Do you or your employees go across state borders to work in other states?
If so, be sure your Workers’ Compensation policy covers these additional workplaces. For example, the State of New Hampshire recently began to enforce its law requiring employers with any employee doing any work in New Hampshire to show NH in Item 3A of its Workers’ Compensation policy.
What is item 3A?
It shows the states where you have employees working. If your employee is injured in another state, they have the option of electing to receive benefits available through their home state or the other state. If your policy does not reflect that other state in item 3A, the insurance company can choose to pay no benefits at all or to pay up to the benefits required by the state in which your policy is purchased – and you as the employer would have to pay the difference. Your policy will also need to list your payroll by classification for the State of NH.
Why has NH changed?
It’s not really a change, but the State of NH has begun to enforce these provisions of its law to ensure that: 1) NH is notified of injuries occurring in the state; 2) appropriate rates for the State of NH are being charged for WC exposures; and 3) premium taxes are collected on payroll for work done in NH.
If I have employees working in New Hampshire, what happens if my policy doesn’t include NH under item 3A?
New Hampshire law provides for penalties of up to $2,500 fine in addition to up to $100 per day per employee retroactive to day one of work once the State of NH discovers the situation.
Every state can have its own unique workers' compensation requirements. Make sure your policy is in compliance.
New Hampshire is just one example of a change in the New England market. Similar situations can occur in other states, which is why it is important that you contact a Murphy Insurance Associate if you have have any employees working in other states, so that we can assist you in ensuring that your business is in compliance with their state regulations.