Employees Working in Another State: Workers' Comp and Coverage
When an employee works in another state, your workers' compensation coverage has to follow them, and each state decides for itself when an out-of-state employer must register there. A Washington crew on a month-long job in Portland, a remote hire in Boise and a new office in Phoenix are three different situations, and the right answer for each comes from the agency that runs that state's system, not from your current policy.
Key points
- Coverage follows the work. Temporary work in another state and a permanent base there are treated differently.
- Washington's L&I has its own rules for Washington workers temporarily out of state and for out-of-state employers working in Washington.
- Idaho, Oregon and Arizona each run their own system and publish their own test for when an employer must cover workers there.
- Workers' compensation is the first thing to check, not the only one: auto, liability territory and state payroll programs can move with the employee too.
- Tell your broker before the first day, not after the first claim.
Temporary work versus a permanent base
Every state's workers' compensation law has some provision for workers who are temporarily in the state and covered somewhere else, and some point at which a presence stops being temporary. The details differ: some states look at how many days the worker spends there, some at where the worker was hired and normally works, and most have reciprocity arrangements with some neighbors and not others.
The practical consequence is that "we sent someone to Oregon for a few weeks" and "we hired someone who lives in Oregon" are different questions with different answers. The first is usually handled under your home state's coverage, within that state's limits for out-of-state work. The second usually means registering with the other state's system, because the work is based there.
Rather than reciting thresholds that change, this article tells you which agency owns each answer and what to ask.
Washington's position
The Department of Labor & Industries covers Washington workers while they are temporarily working out of state, within the rules it publishes, and it expects out-of-state employers whose workers are in Washington to register with L&I unless an exception applies. [1] Both directions have conditions, so an employer should confirm with L&I before the work starts how long a job can run before the other state's rules take over, and whether the other state has a reciprocal arrangement.
Our workers' comp insurance in Washington page explains how the state fund works for employers based here; the short version for this article is that a Washington employer does not buy a private policy, so the out-of-state question is one for L&I rather than for an insurer's endorsement.
Idaho, Oregon and Arizona
Idaho. The Idaho Industrial Commission administers workers' compensation. Employers with workers in Idaho generally need coverage from a private carrier or the Idaho State Insurance Fund, and the Commission publishes guidance on out-of-state employers and temporary work. [2] If you are opening in Boise, our Boise business insurance page lists the coverages an Idaho operation commonly carries.
Oregon. The Workers' Compensation Division of the Department of Consumer and Business Services runs Oregon's system. Employers with subject workers in Oregon carry coverage through a private insurer, SAIF, or approved self-insurance, and the Division publishes the rules for out-of-state employers working in Oregon and for Oregon workers working elsewhere. [3] Our Portland business insurance page covers the Oregon side.
Arizona. The Industrial Commission of Arizona regulates coverage. Employers with employees in Arizona carry workers' compensation from an authorized carrier or self-insure with the Commission's approval, and the Commission's rules decide when an employer based elsewhere must comply. [4] See the Phoenix business insurance page for the Arizona lines.
In each state, the question to put to the agency is the same: for a worker hired and based in [home state] doing [this work] in your state for [this long], do we need to register and cover them under your law?
What else moves with the employee
Workers' compensation is the compliance item with the clearest trigger, but it is rarely the only policy affected.
- Auto. A vehicle garaged in another state, or an employee driving their own car for the business there, changes the commercial auto picture. State minimum limits differ, and hired and non-owned coverage should match where people actually drive. See commercial auto insurance.
- General liability. Most policies cover the United States as a territory, but the premium is rated on where the operations are, and a new location should be listed. See general liability insurance in Washington.
- Employment practices. Employment laws differ by state, and a policy that was written around Washington's rules may need a look.
- State payroll programs. Washington's paid family and medical leave and long-term care programs, Oregon's paid leave program and other state schemes are payroll obligations, not insurance purchases, but they are part of the same conversation with your accountant.
A checklist before the first day
- Where was the employee hired, where do they normally work, and where will they be working now?
- Is this temporary, with an end date, or a new base?
- Which agency administers workers' compensation in that state, and what does it say about your situation?
- Will the employee drive there, and in whose vehicle?
- Does the new location need to be added to your liability and property policies?
- Who at the business owns keeping this current when the next person moves?
If you want the mechanics of workers' compensation itself before working through the list, start with what workers' compensation insurance is.
Sources
[1] Washington State Department of Labor & Industries, out-of-state employers and work (agency site). Accessed October 26, 2026.
[2] Idaho Industrial Commission (agency site). Accessed October 26, 2026.
[3] Oregon Workers' Compensation Division (agency site). Accessed October 26, 2026.
[4] Industrial Commission of Arizona (agency site). Accessed October 26, 2026.
Coverage examples are illustrative. Policy wording, exclusions, limits, underwriting and applicable law determine coverage. This article is general information, not legal advice or a coverage determination.
Frequently asked questions
- For temporary work, generally yes, within the conditions L&I publishes for out-of-state work. For an employee based in another state, the other state's rules usually apply and you may need to register there. Confirm the specifics with L&I before the assignment starts.
- Often, yes. A remote employee who lives and works in another state is usually treated as working there, which means that state's coverage requirement applies. Each of the three states publishes guidance for out-of-state employers; the agencies are listed above.
- The claim is still filed, in the state where the injury happened or where the worker is based, and that state's agency decides who should have been covering the worker. An employer that should have registered can face the uninsured-employer provisions of that state's law, which is why the check belongs before the first day.