “Employment Service” means the Employment Service, an agency within the Department. “Initial claim” means an application for benefits filed with the Secretary. The three types of initial claims are as follows: “New claim” means the first claim filed requesting a determination of entitlement to and eligibility for compensation. “New claim” includes the first claim for extended or additional benefits, as described in COMAR 09.32.03. “Transitional claim” means the first claim filed at the expiration of a benefit year requesting a determination of eligibility and determination of a new benefit year. A transitional claim has an effective date within the 7-day period immediately following the benefit year ending date and a week for which compensation was claimed. “Additional claim” means the first claim filed within a benefit year after earning gross wages equal to or in excess of the weekly benefit amount during any given week. Office. “Office” means an office of the Department. “Office” includes a designated call center or electronic address. “Register” and “registration” mean that the individual is available for referral to job opportunities, training, and employment development services through the Department. When the filing of a claim permits an individual full use of the Employment Service, that filing constitutes registration. “Remuneration” means all compensation for services whether or not the compensation constitutes taxable wages under the Unemployment Insurance Law. Reopened Claim. “Reopened claim” means the first claim filed after a break in continued claims during a benefit year caused by other than intervening employment, for example, illness, disqualification, unavailability, or failure to report for any reason other than employment. “Reopened claim” does not include a claim for extended or additional benefits as described in COMAR 09.32.03. “Secretary” means the Secretary of Labor or the Secretary's designee. “Unemployment Insurance Law” means Labor and Employment Article, Title 8, Annotated Code of Maryland. “Week” means the calendar week beginning at 12:01 a.m. Sunday morning and ending at midnight the following Saturday. “Weekly benefit amount” means the weekly benefit amount for a week of total unemployment including any dependents' allowance. “Week of total unemployment” means a week during which a claimant performs no work for which wages are payable. “Working day” means a day other than Saturday, Sunday, or a State holiday. Unless the context indicates otherwise, all other terms used in these regulations have the same meanings as provided in the Unemployment Insurance Law. Claims Generally. Except as otherwise provided, to file an initial or reopened claim for benefits, an individual shall report as instructed by the Secretary. A claimant who earns gross wages in 1 week equal to or more than the claimant's weekly benefit amount may not file subsequent continued claims for total unemployment, but shall file an initial claim in order to claim subsequent benefits. Initial and Reopened Claims. Except as otherwise provided, the: Effective date of an initial or reopened claim is the first day of the week in which an individual reports, registers, and files the initial or reopened claim as instructed by the Secretary; Claimant shall file initial or reopened claims in the manner and time frame prescribed by the Secretary; Secretary may direct that an initial or reopened claim be filed: By telephoning an office designated by the Secretary, By electronic means, to a site designated by the Secretary, By mailing, by first class mail, required documents to an office designated by the Secretary, or In person by reporting to an office designated by the Secretary; Eligibility of an individual for benefits may not be determined until the individual provides a valid Social Security number. Effective Date of Initial and Reopened Claims—Exceptions. The effective date of an initial or reopened claim may be other than as provided in §C of this regulation in the following situations: A claim may be backdated when a claimant reports partial earnings for a week before the initial claim, to the Sunday of that week provided the claim is filed not later than: 30 days immediately following the close of that week, or 2 weeks after the date the partial wages are paid; A transitional claim shall be effective the day following the end of the preceding benefit year; Severe weather conditions exist, as declared by the Secretary; Clerical error attributable to the Department occurs; The office to which the claimant is instructed by the Secretary to report is closed for a reason other than that the day is not a working day; A claim may be backdated when the claimant did not file a claim in reasonable reliance on an invalid agreement to waive, release, or commute the claimant's rights to benefits as prohibited by the Unemployment Insurance Law. Benefit Year. Except in the case of a transitional claim, the benefit year for a claimant begins with the Sunday of the first week for which the claimant files a valid new claim for benefits. This benefit year continues for 52 weeks. In the case of a transitional claim, the benefit year begins on the day immediately following the expiration date of the previous benefit year. Notification of Reporting Requirements. A claimant shall be notified in writing of the reporting requirements upon the filing of an initial or reopened claim and, if requested to do so, shall acknowledge the notification. Continued Claims. Except as otherwise provided, following an initial or reopened claim, a claimant shall file continued claims in the manner required by the Secretary. The Secretary may instruct a claimant to file a continued claim by: Telephoning the Department's interactive voice response unit; or Electronic means. Continued claims shall be filed in the manner required by the Secretary not sooner than the Sunday immediately following the close of the week for which benefits are claimed and within the time allowed under §B(5) of this regulation. If appropriate, an open week shall be created for the first week which includes the date on which the initial or reopened claim was filed. Following the first week, the claimant shall file a continued claim on a weekly basis. If appropriate, the next open week to be filed shall be made available to the claimant upon the receipt of the preceding continued claim. Timely Filing. Continued claims shall be filed and received no later than 5 p.m. on the Friday following the week for which benefits are claimed in order to be timely. Late continued claims shall be considered timely only if the Department's error caused the claimant not to receive the claim forms or the claimant did not file a claim in reasonable reliance on an invalid agreement to waive, release, or commute the claimant's rights to benefits as prohibited by the Unemployment Insurance Law. If the Secretary receives an untimely continued claim, the Secretary shall schedule the claimant for an appointment for a fact-finding interview pursuant to §C of this regulation. A claimant who fails to file a timely continued claim shall file an initial or reopened claim by telephoning an office designated by the Secretary, by electronic means, or by reporting in person to an office designated by the Secretary to reactivate the claim. Any weeks requested after filing an untimely continued claim but before reactivating the claim shall be denied. Appointments. The Secretary may schedule an appointment for a claimant: Whenever there is an indication that the claimant does not meet the requirements of the Unemployment Insurance Law or these regulations; and Periodically to monitor the claimant's continuing ability to work, availability for work, and to assist the claimant in the work search process. The claimant shall be given notice by mail or electronic means of the time, date, place, and type of the appointment and notified whether the appointment will be by telephone or in person. The notice shall include any issue to be resolved. If the claimant is unable to report as instructed for the appointment, the claimant shall complete the form provided and return it to the Secretary before the appointment. The claimant's response shall include the reason the claimant is unable to report as instructed and shall provide any information that should be considered on the issue to be resolved. If the claimant fails to report as instructed for the scheduled appointment or the office designated by the Secretary does not receive requested information from the claimant by the time of the appointment, the decision shall be based on information available to the Secretary at the time of the appointment. If the claimant fails to report as instructed for any scheduled Department appointment, benefits may be terminated or suspended for that reason alone. The Secretary shall establish criteria for a profiling system to identify claimants who are likely to exhaust unemployment insurance benefits and who will need reemployment assistance services to make a successful transition to new employment. When the Secretary determines that a claimant is likely to exhaust unemployment insurance benefits and will need reemployment assistance services to make a successful transition to new employment, the Secretary may schedule the claimant for appointments for reemployment assistance services. Reemployment assistance services may include: Job search assistance; Job placement; Counseling; Testing; Providing occupational and labor market information; Evaluations and assessments; Workshops; Job clubs; Referrals to employers; and Related services. Regulation .04C of this chapter applies to the appointments scheduled pursuant to this regulation. The Secretary shall request on appropriate forms information pertaining to the separation of claimants from employment. When a claimant files a new claim, the Secretary shall request separation information from the claimant's base period employers and the claimant's other employers from the end of the base period to the filing of the claim. Each employer shall indicate on the separation notice the: Reason for the claimant's separation from employment; Last day that the claimant worked for that employer; Amount and form of any pension pay to which the claimant may be entitled, and whether the claimant contributed to the pension; Amount of any holiday pay, vacation pay, severance pay, or special pay paid or payable by the employer; Claimant's last weekly or hourly pay rate; and Other information that the Secretary may request. When a claimant files an additional claim for benefits, the Secretary shall request the information set forth in §B of this regulation from the claimant's last employer and any other employer for whom the claimant worked since the claimant last filed for benefits. An employer shall complete and return the separation notice to the address shown on the notice, or by electronic means, within the time prescribed in the Unemployment Insurance Law. A separation notice is deemed returned when it is either received by the Department or postmarked by the United States Post Office. Definition. “Mass layoff” means the layoff from work of 25 or more workers in a single establishment for an expected duration of 7 days or more, at the same time, and for the same reason. Advance Knowledge. When the employer has advance knowledge of an expected mass layoff, the employer shall file with the Secretary a notice of the layoff 48 hours before the beginning of the layoff. This notice shall substitute for individual separation notices. The notice shall state: The date of the layoff; The reason for the layoff; The names and Social Security numbers of the employees affected, in Social Security number or alphabetical sequence; The amount and form of any pension pay to which an employee may be entitled, and whether the employee contributed to the pension; The amount of any vacation pay, holiday pay, severance pay, or special pay paid or payable by the employer; Any wage continuation as defined in Regulation .13 of this chapter; and Each employee's last weekly or hourly pay rate. No Advance Knowledge. When the employer has no advance knowledge of a mass layoff: Immediately upon the beginning of the layoff, the employer shall notify the Secretary of the layoff, the date of the layoff, and the reason for the layoff; and Within 48 hours after the beginning of the layoff, the employer shall file with the Secretary the information set forth in §B(3)—(7) of this regulation. Modified Reporting. When the employer informs the Secretary in writing before the beginning of the mass layoff, the Secretary may adopt a plan modifying reporting requirements for these employees. Under the plan, the Department may distribute applications to the affected employees at offices located in close proximity to the employer or any other location. The Department may take claims directly from the employer on behalf of the employees. These applications, upon completion and return in accordance with the plan, shall constitute the employees' registrations for work and claims for benefits. Ten Week Exemption. The Secretary shall exempt only from the “actively seeking work” eligibility condition a claimant who, at the time the claimant files an initial claim, provides a definite return-to-work date to the same employer that is within 10 weeks of the last day of employment, if the: Return-to-work date is verified by that employer; and Layoff is as a result of vacation, inventory, or any other purpose causing unemployment, except a labor dispute. Exemptions under this section may be granted for each period of unemployment of 10 weeks or less in 1 benefit year. Eleven to Twenty-Six Week Exemption. The Secretary may exempt from only the “actively seeking work” eligibility condition a claimant who, at the time the claimant files an initial claim, provides a definite return-to-work date to the same employer that is 11 to 26 weeks from the last day of employment, if the: Return-to-work date is verified by that employer; Layoff is as a result of any purpose causing unemployment other than vacation, inventory, or labor dispute; and Employer and the affected employees jointly request the exemption through a written request that: Is submitted 2 weeks before the layoff (which requirement may be waived), and Includes the name and Social Security number of each claimant for whom the request is made. The Secretary's determination to grant or deny the exemption under this section shall be based on: The reason for the layoff; The length of the layoff; Local labor market conditions; and The employer's earned-rate record for the 3 years preceding the request. The Secretary shall grant or deny the request for the exemption within 15 days of receipt of the request. An exemption under this section may be granted only once during any 12-month period. Exemptions granted under this regulation do not apply to any federal or State extended benefit programs. Work search exemptions granted for participation in approved training are described in COMAR 09.33.01.06. For purposes of determining whether a claimant is able to work under §8-903 of the Unemployment Insurance Law, the term “qualified individual with a disability” as used there has the same meaning as it does under the Americans With Disabilities Act, 42 U.S.C. §12111. Applicability. This regulation does not apply to claimants granted work-search exemptions under Regulation .07 of this chapter. Definitions. In this regulation, the following terms have the meanings indicated. Terms Defined. “Temporary help firm” means an entity that assigns its own employees to perform services for clients on a nonpermanent basis. “First week claimed” means the first week of benefits claimed in an initial claim. Not Actively Seeking Work. Unless the claimant makes the showing required in §C(2) of this regulation, the Secretary shall determine that a claimant does not meet the “actively seeking work” eligibility condition during the first week claimed if: The claimant's last employer is a temporary help firm; That temporary help firm advised the claimant in writing before the end of the claimant's most recent work assignment that failure to request a new work assignment at the end of the current work assignment could result in a delay or denial of benefits; and That temporary help firm submits information, supported by contemporaneous documentation prepared in the ordinary course of business, for example, a telephone log, that the claimant did not request another work assignment after the claimant's most recent assignment ended. The claimant may avoid the Secretary's determination in §C(1) of this regulation if the claimant shows that the claimant: Did request another assignment; or Had good cause for failing to request another assignment. Notice by Employer. Immediately upon notice by the union of its intent to strike or the beginning of a labor dispute, the employer shall notify the Secretary of the existence of this dispute. Within 48 hours after the beginning of the dispute, the employer shall file with the Secretary a list stating the: Name, title, email address, telephone number, and address of the employer's representative; Name, title, email address, telephone number, and address of the union's representative; Last day of work of the employees who are not working as a result of the alleged labor dispute; Names and Social Security numbers of the employees who are participating in the dispute in Social Security number or alphabetical sequence; and Names and Social Security numbers of employees, in numerical or alphabetical order, who are not participating in the dispute but who are laid off by the employer as a result of the dispute. The list in §A(2) of this regulation shall substitute for individual separation notices for the listed employees. When the dispute is over or the employees have returned to work, the employer shall so advise the Secretary. Filing Claims. A claim of a claimant who is not working as a result of an alleged labor dispute is effective the first day of the week in which the claimant reports under the same terms and conditions as set forth for initial and reopened claims in Regulation .03 of this chapter. Claims made under this regulation shall be filed as instructed by the Secretary. Claims Determination — Qualification. Qualification for benefits for claimants not working as a result of an alleged labor dispute shall be determined pursuant to COMAR 09.32.06.06. Claims Determination — Eligibility. Eligibility for benefits for claimants not working as a result of an alleged labor dispute shall be determined using the same criteria as used in determining eligibility for benefits for any other claimant. Definition. A claimant shall be eligible for partial benefits for any week in which the claimant: Performed services for wages; Earned less in gross wages than the claimant's weekly benefit amount plus any allowance for a dependent to which the claimant is entitled under the Unemployment Insurance Law; and Meets all of the requirements set forth in the Unemployment Insurance Law. A claimant who earns gross wages in 1 week equal to or more than the claimant's weekly benefit amount may not file subsequent continued claims for partial benefits, but shall file an initial claim in order to claim subsequent benefits. Reporting Requirements. A claimant for partial benefits shall comply with each reporting requirement set forth in Regulation .04 of this chapter. A claimant for partial benefits shall report gross wages during the week in which the claimant performed the services for which the wages were earned. A claimant for partial benefits shall be able to work, available to work, and actively seeking full-time employment. The effective date of a claim for partial benefits is as set forth in Regulation .03D(1) of this chapter. Self-Employment. A claimant who is self-employed or regularly employed under conditions when the hours of work are not controlled by the employer, or who is paid on a commission basis, shall be eligible for partial benefits: When the remuneration is paid; If remuneration is less than the claimant's weekly benefit amount; and If the claimant is able and available to accept full-time work, and is actively seeking full-time work. Vacation Pay or Holiday Pay. A claimant shall be considered partially unemployed with respect to any week during which the claimant receives or is eligible to receive vacation pay or holiday pay that is less than the claimant's weekly benefit amount. Method of Calculation. A claimant eligible for partial benefits shall be paid a benefit amount equal to the claimant's weekly benefit amount, less that part of the wages payable to the claimant in excess of the amount provided by the Unemployment Insurance Law. The partial benefit amount shall be rounded down to the nearest whole dollar. Partial benefits are payable until the maximum benefit amount is exhausted for the claimant's benefit year, provided all of the eligibility requirements of the Unemployment Insurance Law are met. A claimant may receive only 26 weeks of dependents' allowance regardless of the number of weeks the claimant receives partial benefits. Time for Declaring Dependents. A claimant shall declare the claimant's dependents on the date that the claimant files a new or transitional claim for the benefit year. The time for declaration may not be extended, except for good cause. Verification. The claimant shall provide a Social Security number, a copy of the dependent's birth certificate, or other reliable means of proof within 30 days from the week in which the first continued claim in the benefit year is filed. A claimant who is otherwise eligible for benefits and who has not yet submitted the required dependents' allowance verification shall be paid benefits in the amount equal to the claimant's weekly benefit amount without the allowance for any unverified dependents. This shall continue until such time as verification is provided. Upon receipt, dependents' allowance shall be paid retroactively. Dependent of One Claimant Only. Once a child has been determined to be a dependent child of any claimant, as of the first day of the claimant's benefit year, the child cannot be considered to be a dependent of any other claimant whose benefit year starts within 1 year of that year. Maximum Benefit Amount. The total of the claimant's basic weekly benefit amount plus the claimant's dependents' allowance may not exceed the maximum weekly benefit amount. When the total of a claimant's basic weekly benefit amount and dependents' allowance exceed the maximum weekly benefit amount, any other claimant who, at that time, is supporting the same dependents may claim the dependents' allowance for the balance of the latter claimant's benefit year. Partial Earnings. As set forth in Regulation .10F(4) of this chapter, a claimant may receive only 26 weeks of dependents' allowance. Death of Claimant. The benefit year of a claimant who is receiving dependents' allowance is considered ended if the claimant dies. After that, any other claimant who, at that time, is supporting the same dependents, may claim the dependents' allowance for the balance of the living claimant's benefit year. Definition. “Holiday pay” or “vacation pay” means the gross amount of holiday pay or vacation pay. Holiday pay or vacation pay is attributable to: The week or weeks designated by the employer or the collective bargaining agreement as the holidays or vacation days; or If not as designated in §B(1) of this regulation, the weeks during which it is paid. Deductible Holiday Pay or Vacation Pay. Holiday pay or vacation pay shall be deducted from benefits if the claimant is notified of a definite return-to-work date on or before the date of layoff or separation. The reason for separation is not a determining factor. If the employer rescinds or modifies the return-to-work date originally given the claimant and extends the period of unemployment after the claimant files the initial or reopened claim, vacation pay or holiday pay shall be deducted only for the originally specified vacation or holiday period and may not be deducted for any period of additional unemployment resulting from the rescission or modification. Nondeductible Holiday Pay or Vacation Pay. Holiday pay or vacation pay may not be deducted from unemployment insurance benefits if the holiday pay or vacation pay is paid: At the time of or after the claimant is separated from employment, and the claimant is separated from employment for an indefinite period or is permanently separated from employment; or By the employer or payable for any period which is outside of the terms of an employment agreement that specifies scheduled vacation or holiday periods or employee discretion in scheduling vacation or holiday periods. Partial Earnings. Holiday pay or vacation pay that is less than the claimant's weekly benefit amount shall be deducted as partial earnings as set forth in Regulation .10E of this chapter. Holiday Pay and Vacation Pay Reportable and Taxable. Holiday pay or vacation pay is reportable and taxable for the purpose of the employer's contribution obligations under the Unemployment Insurance Law. “Severance pay” is the gross amount of severance pay including severance pay that is contingent on the employee signing a release of liability or waiver agreement, dismissal pay, pay instead of notice of termination, wage continuation, or other remuneration paid or payable to the claimant upon separation from employment. Deducting Severance Pay. Severance pay shall be deducted from benefits. The Secretary shall allocate severance pay that is paid in a lump sum or in increments to a number of weeks following the date of separation, including the week during which the claimant was separated from employment. The Secretary shall allocate severance pay by: Calculating the entire amount of severance pay including any amount of severance pay that may be contingent on the employee signing a release of liability or waiver agreement; Calculating the claimant's daily wage by dividing the claimant's last weekly wage by seven; Calculating the number of days to which the severance pay applies by dividing the total amount of severance pay by the claimant's daily wage; and Applying the severance pay to the days immediately following the claimant's last day of service. If severance pay allocated to a particular week is less than the claimant's weekly benefit amount, the claimant shall receive the difference. Severance Pay Reportable and Taxable. Severance pay is reportable and taxable for the purpose of the employer's contribution obligations under the Unemployment Insurance Law. Definitions. “Contributory retirement plan” means a plan providing a retirement payment under which an employing unit pays or has paid some, but not all, of the premiums or contributions, and the claimant has paid some, but not all, of the premiums or contributions. “Lump-sum retirement payment” means the gross amount of a retirement payment that is paid in one payment. Any retirement payment paid in more than one payment is not a lump-sum retirement payment, even if the installments are paid irregularly. “Noncontributory retirement payment” means a plan providing a retirement payment under which an employing unit pays or has paid all premiums or contributions and the claimant pays or has paid none. “Periodic retirement payment” means the gross amount of a retirement payment payable on a recurring basis. Deductible Retirement Payments. Retirement payments shall be deducted from benefits if the payments are made under a plan maintained or contributed to by a base period employer. Deductible retirement payments include but are not limited to: State government pensions; Local government pensions; Federal Civil Service retirement pensions and annuities; Federal Civil Service disability pensions; Private employer pensions; Military retirement pensions; Military disability pensions; Railroad retirement annuities; Individual Retirement Accounts (IRA) and Keogh Plans, to which the base period employer contributed directly; Trust, annuity, or insurance funds, to which the base period employer contributed; and Profit-sharing plans established to provide employees with income on retirement. Nondeductible Retirement Payments. Retirement payments may not be deducted from benefits if the payments derive from: Social Security benefits; Survivor's or widow's pensions; Military service connected disability compensation as defined in 38 U.S.C. §301 et seq. (Veterans' Administration Disability Benefits); Temporary disability insurance; or Workers' compensation and black lung benefits. Method of Deduction. Verification. A claimant shall provide documentary proof of any retirement payment. When the claimant cannot provide the verification, the Secretary shall request verification from the employer. When a claimant cannot provide documentary proof of the retirement payment, the claimant's sworn statement shall be accepted subject to employer verification and may not affect payment of claims. Calculation. Deductible retirement payments shall be deducted from benefits payable to the claimant as follows: 100 percent of each noncontributory retirement payment paid by or originating from a base period employer shall be fully deducted from basic weekly benefit amounts payable throughout the claimant's benefit year; 50 percent of each contributory retirement payment paid by or originating from a base period employer shall be deducted from basic weekly benefit amounts payable throughout the claimant's benefit year; A periodic contributory or noncontributory retirement payment prorated by week shall be deducted from the claimant's basic weekly benefit amount beginning with the first week in which the effective date of the retirement payment falls and for which the claimant has filed a continued claim. Dependents' Allowance. The deduction of retirement payments from benefits paid does not affect the weekly benefit amount for purposes of calculating the dependents' allowance, except that if no benefit payment is due after the deduction, the dependents' allowance is not payable. Duration of Benefit Payments. Benefits reduced as a result of a retirement payment deduction are payable until the maximum benefit amount is exhausted for the claimant's benefit year, provided all of the eligibility requirements of the Unemployment Insurance Law are met. Effect on Partial Earnings. If a claimant has partial earnings in any week for which the claimant's weekly benefit amount is to be reduced by a deductible retirement payment amount, the partial benefits are computed first, and the retirement payment is deducted from the remainder, if any. Lump Sum Retirement Payments. Deductible Lump Sum Retirement Payments. Except as otherwise provided, a lump sum retirement payment shall be deducted from benefits if the payment is made under a plan maintained or contributed to by a base period employer. A deductible lump sum retirement payment shall be deducted from benefits payable to the claimant only if the payment is actually received within the claimant's first benefit year. A deductible lump sum retirement payment shall be deducted from benefits payable to the claimant as follows: A lump sum retirement payment shall be allocated by week, beginning with the week the claimant was separated from employment, according to the claimant's last weekly rate of pay. The allocation in §E(1)(c) of this regulation extends for as long as the employer maintaining or contributing to the plan is a base period employer. Other calculations concerning deductible lump sum retirement payments shall be made pursuant to §D of this regulation. Nondeductible Lump Sum Retirement Payments. A lump sum retirement payment or lump sum profit-sharing payment may not be deducted from benefits if the: Claimant is separated from employment due to layoff or shutdown of the operation; Payment is received after the end of a benefit year in which the contributing employer is a base period employer; or Claimant places the lump sum payment in a qualified retirement plan within 30 days of receipt. With regard to §E(2)(a)(iii) of this regulation, the: Claimant shall provide documentation to the Secretary that states that the lump sum retirement payment has been placed in a qualified retirement plan, and gives the name of the institution or fund in which the payment was placed; Lump sum retirement payment shall be verified as set forth in §D(1) of this regulation. Definition. “Special pay” means the gross amount of any bonus or other special payment paid or payable to the claimant by the employer that is not holiday pay, vacation pay, severance pay, or pension pay. Special pay is attributable to the week or weeks designated by the employer or the collective bargaining agreement, or if not so designated, the week or weeks during which the special pay is paid. Deductible Special Pay. Special pay shall be deducted from benefits for any week to which it is attributable if the claimant performed services during that week. Nondeductible Special Pay. Special pay may not be deducted from benefits for any week to which it is attributable if the claimant performed no services during that week. Partial Earnings. The sum of the deductible special pay and earnings for that week that is less than the claimant's weekly benefit amount shall be deducted pursuant to Regulation .10F of this chapter as partial earnings. Special Pay Reportable and Taxable. Special pay is reportable and taxable for the purpose of the employer's contribution obligations under the Unemployment Insurance Law. The following payments are considered wages for the purpose of determining a claimant's monetary eligibility for benefits: Any wage received for covered employment as defined by the Unemployment Insurance Law; Holiday pay; Vacation pay; and Special pay. Payments Not Considered Wages. The following payments are not considered wages for the purpose of determining a claimant's monetary eligibility for benefits: Severance pay, dismissal pay, wage continuation, or pay instead of notice of termination; and Pension. Holiday pay, vacation pay, and special pay shall be considered wages for the purpose of determining a claimant's monetary eligibility at the time the payments are made even if the pay is attributed to a different time for benefit purposes. Review of Claim. After an initial, reopened, or continued claim is filed, the Secretary shall review the claim and any separation information received from employers, together with any other available information to determine if the claimant is eligible for benefits for the week or weeks being claimed. Material Fact. A material fact is a fact that is of consequence to a decision regarding eligibility or disqualification for benefits. Payment of Benefits When Claimant Found Eligible and Not Disqualified. Benefit payments shall be initiated as quickly as administratively feasible when: There is no dispute of material fact; The Secretary finds the claimant eligible and not disqualified; and The Department receives the claimant's complete and correct continued claim. Unless a question of continued eligibility arises, payment of benefits shall continue on a biweekly basis following the receipt of the claimant's complete and correct biweekly claim forms. Fact-Finding Interview When There Is No Dispute of Material Fact. When the Secretary's review of an initial, reopened, or continued claim reveals no dispute of material fact, but the information reviewed indicates that the claimant may be ineligible or disqualified, the Secretary shall schedule the claimant for an appointment for a fact-finding interview pursuant to Regulation .04C of this chapter. Fact-Finding Proceeding When There Is a Dispute of Material Fact. When the Secretary's review of an initial, reopened, or continued claim reveals a dispute of material fact concerning whether the claimant is eligible or disqualified, the Secretary shall: Send a written notice by first-class mail or electronic means to the claimant and any employer who may have knowledge of the disputed facts, stating: The date, time, place, and type of the proceeding, The issues to be resolved at the proceeding, That the proceeding may result in the denial of benefits or may affect the employer's earned-rate record or reimbursement account, and That any party shall have the right to be present by telephone or in person as required by the Secretary and may be represented by an attorney or other representative of the party's choosing; Conduct a proceeding at which the parties may: Be present, by telephone or in person, as required by the Secretary, Be represented by an attorney or other representative of the party's choosing, Present and rebut evidence and argument relating to the issues, Cross-examine any person who participates in person or by telephone at the proceeding and testifies or provides information relating to the issues, and Be given the opportunity to examine all evidence relating to that issue that is before the Secretary; and Provide a reasonable opportunity to a party to rebut any relevant evidence that the Secretary receives after the proceeding and that may be a basis for a decision. Decision. After conducting an interview or a proceeding as set forth in §D or E of this regulation, the Secretary shall send a written decision to all parties by first-class mail or electronic means that: Informs the parties of the right to appeal pursuant to COMAR 09.32.06; States the provisions of the Unemployment Insurance Law on which the decision is based; Explains the reasons for the determination in sufficient detail to inform the parties why benefits were awarded or denied; and Explains what the claimant must do to requalify for benefits or purge the disqualification, if the determination denies benefits. Benefit payments shall be initiated as quickly as administratively feasible in accordance with a decision awarding benefits. Expedited Payment for Benefits Due Claimant. The Secretary may expedite payment for benefits due a claimant if the: Secretary has found the claimant eligible and not disqualified; and Claimant submits to the office designated by the Secretary: A complete and correct claim form for benefits due the claimant, and Satisfactory evidence that an immediate financial hardship exists. Examples of an immediate financial hardship include: Imminent eviction; or Utility cut-off notice. If a claimant receives benefits during a benefit year, the claimant may not be entitled to receive benefits in a subsequent benefit year unless the claimant earned wages after the beginning of the first benefit year as a result of performing services in insured work, and the wages are equal to not less than 10 times the claimant's weekly benefit amount. Special pay, severance pay, vacation pay, holiday pay, or prior earnings paid to a claimant at or after separation from employment do not constitute wages as a result of performing services in insured work. Remuneration earned by a claimant for performing services in another state in insured work as defined by that state's unemployment insurance law shall be treated the same as remuneration earned for services performed in Maryland in covered employment. If a claimant is disqualified from receiving benefits or found ineligible for benefits under the Unemployment Insurance Law, the first week of disqualification shall be the calendar week in which the act on which the disqualification is based occurred, or the calendar week beginning with the Sunday immediately before the last day of work, whichever is later. When a claimant is reemployed and the hours of work on the first shift worked begin before midnight on one day and end after midnight, the claimant's first day of work shall be the day on which the shift ends. When, before a period of unemployment, a claimant last works a shift which begins before midnight on one day and ends after midnight, the claimant's last day of work shall be the day on which the last shift ended. Labor and Employment Article, §§8-101, 8-305, 8-805, 8-809, 8-902, 8-903, and 8-1004—8-1009, Annotated Code of Maryland Effective date: February 1, 1973 Regulation .03H amended effective December 15, 1978 (5:25 Md. R. 1853) Regulation .06 amended effective December 10, 1975 (2:28 Md. R. 1666); December 15, 1978 (5:25 Md. R. 1853); January 31, 1983 (10:2 Md. R. 108) (Transferred from Department of Human Services to Department of Employment and Training, effective October 1, 1983; recodified from COMAR 07.04.02 to 24.02.02) Regulations .01—.13, Reporting and Registration by Claimant for Benefits, repealed and new Regulations .01—.19, Claims for Benefits, adopted effective October 29, 1990 (17:21 Md. R. 2531) Regulation .03D amended effective June 24, 1991 (18:12 Md. R. 1340) Regulation .03E amended effective January 2, 1994 (20:26 Md. R. 2029) Regulation .04B amended effective June 24, 1991 (18:12 Md. R. 1340); June 8, 1992 (19:11 Md. R. 1017) Regulation .04-1 adopted effective October 24, 1994 (21:21 Md. R. 1815) Regulation .07D adopted effective December 21, 1992 (19:25 Md. R. 2208) Regulation .07-1 adopted effective January 2, 1994 (20:26 Md. R. 2029) Regulation .07-2 adopted effective October 1, 1995 (22:12 Md. R. 903) Regulation .09 amended effective January 2, 1994 (20:26 Md. R. 2029) Regulation .14 amended effective January 2, 1994 (20:26 Md. R. 2029) Regulation .14D amended effective October 24, 1994 (21:21 Md. R. 1815) Regulation .15-1 adopted effective June 8, 1992 (19:11 Md. R. 1017) Regulation .15-1B amended effective January 2, 1994 (20:26 Md. R. 2029) Regulation .16G adopted effective October 9, 1995 (22:20 Md. R. 1546) Chapter recodified from COMAR 24.02.02 to COMAR 09.32.02, May 1996 Regulation .02B amended effective December 28, 1998 (25:26 Md. R. 1922) Regulation .03 amended effective December 28, 1998 (25:26 Md. R. 1922) Regulation .04 amended effective December 28, 1998 (25:26 Md. R. 1922) Regulation .06 amended effective December 28, 1998 (25:26 Md. R. 1922) Regulation .08 amended effective December 28, 1998 (25:26 Md. R. 1922) Regulation .09 amended effective December 28, 1998 (25:26 Md. R. 1922) Regulation .10C amended effective December 28, 1998 (25:26 Md. R. 1922) Regulation .11A, B amended effective December 28, 1998 (25:26 Md. R. 1922) Regulation .13 amended effective May 4, 1998 (25:9 Md. R. 679) Regulation .14 amended effective April 24, 2017 (44:8 Md. R. 403) Regulation .14D amended effective December 28, 1998 (25:26 Md. R. 1922) Regulation .15-1B amended effective December 28, 1998 (25:26 Md. R. 1922) Regulation .16 amended effective December 28, 1998 (25:26 Md. R. 1922) Regulation .18 amended effective December 28, 1998 (25:26 Md. R. 1922) Chapter revised effective April 24, 2017 (44:8 Md. R. 403) Regulation .04 amended effective April 24, 2017 (44:8 Md. R. 404) Regulation .14 amended effective April 24, 2017 (44:8 Md. R. 404) All terms used in this regulation which are defined in the Unemployment Insurance Law shall have the same meanings as provided in that law. “Eligibility period” of an individual means the period of the weeks in his benefit year which begin in an extended benefit period, and, if his benefit year ends within the extended benefit period, any weeks after that which begin in that period. “Entitlement”. An individual is entitled to extended compensation for a week of unemployment in his eligibility period if, with respect to this week, he is an exhaustee under this regulation and he meets the requirements of the Unemployment Insurance Law and these regulations. “Exhaustee”. An individual is an exhaustee with respect to a week of unemployment of his eligibility period if: Either of the following conditions is satisfied: He has received, before that week, all the regular compensation payable to him according to the monetary determination for his current benefit year that includes the week, or His benefit year having expired before that week, he has insufficient wages or employment, or both, on the basis of which he could establish in any state a new benefit year that would include that week, or having established a new benefit year that includes the week, he is precluded from receiving regular compensation by reason of an Unemployment Insurance Law provision of the state which meets the requirement of §3304(a)(7) of the Internal Revenue Code of 1954; He has no right to unemployment compensation or allowances, as the case may be, under the following federal law, the Railroad Unemployment Insurance Act; and He has not received and is not seeking for the week unemployment compensation under the law of the Virgin Islands or of Canada, but if he is seeking this compensation and the appropriate agency finally determines that he is not entitled to compensation under this law, he is an exhaustee. “Extended benefits” means benefits (including benefits payable to federal civilian employees and to ex-servicemen pursuant to 5 U.S.C. Chapter 85) payable to an individual under the provisions of Labor and Employment Article, Title 8, Subtitle 11, Annotated Code of Maryland, for weeks of unemployment in his eligibility period. “Extended benefit period” means a period which: Begins with the third week after whichever of the following weeks occurs first: A week for which there is a national “on” indicator, or A week for which there is a State “on” indicator; and Ends with either of the following weeks, whichever occurs later: The third week after the first week for which there is both a national “off” indicator and a State “off” indicator, or The thirteenth consecutive week of this period, provided an extended benefit period may not begin by reason of a State “on” indicator before the fourteenth week following the end of a prior extended benefit period which was in effect with regard to this State. National “On” and “Off” Indicators. There is a “national 'on' indicator” for a week if the United States Secretary of Labor determines that for a period consisting of that week and the 12 immediately preceding weeks, the rate of insured unemployment (seasonally adjusted) for all states, based on the average monthly covered employment for the first 4 of the 6 most recent calendar quarters ending before the close of the period, equaled or exceeded 4.5 percent. There is a “national `off' indicator” for a week if the United States Secretary of Labor determines that for a period consisting of that week and the 12 immediately preceding weeks, the rate of insured unemployment (seasonally adjusted) for all states, based on the average monthly covered employment for the first 4 of the 6 most recent calendar quarters ending before the close of the period was less than 4.5 percent. “Rate of insured unemployment” for purposes of §I of this regulation means the percentage derived by dividing: The average weekly number of individuals filing claims in this State for weeks of unemployment with respect to the most recent 13-consecutive-week period, as determined by the Secretary on the basis of his reports to the United States Secretary of Labor, by The average monthly employment covered under the Unemployment Insurance Law for the first four of the most recent six completed calendar quarters ending before the end of the 13-week period. “Regular benefits” means benefits payable to an individual under the Unemployment Insurance Law or under any other State law (including benefits payable to federal civilian employees and to ex-servicemen pursuant to 5 U.S.C. Chapter 85), other than extended benefits. State “On” and “Off” Indicators. State “on” and “off” indicators may occur in either of the following two circumstances: There is a State “on” indicator in this State for a week if the Secretary determines, in accordance with the regulations of the United States Secretary of Labor, that for the period consisting of that week and the immediately preceding 12 weeks, the rate of insured unemployment (not seasonally adjusted) under the law equaled or exceeded 120 percent of the average of the rates for the corresponding 13-week period ending in each of the preceding 2 calendar years, and equaled or exceeded 4 percent. After a State “on” occurs pursuant to this section, there is a State “off” indicator for this State for a week if the Secretary determines, in accordance with the regulations of the United States Secretary of Labor, that for the period consisting of that week and the immediately preceding 12 weeks, the rate of insured unemployment (not seasonally adjusted) under the law was less than 120 percent of the average of the rates for the corresponding 13-week period ending in each of the preceding 2 calendar years or was less than 4 percent. There is a State “on” indicator in this State for a week if the Secretary determines, in accordance with the regulations of the United States Secretary of Labor, that for the period consisting of that week and the immediately preceding 12 weeks, the rate of insured unemployment (not seasonally adjusted) under the law equaled or exceeded 5 percent. After a State “on” indicator occurs pursuant to this section, there is a State “off” indicator for a week if the Secretary determines, in accordance with the regulations of the United States Secretary of Labor, that for the period consisting of that week and the immediately preceding 12 weeks, the rate of insured unemployment (not seasonally adjusted) under the law was less than 5 percent. “Total Extended Benefit Amount”. The total extended benefit amount payable to any eligible individual with respect to his applicable benefit year may not be less than whichever of the following is the least: 50 percent of the total amount of regular compensation, (including dependents' allowances) payable to him during the benefit year under the law; 13 times his average weekly benefit amount; or 39 times his average weekly benefit amount, reduced by the regular compensation paid (or deemed paid) to him during the benefit year under that law. “Weekly Extended Benefit Amount”. The weekly benefit amount of extended benefits payable to an individual for a week of total unemployment in his eligibility period is the amount of regular benefits (including dependents' allowances) payable to him for a week of total unemployment during his applicable benefit year. National “On” and “Off” Indicators. The national “on” and “off” indicators shall be determined by the United States Secretary of Labor and upon notification by that officer concerning the existence of these indicators the Secretary shall act in response to them as provided by law. State “On” and “Off” Indicators. The Secretary shall determine the “rate of insured unemployment” for the purposes of the State “on” and “off” indicators. In making this determination he shall use a fraction, the numerator of which will be the weekly average number of weeks claimed in the State for the 13-week period ending with the week for which the determination is made (not seasonally adjusted) and the denominator of which shall be the average monthly employment covered under the State law for the first four of the last six calendar quarters ending before the close of the 13-week period. The quotient obtained is to be computed to four decimal places and is not to be otherwise rounded. The rate for the most recent 13-week period is to be divided by the average of the rates for the corresponding 13-week periods in each of the 2 preceding years to determine whether the rate is equal to 120 percent of the average rate for the 2 years. The quotient obtained shall be computed to four decimal places and may not be otherwise rounded. The average of the rates for the corresponding 13-week periods in each of the 2 preceding years shall be one-half the sum of the rates for the period computed to four decimal places and not otherwise rounded. For the purpose of determining the corresponding 13-week period ending in each of the preceding calendar years, the first week in any calendar year shall be the first full calendar week in that year. The Secretary shall utilize the list of numbered weeks for each calendar year beginning with the first Sunday in January, 1968, provided by the Secretary of Labor. For Both National and State Indicators. In determining the “weekly average number of weeks claimed” for any period, the Secretary shall count weeks claimed in continued claims (including interstate claims filed in the State) for total, partial, or part-total unemployment for regular or extended compensation, and shall exclude claims filed under 5 U.S.C. Chapter 85 (UCFE/UCX) and interstate claims filed against Maryland as liable state. Beginning and Ending an Extended Benefit Period. An extended benefit period in Maryland shall begin on the first day of the third calendar week after whichever of the following occurs first: A week for which there is a national “on” indicator; or A week for which there is an “on” indicator in Maryland. An extended benefit in Maryland shall end on the last day of the third week after the first week for which there is both a national and a State “off” indicator. An extended benefit period established in Maryland before January 1, 1972 may be ended before that date solely on the basis of a State “off” indicator in Maryland. Notwithstanding the provisions of §A(2) of this regulation, an extended benefit period which becomes effective in Maryland shall continue for not less than 13 consecutive weeks. An extended benefit period may not begin by reason of a State “on” indicator before the fourteenth week after the close of a prior extended benefit period with respect to Maryland. “Week” for the purpose of determining whether a State “on” or “off” indicator occurs means a calendar week beginning at 12:01 a.m. Sunday and ending 12:00 p.m. on the following Saturday. Announcement of the Beginning and Ending of an Extended Benefit Period. Whenever the Secretary determines that there is an “on” indicator in this State by reason of which an extended benefit period will begin or an “off” indicator by reason of which an extended benefit period will end, he shall promptly announce his determination through appropriate news media in the State. This announcement shall include the beginning or ending date of the extended benefit period, whichever is appropriate. If an extended benefit period is about to begin, the announcement shall also describe clearly what unemployed individuals may be eligible for extended compensation during the extended benefit period. This State shall pay, as agent for the Secretary of Labor, and shall be reimbursed as provided in 5 U.S.C. §8505 an amount equal to the additional cost of extended compensation paid to federal civilian workers and ex-servicemen pursuant to 5 U.S.C. Chapter 85. Where regular compensation exhausted by an individual or sharable regular compensation was based on combined wage credits earned in more than one state, Maryland shall pay extended benefits when it was the liable state so long as it is reimbursable in proper proportions as liable state under appropriate federal laws and regulations. Applicability of State Law and Regulations. Except when the result would be inconsistent with the other provisions of the Unemployment Insurance Law or these regulations, the provisions of the Unemployment Insurance Law and regulations promulgated pursuant to it which apply to claims for, or the payment of, regular benefits shall apply to claims for, and the payment of, extended benefits. Effect of Disqualification for Regular Compensation on Entitlement to Extended Compensation. If the week of unemployment for which an individual claims extended compensation is a week to which a disqualification for regular benefits applies, the individual may not be entitled to extended compensation for that week. Charging Extended Compensation. The Secretary shall charge to the experience rating account or accounts of the respective base period employer or employers the appropriate share of any extended benefits paid a claimant in the same manner as regular benefits are charged under COMAR 09.32.01.05. Employer's Reimbursement of Extended Compensation. An employer who elects to come under the Unemployment Insurance Law as a reimburseable employer shall reimburse the Unemployment Insurance Fund for the appropriate share of any extended benefits chargeable to him as a base period employer in the same manner as he reimburses the Fund for regular benefits under COMAR 09.32.01.05. With respect to governmental entities (including the State, its political subdivisions, and instrumentalities of the State, of one or more subdivisions, of one or more states, and of one or more states and subdivisions), the appropriate share of any extended benefits shall be one-half of any extended benefits paid to these individuals for compensable weeks beginning on or before December 31, 1978, and all extended benefits paid to these individuals for compensable weeks beginning after December 31, 1978. With respect to all other employers, the appropriate share of any extended benefits shall be one-half of any extended benefits paid to these individuals. The provisions of Maryland law that apply to recovery of overpayments (including restitution and offset) shall apply to overpayments of extended compensation. If there is recovery of extended compensation, that proportion of the amount restored or offset which represents the federal share of the original payment shall be restored to the appropriate federal accounts. An individual who is entitled to both extended compensation under the Unemployment Insurance Law and training allowances under §203 of the Manpower Development and Training Act with respect to a week shall be treated as he would have been treated had he been entitled to both regular compensation and the training allowance. Provisions requiring the reduction of regular benefits by specified deductible income are also applicable to benefits paid under the Extended Benefits Program. Labor and Employment Article, §8-305, Annotated Code of Maryland Effective date: February 1, 1973 Regulation .01C, F, I amended effective December 1, 1978 (5:24 Md. R. 1796) Regulation .01F, I amended effective December 10, 1975 (2:28 Md. R. 1666) Regulation .02B amended effective March 30, 1977 (4:7 Md. R. 577); December 1, 1978 (5:24 Md. R. 1796) Regulation .02C amended effective July 25, 1980 (7:15 Md. R. 1423); March 6, 1981 (8:5 Md. R. 472) Regulation .07 amended effective December 1, 1978 (5:24 Md. R. 1796) (Transferred from Department of Human Services to Department of Employment and Training, effective October 1, 1983; recodified from COMAR 07.04.03 to 24.02.03) Regulation .07A and B amended effective June 8, 1992 (19:11 Md. R. 1017) Chapter recodified from COMAR 24.02.03 to COMAR 09.32.03, May 1996 This chapter shall regulate the Maryland Department of Labor in its cooperation with other states subscribing to the Interstate Reciprocal Coverage Arrangement hereinafter referred to as “the arrangements”. In this chapter, unless the context clearly indicates otherwise, the following terms have the meanings indicated. Terms Defined. “Agency” means any officer, board, commission, or other authority charged with the administration of the unemployment insurance law of a participating jurisdiction. “Interested jurisdiction” means any participating jurisdiction to which an election submitted under this regulation is sent for its approval. “Interested agency” means the agency of that jurisdiction. “Jurisdiction” means any state of the United States, the District of Columbia, Puerto Rico, Virgin Islands, Guam, and Samoa, or, with respect to the Federal Government, the coverage of any Federal Unemployment Law. “Participating jurisdiction” means a jurisdiction whose administrative agency has subscribed to the arrangement and whose adherence to it has not ended. “Services customarily performed by an individual in more than one jurisdiction” means service performed in more than one jurisdiction during a reasonable period, if the nature of the services gives reasonable assurance that they will continue to be performed in more than one jurisdiction or if these services are required or expected to be performed in more than one jurisdiction under the elections. Any employing unit may file an election, on Form RC-1, to cover under the law of a single participating jurisdiction all the services performed for him by an individual who customarily works for him in more than one participating jurisdiction. An election as just described may be filed, with respect to an individual with any participating jurisdiction in which: Any part of the individual's services are performed; The individual has his residence; or The employing unit maintains a place of business to which the individual's services bears a reasonable relation. Approval of the Election. The agency of the elected jurisdiction (thus selected and determined) shall approve or disapprove the election. If the agency approves the election, it shall forward a copy of it to the agency of each other participating jurisdiction specified on the copy, under whose unemployment compensation law the individual or individuals in question might, in the absence of this election, be covered. Each interested agency shall approve or disapprove the election, as promptly as practicable, and shall notify the agency of the elected jurisdiction accordingly. If its law requires, any interested agency, before taking this action, may require from the electing employing unit satisfactory evidence that the affected employees have been notified of, and have acquiesced in, the election. If the agency of the elected jurisdiction, or the agency of any interested jurisdiction, disapproves the election, the disapproving agency shall notify the elected jurisdiction and the electing employing unit of its action and of its reason for this action. Such an election shall take effect as to the elected jurisdiction only if approved by its agency and by one or more interested agencies. An election thus approved shall take effect, as to any interested agency, only if it is approved by the agency. In case any election is approved only in part, or is disapproved by some of the agencies, the electing employing unit may withdraw its election within 10 days after being notified of this action. Commencement. An election duly approved under these regulations shall become effective at the beginning of the calendar quarter in which the election was submitted, unless the election as approved, specifies the beginning of a different calendar quarter. If the electing unit requests an earlier effective date than that beginning of the calendar quarter in which the election was submitted, the earlier date may be approved solely as to those interested jurisdictions in which the employer had no liability to pay contributions for the earlier period in question. Termination. The application of an election to any individual under this regulation shall terminate, if the agency of the elected jurisdiction finds that the nature of the services customarily performed by the individual for the electing unit has changed, so that they are no longer customarily performed in more than one participating jurisdiction. This termination shall be effective as of the close of the calendar quarter in which notice of the finding is mailed to all parties affected. Except as provided in §B(1) of this regulation, each election approved here shall remain in effect through the close of the calendar year in which it is submitted, and afterwards until the close of the calendar quarter in which the electing unit gives written notice of its termination to all affected agencies. Whenever an election under this regulation ceases to apply to any individual, under §B(1) or (2) of this regulation, the electing unit shall notify the affected individual accordingly. The electing unit shall promptly notify each individual affected by its approved election, on the Form RC-2 supplied by the elected jurisdiction, and shall furnish the elected agency a copy of this notice. Whenever an individual covered by an election under this regulation is separated from his employment, the electing unit shall again notify him, immediately, as to the jurisdiction under whose unemployment compensation law his services have been covered. If at the time of termination, the individual is not located in the elected jurisdiction, the electing unit shall notify him as to the procedure for filing interstate benefit claims. The electing unit shall immediately report to the elected jurisdiction any change which occurs in the conditions of employment pertinent to its election, such as cases where an individual's services for the employer cease to be customarily performed in more than one participating jurisdiction or where a change in the work assigned to an individual requires him to perform services in a new participating jurisdiction. The Secretary or his designated representative shall approve or disapprove reciprocal coverage elections in accordance with these regulations. Labor and Employment Article, §8-305, Annotated Code of Maryland Effective date: February 1, 1973 (Transferred from Department of Human Services to Department of Employment and Training, effective October 1, 1983; recodified from COMAR 07.04.04 to 24.02.04) Chapter recodified from COMAR 24.02.04 to COMAR 09.32.04, May 1996 This chapter shall regulate the Maryland Department of Labor in its administrative cooperation with other states adopting similar regulations for the payment of benefits to interstate claimants. In this chapter, unless the context clearly requires otherwise, the following terms have the meanings indicated. Terms Defined. “Agent state” means any state in which an individual files a claim for benefits from another state. “Basic Plan for Combining Wages” means an interstate agreement which establishes a system whereby unemployed workers who lack qualifying wages sufficient for benefits in any one state, may through combining wages from more than one state, become eligible for benefits. “Benefits” means the compensation payable to an individual, with respect to his unemployment, under the unemployment insurance law of any state. “Extended Plan for Combining Wages” means an interstate agreement which establishes a system whereby unemployed workers having sufficient base-period wages to qualify for less than maximum benefits in one or more states and insufficient base-period wages to qualify for benefits in one or more states, may increase the benefits to which they are entitled by combining wages in one of the states in which they have sufficient base-period wages with base-period wages in all states in which they have insufficient wages. “Interstate Benefit Payment Plan” means the plan approved by the Interstate Conference of Employment Security Agencies under which benefits shall be payable to unemployed individuals absent from the state (or states) in which benefit credits have been accumulated. “Interstate claimant” means an individual who claims benefits under the unemployment insurance law of one or more liable states through the facilities of an agent state. The term “interstate claimant” does not include any individual who customarily commutes from a residence in an agent state to work in a liable state unless the Maryland Department of Labor finds that this exclusion would create undue hardship on the claimants in specified areas. “Liable state” means any state against which an individual files, through another state, a claim for benefits. “State” includes District of Columbia, Puerto Rico, Virgin Islands, Guam, Samoa, and the Philippine Islands. “Week of unemployment” includes any week of unemployment as defined in the law of the liable state from which benefits with respect to these weeks are claimed. Each interstate claimant shall be registered for work, through any public employment office in the agent state when and as required by the law, regulations, and procedures of the agent state. This registration shall be accepted as meeting the registration requirement of the liable state. Each agent state shall duly report to the liable state in question, whether each interstate claimant meets the registration requirements of the agent state. If a claimant files a claim against any state, and it is determined by that state that the claimant has available benefit credits in that state, then claims shall be filed only against the state as long as benefit credits are available in the state. After that, the claimant may file claims against any other state in which there are available benefit credits. For the purpose of this regulation, benefit credits shall be deemed to be unavailable whenever benefits have been exhausted, terminated, or postponed for an indefinite period or for the entire period in which benefits would otherwise be payable, or whenever benefits are affected by the application of a seasonal restriction. The benefit rights of interstate claimants established by these regulations shall apply only with respect to new claims (notices of unemployment) filed on or after July 5, 1953. Claims for benefits or waiting period shall be filed by interstate claimants on uniform interstate claim forms and in accordance with uniform procedures developed pursuant to the Interstate Benefit Payment Plan. Claims shall be filed in accordance with the type of week in use by the agent state. Any adjustments required to fit the type of week used by the liable state shall be made by the liable state on the basis of consecutive claims filed. Claims shall be filed in accordance with agent state regulations for interstate claims in local employment offices, or at an itinerant point, or by mail. With respect to claims for weeks of unemployment in which an individual was not working for his regular employer, the liable state, under circumstance which it considers good cause, shall accept a continued claim filed up to 1 week, or one reporting period, late. If a claimant files more than one reporting period late, an initial claim shall be used to begin a claim series and a continued claim for a past period may not be accepted. With respect to weeks of unemployment during which an individual is attached to his regular employer, the liable state shall accept any claim which is filed within the time limit applicable to the claims under the law of the agent state. The agent state shall, in connection with each claim filed by an interstate claimant, ascertain and report to the liable state in question the facts relating to the claimant's availability for work and eligibility for benefits as are readily determinable in and by the agent state. The agent state's responsibility and authority in connection with the determination of interstate claims shall be limited to investigation and reporting of relevant facts. The agent state may not refuse to take an interstate claim. The agent state shall afford all reasonable cooperation in the taking of evidence and the holding of hearings in connection with appealed interstate claims. With respect to the time limits imposed by the law of a liable state upon the filing of an appeal in connection with a disputed benefit claim, an appeal made by an interstate claimant shall be deemed to have been made and communicated to the liable state on the date when it is received by any qualified officer of the agent state. These regulations shall apply in all its provisions to claims taken in and for Canada, Puerto Rico, and the Virgin Islands. Claimants desiring to do so will be permitted to elect to combine wages under the terms of any plan for combining wage credits, of which Maryland is a cooperating member. All claims filed under the basic plan for combining wages shall be filed in accordance with the laws of the paying state under the terms of any Interstate Arrangement for the Combining of Wages to which Maryland is a party. All claims for benefits filed under the Extended Plan for Combining Wages shall be filed as follows: If claims are filed in other than the paying state, the Interstate Benefit Payment Procedure shall be followed. If claims are filed in the paying state, they shall be filed in the same manner as by any other claimant who is claiming benefits under the unemployment insurance law of that paying state. Labor and Employment Article, §8-305, Annotated Code of Maryland Effective date: February 1, 1973 (Transferred from Department of Human Services to Department of Employment and Training, effective October 1, 1983; recodified from COMAR 07.04.05 to 24.02.05) Chapter recodified from COMAR 24.02.05 to COMAR 09.32.05, May 1996 Manner of Filing. An appeal from a hearing examiner’s decision, or a petition for review to request a discretionary appeal of a hearing examiner’s decision under Labor and Employment Article, §8-5A-10(b)(2), Annotated Code of Maryland, shall be in writing and signed by the appealing party or the appealing party’s attorney or authorized representative. An appeal or a petition for review may be filed only by mail, facsimile, hand delivery to the administrative office of the Board of Appeals as listed on the hearing examiner decision, or other method of transmission established by the Board of Appeals. The appeal may not be filed by electronic mail. When filed by an attorney or authorized representative, an appeal from or petition for review of a hearing examiner’s decision shall be accompanied by a certification that a copy of the appeal or petition for review and all accompanying papers were mailed, or otherwise delivered in accordance with the format and procedures established by the Board of Appeals, to all other parties in the case. Failure to include the certification does not affect a determination as to the timeliness of the appeal. Failure to include the certification may result in a dismissal of the appeal or petition for review. In the event of an appeal or a petition for review from a hearing examiner’s decision involving more than one claimant on the same issue, the appeal or petition for review may be filed by the individual claimants or by an attorney or authorized representative on the claimants’ behalf. The attorney or authorized representative shall submit, together with the appeal or petition for review, a list containing the names, addresses, appeal numbers, and the last four digits of the Social Security numbers of the claimants who are parties to the appeal or petition for review. In the event of an appeal or petition for review from a hearing examiner’s decision involving a review determination issued under the Labor and Employment Article, Title 8, Subtitle 6, Annotated Code of Maryland, the employer, or the employer’s attorney or authorized representative, shall include the name of the employer, the employer’s address, employer account number, if any, the review determination number and a copy of the hearing examiner’s decision. Time for Filing. Under Labor and Employment Article, §8-5A-10(a)(1), Annotated Code of Maryland, an appeal or petition for review from a hearing examiner’s decision involving a determination or redetermination of a claim shall be filed by a party within 15 calendar days after Lower Appeals sends a decision to the last known address of the party. Under Labor and Employment Article, §8-5A-10(a)(2), Annotated Code of Maryland, an appeal from a hearing examiner’s decision involving a review determination shall be filed by an employer within 30 calendar days after Lower Appeals sends the hearing examiner’s decision to the employer at the employer’s last known address. The period for filing an appeal or a petition for review may not be extended by the Board of Appeals. An appeal or petition for review is considered filed on the earliest of the following dates: The date an appeal or petition for review is delivered in person to the administrative office of the Board of Appeals; The U.S. Postal Service postmarked date on which an appeal or petition for review, properly addressed and stamped, is mailed to the administrative office of the Board of Appeals; The date on the appeal or petition for review itself when the envelope has an illegible postmark; The date an appeal or petition for review is received by facsimile transmission at the administrative office of the Board of Appeals; or The date an appeal is otherwise filed in accordance with the format and procedures established by the Board of Appeals. Denial of Petition for Review. The Board of Appeals may deny a petition for review filed pursuant to Labor and Employment Article, §8-5A-10(b)(2), Annotated Code of Maryland, if it agrees with the hearing examiner’s decision. Scheduling Authority. The scheduling authority in the case of an appeal or a petition for review pending before the Board of Appeals is the Board of Appeals or its designee. Notice of Hearing. The Board of Appeals shall give interested parties at least 15 business days notice in writing of the time and place of any hearing before the Board of Appeals. Notice is sufficient when mailed to the party, postage prepaid, or otherwise delivered to the party in accordance with the format and procedures established by the Board of Appeals, at the last known address of the party. In the case of appeals or petitions for review filed under Regulation .01A(3) of this chapter, notice mailed or otherwise delivered to the attorney or authorized representative, plus notice mailed or otherwise delivered to each individual appellant who filed an individual appeal or a petition for review or to those persons who requested an individual notice, shall be sufficient notice to all parties represented by the attorney or authorized representative. This subsection shall also apply to notices of hearings in labor disputes in which the Board of Appeals has jurisdiction to issue original determinations. For notice purposes, the representation of a party by an attorney or authorized representative is effective on the date an appearance is entered in the case, or the date the appearance is noted in the appeal file, whichever is earlier. Public Hearing. Hearings before the Board of Appeals shall be public. The record made in any appeal hearing is a public record. Media coverage of any hearing is permissible unless the Board of Appeals determines that it interferes with the hearing process. Record. The record made by or at the direction of the Board of Appeals is the only official transcript of the oral hearing. Additional recordings or transcriptions may be made by the parties at the hearings, or by third parties, only at the discretion of the Board of Appeals or its designee. Issues. The Board of Appeals shall inquire fully into the facts of the particular case. The Board of Appeals shall consider all issues expressly appealed by the party in the case and all issues expressly ruled upon in the decision of the hearing examiner. The appeal of a ruling under Labor and Employment Article, §8-1001, 8-1002, 8-1002.1, or 8-1003, Annotated Code of Maryland, shall be considered an appeal raising all four disqualification issues. Notwithstanding §E(1) of this regulation, the Board of Appeals may hear and determine any issue in the case, even if not expressly ruled upon by the hearing examiner or indicated in the notice of hearing, if the speedy administration of justice, without prejudice to any party, will be substantially served by doing so. Representation. An interested party may appear without representation in any proceeding before the Board of Appeals. A party may be represented by an attorney admitted to practice by the Maryland Court of Appeals. Attorneys admitted to practice before the courts of any other state or territory of the United States may represent a party subject to the rules of the Maryland Court of Appeals. A claimant may also be represented by an authorized representative other than an attorney, but the representative may not charge or accept payment for the representation. An employer may appear for itself, or be represented by any other authorized representative. The Board of Appeals may prohibit an individual from representing others in a hearing if the Board of Appeals finds, after a special hearing convened for that purpose, that the individual has committed unethical conduct in relation to unemployment insurance claims and appeals. Appointment of Interpreter. If a party or witness is hearing-impaired or mute, and because of this impediment cannot readily understand or communicate the spoken language, or if the party or witness is unable to communicate in the English language, the party or witness may apply to the Board of Appeals for the appointment of a qualified interpreter to assist that person. The scheduling authority may appoint an interpreter on its own motion. Upon application of the party or witness, the Board of Appeals shall appoint a qualified interpreter to assist that person. In selecting a qualified interpreter for appointment, the Board of Appeals may consult any directory of interpreters which is maintained by any court in this State. An interpreter appointed pursuant to this section shall be allowed reasonable compensation subject to approval of the Board of Appeals. Procedure at Hearing. Unless the Board of Appeals has denied a petition for review, appeals to the Board of Appeals shall be considered upon the evidence in the record based on the hearing before the hearing examiner, but the Board of Appeals may direct the taking of testimony in addition to that contained in the record, in its discretion, or, after notice to the parties, hear the case de novo and disregard testimony taken previously, or take testimony in addition to that contained in the record made before the Lower Appeals Division. The Board of Appeals shall have the power to call, examine, and cross-examine witnesses and to introduce into the record documentary or other evidence. As authorized by the Board of Appeals, the parties to the hearing may be given an opportunity to cross-examine witnesses, call witnesses on their own behalf, to inspect documents, and to offer evidence in explanation or rebuttal. The Board of Appeals may also order the taking of testimony in a hearing before a special examiner, unless a party objects in writing. Upon request of any party at a hearing, the Board of Appeals or its designee shall grant the interested parties a reasonable time for oral argument. The Chairman shall preside at the hearings before the Board of Appeals and shall make all evidentiary and procedural rulings at the hearings. If the Chairman is not present at a hearing, each associate member shall, on alternate hearing days, exercise the powers of the Chairman at the hearing. Two members of the Board of Appeals shall constitute a quorum for the purpose of any hearing under this regulation. If the decision of the three members of the Board of Appeals is not unanimous, the decision of the majority of the members shall control. The minority member may file a dissenting opinion, together with the reasons for that dissent. Each member of the Board of Appeals who participates in a Board of Appeals hearing shall sign the decision on the case and shall indicate his or her concurring opinion, and shall state the reasons for that concurrence. Evidence. Rules of Evidence. The hearings shall be conducted informally in a manner to ascertain the substantial rights of the parties, and the Board of Appeals may not be bound by common law or statutory rules as to the admissibility of evidence or by technical rules of procedures. Witnesses shall testify under oath or affirmation. Electronically Stored Records. A party who seeks to enter into evidence video recordings, audio recordings, or other electronically stored records shall produce at the hearing the equipment necessary to allow review of the contents of the records. The party offering the records shall have the continuing obligation to produce the equipment necessary to review the records if further administrative proceedings occur. If the party offering the records fails to produce the equipment necessary to review the records, the Board of Appeals may exclude the records from consideration. Agency Records. The records of the Maryland Department of Labor are public records and shall be competent evidence of the facts disclosed in the records. A witness is not required to introduce a public record into evidence. The burden shall be on the party objecting to any Department records being entered into evidence at the hearing to show by a preponderance of the credible evidence the legal reasons why the records should not be entered into evidence. Requests of any party to an appeal or petition for review for information from the records of the Maryland Department of Labor or the Board of Appeals shall be forwarded to the Secretary so that relevant and pertinent information may be furnished by the Secretary. Upon request, any party shall be furnished with any information contained in the appeals records that may be pertinent or material to the case. Requests for this information shall be made at least 5 business days before the hearing and state, with particularity, the nature of the information desired. Requests for information made after the fifth business day prior to the hearing, will be granted only at the discretion of the scheduling authority. Evidence of Medical Condition. In any case when the medical condition of a party is at issue, the Board of Appeals, for good cause shown, may grant a party up to 10 days after the hearing to submit written medical documentation. Additional Records. The Board of Appeals, for good cause shown, may grant a party up to 10 calendar days after a hearing to submit additional records. Subpoenas. The Board of Appeals may issue subpoenas, to be served by certified mail or by any individual who is not a party and who is 18 years old or older, to compel the attendance of witnesses and the production of books, papers, correspondence, and other records deemed necessary as evidence in writing. The scheduling authority may deny requests for subpoenas that it determines are frivolous or unreasonably burdensome to the other party, but requests may not be denied without substantial cause. Requests for subpoenas shall: Be in writing; State the name and address of the person to be subpoenaed; State the reason for the request; State with specificity the documents to be subpoenaed; and Be delivered to the scheduling authority at least 10 business days before the hearing date. Continuance of Hearing. The Board of Appeals, in its sole discretion, may continue any hearing. Whenever it appears that an investigation as to any matter material to the issues involved in the proceedings is necessary to aid in the determination of the case, the Board of Appeals may order an investigation to be made and may continue the hearing pending the investigation. Withdrawal of Appeals. At any time before the conclusion of a hearing before the Board of Appeals or before a decision is issued by the Board of Appeals, a party appealing from a hearing examiner’s decision may request that its appeal be withdrawn, and the Board of Appeals may permit the withdrawal. An approved withdrawal is a final decision and is not subject to a request to reopen. Approved withdrawn appeals shall not be subject to further review by the Board of Appeals. Dismissal of Appeal for Failure to Appear. If an appealing party fails to appear at a hearing after having been given the required notice of the hearing, the Board of Appeals may issue a decision on the facts available or may dismiss the appeal. A party’s failure to be present at the location designated for the hearing within 10 minutes of the time scheduled is a failure to appear within the meaning of this section. Reopening of Dismissed Case. A request for reopening of a dismissed case shall be in writing. If an attorney or authorized representative files a request on behalf of a party, the request shall include a notation that a copy of the reopening request was simultaneously mailed or delivered to the opposing parties. A failure to include this notation, however, does not affect the timeliness of the request. A request for the reopening of a case may be granted for the following reasons: The party received the hearing notice on or after the date of the hearing as a result of: An untimely or incorrect mailing or delivery of a hearing notice; or A delay in the delivery of a hearing notice by the United States Postal Service; An emergency or other unforeseen and unavoidable circumstance that prevented a party from both attending the hearing and requesting a postponement of the hearing; or A party requested a postponement for the reasons listed in §N(2)(a) or (b) of this regulation, but the request was improperly denied. Misreading of a properly prepared hearing notice as to the date, time, and place of the hearing is not good cause for reopening a dismissed case. A dismissal issued by the Board of Appeals after a scheduled hearing may be reopened only by a majority vote of the Board of Appeals taken within 10 calendar days of the date of the dismissal. The decision of the Chief Hearing Examiner of the Lower Appeals Division that there is not good cause to reopen a dismissed case is appealable to the Board of Appeals. The decision of the Chief Hearing Examiner of the Lower Appeals Division that there is good cause to reopen a dismissed case is appealable to the Board of Appeals only at the time that a decision on the merits of the underlying case is rendered. Failure to Appear Before Hearing Examiner. In the event that a party failed to appear for a hearing that resulted in a decision by a hearing examiner, the non-appearing party may request an opportunity to establish good cause for failing to appear for a hearing. A request for a hearing to determine if there is good cause for failing to appear shall be in writing, and shall be sent to the opposing party or parties. The Board of Appeals may order that a second hearing be held before a hearing examiner if the party establishes a reason listed in COMAR 09.32.11.02 for reopening a case or a procedural or due process violation. Attorney’s Fees. An attorney representing a claimant in a proceeding before the Board of Appeals may not charge a fee in excess of 200 percent of the claimant’s weekly benefit amount per case without the approval of the Board of Appeals. Requests for approval of fees greater than 200 percent of the claimant’s weekly benefit amount shall be accompanied by an itemized account of services rendered in the case. A request for the excess fee shall be submitted within 30 calendar days of the date of the issuance of the decision. The Board of Appeals shall have authority to approve a fee higher than the maximum allowed under §P(1) of this regulation based upon the complexity of the case and the reasonableness of the fees. The fee amounts set out in this subsection may be awarded in addition to any fees awarded by the Chief Hearing Examiner of the Lower Appeals Division. Conflict of Interest. A member of the Board of Appeals may not participate in a hearing or appeal in which the member has an interest. A challenge as to the interest of a particular Board member shall be decided by the other members of the Board of Appeals. Postponement of Hearings. A request for the postponement of a case shall be in writing, addressed to the scheduling authority, and accompanied by a notation that a copy of the request was simultaneously mailed, or otherwise delivered in accordance with procedures established by the Board of Appeals, to the opposing party in the case. Unless the requirements of §R(5) of this regulation are met, a request for postponement shall be considered only if received by the scheduling authority at least 3 business days before the hearing date. The scheduling authority may postpone a hearing for good cause shown. The repeated inability of a party’s attorney or authorized representative to appear on account of a conflicting court date is not good cause. Documentary proof of the reason for postponement may be required by the scheduling authority. This documentation must be received by the scheduling authority at least 3 business days before the date of the originally scheduled hearing. A request for a postponement that is not received by the scheduling authority at least 3 business days before the hearing may be granted for good cause if: The request for postponement was postmarked at least 5 calendar days before the hearing date but was not received by the Board of Appeals until after the time set in §R(2) of this regulation; An error on the part of the Board of Appeals has caused such a delay in the requesting party’s receipt of the hearing notice that the requirement of §R(2) of this regulation could not reasonably be met, and the requesting party has taken timely and reasonable steps to request a postponement as soon as possible after receipt of the hearing notice; or The postponement is requested because of sudden and unforeseeable health problems, hazardous weather conditions, or the like, the emergency nature of which would cause a substantial hardship or injustice on a party if the case were not postponed. Witness Fees. Upon written request, a witness not employed by the Maryland Department of Labor who is subpoenaed for a hearing before the Board of Appeals shall be entitled to receive an attendance fee in the amount of $25 in a case when the witness is summoned to appear in the county where the witness lives or does business, or $50 in other cases. Fees for witnesses subpoenaed shall be paid by the Board of Appeals. Telephone Conference Hearings Before Special Examiners. Testimony before a special examiner designated by the Board of Appeals may be taken by telephone. A party not wishing to present testimony and evidence by telephone may appear at the hearing and present evidence in person at the location from which the telephone hearing is generated. In all telephone hearings, documentary evidence that a party participating by telephone intends to offer must be provided to the special examiner and all other parties at least 5 calendar days before the hearing. The special examiner may refuse to consider evidence that is not timely provided. Before the acceptance into evidence of documents at a telephone hearing, the special examiner shall allow the opposing party to cross–examine the submitting party or witness concerning the nature and veracity of the proffered document. A party shall be afforded all rights at a telephone hearing to which the party would be entitled at a regular hearing, subject only to the limitations of the physical arrangement. A party’s failure to call into a hearing, failure to answer the telephone, failure to have a telephone available for a hearing, or failure to be ready to proceed with the hearing shall be considered as a failure to appear at the hearing if these conditions exist for more than 10 minutes after the scheduled time for the hearing. At any time within 10 calendar days of a decision pursuant to Labor and Employment Article, §8-806(h), Annotated Code of Maryland, the Board of Appeals may withdraw its decision by vote of a majority of its members. Notice shall promptly be given to all parties of the withdrawal. Upon withdrawing a decision, the Board of Appeals may issue a revised decision or hold the case for further hearing or argument. The 10-day period is not tolled by the filing of petitions, appeals, or correspondence from any party. A request for the Board of Appeals to withdraw its decision under §A of this regulation does not toll the time limit for filing an appeal to circuit court. The Board of Appeals may remand a case to a hearing examiner for purposes that it may direct. Cases remanded for a de novo or additional hearing shall be placed upon the calendar for prompt hearing. The hearing examiner to whom a case has been remanded for a new decision without a new hearing shall promptly issue the new decision. If a case is remanded for a new hearing, the previous decision of the hearing examiner shall remain in effect unless vacated by the Board of Appeals until the issuance of a new decision by a hearing examiner. Unless the Board of Appeals orders otherwise, upon the convening of the new hearing, the appellant before the Board of Appeals shall have the burden of going forward. If the appellant before the Board of Appeals does not appear at the remand hearing, the previous decision of the hearing examiner shall remain in effect or be reinstated. The Board of Appeals may issue specific directions to a hearing examiner with regard to the remand of any particular case. Decisions of the Board of Appeals designated as precedent by the Board shall constitute legal precedent for decisions of the hearing examiners. A claim involving the application of the provisions of Labor and Employment Article, §8-1004, Annotated Code of Maryland, that is referred to a special examiner by order of the Board of Appeals shall be presented, heard, and decided by the special examiner in the manner prescribed by the provisions of this chapter pertaining to hearings before the Board of Appeals. An appeal from the decision of a special examiner shall be decided by the Board of Appeals in the manner prescribed by the provisions of this chapter pertaining to an appeal from a decision of a hearing examiner. An employer aggrieved by a decision of the Lower Appeals Division appealable under Labor and Employment Article, §8-605(b), Annotated Code of Maryland, may file an appeal or petition for review within 30 calendar days after Lower Appeals sends the decision to the employer. The provisions of Regulations .01 and .02 of this chapter apply to these appeals. An appeal or petition for review shall include the following information: The name, address, employer account number, if any, and review determination number; and A copy of the decision of the Lower Appeals Division that is being appealed. The Board may refer an appeal or petition for review from Lower Appeals to a special examiner for a hearing and a proposed decision, which, if adopted by the Board of Appeals, shall be appealable to a circuit court of the State. Within 30 calendar days after the Board of Appeals mails or otherwise delivers its decision to a party, a party aggrieved by the decision may secure judicial review of the decision by appealing the decision in accordance with the provisions of Labor and Employment Article, §8-5A-12, Annotated Code of Maryland, the Maryland Rules of Procedure, and the appropriate rules of court. All documents received from a party shall be retained either in paper form or by scanning the document electronically into an electronic case file. In cases where duplicate copies of documents are received by the Board of Appeals, only the first copy of the document received by the Board of Appeals shall be retained in the paper or electronic case file. The Board of Appeals shall maintain a record of all testimony and proceedings before the Board of Appeals and its special examiners. Upon the filing of an appeal from a decision of the Board of Appeals to a circuit court, the record of the oral proceedings shall be transcribed. Except as otherwise provided by statute or regulation, the party filing the appeal with a circuit court shall pay to the Department the expense of the transcript, including a reasonable charge for the reproduction of exhibits, in advance of the transcript preparation. An individual claiming benefits may not be charged a fee for transcription of the oral proceedings in that individual’s case. Labor and Employment Article, §§8-101, 8-5A-02, 8-5A-05, 8-5A-10, 8-504, 8-604, and 8-605, Annotated Code of Maryland Effective date: February 1, 1973 Regulation .01 amended effective March 30, 1977 (4:7 Md. R. 578); December 30, 1977 (4:27 Md. R. 2105) Regulation .02D amended effective March 30, 1977 (4:7 Md. R. 578) Regulation .06K amended as an emergency provision effective March 24, 1986 (13:8 Md. R. 897); emergency status extended at 13:17 Md. R. 1920; emergency status expired November 30, 1986 Regulation .07G amended effective July 28, 1978 (5:15 Md. R. 1187) Transferred from Department of Human Resources to Department of Employment and Training, effective October 1, 1983; recodified from COMAR 07.04.06 to 24.02.06 Annotation: COMAR 24.02.06.02 cited in Johnson v. Department of Employment and Training, 67 Md. App. 712 (1986) Regulations .01—.12 repealed and new Regulations .01—.11 adopted effective December 1, 1986 (13:24 Md. R. 2562) Regulation .03-1 adopted effective June 8, 1992 (19:11 Md. R. 1017) Regulation .11 repealed effective June 8, 1992 (19:11 Md. R. 1017) Regulation .12 adopted effective June 10, 1991 (18:11 Md. R. 1190); recodified to Regulation .11 effective June 8, 1992 (19:11 Md. R. 1017) Chapter recodified from COMAR 24.02.06 to COMAR 09.32.09, May 1996 Regulation .01 amended effective April 5, 1999 (26:7 Md. R. 542) Regulation .02 amended effective April 5, 1999 (26:7 Md. R. 542) Regulation .03 amended effective April 5, 1999 (26:7 Md. R. 542) Regulation .04C amended effective April 5, 1999 (26:7 Md. R. 542) Regulation .10 repealed and Regulation .11 amended and recodified to Regulation .10 effective April 5, 1999 (26:7 Md. R. 542) Regulations .01—.10 repealed and new Regulations .01—.11 adopted effective December 13, 2010 (37:25 Md. R. 1737) Chapter revised effective July 16, 2018 (45:14 Md. R. 696) The purpose of these regulations is to establish procedures and interpret the standards for waiver of recovery of overpayments of unemployment insurance benefits, and to establish procedures for appealing the correctness of the application of an overpayment, in accordance with Labor and Employment Article, §8-809, Annotated Code of Maryland. These regulations apply to any claimant who has been found to have received an overpayment of unemployment insurance benefits and requested a waiver, unless the overpayment was determined to have resulted from fraud on the part of the claimant. In this chapter, the following terms have the meanings indicated. Terms Defined. “Claimant” means any individual who has filed a claim for unemployment insurance benefits. “Deliver” or “delivery” means the Department’s transmission of a communication to a claimant in accordance with the claimant’s preferred communication method. In cases involving notices of a decision of an overpayment waiver request, the term “deliver” or “delivery” means to also require transmission by first-class mail to the claimant’s last known address. “Deliver” or “delivery” means the Department's transmission of a communication to a claimant in accordance with the claimant's preferred communication method. In cases involving notices of a decision of an overpayment waiver request, the term “deliver” or “delivery” means to also require transmission by first-class mail to the claimant's last known address. “Department” means the Maryland Department of Labor. “Overpaid claimant” means any claimant who has been determined to have received an overpayment of unemployment insurance benefits. “Overpayment” means any amount of unemployment insurance benefits received by an individual which has been determined to be in excess of that which the individual was entitled to receive under the applicable law. “Secretary” means the Secretary of Labor, or the Secretary's authorized representative. “Unemployment insurance benefits” means any monetary payments of benefits, including dependents' allowances, which are made pursuant to: The Unemployment Insurance Law and intended to replace income lost by reason of unemployment; or Another state's unemployment insurance law or an unemployment insurance benefit program of the United States, where the benefits paid are subject to a governmental offset agreement. “Unemployment Insurance Law” means Labor and Employment Article, Title 8, Annotated Code of Maryland. The Department may recover overpayments by beginning civil actions or, in the discretion of the Secretary, overpayment may be offset against current or future payments of unemployment insurance benefits to which the overpaid claimant is entitled. If the Department chooses to recover the overpayment by offset, the amount of the offset may be 100 percent of the current or future weekly benefit entitlement. The Department may not recover an overpayment before the time for requesting an overpayment waiver has expired, while a timely filed waiver request is pending decision by the Secretary or the Secretary’s designee, or while a timely filed appeal of the denial of an overpayment waiver request is pending. Waiver of recovery of the overpayment will be approved when, in the judgment of the Secretary, the overpaid claimant: Is without fault; and Lacks the ability to pay now and in the foreseeable future, or is likely to be below the federal minimum poverty level and is likely to remain there for the foreseeable future. If an overpaid claimant is found to be without fault because the overpayments were caused exclusively by agency error, the waiver request may be recommended. In any proceedings under these regulations, the overpaid claimant shall have the burden of proving entitlement to a waiver. An overpayment found to have been illegally received pursuant to Labor and Employment Article, §8-809, Annotated Code of Maryland, may not be waived. “Fault”, as used in the phrase “without fault”, applies only to the fault of the overpaid claimant. Fault on the part of the Department in making the overpayment does not relieve the overpaid claimant of liability for repayment if the claimant's fault contributed to the overpayment. In determining whether an individual is at fault, the Secretary may consider the nature and cause of the overpayment and the capacity of the particular claimant to have recognized the error causing the overpayment. The elements which constitute fault on the part of the overpaid claimant depend upon whether the facts show: An incorrect statement made by the claimant which the claimant knew or should have known to be incorrect; Failure to furnish information which the claimant knew or should have known to be material, including failure to correct a monetary determination; or Acceptance of a payment which the claimant knew or should have known was incorrect. The determination of what an overpaid claimant “should have known” is an issue of fact to be found by the administrative agency. When the Secretary decides to recover an overpayment, the Secretary shall notify the overpaid claimant in writing. The notice shall include: The amount to be recovered; The weeks with respect to which the benefits were paid; The provision of the law under which it was determined that the claimant was ineligible for benefits; A brief explanation of the means available to the Department for recovery of the overpayment; A statement directing the claimant to the claimant's local office to obtain an application for waiver of overpayment; and A statement advising that the claimant has 30 days from the date of the notice to submit an application for waiver of overpayments, unless the claimant can show good cause for not meeting the 30-day requirement. After an application for waiver of overpayment is received, the local office representative shall determine the cause of the overpayment and forward the application to the Department's recoveries section. The recoveries section shall make the initial recommendation to recover or waive the overpayment. If the recommendation is to recover the overpayment and deny waiver, written notice shall be given to the claimant. The notice shall include a statement: Of the reasons for the proposed denial in accordance with Regulation .05 of this chapter, including a determination of fault and the claimant's ability to pay. If the waiver request is denied on the ground that the overpaid claimant was at fault, however, no further finding will be made. Advising the claimant of the right to provide additional information within 15 days to the Secretary for the Secretary's consideration. Applications recommended for approval shall be forwarded to the Secretary. The Secretary may grant a waiver of overpayment only within 1 year of the initial determination establishing the overpayment. The 1-year period shall be stayed pending the outcome of any appeal. Following the grant or denial of a request for waiver of recovery of an overpayment, the Department shall promptly deliver to the claimant a written notice setting out the basis for grant or denial of the request and explaining the claimant's appeal rights. Within 30 days of the delivery of a denial of a request for waiver of a recovery of overpayment, a claimant may appeal the denial in accordance with COMAR 09.32.11 or, if the claimant disagrees with the decision issued, in accordance with COMAR 09.32.06, as applicable. Interest on overpayments shall be calculated from the initial determination of the overpayment. Labor and Employment Article, §§8-305 and 8-809, Annotated Code of Maryland Effective date: Regulations .01—.09 adopted as an emergency provision effective March 14, 1989 (16:7 Md. R. 809); emergency status expired July 14, 1989 Regulations .01—.09 adopted permanently effective November 13, 1989 (16:22 Md. R. 2366) Chapter recodified from COMAR 24.02.07 to COMAR 09.32.07, May 1996 Regulation .02 amended as an emergency provision effective August 17, 2022 (49:20 Md. R. 909); emergency provision expired effective November 22, 2022 Regulation .02 amended effective December 26, 2022 (49:26 Md. R. 1079) Regulation .03B amended as an emergency provision effective August 17, 2022 (49:20 Md. R. 909); emergency provision expired effective November 22, 2022 Regulation .03B amended effective December 26, 2022 (49:26 Md. R. 1079) Regulation .04 amended as an emergency provision effective August 17, 2022 (49:20 Md. R. 909); emergency provision expired effective November 22, 2022 Regulation .04 amended effective December 26, 2022 (49:26 Md. R. 1079) Regulation .08E, F adopted as an emergency provision effective August 17, 2022 (49:20 Md. R. 909); emergency provision expired effective November 22, 2022 Regulation .08E, F adopted effective December 26, 2022 (49:26 Md. R. 1079) This chapter sets out the procedures for access to and inspection of unemployment insurance records related to the determination of a claim. The procedures described in this chapter are in addition to the procedures for obtaining access to and inspection of records under the Maryland Public Information Act pursuant to COMAR 09.01.04. A claimant or employer, as defined in this chapter, may choose to proceed under either COMAR 09.01.04 or this chapter in order to obtain access to and inspection of unemployment insurance records. In this chapter, the following terms have the meanings indicated. Terms Defined. “Claimant” means an individual who submits a claim for unemployment insurance benefits. “Department” means the Maryland Department of Labor. “Employer” means a person or governmental entity who employs at least one individual within the State and who is an interested party in the determination of the claimant's claim. “Unemployment insurance office” means: Any local office that processes claims for unemployment insurance benefits; or The central office of the Office of Unemployment Insurance of the Maryland Department of Labor. This chapter applies only to requests made to an unemployment insurance office by a claimant or employer for the inspection or copying of unemployment insurance records related to the determination of a claim for unemployment insurance benefits. A claimant or employer, or an authorized representative of a claimant or employer, may request to inspect or copy the unemployment insurance records related to the determination of the claimant's claim for benefits. The request may be directed to either the manager of the unemployment insurance office where the claim was filed or the custodian of records of the Office of Unemployment Insurance. Upon the request of a claimant or employer, or an authorized representative, and upon the reasonable verification of the claimant's or employer's or representative's identify, the unemployment insurance office to whom the request was made shall, with reasonable promptness, make available to the requestor for inspection and copying unemployment insurance records related to the determination of the claimant's claim. A claimant or employer who requests access to and inspection of unemployment insurance records may inspect the records during the normal working hours of the unemployment insurance office to which the request was made. If a determination of a claim for unemployment insurance benefits is appealed, the unemployment insurance office where the claim was filed shall maintain a copy of all records upon which the determination is based and make them available to a claimant or employer, or the authorized representative of the claimant or employer, upon request. Labor and Employment Article, §8-305, Annotated Code of Maryland Effective date: May 4, 1998 (25:9 Md. R. 679) The Secretary may consider evidence under §B of this regulation that an employer knowingly failed to properly classify an employee. The evidence shall include the following: Any previous violation of the Workplace Fraud Act or a violation of any other state or federal law that involves similar issues related to the classification of employees; Refusal or failure of the employer to produce records requested pursuant to Labor and Employment Article, §8-625(b), Annotated Code of Maryland; Refusal or failure of the employer to cooperate with an investigation authorized under Labor and Employment Article, §8-306, Annotated Code of Maryland; Evidence that the employer classifies differently individuals who perform substantially the same tasks, allowing for the business model described in Labor and Employment Article, §3-903(c)(3), Annotated Code of Maryland; and Any other credible evidence of the employer's actual knowledge of, deliberate ignorance of, or reckless disregard for whether or not the worker is misclassified. Labor and Employment Article, §8-201.1, 8-305, and 8-306, Annotated Code of Maryland Effective date: November 2, 2009 (36:22 Md. R. 1724) This chapter sets out the Division of Unemployment Insurance's procedures for conducting an audit, the related requirements for employers, and procedures for agency level review prior to appeal. For the purpose of this chapter, “audit” means a review of an employer's records to ensure compliance with the Maryland Unemployment Insurance Law and regulations. Assignment. Upon receipt of an audit assignment, a field auditor shall send an audit notice letter to the employer advising that the employer is the subject of an audit by the field investigation and audit unit. The letter shall: State the authority for conducting the audit; Contain a list of records that the auditor will review in order to conduct the audit; and Request that the employer contact the auditor within 15 business days to arrange a convenient time to conduct the audit. Failure to Respond. If the employer fails to respond to the initial audit notice, the auditor shall send the employer a final audit notice requesting that the employer contact the auditor within 10 business days. The notice shall advise that if the employer fails to contact the auditor within 10 business days, a subpoena duces tecum may be issued compelling production of records. After the audit has been scheduled, the auditor may do any or all of the following: Require a meeting with the employer or the employer's designated representative; Interview the workers in question; or Request additional information or documentation from the employer. Upon completion of the audit, if the auditor determines that no adjustment is necessary, a letter shall be sent to the employer advising the employer that no violation of the Maryland Unemployment Insurance Law was found for the audit period. Adjustments Needed. If, after completing the audit, the auditor finds that adjustments to the employer's account are warranted, the auditor shall notify the employer of the audit findings and the adjustments to be made to the account. The Preliminary Audit Findings letter shall state the basis for the audit findings, based on information the auditor has received. An auditor may request any records necessary from an employer including, but not limited to, those set forth in the Labor and Employment Article, §§8-306(b) and 8-625, Annotated Code of Maryland, and COMAR 09.32.01.06. Refusal or failure by an employer, or the employer's representative, to provide requested records to an auditor may result in the issuance of a subpoena. Refusal or failure by an employer, or the employer's representative, to provide requested documents after issuance of a subpoena may result in either or both of the following: Judicial enforcement of the subpoena; or Placement of estimated assessments on the employer's account. No judicial action to collect on estimated assessments will occur until a final determination is made. If an auditor determines that adjustments to an employer's account are warranted, the auditor shall issue preliminary audit findings. If the employer disagrees with the preliminary audit findings, the employer may request a review determination within 30 days of the date of the preliminary audit letter. Upon receipt of a request for a review determination, a reviewer designated by the Secretary shall be assigned to conduct the review determination. The designated reviewer may: Review the audit work papers; Speak to the employer and designated representative; and Request any additional information the reviewer deems necessary. In addition, the employer may provide any documentation to the reviewer that the employer believes supports its position. If the employer fails to provide the additional information requested by the Reviewer within the timeframe established by the Reviewer, the Reviewer shall make a determination based on the available information. Upon completion of the review determination, the reviewer shall prepare a detailed written decision affirming or reversing the findings of the field auditor. The review determination shall: State in detail the facts upon which the reviewer relied in order to affirm or adjust the audit findings; and Advise the employer that if the employer disagrees with the review determination, the employer may file an appeal with the Board of Appeals in accordance with procedure and time periods set forth in the Maryland Unemployment Insurance Law. If an employer does not request a review determination within the 30-day period for requesting a review determination: The preliminary audit findings shall become final; and The employer shall be sent a notice of determination advising the employer that the employer may file an appeal with the Board of Appeals in accordance with procedure and time periods set forth in the Maryland Unemployment Insurance Law. Labor and Employment Article, §§8-305, 8-306, 8-602, and 8-625, Annotated Code of Maryland Effective date: July 26, 2010 (37:15 Md. R. 998) Regulation .05H, I amended effective April 24, 2017 (44:8 Md. R. 403) Manner of Filing. An appeal from a claims examiner's determination or an appeal of a review determination shall be in writing and signed by the party appealing, or the party's attorney or authorized representative. The appeal may be filed by mail, by facsimile, by hand delivery to the Lower Appeals administrative office at the Lower Appeals Division address listed on the benefit determination or review determination, or by other electronic means in a format approved by the Chief Hearing Examiner. In the event of an appeal from a determination of a claims examiner involving more than one claimant on the same issue, the appeal may be filed by the individual claimants or by an authorized representative on their behalf. The authorized representative shall submit, together with the appeal, a list containing the names, addresses, and last four digits of the Social Security numbers of the claimants who are parties to the appeal. Time for Filing. An appeal from a claims examiner’s determination shall be filed within 15 calendar days after the determination is mailed or otherwise sent to the last known address of the party. An appeal from a review determination shall be filed within 30 calendar days after the review determination is mailed or otherwise sent to the last known address of the party. An appeal is considered filed on the earliest of the following dates: The date an appeal is delivered in person to the administrative office of the Lower Appeals Division; The U.S. Postal Service postmark date on which an appeal, properly addressed and stamped, is mailed to the administrative office of the Lower Appeals Division; The date on the appeal itself when the envelope has an illegible postmark; or The date an appeal is received by facsimile or other electronic means in a format approved by the Chief Hearing Examiner at the administrative office of the Lower Appeals Division. The period for filing an appeal from the claims examiner's determination or an appeal of a review determination may be extended by the Hearing Examiner for good cause shown. Scheduling Authority. The scheduling authority in the case of an appeal pending before a Hearing Examiner is the Chief Hearing Examiner or the Chief Hearing Examiner’s designee. Notice of Hearing. The interested parties shall be given at least 7 business days notice in writing of the time and place of any hearing before the Hearing Examiner. Notice is sufficient when mailed to the party, postage prepaid, at the last known post office address of the party or by electronic means in a format approved by the Chief Hearing Examiner, if the party has opted to receive notice by electronic means. In the case of appeals filed under Regulation .01A(2) of this chapter, notice sent in accordance with §B(2) of this regulation to the attorney or authorized representative, and to each individual appellant who filed an individual appeal or who requested individual notice, shall be sufficient notice to all parties represented by the attorney or authorized representative. For notice purposes, the representation of parties by attorneys or authorized representatives is effective on the date an appearance is entered in the case, or the date the appearance is noted in the appeal file, whichever is earlier. Pretrial Conference. In appeals of review determinations resolving issues arising under Labor and Employment Article, §8-602(a)(2) and (5), Annotated Code of Maryland, the Chief Hearing Examiner may consider a motion of a party requesting a scheduling conference to resolve preliminary issues including, but not limited to, the exchange of documentation, the exchange of lists of potential witnesses, and proposed stipulations. Public Hearing. Hearings before the Hearing Examiner shall be public. The record made in any appeal hearing is a public record. Media coverage of any hearing is permissible unless the Hearing Examiner determines that it interferes with the hearing process. Record. The recording made by or at the direction of the Hearing Examiner is the only official record of the oral hearing. Additional recordings or transcriptions may be made by the parties at the hearing, or by third parties, only at the discretion of the Hearing Examiner hearing the case. Issues. The Hearing Examiner shall inquire fully into the facts of the particular case. A Hearing Examiner shall consider the issue expressly ruled upon in the determination of the claims examiner or the review determination from which the appeal was filed. Representation. An interested party may appear without representation in any proceeding before a Hearing Examiner. A party may be represented by an attorney admitted to practice by the Maryland Court of Appeals or by an authorized representative. Attorneys admitted to practice before the courts of any other state or territory of the United States may represent a party subject to the rules of the Maryland Court of Appeals. A claimant may also be represented by an authorized representative other than an attorney, but the representative may not charge or accept payment for the representation. An employer may appear for itself, or be represented by any other authorized representative. The Chief Hearing Examiner may prohibit an individual from representing others in a hearing if the Chief Hearing Examiner finds, after a special hearing convened for that purpose, that the individual has committed unethical conduct in relation to unemployment insurance claims or appeals. Attorney’s Fees. An attorney representing a claimant in any proceeding before a Hearing Examiner may not charge a fee in excess of 200 percent of the claimant’s weekly benefit amount per case without the approval of the Chief Hearing Examiner. Requests for approval of fees greater than 200 percent of the claimant’s weekly benefit amount shall be accompanied by an itemized account of services rendered in the case. A request for the excess fee shall be submitted within 30 calendar days of the date of the issuance of the decision. The Chief Hearing Examiner shall have authority to approve a fee higher than the maximum allowed under §H(1) of this regulation based upon the complexity of the case and the reasonableness of the fee. The fee shall be reviewable by the Board of Appeals upon written protest of either the claimant or the attorney. The fee amounts set out in §H(1) and (2) of this regulation may be awarded for each level of appeal. Although the maximum fee allowed is governed by these regulations, payment of the fee allowed is a private matter left solely to the claimant and the claimant’s attorney. Appointment of Interpreter. If a party or witness is hearing-impaired or mute, and because of this impediment cannot readily understand or communicate the spoken language, or if the party or witness is unable to communicate in the English language, the party or witness may apply to the Chief Hearing Examiner for the appointment of a qualified interpreter to assist that person. Upon application of the party or witness, the Chief Hearing Examiner shall appoint a qualified interpreter to assist that person. The Chief Hearing Examiner may also appoint an interpreter on his or her own motion. In selecting a qualified interpreter for appointment, the Chief Hearing Examiner may consult any directory of interpreters maintained by any court in this State. An interpreter, appointed pursuant to this section, shall be allowed reasonable compensation subject to approval of the Chief Hearing Examiner. Evidence. Rules of Evidence. The hearings shall be conducted informally in a manner to ascertain the substantial rights of the parties. The Hearing Examiner is not bound by common law or statutory rules as to the admissibility of evidence or by technical rules of procedures. Witnesses shall testify under oath or affirmation. Electronically Stored Records. A party who seeks to enter into evidence videotapes, audiotapes, or other electronically stored records shall produce at the hearing the equipment necessary to allow review of the contents of the records. The party offering the records shall have the continuing obligation to produce the equipment necessary to review the records if further administrative proceedings occur. If the party offering the records fails to produce the equipment necessary to review the records, the Hearing Examiner may exclude the records from consideration. Agency Record. For purposes of an appeal from a claims examiner's determination, the official Agency record shall consist of the appeal letter and envelope or other evidence showing its manner of submission, and the Agency Fact Finding Report. For purposes of an appeal from a review determination, the official Agency record shall consist of the appeal letter and envelope or other evidence showing its manner of submission, and the review determination under review. Upon request of a party to an appeal for information from other records of the Department, the Hearing Examiner shall forward the request to the Secretary so that information that may be relevant and pertinent and that is not by definition a part of the Agency record, may be furnished by the Secretary. Upon request, any party shall be furnished with any information contained in the official Agency record, or other Agency documents in the custody of the Secretary that may be pertinent or material to the case. Requests for this information shall be made at least 3 business days before the hearing and shall state, as nearly as possible, the nature of the information desired. Requests made after this time will be granted only at the discretion of the scheduling authority. The records of the Maryland Department of Labor shall be deemed self-authenticating for purposes of admission under the Rules of Evidence. The Hearing Examiner shall admit the Agency record, including the Agency Fact-Finding Report, into evidence at the hearing, without the need for an Agency representative to appear at the hearing to authenticate or introduce it. The Hearing Examiner shall consider the Agency record when making a final decision, giving weight to the Agency Fact-Finding Report that the Hearing Examiner deems appropriate. Evidence of Medical Condition. In any case where the medical condition of a party is at issue, the Hearing Examiner, for good cause shown, may grant a party up to 10 calendar days after the hearing to submit written medical documentation. Subpoenas. The Hearing Examiner may issue subpoenas, to be served by first-class mail, or by any individual who is not a party and who is at least 18 years of age, to compel the attendance of witnesses and the production of books, papers, correspondence, and other records deemed necessary as evidence in writing. The scheduling authority may deny requests for subpoenas that request irrelevant information, or are frivolous or unreasonably burdensome to the other party. A request for a subpoena may not be denied without substantial cause. Requests for subpoenas shall: Be in writing; State the name and address of the person to be subpoenaed; State with specificity the documents to be produced; State the reason for the request; and Be delivered to the scheduling authority at least 5 business days before the date of the hearing. Procedure at Hearing. The Hearing Examiner may call, examine, and cross-examine witnesses and may introduce into the record documentary or other evidence. The parties to the hearing shall be given an opportunity to call witnesses on their own behalf, cross-examine witnesses, inspect documents, and offer evidence in explanation or rebuttal. The Hearing Examiner may order the taking of additional testimony as the Hearing Examiner considers necessary. Upon the request of any party at the hearing, the Hearing Examiner shall grant a reasonable time for oral argument by the interested parties. Continuance of Hearing. The Hearing Examiner may continue any hearing and make any direction or instruction necessary for the efficient disposition of the matter at the Hearing Examiner’s discretion. Withdrawal of Appeals. At any time before the hearing, a party appealing from a determination of a claims examiner or appealing a review determination may request that the appeal be withdrawn, and the Hearing Examiner shall permit the withdrawal. After the hearing has commenced or concluded, a withdrawal may be permitted for good cause shown. A request for withdrawal shall be submitted in writing or placed on the record during a hearing. An approved withdrawal is a final decision and is not subject to a request to reopen. Dismissal of Appeal When Appealing Party Fails to Appear. If a party appealing the determination of a claims examiner or appealing a review determination fails to appear at a hearing after having been given the required notice, the Hearing Examiner may issue a decision on the facts available or may dismiss the appeal. Failure to be present at the location designated for the hearing within 10 minutes of the time scheduled shall be considered a failure to appear within the meaning of this section. Request by Appealing Party to Reopen Dismissed Case. A request to reopen a dismissed case shall be in writing and a copy shall be sent to the opposing party. Failure to notify the opposing party does not affect the timeliness of the request. A request to reopen a case may be granted for the following reasons: The party received the hearing notice on or after the date of the hearing as a result of: An untimely or incorrect mailing or electronic transmission of a hearing notice; or A delay in the delivery of a hearing notice by the United States Postal Service; An emergency or other unforeseen and unavoidable circumstance that prevented a party from both attending the hearing and requesting a postponement of the hearing; or A party requested a postponement for the reasons listed in §P(2)(a) or (b) of this regulation, but it was improperly denied. Misreading of a properly prepared hearing notice as to the date, time, and place of the hearing is not good cause for reopening a dismissed case. A request to reopen a case dismissed by a Hearing Examiner shall be delivered or postmarked within 7 business days after the date the dismissal was mailed to the last known address of the requesting party. The Chief Hearing Examiner may: Grant the requesting party up to 10 calendar days to provide documentary evidence of the reason for the requested reopening; or Deny a request to reopen in writing or grant a further hearing to determine if good cause exists. Documentation submitted in support of a request to reopen a case shall become part of the record of that case. A further hearing granted to determine if there is good cause for reopening a case may be consolidated with a further hearing on the merits unless, in the judgment of the Chief Hearing Examiner, this consolidation would result in substantial inconvenience for either party. A decision by the Chief Hearing Examiner that there is not good cause to reopen a dismissed appeal is appealable to the Board of Appeals. A decision by the Chief Hearing Examiner that there is good cause to reopen a dismissed case is appealable to the Board of Appeals only at the time that a decision on the merits is also reached. Conflicts of Interest. A Hearing Examiner may not participate in a hearing in which the Hearing Examiner or a family member has a personal financial interest. The challenge to the interest of a Hearing Examiner shall be decided by the Chief Hearing Examiner. The challenge to the interest of the Chief Hearing Examiner, when the Chief Hearing Examiner is hearing a case, shall be decided by the Board of Appeals. A decisions by the Chief Hearing Examiner as to a conflict of interest of a Hearing Examiner, and a challenge to the interest of the Chief Hearing Examiner may be appealed to the Board of Appeals but only at the time that a decision on the merits is also reached. Postponement of Hearings. A request for the postponement of a case shall be in writing, addressed to the Chief Hearing Examiner, and submitted to the Lower Appeals Division by mail, fax, or hand delivery. A copy of the request shall be simultaneously mailed to the opposing party in the case. Subject to the requirements of §R(5) of this regulation, a request for postponement shall be considered only if the request is received by the Chief Hearing Examiner at least 3 business days before the hearing. The Chief Hearing Examiner may postpone a hearing for good cause shown. The repeated inability of a party's attorney or authorized representative to appear on account of a conflicting court date shall not constitute good cause. The Chief Hearing Examiner may require documentary proof of the reason for the postponement. This documentation must be received by the Chief Hearing Examiner at least 3 business days before the date of the originally scheduled hearing. A request for a postponement that is not received by the Chief Hearing Examiner at least 3 business days before the hearing may be granted for good cause if: The request for postponement was postmarked at least 5 calendar days before the hearing date but was not received by the Lower Appeals Division until after the time set in §R(2) of this regulation; An error on the part of the Lower Appeals Division has caused such a delay in the requesting party's receipt of the hearing notice that the requirement of §R(2) of this regulation could not reasonably be met, and the requesting party has taken timely and reasonable steps to request a postponement as soon as possible after receipt of the hearing notice; or The postponement request is based on sudden and unforeseeable health problems, hazardous weather conditions, or the like, the emergency nature of which would cause a substantial hardship or injustice on a party if the case were not postponed. Witness Fees. Upon written request, a witness not employed by the Maryland Department of Labor, who is subpoenaed for a hearing before a Hearing Examiner, shall be entitled to receive an attendance fee in the amount of $25 in a case when the witness is summoned to appear in the county where the witness lives or does business, or $50 in other cases. Fees allowed in accordance with §S(1) of this regulation for witnesses subpoenaed shall be paid by the Lower Appeals Division. Telephone Conference Hearings. Testimony before a Hearing Examiner may be taken by telephone. A party not wishing to present testimony and evidence by telephone has a right to appear at the hearing and present evidence in person at the location from which the telephone hearing is being generated. In all telephone hearings, documentary evidence which a party intends to offer shall be mailed, or sent via electronic means in a format approved by the Chief Hearing Examiner if the parties have opted to receive notice by electronic means, to the Hearing Examiner and all other parties before the hearing. The Hearing Examiner may refuse to consider evidence that is not timely sent to or received by the Hearing Examiner and all parties before the hearing. Before the acceptance of any evidence, the Hearing Examiner shall allow the opposing party to cross-examine the submitting party or witness concerning the nature and authenticity of the proffered evidence. A party shall be afforded all rights at a telephone hearing to which the party would be entitled at a regular hearing, subject only to the limitations of the physical arrangement. In the case of a telephone hearing, the failure to answer the telephone, the failure to have a telephone available for the hearing, or the failure to be ready to proceed with the hearing shall be considered as a failure to appear at the hearing if these conditions exist for more than 10 minutes after the scheduled time for the hearing. After the hearing before the Hearing Examiner, the parties and the Secretary shall be notified of the decision of the Hearing Examiner and the reasons for it. The Hearing Examiner's decision shall include specific findings of fact on all relevant factual issues, and conclusions of law which apply the law to the facts found. Decisions of the Board of Appeals designated as precedent by the Board constitute legal precedent for the Hearing Examiner's decisions. If the Hearing Examiner does not affirm the determination of the claims examiner or the review determination, the decision shall be accompanied by the notice of the right of appeal to the Board of Appeals. If the Hearing Examiner affirms the determination of the claims examiner or the review determination, the decision shall be accompanied by the notice of the provisions of the law providing for petition for review to request a discretionary appeal. Labor and Employment Article, §8-504, Annotated Code of Maryland Effective date: December 13, 2010 (37:25 Md. R. 1737) Regulation .01 amended effective April 23, 2018 (45:8 Md. R. 420) Regulation .02 amended effective April 23, 2018 (45:8 Md. R. 420) Regulation .02I amended effective April 24, 2017 (44:8 Md. R. 403) Regulation .04 amended effective April 23, 2018 (45:8 Md. R. 420) The purpose of these regulations is to establish procedures for the initial determination of overpayments of unemployment insurance benefits, and to establish the appeal process of such determinations in accordance with Labor and Employment Article, §8-809(c), Annotated Code of Maryland, and applicable federal law. These regulations apply to any claimant whom the Secretary or the Secretary’s designee has reason to believe may have received an overpayment of unemployment insurance benefits or has been determined to have received an overpayment of unemployment insurance benefits. Before determining that a claimant has been overpaid, the Secretary or the Secretary’s designee shall conduct a pre-determination investigation in accordance with Labor and Employment Article, Title 8, Annotated Code of Maryland, and other applicable law. As a part of the pre-determination investigation, the Department shall take the following steps: Make reasonable attempts to promptly contact the claimant to whom the potential overpayment was made and provide the claimant with an opportunity to respond to requests for information about the potential overpayment; Independently verify information received from a computer cross-match with a federal database or other automatic processes or matches; Make reasonable attempts to gather all relevant information that is of sufficient quality and quantity to support the findings and rationale for the determination; and Provide the claimant an opportunity to rebut information received from a computer cross-match with any database, or from an employer or other outside source. If the Secretary’s or Secretary’s designee’s review reveals a dispute of material fact concerning whether the claimant is eligible or disqualified, the Secretary or the Secretary’s designee shall conduct a proceeding in accordance with COMAR 09.32.02.16E. The notice of the proceedings shall be set forth as follows: The Secretary’s designee shall deliver notice to the claimant in accordance with the claimant’s preferred method of communication; and The notice described in this regulation shall contain the following information: The issues to be resolved at the proceeding; The date, time, and place of a proceeding to determine whether the claimant was overpaid; Notice that the proceeding may result in an overpayment determination that may lead to an enforceable monetary judgment against the claimant, in addition to or instead of the reduction or elimination of current or future benefits; and Notice that any party shall have the right to be present by telephone or in person, as required by the Secretary or the Secretary’s designee, and may be represented by an attorney or other representative of the party’s choosing. During the proceeding described above, the parties may: Be present, by telephone or in person, as required by the Secretary; Be represented by an attorney or other representative of the party’s choosing; Present and rebut evidence and argument relating to the issues; Cross-examine any person who participates in person or by telephone at the proceeding and testifies or provides information relating to the issues; and Be given the opportunity to examine all evidence relating to any issue that is before the Secretary and all evidence upon which the Secretary may rely in reaching a determination. If, after conducting the investigation under Regulation .03 of this chapter, the Secretary or the Secretary’s designee determines that the claimant was overpaid, the Secretary or the Secretary’s designee shall deliver notice to the claimant. The notice shall be delivered to the claimant by first-class mail to the claimant’s last known address and in accordance with the claimant’s preferred communication method, if other than first-class mail, and shall: Contain all information required by Labor and Employment Article, §8-809(c)(1), Annotated Code of Maryland; Provide that the claimant has been determined liable to refund the amount of benefits to which the claimant is not entitled and that the amount, if not previously collected, shall be deducted from future benefits payable to the claimant, unless the claimant exercises the claimant’s appeal rights more specifically set forth in Regulation .05 of this chapter, or waiver rights more specifically set forth in COMAR 09.32.07; and Provide information on the procedures to request an overpayment waiver. The notice described above may not reference fraud, unless the Secretary or the Secretary’s designee has determined that the overpayment resulted from fraud. In the event a claimant challenges the finding of overpayment, or the amount of overpayment, the claimant may appeal the Department’s determination, provided, however, that any appeal exercised pursuant to the provisions of this chapter shall be limited solely to the overpayment issue. If no appeal is taken within 30 days after delivery of the notice of overpayment determination, no timely filed waiver request is pending decision by the Secretary or the Secretary’s designee, and no timely filed appeal of the denial of an overpayment waiver request is pending, the overpayment determination will be considered final and the court shall, upon application of the Department, enter a judgment in the amount provided by the notice of overpayment determination Appeals described in this regulation shall be made in accordance with COMAR 09.32.11 or, if the claimant disagrees with the decision issued, in accordance with COMAR 09.32.06, as applicable. Labor and Employment Article, §§8-305 and 8-809, Annotated Code of Maryland Effective date: Regulations .01—.05 adopted as an emergency provision effective August 17, 2022 (49:20 Md. R. 909); emergency provision expired effective November 22, 2022 Regulations .01—.05 adopted effective March 6, 2023 (50:4 Md. R. 122)