Workers’ compensation insurance is crucial for any business—no matter how many employees you have or where they’re located. As a business owner or HR manager with a lot on your plate, handling workers’ comp can be slightly overwhelming. When you factor in managing policies across multiple states, you could be faced with even more unique challenges.
Business owners or HR managers who have teams in different states or manage remote workers will have to juggle the complexities of multi-state workers’ compensation. Compliance issues might arise due to differing rules and regulations depending on where your workers are located. If you manage workers in different states, keep reading to learn about the key compliance challenges across states, solutions for managing multi-state workers’ comp, and the role of PEOs in multi-state compliance.
Key Compliance Challenges Across States
Remaining compliant with state and federal laws is an essential part of workers’ compensation management, as noncompliance could result in large fines or penalties. When you manage employees across multiple states, however, you may have some challenges to navigate.
Correct Classification
First and foremost, correctly classifying your workers has a direct impact on workers’ compensation coverage. The rules and regulations around employee classifications may vary depending on what state you’re in. Understanding whether your workers are considered employees or independent contractors is imperative when it comes to workers’ comp.
Carriers Across States
Another major challenge for workers’ compensation across state lines is that most insurance carriers are not licensed to operate in all 50 states. This can make finding carriers somewhat tedious—particularly when you have employees all over the country. As a business owner or manager, you likely have very little time to search for great coverage in multiple states.
Employees Temporarily Working Out-of-State
Whether you have a team of workers in another state or you manage remote employees, time tracking can be somewhat complicated. Keeping track not only of regular working hours, but also overtime and travel expenses for teams coming from other states can be challenging.
Solutions for Managing Multi-State Workers’ Comp
Most workers’ compensation insurance companies aren’t licensed to operate in every state. Finding tailored workers’ comp for multi-state coverage is essential when it comes to getting the coverage you need.
As a business owner or HR manager, it’s nearly impossible to keep track of your employees hours, overtime, and—if they’re working out-of-state temporarily—travel expenses. Some companies have online portals for their employees that are accessible via smartphone that allow them to track their own hours in real time.
Solutions for managing multi-state workers’ compensation may seem straightforward, but they can be difficult to implement without the proper support.
Role of PEOs in Multi-State Compliance
PEOs (professional employer organizations) play a huge role in multi-state workers’ compensation compliance. These organizations step in to handle the administrative tasks of your business, giving you time and space to focus your attention on strategy and growth.
PEOs specialize in compliance—they aren’t limited to understanding the rules and regulations of one state. They have knowledge of state-specific regulations all over the country. This means that when it comes to correctly classifying employees and getting the coverage they need, they’re well-versed in the requirements for your exact location.
They also work with multiple insurance companies across multiple states. One of the major benefits of working with a PEO is that you can rest assured that you’re getting the best coverage possible for your workers. Because PEOs have multiple clients all over the country, they’re able to negotiate more affordable rates—locking in better coverage for your organization than what you may receive otherwise.
PEO software is another perk of a co-employment partnership. When you work with a PEO, you’ll have an online portal that gives you access to your personal data, paystubs, workers’ compensation information, paid time off, and sick leave. This means all employees will have the ability to clock in and out right from their phone—automatically accounting for overtime and travel time.
Managing Multi-State Workers
If you’re a business owner or HR manager with workers across multiple states, navigating multi-state workers’ compensation can be overwhelming. Partnering with a PEO is a great way to get the support you need in correctly classifying your workers, managing insurance across state lines, and handling employees who are temporarily working out-of-state.
If you’re ready to streamline your multi-state workers’ compensation management, reach out to OCMI workers’ comp today!