KEMI v. Burnett, No. 2013-CA-008134-WC (Ky.App. 2014): Extraterritorial coverage applies when an injury occurs out of state under a contract of hire made within the state and the employment is not principally localized in any state.
Burnett, an Indiana resident, became employed by Stilwell the owner of Deck Doktor, characterized as a mobile business, following negotiations in Kentucky where the two negotiated the terms, conditions, pay, rate and hours of Burnett’s full-time employment with Deck Doktor. Deck Doktor did not have an office location in Indiana or Kentucky as Stillwell conducted business out of his truck and via his cell phone. Although he performed 90% of his work in Kentucky, Burnett’s work injury occurred in Indiana. Thus, the issue of extraterritorial coverage under KRS 342.670(1)(b) became relevant. The Court found that Kentucky had jurisdication because (1) the contract of hire was made when the two met in Kentucky to discuss the terms of employment and (2) his employment was not principally localized in any state due to the mobile nature of the Deck Doktor operation.