Maryland Workers' Comp Settlements

How Workers' Comp Works in Maryland

Maryland's workers' compensation system is administered by the Maryland Workers' Compensation Commission, the state agency that decides claims, approves settlements, and sets the benefit rates each year. If you're hurt on the job, you're generally entitled to medical treatment, wage-replacement benefits while you recover, and — if the injury leaves lasting effects — a permanent disability award or a lump-sum settlement. Here's how that works in plain terms, with the figures that apply to 2026 injuries.

Temporary Total Disability: What You're Paid While You Heal

While you're unable to work, Maryland pays temporary total disability (TTD) at two-thirds (66.67%) of your average weekly wage, capped at 100% of the State Average Weekly Wage (SAWW). The maximum is reset every January 1 under Section 9-603 of the Labor and Employment Article and is tied to the statewide average wage. For injuries occurring in 2026, the maximum weekly benefit is generally $1,537, based on the 2026 State Average Weekly Wage — always confirm the exact current figure with the Commission for your date of injury.

Maryland also has a short waiting period: TTD isn't payable for the first three days of disability unless your disability lasts longer. If you're off work for more than 14 days, those first three days are paid retroactively.

Permanent Partial Disability and Settlements

If your doctor decides your condition has reached "maximum medical improvement" and you're left with lasting limitations, you receive a permanent partial disability (PPD) rating — a percentage that reflects how the injury affects the body part or your ability to work. In Maryland, that rating translates into a set number of weeks of compensation, and the weekly rate depends on which of three tiers your award falls into:

• Tier 1 — under 75 weeks ("minor disability"): paid at one-third of your average weekly wage, subject to a low weekly cap.
• Tier 2 — 75 to 249 weeks: paid at two-thirds of your average weekly wage, capped at one-third of the State Average Weekly Wage.
• Tier 3 — 250 weeks or more ("serious disability"): paid at two-thirds of your average weekly wage, capped at 75% of the State Average Weekly Wage.

This tiered structure is a Maryland quirk worth understanding: a higher rating doesn't just add weeks, it can also bump you into a higher-paying tier. Most cases resolve either by the insurer paying the PPD award over time or through a lump-sum settlement that the Commission must approve, which often closes out future claims for the injury.

The Doctor Question (Maryland Gives You More Freedom)

Unlike states that direct your care through an employer-controlled network, Maryland generally lets the injured worker choose their own treating physician. The main practical condition is that the doctor must be willing to accept payment under the Maryland workers' compensation medical fee schedule. Because the treating doctor's opinion heavily influences your impairment rating — and the rating drives the size of your award — picking the right doctor early genuinely matters.

Deadlines You Can't Miss

Give your employer written notice of the injury within 10 days, and file your claim with the Maryland Workers' Compensation Commission within two years of the date of accidental injury. The two-year filing deadline is generally an absolute bar — miss it and you can lose the right to benefits entirely. Different deadlines apply to occupational disease and death claims, so if your situation involves either, confirm the exact deadline that applies to you. When in doubt, file early; waiting only puts your claim at risk.

Frequently Asked Questions