Sending Workers Out of State? What Oregon Employers Need to Know
If your Oregon business is growing, you might eventually find yourself sending an employee across the border. Maybe it’s a quick repair job in Vancouver, Washington, or a month-long project in Idaho.
When this happens, a critical question arises: Whose rules apply if they get hurt? Do you keep paying into the Oregon system, or do you have to open a new workers’ comp policy in the other state?
In most cases, Oregon’s workers’ compensation coverage follows your employees wherever they go, provided their work outside the state is temporary. Pursuant to ORS 656.126(1), if a worker employed in Oregon temporarily leaves the state incidental to that employment and receives an accidental injury arising out of and in the course of employment, the worker remains entitled to the benefits of the Oregon Workers’ Compensation system.
Think of it like an invisible tether. As long as the employee’s home base remains in Oregon and they intend to return once the job is done, Oregon law usually stays in charge. To determine if that tether is still strong, the state looks at a few practical factors:
- The nature of the job: Is it a one-off project or an indefinite relocation?
- The hiring process: Was the person originally hired to work in Oregon?
- Company roots: Do you maintain your primary offices or facilities here?
Friendly Neighbors: Reciprocal States
Oregon has special agreements with many other states. These agreements are designed to prevent you from having to buy two different insurance policies. So long as the state your employee works in has a reciprocal agreement, ORS 656.126(1) will apply.
- Oregon.Gov maintains a comprehensive list of states that hold reciprocal agreements with Oregon: https://wcd.oregon.gov/employer/coverage/pages/out-of-state-coverage.aspx
Red Flags: When You Might Need Extra Coverage
The tether to Oregon can snap under certain conditions. You should talk to your insurance carrier immediately if:
- The move is permanent: You are hiring someone to live and work in another state indefinitely.
- You did not originally hire the worker to work in Oregon.
- Non-reciprocal states: Some states do not recognize Oregon’s out-of-state rules. Check first online or with your carrier to determine if there is a reciprocal agreement between Oregon and the state you are considering. If you are sending someone to a state without an agreement, you might be required to follow their local laws from day one.
Pro-Tips for Employers
- Document the Plan: Keep a record showing your employee is an Oregon hire, and that the out-of-state assignment has a specific end date.
- Refer to the Oregon.gov website for whether the state you are considering has a reciprocal agreement with Oregon.
- Reach out to your carrier if the out-of-state project becomes more long term, such as a month or longer.
The Bottom Line: If the other state has a reciprocal agreement with Oregon, the work is short-term, and the employee is still based in Oregon, you are likely in the clear. But once a project becomes long term or becomes a more permanent relocation, it is time to check the local rules.
For any questions, please reach out to me at , or 971-369-5223.
Posted by Eric Spencer.
