Maryland Restaurant Workers' Comp: Rules, Fines & Costs

Maryland restaurants must carry workers’ compensation as soon as they have one employee, with few exceptions. Coverage can be bought from a private insurer, from Chesapeake Employers’ Insurance Company, which covers any employer that applies, or through Commission-approved self-insurance. Since July 1, 2024, the maximum fine for going without coverage is $25,000, and a responsible corporate officer can be personally liable.

This guide is for Maryland restaurant, bar, cafe, catering and food truck owners who want to understand who must be covered, where to buy the policy, how the premium is built and what actually drives kitchen injury claims. For a full picture of restaurant coverage in the state, start with our Maryland restaurant insurance hub.

Which Maryland food businesses must carry coverage

According to the Maryland Workers’ Compensation Commission (WCC), every employer with one or more employees must provide workers’ compensation coverage, with few exceptions. There is no minimum headcount or payroll threshold for restaurants. Part-time servers, seasonal scoopers, dishwashers, weekend line cooks and paid family members generally count as employees.

Whether a sole proprietor, partner or corporate officer can exclude themselves is a separate question, and the specific rules were not something we could confirm for this page. If you are an owner-operator weighing whether to cover yourself, ask us or the WCC before you decide, because the answer affects both premium and your own protection.

Private carriers, Chesapeake Employers or self-insurance

Maryland runs a competitive state fund system. You have three routes:

Private insurers. Most restaurants buy from standard commercial carriers, often packaged with their business owners policy account.
Chesapeake Employers’ Insurance Company. Formerly the State Accident Fund and then the Injured Workers’ Insurance Fund, it has operated as a nonprofit private corporation since 2013. It covers any Maryland employer that applies, which makes it the backstop for new restaurants, businesses with poor loss history or operations other carriers decline.
Self-insurance. Available only with WCC approval and generally practical only for large multi-unit groups.

Rating follows NCCI methodology. Chesapeake Employers became a fully affiliated NCCI member on January 1, 2023 and uses NCCI rating methodology and loss costs. Your carrier assigns the NCCI classification that matches your operation; if your payroll is split across a restaurant, a catering operation and clerical staff, make sure each group is classified correctly.

Fines and personal liability for uninsured employers

Chapter 78 of 2024 (SB 216), effective July 1, 2024, raised the maximum fine for an employer that fails to secure required coverage from $10,000 to $25,000, and the responsible corporate officer can be held personally liable. Beyond the fine, an uninsured restaurant is left paying an injured worker’s medical bills and wage loss directly. See what happens if a restaurant has no workers’ comp.

The injuries behind most restaurant comp claims

Burns. Fryer oil splashes, steam from dish machines, sheet pans pulled from convection ovens and hot coffee spills. Our kitchen burns guide explains how these claims are handled.
Cuts and lacerations. Knife work during prep, meat slicers, broken glassware in the bus tub and blender blades at close.
Slips and falls. Wet floors near dish stations, grease on the line, ice in walk-ins and wet steps out to the dumpster.
Lifting and strain. Cases of product off delivery trucks, kegs, stock pots and full bus tubs, plus repetitive motion from scooping or sauteing.
Workplace violence. Robberies at close, disputes at the host stand and confrontations with intoxicated guests at bars.
Driving. Delivery staff injured in crashes while on the clock.

How the premium is figured

Workers’ comp premium starts with payroll. Your carrier divides annual payroll by classification, applies the rate for each class, and multiplies by your experience modification factor once your business is large enough to qualify for one. A mod below 1.0 reflects better-than-expected losses and lowers the premium; a mod above 1.0 raises it. Schedule credits, deductibles and premium discounts can also apply depending on the carrier.

Because payroll is estimated at the start of the policy, carriers audit it at year end. Restaurants that grow quickly, add catering or misreport tipped wages often face an audit bill. Accurate estimates and pay-as-you-go billing tied to your payroll service help avoid that.

Keeping comp costs down in a Maryland kitchen

Put anti-slip mats at the dish station, fryers and bar wells, and enforce slip-resistant shoes.
Use cut-resistant gloves for slicers and mandolines, and set lock-out steps for cleaning blades.
Let fryer oil cool before filtering, and use oil caddies instead of carrying hot oil.
Train new hires in their first week, when many kitchen injuries happen.
Create a return-to-work program with light-duty tasks such as host, prep or cashier shifts.
Report injuries to your carrier promptly, since delays tend to increase claim costs.
Review class codes and payroll splits every renewal.

For more on comp outside the restaurant world, our sister site USA Workers Comp covers workers’ compensation for other industries.

Frequently asked questions

Do I need workers’ comp for one part-time employee in Maryland?

Yes. The WCC requires coverage for employers with one or more employees, with few exceptions, and part-time staff count.

Can any Maryland restaurant buy from Chesapeake Employers?

Yes. Chesapeake Employers’ Insurance Company covers any Maryland employer that applies, though a private carrier may offer better terms for a restaurant with a clean record.

Are tips included in payroll for workers’ comp?

Carriers and NCCI rules govern what counts as payroll, and treatment of tips can vary. Report tipped wages to us clearly so your estimate matches the audit.

Does workers’ comp cover a delivery driver hurt in a crash?

An employee injured while delivering on the clock is generally covered by workers’ comp, subject to policy terms. Damage to other vehicles is an auto liability issue.

Provident Financial Group compares workers’ comp from multiple carriers with one application and can pair it with your liability and property coverage. Call (866) 964-6660. Get Multiple Quotes within minutes.

Restaurant Workers’ Compensation in Maryland