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How Remote Working Is Changing Workers’ Compensation

Aayat AlibyAayat Ali
November 4, 2020
in News
Reading Time: 1 min read
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According to a new Global Workplace Analytics survey, 82% of workers stated they want to continue working from home after the pandemic has ended.

Knowing this, employers are evaluating how remote working could impact worker’s compensation insurance.

“For purposes of Code 8871, a residence office is a clerical work area located within the home of the clerical employee. Additional requirements are that the residence office must be separate and distinct from the location of the employer,” the National Council on Compensation Insurance’s Classification Codes and Statistical Codes Manual states. “In the event an employer operates a business from a residence and the employer has clerical staff at the employer’s business location residence, these clerical employees are classified to Code 8810.”

However, each state has its own rules of workers’ compensation when employees are working remotely. For instance, 8871 does not apply in California, Massachusetts, Montana, New Jersey, Oregon and Texas.

That is why employers need to ensure that employees are classified correctly when working from home due to the risks they could face in these environments. For example, if a worker falls while taking a work-related call, it could be covered under workers’ compensation.

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Aayat Ali

Aayat Ali

Aayat is an editor for the Daily Digest based in Lexington, Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces.

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