Legal Services and Collections Unit

The Maryland Division of Unemployment Insurance’s Legal Services and Collections Unit:

Handles the legal aspects of collecting delinquent unemployment insurance taxes from employers by filing liens, garnishments, and establishing personal liability
Collects claimant overpayments by filing lawsuits in Maryland District Court and U.S. Bankruptcy Court
Administers bankruptcy cases (filed by employers, owners, and claimants)
Represents the Maryland Division of Unemployment Insurance in appeals cases before the Lower Appeal Division and the Board of Appeals
Establishes charter forfeiture issues and processes bulk sale notices
Renders review determination decisions in response to wage adjustment protests and audit determination protests
Administers data sharing agreements when requested

Contact the Legal Services and Collections Unit

Employers and claimants may contact Legal Services and Collections by email or mail.

Note: Employers with questions about liens and lien payoffs, please use these contact options. Claimants seeking information about a lawsuit filed against them should contact the attorney listed on the legal document you were served.

Email

Employers: dluicdlegalcollections-labor@maryland.gov
Claimants: UI.litpros@maryland.gov

Mail
Legal Services and Collections
Maryland Department of Labor
100 South Charles Street
Tower 1, Suite 3100
Baltimore, MD 21201

When is legal action taken against a claimant or employer?

Claimants

The Legal Services and Collections Unit may take action against a claimant when the claimant fails to arrange repayment of an overpayment within a reasonable time. These lawsuits are often filed in the Maryland District Court.

When a claimant files a bankruptcy case and the Division of Unemployment Insurance has a fraud overpayment against the claimant, the Legal Services and Collections Unit may file an adversary proceeding to prevent discharge of the debt and to obtain a judgment. Legal Services and Collections also files proofs of claim in claimant bankruptcy cases.

Employers

The Legal Services and Collections Unit may take action against an employer when the employer fails to make arrangements to repay a delinquent debt within a reasonable time. In these cases, the Legal Services Collection Unit:

May request the Maryland State Department of Assessment and Taxation (SDAT) to forfeit the corporate charter of an employer with delinquent debt owed to the Division of Unemployment Insurance
May seek to enforce personal liability against responsible officers and owners particularly after charter forfeiture

Legal Services and Collections may also take action when an employer with delinquent debt files for bankruptcy. In these cases, Legal Services and Collections files proof of claim and represents the Division of Unemployment Insurance as a creditor in the bankruptcy case.

How are claimants and employers notified about a legal collection process?

Claimants are personally served with lawsuits and summons, which include court information and attorney contact information on the legal papers.
Employers are personally served with complaints and summons,which include court information and attorney contact information.

What is the legal collections process against an employer?

An employer will receive a few notices from the Division of Unemployment Insurance before taking legal action. These include:

Delinquency Notice: When an employer misses quarterly contribution reports and payments, the Division of Unemployment Insurance sends employers a Delinquency Notice. If the employer does not resolve the missing reports and payments (by filing reports, paying in full, or establishing a payment plan) within 45 days, the Division of Unemployment Insurance will send an Assessment Notice and Pending Civil Action letter.
Assessment Notice and Pending Civil Action Letter: This letter is the second notice an employer receives to inform them that they are missing quarterly contribution reports and payments. If the delinquent reports and/or payments are not resolved within 30 days, or if the employer does not request a timely review determination of the assessment, legal action will be taken against the employer.

Learn more about the Assessment Notice and Pending Civil Action Letter.

If an employer has not resolved the delinquency in a timely manner after receiving the 2 notices described above, or timely requested a review determination of the assessment, legal action will be taken. The process is:

The Legal Services and Collections Unit will begin the lien process to collect the delinquent payments. When the Unit files a lien against an employer, the lien does not expire until it is paid off.
When an employer remains delinquent for multiple quarters, the Unit may cause the employer’s charter to be forfeited with Maryland State Department of Assessments and Taxation (SDAT). This normally occurs every October.
The Unit establishes personal liability for responsible owners, officers, and employees by assessment notice.

What steps can an employer or claimant take when a judgment is filed against them?

An employer may contact the Legal Services and Collections Unit to enter into a payment plan or to negotiate the settlement of a lien.
A claimant may contact the Unit to enter into a payment plan to avoid garnishment of wages.

What if my charter with the state was forfeited for nonpayment or can’t be revived due to a charter block by the Maryland Department of Labor?

To resolve your account, call 410-767-2416 or email dluiclegalcollections-labor@maryland.gov. When the account is resolved, we will notify the State Department of Assessments and Taxation (SDAT) to remove the charter block.