Extraterritorial coverage

If you have workers in other states, here are some of the most important issues to remember when you consider how to report your payroll and claims, and some basic information about meeting insurance requirements in other states.

 

Oregon workers temporarily leaving Oregon to work

If a worker you employ in Oregon leaves Oregon temporarily to work in another state incidental to Oregon employment, you should report the worker's earnings and claims to SAIF, but there are exceptions. If you have coverage in the other state and that state requires you to report the worker in that state, don't report earnings or claims for the work in the other state to SAIF. Keep evidence in your records that coverage is necessary in that state. If SAIF is later required to accept a claim, premiums will be charged retroactively for the injured worker and other similar workers. If the other state is Washington and the work is on a public contract entered into before May 25, 2001, don't report to SAIF earnings and claims for the work in Washington. If the work is on a public contract entered into on or after May 25, 2001, you should report earnings and claims to SAIF. The date a public contract is entered into controls the subcontracts.

Workers of another state temporarily coming to Oregon to work

If a worker you employ in another state comes to Oregon temporarily to perform work incidental to the employment in the other state, do not report payroll or claims for those workers to SAIF, except when the work in Oregon is on a public contract entered into before May 25, 2001. Earnings and claims for all work in Oregon on a public contract entered into before May 25, 2001 should be reported to SAIF. The date a public contract is entered into controls the subcontracts.

Changes of a worker's status

A worker employed in another state can become an Oregon worker, and a worker employed in Oregon can become a worker of another state. Earnings and claims before the worker's status changes should be reported to the original state. Earnings and claims thereafter should be reported to the new state. A worker's status can change in two ways:

Break in employment
A break of employment occurs when the current employment ends and the worker is later rehired. If a worker was employed to work in another state, the employment ends, and the worker is rehired for work in Oregon, the worker's earnings and claims from the rehire date forward should be reported to SAIF. If there is just a lull while the worker and employer wait for a new job to start, there may be no real break in employment and no change in the worker's status.

Transfer of employment
A transfer of employment is when a worker employed in one state is permanently assigned to work in another state. If a worker from another state has been permanently transferred to Oregon employment, the worker's earnings and claims should be reported to SAIF for the work in Oregon and subsequent temporary work in the original state.

Special circumstances

Union halls
The status of workers hired from a union hall is re-determined at the start of each job for which such workers are hired. This is true even if the worker completes work on one job for you and then is hired to start another job for you the next day. If a union-hall worker is hired for a job in another state and you reported the worker to the insurer in that state, then the job ends and you hire the same union-hall worker for a new job in Oregon, the worker's Oregon earnings and claims should be reported to SAIF for the new job.

Telecommuting 
Workers who are 1) hired by an employer operating in Oregon, 2) to do work for the Oregon operation, and 3) are allowed to do the work by remote electronic connection at a location provided by the worker in another state, may be reportable to SAIF in some cases.

Please contact your agent or SAIF if you need assistance in determining the subjectivity of a telecommuting worker.

Worker employed to work in two states
When a worker is employed to work in two states and a) the employer has permanent operations in each state, b) the worker was hired to work on an ongoing basis in the permanent operations in both states, and c) the worker performs a significant amount of regular work in both states, the worker's earnings and claims should probably be reported to SAIF only for the work in Oregon. This may apply in such situations as retail stores or farms in two states but doesn't normally apply in construction projects. Always contact your agent or SAIF for advice if you think this type of split reporting should be used for a worker.

Interstate trucking
Always contact your agent or SAIF for advice on reporting payroll and claims.

Basic guidelines for reporting

Reporting is determined for each worker individually. Common mistakes include:

1. Reporting based solely on the state where a job takes place;
2. Reporting to the state where the majority of your work takes place;
3. Reporting to the state where the worker works a majority of the time;
4. Reporting to the state where the worker first performed work.
   

The common law tests to determine whether a worker is temporarily working outside Oregon incidental to Oregon employment or inside Oregon incidental to employment in another state include:

• The extent to which the worker's work inside this state is temporary;
• The intent of the employer;
• The understanding of the worker;
• The location of the employer and its facilities;
• The circumstances surrounding the worker's work assignment;
• The state laws and regulations to which the employer is otherwise subject; and
• The residence of the worker.
  

Protect yourself

Whenever you have a worker working in two or more states you face the possibility the worker will be injured and file claims in each of the states. If you don't have coverage in each state, you may be charged with penalties, the full cost of the claim, retroactive premiums and also lose a defense against a lawsuit. You can protect yourself by:

• Contacting each state to find out if coverage is required:
• Asking your current insurer(s) if they cover the worker in the states where the worker may work for you;
• Asking your insurer in the state where the worker is employed to file a certificate of extraterritorial coverage in each state where you work;
• Making sure claims for your Oregon workers working temporarily outside Oregon are filed with SAIF unless coverage is required in the other state; and
• Obtaining an "if-any" policy in other states where you may have workers.

Remember that the ultimate responsibility for compliance with insurance coverage requirements rests with the employer.