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Maryland Bill Takes Effect; Payment of Employee Healthcare Expenses

August 21, 2019

Contractors and subcontractors bidding on Maryland state construction projects should be aware of the new “Responsible Payment of Employee Health Care Expenses” law which took effect July 1, 2019.  The bill requires that all bidders, contractors, or subcontractors on a State-funded construction project to pay certain employee health care expenses.

“Employee health care expenses” are any costs for health care services, as defined by the bill unless the employee has coverage under another plan. State contractors will need to certify that they pay aggregate employee health care expenses of at least 5% of the wages; or that the employer pays 50% or more of the required premium necessary to obtain coverage by a credible health insurance plan. The certification process is less stringent before July 1, 2020.

The change does not apply to small businesses with fewer than 30 employees as well as minority business enterprises.