October 24, 2024
by Daisha Barnes

Bridging Borders: Oregon’s Workers’ Compensation Reciprocity Explained

Out-of-State Employers

When an out-of-state employee travels to Oregon for work and sustains an injury, it may result in an Oregon workers’ compensation claim, depending on key factors.

Pursuant to ORS 656.126(2) any out-of-state worker is exempted from the provisions of this chapter while that worker is temporarily within the state of Oregon doing work for the out of state employer if that employer has furnished workers’ compensation insurance coverage under the workers’ compensation insurance or similar laws of a state other than Oregon so as to cover that worker’s employment while in this state; if the extraterritorial provisions of this chapter are recognized in that other state; and if employers and workers who are covered in this state are likewise exempted from the application of the workers’ compensation insurance or similar laws of the other state.

Normally an out-of-state employer who takes on temporary work in Oregon must obtain Oregon workers’ compensation coverage, unless the employer has extraterritorial coverage and is from a reciprocating state. Extraterritorial coverage is coverage obtained under the laws of one state that extends to workers who are temporarily employed in other states. Still, not all states have a reciprocal agreement with Oregon.

In general, if an out-of-state employer reciprocates with Oregon, additional coverage for temporary work is not needed. An important determination is the period of time for the work in Oregon. This is fact specific and could be the deciding factor in whether a work would be considered an Oregon subject worker. The law defines subject workers as all workers employed in the state except those specifically exempted in ORS 656.027. Also see Attorney Anderson’s blog post defining subject workers.

Oregon workers’ compensation insurance covers Oregon workers temporarily employed in other states. If the other state reciprocates with Oregon, additional coverage is likely not needed as reciprocating states do not usually require an Oregon employer to obtain additional coverage for temporary work. As such, if an Oregon worker is injured while temporarily employed in a reciprocating state, they are only entitled to benefits under Oregon workers’ compensation law.

In sum, the key factors for determine whether an out-of-state employee has an Oregon worker’s compensation claim depends on whether (1) the employee works for an out-of-state employer; (2) whether the employer has Oregon workers’ compensation coverage or extraterritorial coverage and is from a reciprocating state; and (3) the period of time a worker is in Oregon for the work.

Oregon Employers & Out-of-State Coverage

Pursuant to ORS 656.216(1), if a worker employed in the state of Oregon and is subject to this chapter, leaves the state of Oregon incidental to that employment and received an accidental injury arising out of and in the course of employer, the worker is entitled to the benefits of this chapters as though the worker were injured within the state of Oregon.

Yet, some states still require Oregon employers to obtain additional coverage before starting work. This depends on whether the other state has reciprocity with Oregon and the industry/situation.

If you have any questions about the Oregon’s workers’ compensation reciprocity, please feel free to contact me at or 503-776-5421.

Posted by Daisha Barnes.