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Out-of-state workers' compensation provides pay, benefits and insurance coverage to employees who reside in a state different from their employer's base of operations. This type of compensation necessitates careful consideration due to the diverse state laws governing wages, taxes and worker protections.
To ensure compliance, employers must adhere to the specific requirements and benefits structures of the state where the employee works.
A monopolistic state in workers' compensation is one in which employers are legally obligated to purchase workers' compensation insurance solely from the state-run fund. In these states, private insurance companies are prohibited from offering workers' compensation insurance, limiting employer choices to the state-provided option.
Currently, four U.S. states operate as monopolistic states for workers' compensation:
- Ohio.
- North Dakota.
- Washington.
- Wyoming.
In these states, employers must ensure workers' compensation insurance coverage for any employee, even those working temporarily, to comply with state regulations.
If an agency is hiring a new employee or has an employee moving to or currently living in a monopolistic state, please email Risk Management immediately at srm.underwriting@omes.ok.gov if you haven’t already done so.
Failure to provide proper OOS WC coverage for employees working in a monopolistic state can result in significant penalties from the state.
When an agency is bringing on a new employee who will be living or working out of state—or if an existing employee is relocating—it's essential to take several important steps to ensure compliance with workers’ compensation regulations.
Here’s a checklist to guide you:
Immediately reach out to Risk Management at srm.underwriting@omes.ok.gov with the following details:
- Employee's name.
- Date of hire.
- State of residence.
- Annual payroll amount.
- Job title.
- Employee's NCCI code.
- Frequency of travel to Oklahoma.
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