AN
ACT Relating to the workers' compensation obligation of employers not domiciled
in Washington; and amending RCW 51.12.120.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
51.12.120 and 1998 c 279 s 2 are each amended to read as follows:
(1)
If a worker, while working outside the territorial limits of this state,
suffers an injury on account of which he or she, or his or her beneficiaries,
would have been entitled to compensation under this title had the injury
occurred within this state, the worker, or his or her beneficiaries, shall be
entitled to compensation under this title if at the time of the injury:
(a)
His or her employment is principally localized in this state; or
(b)
He or she is working under a contract of hire made in this state for employment
not principally localized in any state; or
(c)
He or she is working under a contract of hire made in this state for employment
principally localized in another state whose workers' compensation law is not
applicable to his or her employer; or
(d)
He or she is working under a contract of hire made in this state for employment
outside the United States and Canada.
(2)
The payment or award of compensation or other recoveries, including settlement
proceeds, under the workers' compensation law of another state, territory,
province, or foreign nation to a worker or his or her beneficiaries otherwise
entitled on account of such injury to compensation under this title shall not
be a bar to a claim for compensation under this title if that claim under this
title is timely filed. If compensation is paid or awarded under this title,
the total amount of compensation or other recoveries, including settlement
proceeds, paid or awarded the worker or beneficiary under such other workers'
compensation law shall be credited against the compensation due the worker or
beneficiary under this title.
(3)(a)
An employer not domiciled in this state who is employing workers in this state
in work for which the employer must be registered under chapter 18.27 RCW or
licensed under chapter 19.28 RCW, or prequalified under RCW 47.28.070, must
secure the payment of compensation under this title by:
(i)
Insuring the employer's workers' compensation obligation under this title with
the department;
(ii)
Being qualified as a self-insurer under this title; or
(iii)
For employers domiciled in a state or province of Canada subject to an
agreement entered into under subsection (7) of this section, as permitted by
the agreement, filing with the department a certificate of coverage issued by
the agency that administers the workers' compensation law in the employer's
state or province of domicile certifying that the employer has secured the
payment of compensation under the other state's or province's workers'
compensation law.
(b)
The department shall adopt rules to implement this subsection.
(4)
If a worker or beneficiary is entitled to compensation under this title by
reason of an injury sustained in this state while in the employ of an employer
who is domiciled in another state or province of Canada and the employer:
(a)
Is not subject to subsection (3) of this section and has neither opened an
account with the department nor qualified as a self-insurer under this title,
the employer or his or her insurance carrier shall file with the director a
certificate issued by the agency that administers the workers' compensation law
in the state of the employer's domicile, certifying that the employer has
secured the payment of compensation under the workers' compensation law of the
other state and that with respect to the injury the worker or beneficiary is
entitled to the benefits provided under the other state's law.
(b)
Has filed a certificate under subsection (3)(a)(iii) of this section or (a) of
this subsection (4):
(i)
The filing of the certificate constitutes appointment by the employer or his or
her insurance carrier of the director as its agent for acceptance of the
service of process in any proceeding brought by any claimant to enforce rights
under this title;
(ii)
The director shall send to such employer or his or her insurance carrier, by
registered or certified mail to the address shown on such certificate, a true
copy of any notice of claim or other process served on the director by the
claimant in any proceeding brought to enforce rights under this title;
(iii)
If the employer is a self-insurer under the workers' compensation law of the
other state or province of Canada, the employer shall, upon submission of
evidence or security, satisfactory to the director, of his or her ability to
meet his or her liability to the claimant under this title, be deemed to be a
qualified self-insurer under this title; and
(iv)
If the employer's liability under the workers' compensation law of the other
state or province of Canada is insured:
(A)
The employer's carrier, as to such claimant only, shall be deemed to be subject
to this title. However, unless the insurer's contract with the employer
requires the insurer to pay an amount equivalent to the compensation benefits
provided by this title, the insurer's liability for compensation shall not
exceed the insurer's liability under the workers' compensation law of the other
state or province; and
(B)
If the total amount for which the employer's insurer is liable under (b)(iv)(A)
of this subsection is less than the total of the compensation to which the
claimant is entitled under this title, the director may require the employer to
file security satisfactory to the director to secure the payment of
compensation under this title.
(c)
If subject to subsection (3) of this section, has not complied with subsection
(3) of this section or, if not subject to subsection (3) of this section, has
neither qualified as a self-insurer nor secured insurance coverage under the
workers' compensation law of another state or province of Canada, the claimant
shall be paid compensation by the department and the employer shall have the
same rights and obligations, and is subject to the same penalties, as other
employers subject to this title.
(5)
As used in this section:
(a)
A person's employment is principally localized in this or another state when:
(i) His or her employer has a place of business in this or the other state and
he or she regularly works at or from the place of business; or (ii) if (a)(i)
of this subsection is not applicable, he or she is domiciled in and spends a
substantial part of his or her working time in the service of his or her
employer in this or the other state;
(b)
"Workers' compensation law" includes "occupational disease
law" for the purposes of this section.
(6)
A worker whose duties require him or her to travel regularly in the service of
his or her employer in this and one or more other states may agree in writing
with his or her employer that his or her employment is principally localized in
this or another state, and, unless the other state refuses jurisdiction, the
agreement shall govern as to any injury occurring after the effective date of
the agreement.
(7)
The director is authorized to enter into agreements with the appropriate agencies
of other states and provinces of Canada that administer their workers'
compensation law with respect to conflicts of jurisdiction and the assumption
of jurisdiction in cases where the contract of employment arises in one state
or province and the injury occurs in another. If the other state's or
province's law requires Washington employers to secure the payment of
compensation under the other state's or province's workers' compensation laws
for work ((that in Washington requires the employer to be registered under
chapter 18.27 RCW or licensed under chapter 19.28 RCW, or prequalified under
RCW 47.28.070)) performed in that state or province, then employers
domiciled in that state or province must purchase compensation covering their
workers engaged in that work in this state under this state's industrial
insurance law. When an agreement under this subsection has been executed and
adopted as a rule of the department under chapter 34.05 RCW, it binds all
employers and workers subject to this title and the jurisdiction of this title
is governed by this rule.
