Washington Employers Questions and Answers

Extraterritorial coverage

January 2009.

Workers' compensation reporting requirements for Washington employers taking workers out of state

Common questions Washington employers ask about workers' compensation requirements when taking workers state.

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  • Expand or collapse. Will my Washington workers' compensation cover my employees working out of state?

    Your Washington workers' compensation coverage remains in effect when you take your Washington workers' out of state. Washington workers always have the right to file a claim with the Department of Labor & Industries (L&I) for benefits if injured on the job while working out of state.

  • Expand or collapse. What is temporary and incidental work?

    "Temporary and incidental" is work performed by Washington employers in another state for 30 days or less in a calendar year. The days can be partial days and they do not need to be consecutive. The temporary and incidental period is calculated separately for each state.

    Example A: A Washington employer sends Washington workers to Alaska for 25 days and California for another 19 days. In this example the work in both Alaska and California is temporary and incidental because the employer is in neither state more than 30 days in a calendar year.

    Example B: In the first quarter of a calendar year a Washington employer sends Washington workers to Alaska for 25 days. In the third quarter of the same year, the employer sends workers back to Alaska for another 19 days. In this example all of the Alaska work, both the first and third quarters, would not be considered temporary and incidental because the employer is in Alaska for more than 30 days in a calendar year.

  • Expand or collapse. What are the reporting requirements when an employer has Washington workers out of state for longer than a temporary and incidental period?

    The employer will need to report the hours for these workers to L&I, but will not need to pay premium to L&I for these hours, if the employer:

    • Has workers in the other state for more than the temporary and incidental period.
    • Applies for out-of-state supplemental reporting with L&I.
    • Provides a valid certificate of coverage from an insurer licensed in the other state and reports all of the out-of-state hours for the Washington workers to this insurer.
    • Reports the work on an out-of-state supplemental L&I form.
  • Expand or collapse. When will Washington require a premium payment for out-of-state work?

    Washington will require payment of premium if the employer:

    • Is not insuring the out-of-state work with an out-of-state carrier, or
    • Fails to submit a timely out-of-state supplemental report, or
    • Fails to submit proof of insurance in the other state, or
    • Worked in the other state for a temporary and incidental period or,
    • Is required to report to Washington by a reciprocal agreement.
  • Expand or collapse. What if I have Washington workers in another state for 30 days or less in a calendar year?

    You will need to report and pay premium to L&I. You may also be required to pay a premium to an insurer in the other state. Contact the workers' compensation authority in the state where they will be working to find out if the state will recognize Washington's coverage.

  • Expand or collapse. How do I know whether or not another state will recognize my Washington workers' compensation coverage?

    If there is a reciprocal agreement between Washington and the other state, generally your Washington coverage is recognized. Washington currently has reciprocal agreements with Idaho, Montana, Nevada, North Dakota, Oregon, South Dakota, Utah, and Wyoming (Montana and Nevada do not recognize L&I coverage for work performed on construction projects). The reciprocal agreements are available at Lni.wa.gov/OutOfState or you can contact your account manager for more information.

    If there is no reciprocal agreement, you will need to contact the state where you will be sending your workers. Other states do not always recognize Washington coverage. You may need to purchase workers' compensation coverage insurance from an out-of-state insurer when working in another state. Contact information concerning out-of-state workers' compensation reporting requirements is available on our Web site. You can request a Certificate of Extraterritorial Coverage from your account manager.

  • Expand or collapse. How do I get out-of-state supplemental reports?

    See the contact information below or go to our Web site at Lni.wa.gov/OutOfState.

    • Request an application for out-of-state supplemental reporting.
    • When you complete and return the application, include documentation that you're buying workers' compensation coverage from another state for your Washington workers working out of state. (Certificate of workers compensation liability insurance.)
    • We will send you a confirmation letter if you qualify for out-of-state supplemental reporting. Reports will be mailed quarterly.
  • Expand or collapse. When are supplemental reports due?

    The reports are due at the end of the month following the last day of the quarter.

  • Expand or collapse. What if a Washington worker is injured working out of state on a job where the employer is not paying premiums to Washington?

    A Washington worker injured while working out of state is entitled to Washington coverage regardless where the premium is paid. You are required to inform your workers about their right to file in Washington.

  • Expand or collapse. Will my experience rating in Washington State be impacted by not paying premiums for my Washington workers out-of-state work?

    It may. Your experience rating can be impacted by both the level of premium you report to L&I and the cost of claim benefits paid out by L&I.

    • If you're not paying premiums to Washington, the out-of-state hours won't be used to calculate your experience factor. This will likely lower your business's expected losses; this can result in a higher experience factor.
    • If your workers receive claim benefits for injuries that occur out of state, these claim costs will be used to calculate your experience factor. This will likely increase your business's actual losses; this can also result in a higher experience factor.
  • Expand or collapse. Where can I get additional information?

    You can find additional information:

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