Overseas Workers Not Covered by State Mandated Workers' Compensation Insurance

In a novel decision the New Jersey Appellate Division ruled that overseas employees are not entitled to coverage even though the workers' compensation act in New Jersey mandates compensation insurance for all employees. The court, utilizing the full faith and credit doctrine, rationalized that insufficient contacts existed between the State of New Jersey and the employees to require insurance.

The employer, a corporation headquartered in NJ, whose business was to employ volunteers to work overseas in an educational program, made an inquiry to the New Jersey Compensation Rating and Inspection Bureau (NJCRIB) for a determination as to whether or not coverage should be afforded to the employees who were based outside of New Jersey, not hired in New Jersey, and not actively engaged in the employment of the respondent in New Jersey. After the NJCRIB notified the employer that insurance was required, the employer sought a declaratory action and judicial interpretation.

International School Services, Inc. v. NJ Department of Labor and Workforce Development, ___ A2d _____ Docket No. A-5722-07T3 (App.Div. 2009). Approved for publicatoion July 10, 2009.