Oregon workers outside of Oregon

Some employers have workers who perform work outside of Oregon. Those workers could be subject (permitted to pursue claim benefits) in more than one jurisdiction, which is commonly referred to as dual subjectivity for workers compensation benefits. In some industries it is common for these workers to be hired by Oregon-based companies that do very little work in Oregon. If the project work is temporary in nature, the worker may not have a strong connection to the states where the work is performed.  

A policyholder who employs workers outside of Oregon may need a policy in the states where they work to comply with regulatory requirements and ensure workers are covered appropriately. Obtaining a policy through SAIF’s Other States Coverage program (a partnership with Zurich) protects employers and allows SAIF to assist in efficient claims processing and payroll reporting. However, employers may also secure a policy with another carrier for those states. If you have concerns about ensuring workers are sufficiently covered, please contact SAIF or your agent to discuss whether the coverage is appropriate. 

General guidelines  

SAIF has general guidelines to assist policyholders, agents, and SAIF employees in determining worker state subjectivity for industries in which workers may leave Oregon for periods of time. 1 When workers are hired, there are several factors in the onboarding and deployment process that can “connect” them to the state of Oregon: 

• Reside in or travel to Oregon to report for work (often at employer expense) 
• Receive training in Oregon 
• Pay Oregon taxes 
• Are dispatched to their first job from the Oregon location 
• The intent of both the employer and worker is that the worker is based in Oregon 

Once the workers are deployed to work in another jurisdiction, they continue to be subject to Oregon Workers’ compensation benefits if the jobs are temporary in nature (have a beginning and tentative end date, not ongoing, etc.). As the worker moves from job to job or place to place, the connection to Oregon weakens. There are several ways to strengthen the connection to Oregon: 

• Return workers to Oregon between job assignments 
• Deploy workers to jobs located in Oregon 
• Bring the workers back to Oregon when the rotation of work or season is done to complete paperwork, return equipment, debrief, deliver the final paycheck, etc. 
• For workers on longer term projects, bring the workers back to Oregon each quarter or year for work -related meetings, such as annual trainings or meetings. 

For workers who have a sufficient connection to Oregon as described above, their payroll may be reported to the SAIF Oregon policy for the duration of the season or project up to one year from the date a connection to Oregon most recently occurred. However, there is a strong possibility that a worker could have dual subjectivity between Oregon and another state. This could lead to premium corrections if a claim is filed in a state other than where payroll was reported. Also, there is a risk that without a sufficient connection to Oregon a worker might be subject only to another state, or in very limited circumstances, not subject in any state.  

Breaks in employment 

A temporary break in the employment relationship between the worker and employer (such as a seasonal layoff or extended break) could break the connection to Oregon. If the worker is available to work for other employers during a break in employment, it would constitute a sufficient break in employment requiring re-establishment of the “connection” to Oregon.  

Whenever there is a break in employment the “connection” to Oregon must be re-established as described in the process above. Failure to re-establish an Oregon connection after a break in employment could result in an employee’s payroll not being subject to Oregon. 

If following a break in employment a worker travels directly to another state to begin work,  they would not be considered Oregon subject and their payroll should not be reported on the SAIF Oregon policy until a connection is made to Oregon. 

If payroll for a worker or group of workers with a strong Oregon connection is required to be reported to an insurance carrier for another state, please contact SAIF or your agent to discuss whether any payroll should be reported to SAIF and, if applicable, how SAIF’s Other States Coverage program through Zurich allows SAIF to assist in claims processing and payroll reporting. 

Payroll reporting to other states 

Usually, SAIF will not charge premiums on payroll reported to the other state insurance carrier. Please remember that if a workers’ compensation claim occurs outside of Oregon with a policyholder who has other states coverage, it is generally more efficient if the claim is filed where payroll has been reported for that specific worker. It is important to note that if SAIF must accept a claim, we may retroactively charge premiums for that worker and potentially other similarly situated workers. This may happen even if payroll was reported to an employer’s other state’s insurance carrier. SAIF cannot deny the claim of an Oregon subject worker solely because the worker has an accepted claim for the same injury in another state.  The law does, however, allow SAIF to coordinate benefits with the other state.