It happens everyday, workers from one state cross the state line to work in another. Think about bordering states with large metropolitan areas sitting on the border. Contracting, delivery, transportation and service businesses provide their goods and services to clients in adjoining states. But there’s a problem! Which state workers compensation benefits are paid when an employee is injured?
Workers compensation coverage can be a challenge when workers of an employer, usually based in one state, are temporiarily working in another state. It’s called extraterritorial workers compensation when coverage from a workers primary or home state follows the worker into another state. Extraterritorial coverage benefits and how they apply are guided by the workers compensation statutes of the workers primary state. Extraterritorial coverage benefits are paid to injured workers just like they were injured in their home state.
Recognition of another states workers compensation law is known as extraterritorial reciprocity. When one state honors another states workers compensation benefits, usually accomplished by not enforcing their own, for workers from another state temporarily in their state as long as the other state will honor theirs. Wow! As you read through state statutes on how extraterritorial coverage applies you’ll begin to notice that each state will have specific conditions that must be met. Many times this will include some type of time limit that applies as to how long employees from the other state are in their state along with some recognition from the other state that they will reciprocate how coverage will apply.
An Example: Florida statute indicates that workers “who work for an employer in a state other than their primary state of employment for no more than 10 consecutive days or a maximum of 25 total days in a calendar year are considered to be “temporarily working” in that state for purposes of their statute.” It goes on to say that “Florida employees temporarily working an another state are to receive Florida workers compensation benefits and that out of state employees injured while temporarily in Florida are exempted from Florida Workers Comp Law and will receive benefits under the law of their home state as a sole remedy if:
- Their employer has provided coverage under their home state workers comp law that covers employees while in Florida;
- The other state recognizes Florida’s extraterritorial provisions;
- and that Florida employees and employers are exempted from the other states workers comp law for injuries that occur while Florida employees are temporarily working in the other state.
And this is all about answering the question..which state workers compensation benefits apply when a worker is injured in another state? Beginning to see how complicated extraterritorial workers compensation issues can be?
Here’s the take away:
- Learn how coverage applies to your workers while temporiaily in other states;
- Make sure your insurance agent knows about work you perform in other states;
- Be aware that some states will require you to provide primary coverage for your temporary workers under their state laws. In other words they could give a hoot about another states extraterritorial reciprocity issues;
- Don’t get caught without coverage! Pay attention to how your policy will respond. Some policies will not provide coverage for your workers out of state, whether under your state law or another.
Hope this helps you out!
Thanks!
