Maryland uses a strict “ABC test” to classify gig workers as employees or independent contractors, presuming employee status unless all three criteria are met. This approach aligns with state labor laws like the Workplace Fraud Act, targeting misclassification in platforms such as rideshare or delivery services.​
ABC Test Criteria
Workers qualify as independent contractors only if free from the employer’s control, performing services outside the employer’s usual business, and engaged in an independently established trade. Gig platforms must prove all prongs, or risk providing benefits, overtime, and taxes as for employees. Short-term projects still trigger the test, complicating one-off gigs.​
Enforcement and Penalties
The state imposes fines up to $10,000 per violation, back wages, and treble damages for willful misclassification under expansions like SB 938. Federal DOL rules reinforce this with a six-factor economic reality test, but Maryland’s ABC standard prevails locally. Gig workers can file claims via the DLLR for reclassification and unpaid protections.​
Gig Economy Implications
Rideshare drivers often fail the integral-business prong, leaning toward employee status absent multiple clients or business setups. No 2026 overhaul exists, but paid leave rollouts may heighten compliance pressure. Platforms mitigate via contracts, yet courts prioritize facts over labels.
