Workers’ compensation law is complicated enough when you’re dealing with one state’s statutes and administrative procedures. When an injured employee’s case touches multiple states, the complexity of the dispute can increase dramatically (both in a procedural and substantive legal sense).
Attorneys handling these cases must not only know the law in more than one jurisdiction but also understand how different systems interact and sometimes conflict. Employers with operations in multiple states, employees working across borders, touch-and-go gig working arrangements, and remote work arrangements have made the multi-state workers’ compensation claim more common than ever. For attorneys, this means developing a careful strategy that addresses jurisdiction, benefits, procedural rules, and practical client concerns.
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Keep reading for workers’ comp multi-state coverage attorney tips! We’ll cover (at a glance) issues due to different jurisdictional principles, benefit variations, conflicts of law, and the practical challenges that arise when an injured worker’s claim could be filed in more than one state. It’s important that you be able to evaluate cases more effectively, advise clients with clarity, and avoid pitfalls that could harm the worker’s recovery or the employer’s liability management.
Why Multi-State Claims Are on the Rise
The increase in multi-state claims is tied directly to how modern work has changed. Years ago, most employees worked in a fixed location and rarely crossed state boundaries for their jobs. Today, things look very different. Truck drivers, traveling nurses, construction crews, and sales professionals routinely move between states. Employers often have offices in multiple jurisdictions, and many workers live in one state but work in another. The rise of remote work has added yet another layer, with employees clocking in from their home states for companies headquartered elsewhere.
For attorneys, this shift means that you will inevitably encounter situations where an injury may trigger claims in more than one state. Understanding why this happens, how workers’ compensation laws vary, and what legal frameworks apply is the first step toward managing these cases successfully. After all, the workers’ compensation system is highly variable, and the effective and experienced workers’ compensation attorney must know how to navigate these issues so as to secure the maximum benefits for their client through the claims process.
Jurisdictional Principles and Determining Where to File
The threshold question in any multi-state workers’ comp case is jurisdiction. Which state or states have the authority to hear the claim? In the past, most employers had relatively straightforward arrangements with their employees, but the landscape of labor (and the complexity of an individual’s job duties) has changed significantly.
When it comes to jurisdiction for a work-related accident, several factors can influence it, and each can open the door to a potential filing:
- Place of Injury: Though dependent on the specific circumstances of the accident, if the injury happened within the state’s borders, that state typically has jurisdiction.
- Employment Contract Location: If the employment relationship was established in the state, it may have a claim to jurisdiction even if the injury happened elsewhere.
- State of Residence (Employee): Some states allow jurisdiction based on where the worker lives.
- Employer’s Principal Place of Business: If the employer is headquartered in a state, that may provide another basis for filing.
- Forum Selection Clause: If the employment contract includes a forum selection clause, then that could have a significant bearing on your ability to file in a particular state. That being said, many states (such as California) have restricted the application of forum selection clauses in employment contracts, so you’ll want to explore the enforceability of this clause more deeply as you step into litigation.
Attorneys must analyze each factor to determine where jurisdiction lies when a worker has been injured on the job. It is not unusual for multiple states to be valid options. In those cases, strategic decisions about where to file can have major consequences for the client’s benefits and the overall direction of the case.
Comparing Benefits Across States
Once you establish possible jurisdictions, the next critical step is comparing benefit amounts and legal rights from state to state. Workers’ comp systems vary widely. Differences may include weekly wage replacement rates, workers’ compensation coverage discrepancies, caps on benefits, eligibility for vocational rehabilitation, waiting periods, and rules around medical care. For example, one state may provide higher maximum weekly benefits, while another may offer broader medical coverage or more favorable permanent disability awards. One state may have a history of being more lax in assigning coverage for work-related injuries, or in defining independent contractors as workers, giving access to workers’ compensation insurance benefits (lost wages, medical benefits, temporary disability benefits, permanent disability benefits, temporary total disability benefits, death benefits, etc.).
Maximizing compensation for the injured worker (while ensuring compliance with the law) is where attorneys need to become true strategists. Filing in one state versus another could mean thousands of dollars in additional, other benefits for the worker.
At the same time, an attorney must consider whether the state’s system favors litigation or encourages early settlement, as this can affect the workers’ comp claim trajectory. For example, some states have case law that empowers plaintiffs’ attorneys to attack employers more easily on the basis of workplace safety negligence. In any case, careful benefit comparison often requires spreadsheets, detailed statutory analysis, and consulting with local attorneys who know the nuances of a particular state’s system (and oftentimes, the biases/predilections of the state’s judiciary).
Conflicts of Law and the Problem of Dual Recovery
When more than one state has jurisdiction, the possibility arises that an employee might file claims in multiple states. While most jurisdictions prohibit double recovery for the same injury, navigating these conflicts can be tricky. Attorneys must be vigilant about preventing overlapping awards that could expose employers to unfair liability or put the worker at risk of repayment obligations later.
In some cases, an employee may begin a claim in one state, receive partial benefits, and later attempt to pursue additional compensation in another jurisdiction. Courts have handled these situations differently depending on the statutes involved. Some states give credit for benefits already paid elsewhere, while others may deny jurisdiction if the worker has already accepted benefits in another state.
This means attorneys must be proactive in advising clients early. Workers should understand the implications of filing in one state before committing. Employers and insurers also need clear guidance to avoid duplicative payments. The attorney’s role is to anticipate these conflicts and guide the case toward a resolution that maximizes benefits without crossing into impermissible double recovery.
Procedural Variations and Practical Challenges
Even apart from jurisdiction and benefits, the procedural aspects of multi-state claims can create obstacles. Each state has its own rules regarding notice deadlines, statute of limitations, forms, and hearings. Missing a deadline in one jurisdiction could eliminate the worker’s right to file there, narrowing options and potentially harming the client’s overall case.
Attorneys should build timelines that account for every possible jurisdiction and keep meticulous records of communications with employers, insurers, and medical providers. It may be necessary to coordinate with attorneys licensed in other states if you are not admitted locally. Building relationships with colleagues across jurisdictions can be invaluable when navigating hearings, appeals, or administrative nuances.
Another procedural challenge is medical treatment. Some states give employees the right to choose their doctors, while others require employer-designated providers. This can become complicated if the worker is injured in one state but resides and receives treatment in another. Attorneys need to ensure medical evidence is admissible in the chosen jurisdiction and meets the state’s requirements for compensability.
The Role of Insurance and Employer Coverage
Employers operating in multiple states must ensure they have proper insurance coverage in each jurisdiction. Failure to do so can expose them to penalties and liability for benefits that should have been covered by insurance. Attorneys representing employers or insurers in multi-state claims should investigate whether the correct policies were in place and whether coverage applies across state lines.
For employees, the existence of proper coverage may affect the availability and timing of benefits. If an insurer disputes coverage due to state boundaries, the worker may face delays in receiving care or wage replacement. Attorneys must be prepared to challenge improper denials and ensure that clients are not caught in the crossfire of jurisdictional insurance disputes.
Remote Work and Its Impact on Jurisdiction
Remote work has changed the landscape of workers’ compensation law. Employees may live in one state, perform work in another, and report to a headquarters in yet another. This creates complex jurisdictional questions when injuries occur at home or while traveling for business.
Courts are still developing consistent approaches to remote work injuries, but attorneys should carefully analyze employment contracts, employer policies, and the actual circumstances of the injury. Was the employee performing work duties at the time? Was the injury related to the home office environment or employer-provided equipment? These questions determine whether a claim is compensable and which state has the right to adjudicate it.
Because remote work is not going away, attorneys handling workers’ comp cases must stay current on evolving case law and statutory amendments addressing this issue.
Strategies for Attorneys Handling Multi-State Claims
Managing a multi-state case requires a combination of legal knowledge, strategic thinking, and practical coordination. Attorneys should approach these cases with a structured plan that accounts for both legal requirements and client objectives.
First, thoroughly investigate the facts of the case. Where did the injury occur? Where does the employee live? Where was the employment relationship formed? Where is the employer headquartered? Each of these details could affect jurisdiction.
Second, compare potential benefits across jurisdictions. Don’t assume that filing in the state of injury is always best. Sometimes, a different jurisdiction provides greater benefits or faster resolution. At the same time, be cautious about filing in multiple states without a clear plan to avoid dual recovery problems.
Third, communicate with clients clearly about their options. Injured workers often don’t understand why multiple states might be involved or how filing in one jurisdiction could affect their rights. Explaining the pros and cons of each choice helps clients make informed decisions and reduces the risk of future disputes.
Finally, build a network of trusted colleagues in other states. No attorney can master every jurisdiction’s workers’ comp system. Having relationships with local attorneys allows you to collaborate when necessary, especially for hearings or appeals in states where you are not licensed.
Ethical Considerations in Multi-State Cases
Ethics play a central role in workers’ comp practice, and multi-state cases present unique challenges. Attorneys must ensure they do not practice law in jurisdictions where they are not admitted, even while advising clients on the broader strategy. Collaborating with licensed counsel is often necessary to stay within ethical boundaries.
Conflicts of interest can also arise. For example, if you represent an employer that operates in multiple states, you may be asked to advise on coverage disputes that affect employees in different jurisdictions. Clear communication, written disclosures, and careful attention to professional responsibility rules are essential in these situations.
The Future of Multi-State Workers’ Comp
As the workforce continues to evolve, multi-state cases will only become more common. The rise of gig work, remote employment, and national or international operations means that jurisdictional issues will be at the forefront of workers’ compensation practice. Attorneys who develop expertise in this area position themselves as invaluable resources for clients navigating a complicated system.
We may also see legislative reforms aimed at addressing inconsistencies between states. Some commentators have argued for greater uniformity in workers’ comp laws to reduce the confusion and inefficiencies of multi-state claims. Until then, attorneys must be prepared to navigate a patchwork of state laws with creativity and precision.
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