Employer's Guide to Workers Compensation for Remote and WFH Employees

As remote work becomes more common, employers face new challenges in managing their responsibilities.

Workers’ compensation insurance — a safety net that provides benefits to employees injured while doing their job — can be confusing for employers when your workers perform all their duties at home.

As more employees work from home (WFH), employers must understand how workers’ compensation operates in remote workplaces. This article is your guide to just that, as well as how Mosey can help you with business compliance in the virtual era.

What Is Workers’ Compensation?

Workers’ compensation is a type of insurance that provides wage replacement and medical benefits to employees who suffer work-related injuries or illnesses. In return, employees typically forfeit the right to sue their employer for negligence.

This coverage applies to all employees, including those who work remotely. If an employee is injured while performing work-related duties at home, they may still qualify for workers’ compensation benefits.

Why Does Workers’ Compensation Apply to Remote Employees?

Even when employees work from home, they remain covered by workers’ compensation. The key factor is whether the injury or illness occurred while the employee was acting within the scope of their employment.

Back pain from desk work, carpal tunnel syndrome from extensive typing, or tripping over equipment required for work, such as a laptop cord or file box, are all common workplace injuries in a traditional office.

The same injuries can occur in a home office. If the injury meets these criteria, it’s likely covered by workers’ compensation.

Additionally, workers’ compensation insurance only applies to injuries that occur in the workplace during work hours. If an employee is on their lunch break and slips on their wet kitchen floor, you’re not responsible for their injuries.

What Are a Remote Employer’s Responsibilities?

You must extend workers’ compensation coverage to remote employees in the same way you would provide coverage for those who work in a physical office.

That said, how you explain your safety practices and report any injuries may be different when you’re less in control of the space or situation.

Understand State Laws

Workers’ compensation laws vary by state. While coverage is mandatory in most states, the specific rules differ. Make sure your policy complies with the laws of the state where your employees reside and work.

Provide a Safe Work Environment

Although you can’t directly control employees’ home setups, you can help them create safe workspaces. You can explain to employees how to set up an ergonomic workstation designed to manage back strain and provide ergonomic equipment like chairs, desks, or monitor stands.

Emphasize the importance of taking breaks to move around and encourage employees not to overwork themselves.

Overworking can lead to repetitive strain injuries or tired workers who may be more prone to accidents or injuries. Help your employees establish a healthy work-life balance, which can be more difficult for those who work from home.

Report Injuries Promptly

If an employee reports a work-related injury, you must record the incident accurately, file a claim with your workers’ compensation insurer, and cooperate with any investigations. Workers’ compensation investigations are unique in work-from-home claims.

As the employer, you aren’t responsible for looking into the situation. Workers’ compensation will gather research independently and conclude whether the injury was work-related.

What Are the Challenges of Workers’ Compensation in Remote Workplaces?

Remote work introduces variables that differ from traditional office environments. Recognizing these challenges and implementing strategies to mitigate potential risks can help you prepare and protect your business.

Proving Work-Related Injuries

In remote work settings, determining whether an injury was work-related can be tricky. Employees must prove that the injury happened during working hours and was directly related to work activities.

For example, if an employee burns themselves on their coffee pot during a break, it may not qualify as work-related. It likely does if they trip over a printer cable while preparing a report.
The burden of proof rests on the employee, and it can be difficult for an employee to prove their injury was work-related when they work from home.

Ultimately, workers’ compensation will investigate the incident and reach a conclusion. You only need to provide details of the employee’s work activity during the time of the incident.

Lack of Oversight

Unlike in a physical workplace, employers have limited oversight of remote workspaces. This makes it harder to monitor safety standards or verify claims. Clear documentation and communication with employees can reduce these risks.

Use tools to determine when employees are actively working and make it easy for them to indicate when they’re on a break. A virtual time clock or a status tracker can help better separate work and home life.

Lastly, provide a quick and easy way for employees to report injuries as soon as they happen, which will establish if an injury occurred during the course of work duties.

How To Minimize Risks for Remote Workers

No employer wants to see their employees ill or injured. Taking proactive steps can reduce the likelihood of injuries and fraudulent claims while ensuring employees feel supported.

Create a Clear Remote Work Policy

A well-defined policy sets expectations for employers and employees alike. Review remote work laws and create a work-from-home policy guide. Include approved working hours and tasks, guidelines for setting up a safe workspace, and procedures for reporting injuries.

Conduct Safety Assessments

Offer resources to help employees evaluate their home offices. These could include ergonomic checklists (e.g., proper chair height and screen positioning), virtual consultations, prerecorded video podcasts with safety professionals, or reimbursement for approved home office equipment.

Educate Employees

Train your employees on workers’ compensation coverage, injury prevention strategies, and how to report work-related incidents. You can use a video presentation to walk them through their rights, the best safety practices to implement at home, and how to submit an injury report/

What Should You Do if a Remote Employee Is Injured?

If a remote employee is injured, they must file an injury report with you within a specific timeframe. Each state has different reporting requirements for different types of injuries.

Employees may have several months to report injuries to workers’ compensation, but they’re required to report injuries to you much sooner. Ideally, the employee should file a report with you as soon as possible.

Encourage the injured employee to seek medical attention and forward the report to your workers’ compensation insurance provider. The workers’ compensation process for remote employees is significantly different, as they won’t need to investigate your physical office.

Additionally, you only need to provide the employee’s work details, copies of your policy, and the injury report. If workers’ compensation needs more information, they’ll let you know. Be prepared to promptly respond to any requests that can assist with their investigation.

What Happens if an Injury Isn’t Work-Related?

If the injury is unrelated to work, workers’ compensation does not apply. If workers’ comp believes an employee is not eligible, they can deny the claim. In certain circumstances, employees may be able to appeal the decision.

The situation is much different if the claim is denied because it’s declared fraudulent. Workers’ compensation has a separate process for handling fraudulent claims — they’ll contact you if they need additional information for a fraud case.

How Do Workers’ Compensation Claims Work for Remote Employees?

The core process for filing a workers’ compensation claim is the same for remote and on-site employees.

While you may be less physically involved in the process because it occurred in someone’s home, your reporting procedures are nearly identical.

Employee Reports the Injury

The employee must inform their employer about the injury as soon as possible. Delayed reporting can complicate the claim or cause it to be denied.

Additionally, the employee can decide to file a claim immediately or wait to file it — as long as they do so within the state’s reporting window.

Employer Files a Claim

The employer submits the claim to their workers’ compensation insurer. The claim should include details about the injury and its circumstances, as well as the employee’s original injury report, work logs, and activity that demonstrates working hours and job duties.

Workers’ Compensation Conducts an Investigation

The insurer investigates the claim to determine if the injury is work-related and covered under the policy. It’s common for workers’ compensation to request additional evidence during the investigation stage. They may need clarification from you or your employee about work duties, the incident, and how the injury occurred.

Workers’ Compensation Decides

If the claim is approved, the employee receives benefits such as medical coverage, wage replacement for lost workdays, and rehabilitation costs. The employee will be required to follow up with an approved doctor and eventually be given clearance to return to work.

Since most work-from-home employees are considered light-duty workers, workers’ comp periods are generally shorter.

That said, if the claim is denied, an employee may be able to appeal the decision. If they qualify for an appeal, the investigation process can begin again. If they receive a denial without an appeal, the investigation ends, and the case is closed.

Simplify Workers’ Comp Compliance With Mosey

The easiest way to protect yourself and your employees is to create clear policies prioritizing safety while outlining work responsibilities. Your employee handbook can have a huge impact, especially for remote workers.

Mosey’s compliance platform makes it easy to maintain your employee handbook. Ensure policy and HR compliance while providing employees with safety guidelines that can help prevent workplace injuries, even when they work from home.

Book a demo with Mosey today to learn how we can streamline the compliance process while helping you keep your employees safe.

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