Brief Description: Regarding workers' compensation coverage for work performed outside Washington.

Sponsors: Senators Marr and Kohl-Welles; by request of Department of Labor & Industries.

Senate Committee on Labor, Commerce, Research & Development
House Committee on Commerce & Labor

Background: Generally, employees of Washington employers injured while working in another state are entitled to workers' compensation if the injured worker would have been entitled to compensation had the injury occurred in the state. However, in some cases, the other state may require Washington employers to pay workers' compensation premiums for the work done in the other state. The result is that employers may be insuring the same work in two states.

The Department of Labor and Industries (L&I) has the authority to negotiate industrial insurance reciprocal agreements with other states. If another state requires Washington employers to secure the payment of compensation under its laws, then employers domiciled in that state must purchase compensation under Washington's industrial insurance law covering their workers working in Washington.

Summary: Washington employers who are not self-insured must obtain workers' compensation coverage from the state fund for temporary and incidental work performed by their employees on jobs in another state. Temporary and incidental means work performed in another state for 30 days or less per calendar year.

By December 2011 L&I must report to the Workers' Compensation Advisory Committee on the effect of the legislation on the revenue and costs to the state fund.

Votes on Final Passage:

Senate      46   0
House      93   0   (House amended)
Senate    48   0   (Senate concurred)

Effective: June 12, 2008