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WALSH Test – Five Tests For Workers Comp Jurisdiction

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Five Tests For Workers Comp Jurisdiction – WALSH Test

The WALSH Test almost never fails to choose the correct state jurisdiction for a claim.  As I posted last time, Mr. Walsh is going to help us out with Workers Comp jurisdiction. See my last post for the original question. I was taught this many years ago.

Graphic Of Gavel On Book Five Areas WALSH test With Scale On Background
StockUnlimited

If an employee is injured that has a multi-jurisdiction problem, the WALSH test is a great one to evaluate the jurisdiction. WALSH stands for Worked, Accident, Lived, Salaried, and Hired. I have seen a Workers Comp judge actually use this test.

W – where does the injured employee work most of the time?
A – where did the accident occur?
L – where did the employee live?
S – where was the employee paid from – where was check cut?
H – where was the employee originally hired?

The W carries the most weight. The H carries the least.   No weighting factor exists that can be assigned to each of the variables.  Each state’s variable weight requires a subjective assignment.

Yes, I know the test is not foolproof and does not work in all jurisdictions. It is a great starting point.

If one applies this test to the original question – the premium auditor would have been correct – from a possible claims standpoint – to ask for a premium for coverage in another state for the subcontractor.

There are many complications in making the statement that the premium collection was correct. This is when a company may want to contact a premium consultant. I am not advertising our services.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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