As a general rule, extraterritorial coverage extends to incidental operations lasting fewer than 30 days in a state where the employer has no other significant contacts with that state and those operations do not require the employer to purchase workers’ compensation insurance under the laws of that state.
The difficulty in determining which state has jurisdiction in these situations intensifies when defining significant contacts. Each state has different definitions of “significant contacts.” In determining if extraterritorial coverage applies to an employer, North Dakota Workforce Safety & Insurance (WSI) considers the following:
- What is the nature of the employer’s business? Do the employer’s employees travel daily to another state to make deliveries or provide services?
- Do the business operations of the employer make the employer’s contact with another state more than incidental or occasional?
- In what state was the employment contract entered?
- Does the employer have a physical place of business in this state and do the employees regularly report or work from that place of business?
- What is the employee’s state of residence?
- Does the employer’s work require the employer to spend 30 or more consecutive days in another jurisdiction?