Recruiting Workers In Colorado To Work In Another State? Watch Out! The Workers' Compensation Act Of Colorado Applies When You Least Expect It Due To The Extraterritorial Provision

The Colorado Court of Appeals issued its decision in Youngquist Bros. Oil & Gas, Inc. v. Indus. Claim Appeals Office of the State of Colorado and Travis Miner, 2016 COA 31, last week. This decision is important for companies recruiting workers in Colorado to work in another state - the Workers' Compensation Act of Colorado may apply when you least expect it. The full text of the decision can be found here.

The facts of the case are simple. Youngquist Brothers Oil & Gas, Inc. ("Youngquist"), an oil and gas company with operations in North Dakota, hired its workforce primarily from Texas, Oklahoma, Indiana and Colorado. Youngquist Bros. Oil & Gas, Inc. v. Indus. Claim Appeals Office of the State of Colorado and Travis Miner, 2016 COA 31, ¶ 3. Travis Miner ("Miner") was one such Colorado-recruited employee.

Youngquist maintained workers' compensation insurance in North Dakota, but not in Colorado. Id.

While living in Grand Junction, Colorado, Miner submitted his online application for a position with Youngquist. Id. at ¶ 4. At the conclusion of a phone interview with a Youngquist representative, Miner was offered a job, which he accepted. Id. Youngquist flew Miner to North Dakota the following day and arranged and paid for the flight; once there, a Youngquist representative met Miner at the airport and transported him to Youngquist's offices and after completing paperwork and passing a preliminary drug screen, Miner began his first evening rig shift. Id. at ¶¶ 4-5, 19.

On his second evening shift, Miner slipped and fell down the rig's stairs, injuring his back. Id. at ¶ 6. Miner did not immediately report the injury to his supervisor; instead, he worked three more shifts before reporting that he was hurt. Id.

Youngquist agreed to allow Miner to seek medical treatment in Colorado. Id. at ¶ 7. His treating physician concluded that although Miner had a pre-existing back injury, the condition was worsened by his work-related fall. Id.

North Dakota Workforce Safety and Insurance denied Miner's workers' compensation claim without a hearing, apparently due to his pre-existing back condition. Id. at ¶ 8.

Miner then filed a claim for workers' compensation benefits in Colorado and after a hearing, it was determined that Miner was hired in Colorado and his claim was therefore subject to the Workers' Compensation Act of Colorado. Id. at ¶ 9. Miner was found to have suffered a compensable work-related injury and he was awarded benefits. Id. Further...