This scenario illustrates the complex interplay between workers’ compensation and short-term disability claims, while adding in the wrinkle of working from home.

Workers’ compensation case law has not kept up with the recent changes in work-from-home norms caused by the COVID-19 pandemic. Workers’ compensation laws vary from state to state, but generally, working from home is seen as an extension of the employer’s workplace. However, if an employee only incidentally works from home, an injury occurring in the home may not be covered under workers’ compensation, depending on the state where the injury occurred. Course and scope claims have various factors to consider, and there is no one size fits all in the arena.

For example, our scenario may not be covered under New York’s workers’ compensation laws, depending on the totality of facts of the situation. Kirchgaessner v. All. Cap. Mgmt. Corp., 39 A.D.3d 1096, 1097, 834 N.Y.S.2d 392 (2007). However, in Pennsylvania, our scenario would be covered under the state’s workers’ compensation regulations. Verizon Pennsylvania, Inc. v. W.C.A.B. (Alston), 900 A.2d 440, 445 (Pa. Commw. Ct. 2006).
Short-term disability is usually offered by employers as income replacement when an employee is unable to work due to their disability. An employee who is injured while working from home, as in this scenario, may have their short-term disability benefits impacted by workers’ compensation. Short-term disability benefits are driven by the employer’s plan language, which will outline the employees’ benefits as well as any key provisions regarding administration of the benefit. Generally, workers’ compensation is addressed as an exclusion to short-term disability benefits or a deductible source of income.
When workers’ compensation is written as an exclusion, an employee would not be eligible for short-term disability while in pursuit of (or with the acceptance of) workers’ compensation. If workers’ compensation is addressed as a deductible source of income, then an employee may be approved for workers’ compensation and short-term disability benefits with the caveat that the short-term disability benefit will be reduced by the amount of workers’ compensation income received.
In summary, the outcome of this scenario depends on many factors, including the state workers’ compensation laws, the language of the short-term disability plan, and the current evolution of work-from-home employees.