Jurisdiction as to Out-of-State Accidents

Often, the question arises as to whether an out-of-state accident is covered under Georgia Workers’ Compensation – that is, whether Georgia Workers’ Compensation will apply where an employee is injured while working outside the state of Georgia. Under the Georgia Workers’ Compensation Act, there are three prerequisites for an out-of-state injury to be covered:

1) either the employee’s residence or the employer’s place of business must be in Georgia;

2) the contract of employment must have been made in Georgia; and

3) the contract of employment must be one that was not made for work exclusively outside the state of Georgia.

The first requisite is pretty straightforward. The one issue that may arise is whether the employer has a place of business in Georgia. An employer may have a place of business in many different states; it does not have to be headquartered in Georgia, so long as it has a place of business here.

The second requisite deals with where the contract for employment was made; this does not mean the work has to be done in Georgia – the contract or deal for employment must be made here. The question often arises where the contract was made; generally, the contract is made in the state where the contract is accepted; that is, an offer made in one state, but accepted via telephone or by another method in Georgia, is said to have been made in Georgia.

Finally, the contract must be one that was not made for work exclusively outside the state of Georgia. Thus, even if the two prerequisites are met, if the contract or terms of employment are for work exclusively in a different state, the Georgia Workers’ Compensation Act will not apply as Georgia will not have jurisdiction.