Working Across State Lines?
Reciprocity agreements on extraterritorial coverage allow workers from one state to enter another state for a temporary period. The goals of reciprocity agreements are to (1) predetermine where a claim should be filed in the event of an injury; and (2) ensure that employers do not pay two separate workers’ compensation insurance premiums when not otherwise required by law. Idaho currently has reciprocal agreements with seven states in the surrounding region.
Remember: You are responsible for your compliance with insurance coverage requirements. Whether you are working in Idaho or another state, it is important to follow the laws of the state where your employees are working.
Out-of-state employers who want to send their employees to Idaho temporarily may qualify for extraterritorial coverage. At the employer’s request, a certificate of extraterritorial coverage is transmitted from the state agency responsible for administering workers’ compensation insurance law in the employer’s home state to the Idaho Industrial Commission. After our office receives the certificate, we will request additional information about the employer’s operations in Idaho.
Please note: The Industrial Commission reviews requests for extraterritorial coverage on a case by case basis. Notice of our decision will be sent directly to the employer.
What you need to do:
- Contact the agency responsible for administering the workers’ compensation law in your state to request an extraterritorial certificate for Idaho (if your state has a reciprocity agreement with Idaho).
- After your state issues a certificate, complete an Additional Information questionnaire located here AI Form and send it to the Idaho Industrial Commission at email@example.com.
* If we have not received a completed AI Form when we receive the extraterritorial certificate, we will mail a copy of the form to you with a pre-paid return envelope.
What to expect:
- We will begin processing your certificate after we receive your completed AI Form. If more information is required, we will contact you directly.
- After the certificate is either approved or denied, we will send the original to you, with a copy to the state agency where the request originated.
Extraterritorial Certificate Approval
Extraterritorial certificate approval is granted after the Industrial Commission confirms that your Idaho operations qualify as either 1) intermittent or 2) temporary work. Please review the descriptions and examples below to determine which type of work your workers will be doing in the State of Idaho.
- Intermittent Work begins and ends in the worker’s home state and less than 50% of their total work time is in the state of Idaho.
Example: An electrician who is based in Washington and answers service calls in Idaho. Workers start and end their day in Washington and less than 50% of their total work time is spent in the State of Idaho.
- Temporary work is not expected to exceed one hundred eighty (180) days and in no event will exceed three hundred and sixty (360) days. Workers may spend up to 100% of their work time in Idaho.
Example: A general contractor who is based in Montana who is building an apartment complex in Salmon Idaho. Workers spend 100% of their work time in Idaho and are expected to complete the project in 5 months.
- Employers with workers who spend 50% or more of their work time in Idaho may qualify for one six (6) month extension. However, if their work is expected to exceed 360 days, their work is not temporary and the employer will need to obtain an Idaho policy.
- Employers with employees whose work begins and ends in their home state and spend less than 50% of their total work time in the State of Idaho may apply for a renewal certificate. Approval will be dependent upon the facts at the time of the request.
Common Reasons for Denial
- The most common reason for denial of a certificate of extraterritorial coverage is for failure to complete the AI Form. Without the completed form we will not have enough information to make a determination on your request for approval.
- Employees who are principally localized in the State of Idaho do not qualify for extraterritorial coverage.
- Employers who hire Idaho residents to work specifically in Idaho do not qualify for extraterritorial coverage.
- Employers with a permanent physical location in Idaho do not qualify for extraterritorial coverage.
- Employers with ongoing and reoccurring operations in the State of Idaho whose employees work more than 50% their total work time in Idaho do not qualify for extraterritorial coverage.
Out-of-state Employer Quick Facts
- An extraterritorial certificate needs to be approved by the Idaho Industrial Commission before your temporary out-of-state employees start working in Idaho.
- The average certificate processing time is approximately two weeks from the date we receive the certificate request from your home state. It is important to respond to our requests for additional information in a timely manner. To speed up the process, go to our website to download the AI Form and email the completed form to us at firstname.lastname@example.org.
- Extraterritorial Certificates are approved for an initial maximum of six (6) month interval. All requests are approved for six (6) months unless the requesting state agency indicates that coverage should be limited to less than the six (6) month period.
- If your insurance cancels, your extraterritorial coverage certificate is no longer valid. You should immediately cease your Idaho operations.
- Extraterritorial certificates expire exactly six (6)months from the issue date. The six (6) month period cannot be broken up or prorated for use after the expiration date.
- If you hire Idaho residents to specifically work in Idaho, you will need to obtain an Idaho policy.
- Under some circumstances, you may qualify for one six (6) month extension. However, operations that exceed 360 days are not temporary and do not qualify for extraterritorial coverage.
Idaho employers with a current workers’ compensation insurance policy can request an extraterritorial certificate to use their Idaho coverage for their employees working in several surrounding jurisdictions.
At the employer’s request, the Idaho Industrial Commission will send an extraterritorial certificate to the agency responsible for administering workers’ compensation insurance law in the state where the work will be performed. The agency will review the request and make a determination to approve or deny the certificate. Notice of their decision will be sent directly to the employer.
What you need to do:
- Contact a Compliance Representative at 208-334-6060 or at email@example.com.
- Be prepared to provide the name of your business, current address, phone number, the state in which the work will be performed, the type of work to be performed, and the date you expect your Idaho employees to begin working in the other state.
Note: We typically do not issue extraterritorial requests more than two weeks in advance of the date you plan to begin working in the other state.
What to expect:
- After we receive your request, we will generate an extraterritorial certificate and send it to the reciprocating state. A copy of the certificate request will also be sent to your insurance carrier.
- Once the request has been processed, the reciprocating state will send the approved or denied certificate to you directly.
Idaho Employers Quick Facts
- The extraterritorial certificate is not considered as valid coverage until the reciprocating state approves the request.
- Extraterritorial certificates are only valid for six (6) months. If you plan to temporarily continue working across state lines for more than six (6) months, you will need to contact a Compliance Representative before your certificate expires to submit a new request.
- Idaho employers working outside the territorial limits of Idaho are governed by the laws of the state in which the work is being performed. Please contact the workers’ compensation regulatory agency of the state you intend to work in to ensure you are in compliance with their laws.
- Under certain circumstances, an Idaho employee can file a claim in Idaho for an injury that occurred while working temporarily in another state. For more information contact a Compliance Representative.
Certificate of Extraterritorial Coverage:
Extraterritorial certificates are issued by an authorized official of the workers’ compensation agency to certify that the workers of an employer working temporarily in another state are insured under the laws of the issuing state. Idaho extraterritorial certificates are issued for an initial six month period.
Work begins and ends in the worker’s home state and less than 50% of their total work time is in the state of Idaho.
According to Idaho Law (Title 72-220), a person’s employment is principally localized in this or another state when:(a) His employer has a place of business in this or such other state and he regularly works at or from such place of business; or (b) He is domiciled and spends a substantial part of his working time in the service of his employer in this or such other state.
Reciprocal agreements provide guidance on determination of benefits when an employee is injured while working in another state. These agreements specify the conditions and procedures used by states for determining who qualifies for extraterritorial coverage.
- Temporary employers who obtain an approved extraterritorial certificate may qualify for one six (6) month extension (360 day maximum). Employers whose operations in Idaho extend beyond the renewal certificate’s expiration date will be required to obtain an Idaho policy.
- Intermittent employers who obtain an approved extraterritorial certificate may apply for a renewal certificate. Approval will be dependent upon the facts at the time of the request.
- In Idaho, temporary employment refers to the duration of an employer’s operations within Idaho, as well as the employer’s intent to provide services in the State in the future. Temporary work is not expected to exceed one hundred eighty (180) days and in no event will exceed three hundred and sixty (360) days. Employers with workers who spend more than 50% of their work time in Idaho and whose operations last more than 360 days are not temporary and will be required to obtain an Idaho policy.