Workers' Compensation for Out-of-State Employees

Posted By Katz, Leidman, Freund & Herman || 11-Jul-2018

In New York, most employees are covered by workers’ compensation. But, how does it work if the employer is in another state, but the employee lives here? Or, how does it work if the employer is located in New York, but it employs workers who live in other states?

According to the New York Workers’ Compensation Board, as of September 9, 2007, “all out-of-state employers with employees working in New York State will be required to carry a full statutory New York State workers’ compensation insurance policy.”

Later in September of 2007, the Board posted a notice on its website about out-of-state employers whose employees attend work-related seminars, meetings, and other activities in New York State.

The Board concluded that out-of-state employers who send their employees to work in New York State are required to obtain a full NYS workers’ compensation policy, providing the employer meets ANY of the following criteria:

  • The company is required to register with the NYS Department of Labor, and they are required to pay unemployment insurance for the time that their employees are in New York.
  • The company has a permanent, physical location in the State of New York.
  • The company has employees who primarily work in New York.
  • The company is operating under a New York licensed granted by NYS, a permit, or contract.
  • The company is working on a construction project in New York and is acting as a general contractor, a contractor, or a subcontractor.
  • The year before, the employer had employees physically working in New York for at least 40 hours a week for two straight weeks, or it had employees in New York for at least 25 days. For example, the company had five employees in New York for five days, which amounts to 25 individual employee days.

“What if an employee was just passing through?” If an employee simply travelled through the state without picking anyone or anything up, or dropping anything off or stopping for a delivery, they are not deemed by the Board to have worked in New York.

Related: Who is Not Covered By Workers’ Comp in NY?

Have questions about your coverage? Contact Katz, Leidman, Freund & Herman to schedule a free workers’ compensation evaluation.