There is a PA work comp statute - 305.2 that says if you have employees who travel out of state to work and they have a work comp claim, the claim will be covered by your Pennsylvania work comp policy. That statute is in force to protect your employees and assure that mandated coverage will be provided.
However, that policy provision doesn't have anything to do with other states' laws and the coverage that may be required to work within that state. Pennsylvania shares a long border with New York, so knowing whether or not you satisfy New York work comp laws before you send your employees there to do work is a important question to have answered.
Quite simply, having Pennsylvania work comp coverage, does not satisfy the requirements in New York.
I'll quickly summarize the coverage requirements in New York state.
Effective Sept 9, 2007 all out-of-state employers with employees working in New York State will be required to carry a full statutory New York State workers' compensation insurance policy if you meet any of the below criteria. A full, statutory NYS workers' compensation insurance policy is one where New York is listed in item "3A" on the Declaration Page of an employer's workers' compensation insurance policy.
Those required to have NY listed on their 3A coverage include out of state employers where:
- The employer (as defined in the WCL) is required to register with the NYS Department of Labor and pay Unemployment Insurance for any period in question.
- The employer has a permanent physical location in New York or has employees whose primary work location is here.
- The employer is operating in New York under a permit, contract, or license granted by the State of New York, its counties or any municipality as defined under §57 of the Workers' Compensation Law.
- The employer is working as a contractor/general contractor/subcontractor on a construction project in New York.
- In the previous year, the employer had employees physically in New York for:
- at least 40 hours of every week for a period of longer than 2 consecutive weeks
- had employees present in New York for 25 or more individual days (e.g.- 5 employees working for 5 days in New York equals 25 individual employee days).
Note how New York accounts for employee days: if you have 3 employees who work 8 or 9 days in NY, one employee who works 25 days, or 25 employees who work one day - that would add up to the 25 days.
Those required to have NY listed on their 3C (Other States) coverage:
For all other employers (basically anyone who has business for any reason in NY other than driving through without stopping), the employer must have NY listed as a "3C" state on the work comp policy, coverage for states other than where primary work is done.
If you have a State Workers' Insurance Fund policy, you are not meeting New York requirements. A SWIF policy only lists Pennsylvania under 3A and lists NONE under 3C. SWIF cannot provide the required other states' coverage.
Your only options to solve this:
- Work in NY without having 3A or 3C coverage and take the risk of facing potential fines.
- Obtain a NY State Fund policy, which is fairly simple and can be done online.
- Find an insurance carrier who can cover your exposure with 3A or 3C coverage (based on what is needed) in all of the states where you are working, regardless of the state where you are domiciled.
We would be happy to help you with the 2nd and 3rd option, but for #1, you are on your own... call us at 724-283-7900 if we can be of any assistance.