Md. Code Regs. 09.32.01.20

Current through Register Vol. 51, No. 22, November 1, 2024

Section 09.32.01.20 - Covered Employment when Service Is Not Performed Entirely within the State

A. Localized Service. A person is engaged in covered employment in the State when the person's service is localized within the State. Service is localized when it is performed:

(1) Entirely within the State.

(2) Both within and outside the State, but the service performed outside the State is incidental to the service performed within the State. Service is incidental if it is temporary or transitory in nature, or consists of isolated transactions.

B. In determining whether the service of a worker is incidental or transitory, the Secretary shall consider the:

(1) Intention of the employing unit and employee as to whether the service is an isolated transaction or a regular part of the employee's work;

(2) Intention as to whether the employee will return to the State upon completion of the work outside the State; and

(3) Length of service with the employing unit within the State as compared to the length of service outside the State.

C. Base of Operations.

(1) A person is engaged in covered employment in this State when the person's service is not localized in any state, but some services are performed in the State and the person's base of operations is in the State.

(2) The base of operations is the place or fixed center, of more or less permanent nature, from which the employee starts work and to which he or she customarily returns in order to receive instructions from the employing unit or communications from customers or other persons, to replenish stocks and materials, to repair equipment, or to perform other functions necessary to the exercise of the employee's trade or profession.

(3) The base of operations may be the employee's business office, or the employment contract may specify a particular place at which the employee is to receive directions and instructions.

D. Place From Which Service is Directed or Controlled.

(1) A person is engaged in covered employment in this State when the person's service is not localized in any state and the person has no base of operations, or if the base of operations is in a state in which the employee performs no service, or if the base of operations moves from state to state, but the person's service is directed or controlled from this State.

(2) The place from which a person's service is directed or controlled is the place at which the basic authority exists and from which the general control emanates.

E. Place of Residence. When application of A-----D of this regulation does not establish where the person's employment is covered, a person is engaged in covered employment in this State if the person's residence is in this State, provided some of the service is performed in this State.

F. Reciprocal Coverage Agreement.

(1) When application of A-----E of this regulation does not establish where the person's employment is covered, a person is engaged in covered employment in this State if the employing unit elects to cover in this State all the person's service either through an election of coverage or under a reciprocal coverage agreement.

(2) Under the reciprocal coverage agreement the service may be covered in this State if:

(a) Some part of the person's service is performed in this State;

(b) The person's residence is in this State; or

(c) The employer maintains a place of business in this State.

Md. Code Regs. 09.32.01.20

Regulations .20, Obligations of Employers, adopted effective June 24, 1991 (18:12 Md. R. 1340)