If you have a remote worker based in Washington, or a worker whose job is mainly performed here, you generally must cover those hours with the state fund at the Department of Labor and Industries (L&I). Washington looks at where the work is centered and where the person was hired, not where your office sits. That means an out-of-state company with a remote employee living and working in Washington usually needs a Washington account, and a Washington employer with a worker temporarily in another state may still owe coverage here. The rules exist to make sure a hurt remote worker is covered somewhere.
Who this is for: Washington employers with remote or traveling staff, and out-of-state employers with a worker based in Washington.
The short version
- A worker whose job is mainly performed in Washington is generally covered here, even if your business is elsewhere.
- A worker hired in Washington is generally covered here too.
- Out-of-state employers sending or placing workers in Washington usually need an L&I account.
- Reciprocal agreements with other states can let approved out-of-state coverage stand in some cases.
- You buy only from the state fund; there is no private carrier to shop in Washington.
How Washington decides which state applies
Washington covers a worker when the employment is principally localized here, meaning the person mainly performs the job in Washington, or when the contract of hire was made in Washington. A fully remote employee who lives and works in Washington is the clearest case: their work is centered here, so their hours belong on a Washington account, even if your headquarters is in another state. For workers who cross state lines, Washington can honor a reciprocal agreement with another state or a Canadian province, so an employer with approved coverage elsewhere may not need to double up. Because the details get technical, it is worth confirming the right state before a claim rather than after.
Common remote setups
| Setup | Washington coverage? | Notes |
|---|---|---|
| Remote worker living and working in Washington | Generally yes | Work is centered here, so hours go on a Washington account |
| Out-of-state employer, worker based in Washington | Generally yes | Open an L&I account for those hours unless a reciprocal agreement applies |
| Washington worker traveling to another state briefly | Often still Washington | Coverage usually follows where the job is centered and where hired |
| Worker split across states | Depends | Reciprocal agreements may decide which state covers the hours |
What to do if you are out of state
If your company is based elsewhere but you hire someone who will work in Washington, treat it as needing a Washington account unless you can show approved coverage under a reciprocal agreement. Set up the L&I account, report that worker's hours, and keep your other-state policy for the workers who belong there. It is also worth carrying stop-gap employers liability, since the Washington state fund pays a hurt worker's benefits but does not defend a lawsuit, and a remote-injury claim can still bring a suit. Sorting this out up front avoids being billed for uncovered Washington hours after an injury.
A Seattle example
Illustrative, not a quote. A software company headquartered in another state hires a developer who lives and works from home in Seattle. Because the developer's job is centered in Washington, the company opens an L&I account and reports the developer's hours here, keeping its home-state policy for the rest of the team. It also carries stop-gap employers liability so a workplace-injury suit would be defended. See our workers comp for tech companies page.
Real questions Washington owners ask
Do I need Washington workers comp for a remote employee here?
Generally yes. If the worker mainly performs the job in Washington or was hired here, you cover those hours with the state fund, even if your business is based in another state.
I am an out-of-state employer with one worker in Washington. What do I do?
Usually you open a Labor and Industries account and report that worker's hours, unless you can show approved coverage under a reciprocal agreement. Keep your other-state policy for the workers who belong there.
What decides which state covers a worker?
Washington covers a worker when the job is principally performed here or the person was hired here. For workers who cross state lines, a reciprocal agreement between states can decide which one covers the hours.
My Washington worker travels to other states. Are they still covered here?
Often yes. Coverage usually follows where the job is centered and where the worker was hired, so a Washington-based worker on a short trip generally stays on the Washington account. Confirm longer assignments.
Can my existing out-of-state policy cover the Washington worker?
Only if a reciprocal agreement lets it stand. Because Washington sells coverage through its own state fund, an out-of-state private policy usually does not satisfy the Washington requirement on its own.
Where do I buy the Washington coverage?
Only from the state fund at Labor and Industries. Washington does not allow private workers comp carriers, so you open an L and I account for the Washington hours rather than shopping for a policy.
Does the state policy defend me if a remote worker sues?
No. The state fund pays a hurt worker's benefits but does not provide a legal defense. Stop-gap employers liability added to your general liability policy covers that defense, including remote-injury claims.
Why Washington owners choose Morrow
- We shop the right market for you. In Washington, workers' compensation is sold only through the state fund at the Department of Labor and Industries (L&I), with no private carriers to shop, so we help you open and run your L&I account correctly and place the stop-gap employers liability and other business coverages the state fund does not include.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Washington guides
Every Washington business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Washington (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What workers comp does not cover
- Workers comp vs employers liability
- Washington tech workers comp
This guide is general information, not legal advice. Washington rules and penalty amounts can change, so verify current requirements with the Washington State Department of Labor and Industries (L&I) or a licensed advisor before you rely on them. Last updated: July 2026.