It provides for enforcement of the respective labor laws in each jurisdiction in each province, state, and territory in Canada, Mexico, and the USA, including workers' compensation.
Western states have a strong history of economic ties to Canada and Mexico.
Western states have a wide variety of workers' compensation laws, indemnity benefits, provisions for medical cost containment, procedures for resolving disputed workers' compensation claims, provisions for self-insurance for employers, and other related workers' compensation statutes. Canadian workers have extraterritorial workers' compensation coverage for up to six months through the provincial or territorial workers' compensation boards that cover them in Canada. Mexican workers have extraterritorial workers' compensation protection only if their employer registers them with the Mexican Social Security Institute and a voluntary additional premium is paid by the worker for such coverage. The legal system in Mexico is significantly different from those in the United States and Canada. This presents significant challenges to state workers' compensation systems and their stakeholders, including the applicability of medical fee schedules, cross-border legal service of process, coverage related problems regarding who is covered and under what circumstances, dual compensation for workers filing in two countries, and issues related to health care provider selection, payment, and information exchange.