In the recent case of In Re: the Compensation of Mary S. Sandberg, an Oregon court overruled the Workers Comp Board and held that a JC Penney decorator who was allowed to work from home was covered by her workers' compensation policy when she tripped over her dog while unloading a van.
Because she could not safely store all of the items in the vehicle at one time, Sandberg stored the excess items in her home garage. Her employer instructed her not to store these excess products at the studio and told her to keep them at her home or any other place where they would be safe and dry. As a result, she used her garage to store samples that she from time to time would need to exchange with the samples and materials she kept in her van.
On the Saturday before the injury, a sale collection had ended and a new collection began the next day. To swap the fabrics in her van, Sandberg walked from her house toward the garage to change the fabrics. As she stepped outside she felt something move underfoot, noticed her dog, shifted her weight, lost her balance, and fell, sustaining a right distal radius fracture.
Sandberg also regularly performed some work tasks at home, such as preparing bids and other paperwork. Her employer denied the compensation claim, and that denial was affirmed by an administrative law judge and by the Workers' Compensation board.
The court analyzed compensability under Oregon law, which requires an injury to both arise out of and occur in the course of employment. The court focused on whether the injury arose out of the employment—meaning there must be a causal connection between the injury and a risk related to the nature of the work or the work environment.
The court reasoned that when the home premises are also the work premises, hazards encountered there in connection with performing work can be hazards of the employment. The court further noted that being a telecommuter or home-based worker should not, by itself, change that analysis; the question is whether the employment exposed the employee to an actual risk of injury. Because Sandberg was walking to her garage for the sole purpose of performing a work task and fell while moving about an area she had to use to perform that task, the court concluded her injury resulted from a risk of her work environment and therefore arose out of her employment.
The bottom line for employers is to make sure telecommuting or home-based employees have safe workplaces and appropriate coverages. Employers can review Workers' Compensation Insurance Overview and Workplace Safety and Workers' Compensation Issues for guidance on policies and loss-control practices, and if you need help, talk to an agent.
Frequently Asked Questions
Can a home-based injury be covered by workers' compensation?
Yes; if the injury arises out of and in the course of employment—meaning it is causally related to the work or the work environment—workers' compensation may cover a home-based injury.
What should employers do for telecommuting employees?
Employers should assess home-work areas, provide safety guidance, document any employer-required storage or work activities, and ensure appropriate workers' compensation coverage is in place.
What should an employee do after a work-related injury at home?
Report the injury to the employer promptly, seek medical care as needed, and follow the employer's claims reporting process to preserve the claim.