Out-of-state coverage

Coverage when working out of state

Note: The information below is provided for reference purposes only. It should not be construed as legal advice or interpretation of other states’ laws and rules. The information listed for any particular state may not be up to date as statutes, rules, and agreements may have changed. Employers are responsible for understanding and complying with each state’s requirements and should not rely solely on the information below.

Every reciprocating state has its own rules about when out-of-state employers are exempt and when they must obtain coverage. Before beginning work in another state, employers should contact their agent, insurer, or the other state’s workers’ compensation agency.

Here are some questions employers may want to ask before beginning work in another state:

• Does the other state reciprocate with my state? Reciprocating states usually do not require out-of-state employers to obtain additional coverage for temporary work, though employers may have to meet other requirements to be exempt. If the other state does not reciprocate with your state, you probably need additional coverage.
  
  
• How does the other state define "temporary"? Reciprocating states usually exempt out-of-state employers only when they are in the state temporarily. If your project is expected to last for an extended period of time, you should be aware of how the other state defines "temporary."
  
  
• Are all my workers entitled to extraterritorial coverage? Reciprocating states usually require out-of-state workers and employers to have extraterritorial coverage. This means coverage under the laws of their own state that extends to workers temporarily employed in other states. However, some states do not extend extraterritorial coverage to workers who are not residents or who were not hired in-state. If some of the workers on your project are not covered by your extraterritorial coverage, you may need additional coverage.
  
  
• Does the other state have restrictions for certain industries? Some states do not extend reciprocity to employers in certain industries, such as construction and professional sports. If you are in one of these industries, you may need additional coverage.
  
  
• Do I need to file a certificate of extraterritorial coverage with the other state? Some reciprocating states require you to file a certificate affirming that you have extraterritorial coverage before you begin work. Your insurer can help you make sure this requirement is met.

State-by-state coverage and contact information is provided below. If you are an Oregon employer who intends to take on temporary work in another state, you should go to that state’s website or contact its workers’ compensation agency directly to learn more about the requirements you must meet. You should also contact your insurer before beginning work in the other state.

Out-of-state coverage for Oregon employers

By law, Oregon workers’ compensation insurance covers Oregon workers temporarily employed in other states. However, some states require Oregon employers to obtain additional coverage before starting work.

Whether an Oregon employer needs additional coverage depends on whether the other state has reciprocity with Oregon. A reciprocating state will usually not require an Oregon employer to obtain additional coverage for temporary work, although some states have restrictions for certain industries or situations. If an Oregon worker is injured while temporarily employed in a reciprocating state, they are only entitled to benefits under Oregon workers’ compensation law.

When a state is not reciprocating, an Oregon employer is usually required to obtain additional coverage before starting work in that state. An employer that does not obtain this coverage risks having to pay fines and claim costs if a worker is injured.

Reciprocity only applies to workers temporarily employed in another state. If an Oregon employer opens a permanent location in another state and hires workers, that employer would always have to obtain coverage that meets the requirements of that state’s laws.

Oregon coverage for out-of-state employers

An out-of-state employer who takes on temporary work in Oregon must obtain Oregon workers’ compensation coverage, unless the employer has extraterritorial coverage and is from a reciprocating state. Extraterritorial coverage is coverage obtained under the laws of one state that extends to workers who are temporarily employed in other states.

If an out-of-state employer opens a permanent location in Oregon and hires workers, that employer must always obtain Oregon workers’ compensation coverage. If you are unsure whether you are required to obtain coverage for workers temporarily employed in Oregon, please contact WCD or your own state’s workers’ compensation agency.

Reciprocal agreements

Oregon has agreements with several states which affect how claims for out-of-state injuries are handled. When one of these agreements is in place, it is noted in the information for that state.

Reciprocates

Reciprocates for some industries

Does not reciprocate