Temporary exposures: 90-Day Rule
Effective Sept. 17, 2014, the coverage requirement changed for out-of-state employers who have employees who are non-Ohio residents that only work in Ohio on a temporary basis. Ohio's workers' compensation laws now recognize the extraterritorial coverage of an out-of-state employer for 90 consecutive days. The 90-Day Rule is applicable to all industries, including construction. For payroll reporting purposes, employers only pay premiums to BWC for work performed in Ohio if a temporary period exceeds 90 consecutive days. See Ohio Administrative Code (OAC) 4123-17-23(C).
Ohio's claim exclusion
If an employee is a resident of a state other than Ohio, the workers’ compensation law or similar laws of a state other than Ohio cover(s) him or her. The employee cannot receive compensation and benefits from BWC for claims arising out of a temporary period not exceeding 90 consecutive days. The rights of the employee and his or her dependents under the laws of the other state are the exclusive remedy. This exclusion only applies to non-Ohio residents. See Ohio Revised Code 4123.54(H)(5) and OAC 4123-17-23(C).
Employing Ohio residents
Out-of-state employers with workers who are Ohio residents but work temporarily in Ohio have liability for claims that arise in Ohio. For payroll reporting purposes, employers must report wages and pay premiums to BWC for any work performed in Ohio.
It's not uncommon for an out-of-state employer to hire a sales person covering a geographical region, or a skilled worker to work remotely from their home in Ohio. This type of employee is an Ohio employee under the workers' compensation laws of Ohio with the wages for the employee reportable to BWC.
Foreign country employers
The 90-Day Rule is not applicable to residents of a foreign country. Out-of-state employers who have foreign employees working temporarily in Ohio must obtain Ohio workers' compensation coverage, report wages and pay premiums to BWC for any work performed in Ohio.
Hired to work in Ohio
Employers who specifically hire employees to work in Ohio must obtain coverage from BWC regardless of where they hire the workers. See OAC 4123-17-23(D).
Please refer to the Out-of-State Employers fact sheet for additional information, including answers to questions on how BWC applies the 90-Day Rule to common scenarios of out-of-state employers.