Workers’ Compensation for Remote Employees
With more and more employers switching to a fully-remote or hybrid work model, it’s crucial to understand how working-from-home impacts workers’ compensation.
Typically, telecommuters are covered under workers’ compensation for compensable injuries and illnesses sustained at home. In other words, if an injury would have been covered if it was sustained in the workplace, it will likely be covered if it occurs at home.
Workers’ Compensation Basics
Generally speaking, an injury or illness is covered by workers’ compensation if the following two conditions are met:
The injury or illness occurs “arising out of” the employment
The injury or illness occurs “in the course of” the employment
A work location that is controlled by the employer is not one of the requirements.
“Arising Out of” Employment
Courts have generally interpreted the condition that an injury or illness “arising out of” employment must require that a risk or hazard directly associated with the employment be the actual cause of the workplace injury. For remote employees, the risks and hazards encountered while working from home are considered to be risks and hazards of the employment.
An employer’s lack of control over an employee’s home office is irrelevant to the analysis. Rather, employers have the same legal responsibility to provide a safe work environment for remote employees as on-site workers.
“In the Course of” Employment
Whether an injury or illness occurs “in the course of” employment depends on when it happens. This means that the employee must be acting in the employer’s interest when the injury occurs or the illness is developed. While a claim will satisfy this element when an accident occurs “on the clock,” exceptions may exist for less clear-cut situations.
Limiting Workers Compensation Liability for Remote Employees
Even though employers can’t control the environments in their employees’ homes, they can try to limit exposure to workers’ compensation liability for their remote employees.
One of the most important steps an employer can take to limit liability is to update the employee handbook to include work-from-home-specific guidelines. For instance, the handbook should set expectations about an employee’s work area and detail both ergonomic and other safety measures. Establishing consistent work, meal, and break times can also help clarify and limit the times when an injury can occur “in the course of” employment.
As workplace models rapidly change, it’s vital that employers quickly adapt to these new work environments. The best strategies for identifying safety risks and reducing workers’ compensation liability will be developed in collaboration with your workers’ compensation provider and a knowledgeable employment lawyer.