A STATUTORY EMPLOYER IS NOT LIABLE FOR WORKERS' COMPENSATION BENEFITS UNLESS THE INJURED WORKER IS A "COVERED EMPLOYEE" OF THE STATUTORY EMPLOYER
An injured worker must be a "covered employee" of a statutory employer to receive benefits from the statutory employer and its insurer, notwithstanding the injured worker's status as a "covered employee" of the direct employer. In the case of W.M. Schlosser v. Uninsured Employers' Fund, No. 112, September Term 2009, the Court of Appeals reversed the decision of the Court of Special Appeals in finding that the site of employment remains the critical element for determining whether an injured worker is a "covered employee" not only of the direct employer but also the statutory employer. In this case, the Claimant, Jehue Johnson, was a covered employee of the direct employer, Rose Industrial Services, who was uninsured in Maryland. W.M. Schlosser was a statutory employer. The work performed by Mr. Johnson for W.M. Schlosser vis a vis Rose was to be done only in Washington, D.C.
Timothy E. McLaughlin, Esquire (Humphreys, McLaughlin & McAleer, LLC and Lynn Y. Oh, Esquire, on brief), argued that if Mr. Johnson were directly employed by W.M. Schlosser, his employment would have been wholly in Washington D.C. Thus, Mr. Johnson was not a "covered employee" of W.M. Schlosser, and Maryland did not have jurisdiction over this claim against W.M. Schlosser. The Court of Appeals agreed and overturned the decision of the Court of Special Appeals. The Court of Appeals determined that W.M. Schlosser and its insurer, the Injured Workers' Insurance Fund, were not liable to pay benefits to Mr. Johnson because Mr. Johnson was not a "covered employee" of W.M. Schlosser.