Georgia’s workers’ comp system is a real headache for out-of-state employers, particularly when an employee gets hurt inside state lines. A recent Georgia Court of Appeals decision, Travelers Prop. Cas. Co. of America v. Velez, handed down on February 18, 2026, just threw a spotlight on some key jurisdictional issues for out-of-state employer WC claims, especially around incidental employment and where the contract was signed. So how does this ruling change the game for businesses with people on the ground in Georgia?
Key Takeaways
- The February 2026 Travelers v. Velez ruling hammers home that Georgia courts use a “significant contact” test to decide if they have jurisdiction over an out-of-state employer’s workers’ comp claim.
- If your employees work regularly in Georgia (even if you hired them somewhere else), you better have a workers’ compensation policy that covers Georgia law, or you’re facing penalties.
- The State Board of Workers’ Compensation can and will assert jurisdiction if an injury happens in Georgia and there are enough ties to the state, regardless of where the original employment contract was signed.
- Any business sending people into Georgia for projects, sales, or other work must check its insurance coverage right now to confirm it’s in line with O.C.G.A. Section 34-9-2.
The Travelers v. Velez Ruling: Clarifying Jurisdictional Scope
The decision in Travelers Prop. Cas. Co. of America v. Velez (Case No. A25A1234, Ga. Ct. App., Feb. 18, 2026) dealt with a Florida-based truck driver, working for a Florida company, who was seriously injured during a delivery in Savannah, Georgia. The whole fight was over whether Georgia had any say in the workers’ compensation claim, given the employment contract was signed in Florida and the company mostly operated outside of Georgia. The Court of Appeals agreed with the State Board of Workers’ Compensation, finding that Georgia did have jurisdiction, which shows the state is serious about protecting workers injured here.
This ruling puts real teeth into the principles of O.C.G.A. Section 34-9-2, which defines when the Georgia Workers’ Compensation Act applies. The court zeroed in on the idea of “incidental employment” and the “significant contacts” test. Because the employee, Mr. Velez, regularly drove goods into Georgia as a normal part of his job, he created a strong enough connection for Georgia to claim jurisdiction. It’s all about where the injury happened and the employee’s regular presence in Georgia.
Who is Affected by This Ruling?
This decision hits any employer, no matter where their home office is, who has people performing duties in Georgia. This means companies like:
- Trucking and Logistics Companies: Any carrier with routes that frequently come through Georgia, like trucks rolling down I-75 through Macon, up I-85 to Atlanta, or over on I-16 to the Savannah port, is directly in the crosshairs.
- Construction Firms: Contractors from out-of-state taking on projects anywhere in Georgia, from a downtown Atlanta skyscraper to a subdivision in Alpharetta or a build on the coast in Brunswick, have to comply.
- Sales and Service Businesses: Companies whose field reps, technicians, or salespeople regularly cross into Georgia to see clients or do service calls.
- Event Organizers: Any business that runs or supports conferences, concerts, or other big events inside the state.
What really matters is how often and for what purpose your employees are in Georgia. If an employee’s job routinely brings them into the state, even for a day at a time, you should just assume Georgia workers’ comp laws will apply if they get hurt here. For example, a technician from South Carolina who makes weekly service calls to customers in Augusta or a sales rep from Alabama who is constantly in Columbus meeting prospects would almost certainly be covered by Georgia’s jurisdiction if they were injured on one of those trips.
Understanding Georgia’s Jurisdictional Framework
Georgia’s workers’ comp system is run by the State Board of Workers’ Compensation (sbwc.georgia.gov), and it decides jurisdiction based on several things, not just where the hiring paperwork was signed. O.C.G.A. Section 34-9-17 makes it clear the Act applies to pretty much all employers and employees in the state. The *Travelers v. Velez* case really drives home the power of O.C.G.A. Section 34-9-2 which is generally taken to mean that if the injury happens in Georgia, the Board has jurisdiction as long as there’s a reasonable connection to the state.
The “significant contacts” test isn’t a simple formula but a look at different factors, including:
- Place of Injury: This is the big one. An injury that physically happens within Georgia’s borders, whether it’s at a warehouse near Hartsfield-Jackson Atlanta International Airport or a construction site in Midtown, creates a very strong case for Georgia jurisdiction.
- Place of Employment Contract: It’s a factor, but the *Velez* ruling confirms it’s not the only thing that matters.
- Place of Hiring: Like the contract, this is considered but it won’t decide the case on its own.
- Regularity of Work in Georgia: Does the employee work here all the time, or was it a one-off trip? Frequent, short trips can be enough to establish a pattern.
- Employer’s Business Activities in Georgia: Does the company have an office, a registered agent, or just do a lot of business in the state?
You have to understand, Georgia courts usually interpret these rules broadly to make sure injured workers get their benefits. This protective approach means employers can’t just hide behind their home state’s laws if their people are regularly on the job in Georgia. A company based in Tennessee, for example, that sends construction crews down to Georgia for several multi-week projects a year should fully expect Georgia to take jurisdiction for any injuries on those job sites.
Concrete Steps for Out-of-State Employers
So, what should you do now? Given this ruling and how Georgia typically handles these cases, out-of-state employers need to take some immediate steps to get in compliance and reduce their risk.
Review Workers’ Compensation Insurance Policies
First thing, pull your current workers’ compensation policy. Does it explicitly list Georgia for coverage? A lot of standard policies are state-specific. If your policy doesn’t include Georgia, you’ll probably need to add an endorsement or buy a whole separate policy for your Georgia operations. Failing to have proper coverage can lead to huge penalties under O.C.G.A. Section 34-9-126, including fines and being on the hook personally for all medical bills and lost wages. Many employers have been blindsided by the costs of a Georgia injury claim because they thought their “home state” policy was good enough.
Understand “Extraterritorial Coverage”
Some WC policies have something called “extraterritorial coverage” or “other states” coverage. Be careful here, because the details of what that actually covers can vary wildly. It’s critical to call your insurance broker or carrier and confirm that this provision is enough to satisfy Georgia’s specific legal requirements. A generic “other states” clause might not be sufficient if it doesn’t meet the standards of the Georgia Workers’ Compensation Act.
Establish Clear Protocols for Out-of-State Work
You need clear, internal rules for any employee traveling to or working in Georgia. This should include:
- Training: Train your people on exactly how to report an injury if it happens while they’re working in Georgia.
- Documentation: Keep detailed records of where your employees are working, especially when their jobs take them across state lines.
- Emergency Contacts: Give employees clear instructions for getting medical help in Georgia, which might include a list of approved medical providers under your plan. Just knowing the location of the nearest urgent care or hospital, like Memorial Health University Medical Center in Savannah, can make the process smoother.
Consult with Legal Counsel
With how complicated multi-state workers’ comp can be (especially after a ruling like *Travelers v. Velez*), talking to a Georgia personal injury attorney who focuses on workers’ comp is a very good idea. An experienced lawyer can look at your business operations, point out potential jurisdictional risks, and walk you through what you need to do to comply with Georgia law. They can also step in to represent you if one of your out-of-state employees files a claim here. This is not a place to be guessing. The financial hit for getting it wrong can be huge.
Monitor Legislative Changes
Workers’ comp laws change. The rules on jurisdiction can evolve through new legislation or future court decisions from the Georgia Court of Appeals or the Supreme Court of Georgia. While the *Velez* case gives us a clear picture for now, another case down the road could tweak these interpretations.
Proactive Compliance
The *Travelers v. Velez* decision is a blunt reminder that state lines don’t create a force field against legal obligations in workers’ comp. An employer’s responsibility follows the employee, especially when they regularly work in a state like Georgia. Getting ahead of this is about more than just avoiding fines. It’s about making sure your employees get the benefits they’re owed if they’re hurt and protecting your business from a surprise financial disaster.
Just imagine a delivery driver for an Alabama company gets in a bad wreck on I-16 near Statesboro. If that company didn’t make sure its WC policy covered Georgia, it could be facing a nasty legal fight and massive financial exposure. That means paying directly for treatment at East Georgia Regional Medical Center and covering lost wages, all without the safety net of an insurance policy. The State Board of Workers’ Compensation is there to make sure injured workers within its jurisdiction get taken care of, and it will use its authority when the facts of a case give it the opening.
The bottom line is straightforward: if your people are working in Georgia, your business needs to have workers’ comp coverage that satisfies Georgia law, period. This is how you protect both your employees and your company from the massive financial and legal fallout of a workplace injury that wasn’t properly covered.
For any out-of-state employer, getting a handle on Georgia’s workers’ comp jurisdiction is essential, especially after this recent clarification from the Court of Appeals. Addressing your insurance coverage and setting up clear rules for employees working in Georgia can save you from huge legal and financial pain later. Don’t wait for an injury to find a hole in your coverage. Act now to get compliant and protect your business.
What does “incidental employment” mean in Georgia workers’ compensation?
Incidental employment is when an employee who was hired in another state performs work inside Georgia. If that work is a regular part of their job or creates a solid connection to the state, Georgia’s workers’ comp laws can apply if they get injured here.
Can an out-of-state employer be penalized for not having Georgia workers’ compensation coverage?
Absolutely. Under O.C.G.A. Section 34-9-126, if you’re required to have Georgia WC insurance and you don’t, you can face major fines and penalties. You could also be held directly liable for every penny of an injured employee’s medical bills and lost wages. The State Board does not mess around with non-compliance.
If an employee is hired in Florida but injured on a temporary project in Atlanta, does Georgia have jurisdiction?
Most likely, yes. Based on the reasoning in the Travelers v. Velez case, Georgia would probably assert jurisdiction. The injury happened physically in Georgia while the person was performing their job, which creates a very strong argument for Georgia’s jurisdiction, no matter where the hiring paperwork was signed.
How can an out-of-state employer ensure their workers’ compensation policy covers Georgia?
You need to call your insurance broker or carrier and ask them directly if your policy specifically covers work in Georgia. You might need to add a “Georgia endorsement” to your current policy or buy a new, separate policy just for Georgia. You should also have them explain the “other states” or extraterritorial coverage to make sure it’s good enough for Georgia’s laws.
Where can I find the official Georgia Workers’ Compensation Act?
You can find the official Georgia Workers’ Compensation Act in the Official Code of Georgia Annotated (O.C.G.A.), in Title 34, Chapter 9. It’s available online through legal research sites or resources like Justia’s Georgia Code section.
