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.
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.
©J&L Risk Management Inc Copyright Notice
