What coverage might an employer need if an employee works temporarily in a different state?

When an employee temporarily works in a different state, the coverage that an employer typically needs is based on the employer's home state statute. This means that the employer’s workers' compensation insurance must comply with the laws and regulations of the state in which the business is primarily located. Many states allow for coverage based on the home state’s workers’ compensation laws when an employee is working out of state temporarily, provided the out-of-state work does not extend beyond a certain length of time.

Employers often face various regulations when operating in multiple states, but by relying on their home state statute, they simplify compliance issues and ensure that their employees are covered under established insurance policies. This option is often the most straightforward approach for employers who have employees temporarily working in different states, as it avoids the complexity of needing to obtain additional insurance specific to each new location.

While separate insurance policies for the temporary state can sometimes be necessary—especially if the duration of work is extended or if specific state requirements exist—the home state statute generally suffices for short-term assignments. Other options like having no additional coverage needed may lead to gaps in employee protection, and federal coverage under OSHA regulations does not specifically address workers' compensation; it pertains more broadly to workplace safety regulations.