November 21, 2007
W. Peak

The Tennessee Supreme Court recently issued a decision that will place strict limits on workers’ compensation benefits for telecommuters, i.e. employees who work from home.  In Wait v. Travelers Indemnity Ins. Co. of Illinois, the Supreme Court reviewed whether injuries sustained by a telecommuter from a third-party assault were compensable.  In this case, Kristina Wait worked as an executive with a large non-profit association.  Because of a lack of office space, Wait performed her job duties from her home (primarily via computer and telephone).  There was no requirement in her job to open her home to the public.  On September 3, 2004, Wait was severely assaulted during the workday by a third party.  She suffered several broken bones, stab wounds, and permanent nerve damage.

The Supreme Court ruled that Wait was not entitled to workers’ compensation benefits.  Even though her injuries occurred during the workday, the Court held that they did not “arise out of” her employment.   The Court ruled that the assault did not “emanate from a peculiar danger or risk inherent to the nature of the employment.”  Since the attack was not factually related to her work, it was deemed to not “arise out of” her job, and thus was not compensable. 

Given the increase in telecommuting by workers in recent years, this case is of particular interest.  For the first time, the Tennessee Supreme Court has decided whether an injury occurring at the home of a telecommuter is covered by workers’ compensation.  If the specific injury is not factually related to the employment, then in most circumstances it will not be compensable.