In this post-pandemic world, it's become clear to most employers that work-from-home arrangements are here to stay. Most employees and employers have adjusted to this "new normal" in many respects — after all, we've now had over two years of practice and learned that many workers can be just as efficient in a remote work setting. Still, there are many issues that employers have yet to grapple with or address. Employees in the workplace are protected by both state and federal laws. One issue that many employers may not have yet considered is whether employees must be covered by workers' compensation insurance if they are injured while working at home. For employers who permit employees to work remotely from other states, the answer may depend on the precise state law that applies to the employee's physical work location.

Is the remote worker covered?

Nearly all employers are required to carry workers' compensation insurance if they have even one employee. Workers' compensation insurance provides benefits to employees who are injured "in the course of employment." While every state is slightly different, most employees are entitled to have their medical bills paid and receive wage replacement benefits if they are unable to work during recovery. For more serious injuries, employees may receive permanent disability benefits or impairment benefits on a long-term basis.