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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0346*
HOUSE BILL 346
K1 6lr1823
By: Delegate Pruski
Introduced and read first time: January 19, 2026
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Workers’ Compensation – Vocational Rehabilitation Services – Retroactive 2
Compensation 3
FOR the purpose of requiring an employer or its insurer to retroactively pay certain 4
compensation to a covered employee if the covered employee did not re ceive 5
compensation during the period between the date maximum medical improvement 6
was attained and the date vocational rehabilitation services began ; and generally 7
relating to the compensation of a covered employee under workers’ compensation 8
law. 9
BY repealing and reenacting, with amendments, 10
Article – Labor and Employment 11
Section 9–670 and 9–674 12
Annotated Code of Maryland 13
(2025 Replacement Volume) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Labor and Employment 17
9–670. 18
(a) In this Part XI of this subtitle the following words have the meanings 19
indicated. 20
(b) “Disabled” means rendered unable as the result of an accidental personal 21
injury or an occupational disease to per form work for which the person was previously 22
qualified. 23
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(C) “MAXIMUM MEDICAL IMPRO VEMENT” MEANS THE POINT IN THE 1
MEDICAL RECOVERY OF A COVERED EMPLOYE E WHEN THE COVERED E MPLOYEE 2
HAS ATTAINED STABILITY FROM AN ACCIDENTAL PERSONAL INJURY OR AN 3
OCCUPATIONAL DISEASE , AND FURTHER HEALING OR RECOVER Y IS NOT 4
ANTICIPATED TO OCCUR WITH CONTINUED TREATMENT, THOUGH THE COVERED 5
EMPLOYEE MAY REQUIRE ONGOING MEDICAL CARE. 6
[(c)] (D) “Suitable gainful employment” means employment, including 7
self–employment, that restores the disabled covered employee, to the extent possible, to the 8
level of support at the time of: 9
(1) if an accidental personal injury, the accidental personal injury; or 10
(2) if an occupational disease, disablement from the occupational disease. 11
[(d)] (E) “Vocational assessment” means: 12
(1) collecting and analyzing each of the economic, educational, legal, 13
medical, social, and vocational circumstances of a disabled covered employee, including the 14
present mental and physical ability of the covered employee to participate in vocational 15
rehabilitation services; and 16
(2) determining the appropriate vocational rehabilitation services 17
reasonably necessary to return the disabled covered employee to suitable gainful 18
employment. 19
[(e)] (F) (1) “Vocational rehabilitation services” means professional services 20
reasonably necessary during or after or both during and after medical treatment to enable 21
a disabled covered employee, as soon as practical, to secure suitable gainful employment. 22
(2) “Vocational rehabilitation services” includes: 23
(i) coordination of medical services; 24
(ii) vocational assessment; 25
(iii) vocational evaluation; 26
(iv) vocational counseling; 27
(v) vocational rehabilitation plan development; 28
(vi) vocational rehabilitation plan monitoring; 29
(vii) vocational rehabilitation training; 30
HOUSE BILL 346 3
(viii) job development; and 1
(ix) job placement. 2
9–674. 3
(a) The employer or its insurer shall pay the expenses of the vocational 4
assessment and vocational rehabilitation services of a covered employee. 5
(b) (1) While a covered employee is receiving vocational rehabilitation 6
services, the employer or its insurer shall pay compensation to the covered employee as if 7
the covered employee was temporarily totally disabled. 8
(2) If a covered employee refuses to accept vocational rehabilitation 9
services in accordance with an order of the Commission and the Commission determines 10
the refusal to be unreasonable, payments under paragraph (1) of this subsect ion are 11
forfeited for the period of refusal. 12
(3) (I) SUBJECT TO SUBPARAGRAPH (III) OF THIS PARAGRAPH, AN 13
EMPLOYER OR ITS INSURER SHALL RETROA CTIVELY PAY COMPENSATION TO A 14
COVERED EMPLOYEE AS IF THE COVERED EMPLOYEE WAS TEMPORARILY TOTALLY 15
DISABLED IF THE COVERED EMPLOYEE: 16
1. REACHED MAXIMUM MEDICAL IMPROVEMENT; 17
2. IS RECEIVING VOCATIO NAL REHABILITATION 18
SERVICES; AND 19
3. DID NOT RECEIVE COMP ENSATION AS IF THE 20
COVERED EMPLOYEE WAS TEMPORARILY DISABLED FOR THE PERIOD BETWEEN THE 21
DATE MAXIMUM MEDICAL IMPROVEMENT WAS ATTAINED AND THE DATE THE 22
COVERED EMPLOYEE BEGAN RECEIVING VOCATIONAL REHABILITATION SERVICES. 23
(II) THE COMPENSATION REQUIRED UNDER SUBPARAGRAPH (I) 24
OF THIS PARAGRAPH IS IN ADDITION TO THE C OMPENSATION REQUIRED UNDER 25
PARAGRAPH (1) OF THIS SUBSECTION. 26
(III) AN EMPLOYER OR ITS IN SURER MAY NOT BE REQ UIRED TO 27
PAY COMPENSATION UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH FOR A PERIOD 28
OF MORE THAN 60 DAYS. 29
(c) (1) If a covered employee is required to live away from home in the cours e 30
of receiving vocational rehabilitation services, the employer or its insurer shall pay to the 31
covered employee money that: 32
4 HOUSE BILL 346
(i) is sufficient to maintain the covered employee while the covered 1
employee receives vocational rehabilitation services; but 2
(ii) does not exceed $40 a week. 3
(2) The employer or insurer shall make payments for maintenance under 4
paragraph (1) of this subsection in addition to the payment of compensation under 5
subsection (b) of this section. 6
(d) (1) Except as provided in paragraph (2) of this subsection, a covered 7
employee who resides at home during vocational rehabilitation training is not entitled to 8
reimbursement of transportation costs to and from the place of vocational training. 9
(2) In unusual cases the Commission may allow reasonable transportation 10
costs. 11
(e) For the purposes of this section, vocational rehabilitation training may not 12
last for more than 24 months. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 14
apply only prospectively and may not be applied or interpreted to have any effect on or 15
application to any claim filed before the effective date of this Act. 16
SECTION 3. AND BE IT F URTHER ENACTED, That this Act shall take effect 17
October 1, 2026. 18