Remote Staff in Maryland: Do I Need Workers Comp?

If you have an employee who regularly works in Maryland, including from a home office, you generally need Maryland workers compensation for them. Comp follows where the work happens and the employment relationship, not whether there is a storefront, so a remote employee based in Maryland is usually a Maryland covered employee. It also does not matter that you run payroll from another state; what matters is that the person works here. The trickier cases are an out-of-state worker who only passes through Maryland temporarily, and an employee who splits time across state lines.

Who this is for: Maryland employers with remote staff, and out-of-state companies with a worker living or working in Maryland, trying to place coverage in the right state.

The short version

An employee who regularly works in Maryland usually needs Maryland coverage, home office or not.
Running payroll from another state does not move the coverage question; the work location does.
A worker only passing through Maryland temporarily may be covered by their home state under a reciprocity rule.
A policy from another state may not answer a Maryland claim unless Maryland is properly included.
Multi-state teams often need Maryland listed on the policy or a separate Maryland policy.

Where the work happens usually controls

A remote employee is still an employee. If they regularly perform their work in Maryland, the state generally treats them as a covered employee and expects coverage here, even though their workplace is a spare bedroom. The same is true if a Maryland employer sends a worker out of state now and then on a casual or occasional basis; that worker stays a Maryland covered employee. Maryland does recognize a narrow reciprocity exception for a worker only in the state temporarily: if the hire was made in another state, neither the employer nor the worker is a Maryland resident, the employer already covers the worker under that other state's comp law, and that state extends the same courtesy to Maryland employers, then the worker's remedy is the other state's law, not Maryland's. Outside that narrow set of facts, regular Maryland work points to Maryland coverage.

Common remote and multi-state setups

Setup	Maryland coverage likely?	Notes
Maryland resident working from home for a local company	Yes	Regular Maryland work is covered here
Maryland resident working remotely for an out-of-state company	Usually yes	The work is in Maryland, so Maryland generally applies
Out-of-state worker briefly in Maryland	Often no	May stay under the home state if the reciprocity conditions are met
Employee splitting time across states	Depends	Turns on where they regularly work; Maryland may need to be added
Maryland employer sending staff out of state occasionally	Yes	Casual out-of-state trips keep them a Maryland covered employee

Make sure the policy actually reaches Maryland

The most common mistake for growing and out-of-state employers is assuming an existing policy from another state will pay a Maryland claim. It often will not, unless Maryland is properly reflected on the policy. If you hire someone who will regularly work in Maryland, the safe move is to have Maryland added to your coverage or to place a separate Maryland policy, and to make sure the classifications match the work the person actually does. Getting this wrong does not just risk a denied claim; an employer who should have Maryland coverage and does not is exposed to the same penalties as any uninsured employer here, including a Commission penalty of up to 25,000 dollars and a lawsuit without the usual defenses.

A Bethesda example

Illustrative, not a quote. A software company headquartered in another state hires a developer who lives and works in Bethesda. Payroll runs from the home office, so the company assumes its existing out-of-state policy is enough. Because the developer regularly works in Maryland, the state treats them as a Maryland covered employee, and the out-of-state policy may not answer a Maryland claim. The company adds Maryland to its coverage, so a repetitive-strain claim from the Bethesda developer is handled cleanly. We help multi-state employers get each worker covered in the right state and classified correctly. See our workers comp for technology businesses page.

Real questions Maryland owners ask

Do I need Maryland workers comp for a remote employee?

Usually yes, if they regularly work in Maryland. Comp follows where the work happens and the employment relationship, so a remote worker based in Maryland is generally a Maryland covered employee.

My company is out of state but my worker is in Maryland. What then?

If that worker regularly works in Maryland, you generally need Maryland coverage for them. Running payroll from another state does not move the question; the work location does.

Does my out-of-state policy cover a Maryland worker?

Not always. A policy from another state may not answer a Maryland claim unless Maryland is properly reflected on it. The safe move is to add Maryland or place a separate Maryland policy.

What if a worker is only in Maryland temporarily?

They may stay covered by their home state under a reciprocity rule. That applies when the hire was out of state, neither party is a Maryland resident, and the home state covers them and extends Maryland the same courtesy.

What about an employee who splits time between states?

It depends on where they regularly work. If a meaningful part of the work is in Maryland, the state may expect coverage here, so Maryland often needs to be added to the policy.

Does a home office change anything?

No. A home office is still a workplace. If the employee regularly works from a Maryland home, the state generally treats them as a covered employee just as if they worked at a company site.

What happens if I get the state wrong?

You risk a denied claim and penalties. An employer who should carry Maryland coverage and does not faces the same exposure as any uninsured employer, including a penalty up to 25,000 dollars and a lawsuit without normal defenses.

Why Maryland owners choose Morrow

We shop the right market for you. In Maryland you buy workers' comp on the open market from any private insurer licensed in the state, and Maryland also runs a competitive state fund, Chesapeake Employers' Insurance Company, that both competes for ordinary business and must cover eligible employers no one else will take, so we can shop your rate widely and still have a guaranteed fallback for hard-to-place work.
We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.

Related Maryland guides

Every Maryland business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.

This guide is general information, not legal advice. Maryland rules and penalty amounts can change, so verify current requirements with the Maryland Workers' Compensation Commission or a licensed advisor before you rely on them. Last updated: July 2026.