GQ Corner
Q. I have a claim involving an employee who was injured in another state, who wants to pursue a Texas WC claim. What factors do I need to consider in determining whether or not he can receive Texas WC benefits?
A. When evaluating the jurisdiction for workers’ compensation claims arising outside of Texas, you must review the provisions outlined in Chapter 406, Subchapter D, regarding “Extraterritorial Coverage.”
From the outset, Sec. 406.071 of the statute plainly states that an employee injured while working in another jurisdiction (or their legal beneficiary) qualifies for Texas workers’ compensation if the injury would be compensable in Texas and the employee has significant contacts with the state or the employment is principally located in Texas.
- Significant Contacts (Sec. 406.071(b)):
-
-
- Significant contacts are established if the employee was hired or recruited in Texas and was injured within one year of hire or worked in Texas for at least 10 working days in the 12 months preceding the injury.
- Texas Mutual Insurance Company v. Hofer Builders, Inc.: (1) The statute distinguishes between the employee’s location during hiring/recruitment and once employment begins. (2) “Hired or recruited in this state” focuses on physical location, emphasizing Texas laws’ benefit for Texas employees.
-
- Principal Location (Sec. 406.072):
-
-
- The principal location is where the employer has a place of business from which the employee regularly works, or where the employee resides and spends a substantial part of their working time.
- Texas Mutual Insurance Company v. Hofer Builders, Inc.: (1) The employer’s office location doesn’t establish principal employment location if all work occurs outside Texas. (2) Focus on whether the employer had a place of business in Texas from which the employee regularly worked.
-
- Agreement on Principal Location (Sec. 406.073):
-
-
- Employees with regular travel between Texas and another jurisdiction may agree in writing with the employer on the principal location of employment.
-
- Effect of Compensation Paid in Other Jurisdiction (Sec. 406.075):
-
-
- If an employee successfully pursues remedies in another jurisdiction and receives benefits, they may not recover under Texas workers’ compensation.
- Benefits received elsewhere are credited against potential Texas benefits if the employee did not actively pursue those benefits.
-
Should you wish to discuss your extraterritorial jurisdiction claim with an FOL attorney, please feel free to reach out to us at GQS@fol.com.
FOLIO
