What must an employer do for workers' compensation to cover an employee working in a different state?

For workers' compensation to cover an employee working in a different state, the employer must have out-of-state coverage explicitly stated on the declaration page of their workers' compensation policy.

This coverage is crucial because workers’ compensation laws vary significantly from state to state. If an employee is assigned to work in a state other than where the employer's policy is based, the employer must ensure that their policy includes provisions for those other states. This typically involves adding coverage for out-of-state employees to avoid potential gaps in protection or compliance issues with state-specific workers’ compensation legislation.

While informing the employee about state regulations is important for their awareness and understanding of their rights, it does not automatically provide coverage. Similarly, providing per diem is related to travel expenses and not to the legal requirements for workers’ compensation coverage. Finally, purchasing federal workers’ compensation alone does not meet the requirement for state-specific coverage, as federal programs might not apply to every scenario or provide the required protections dictated by state law.