Beyond Reciprocity

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Beyond Reciprocity

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Required Approvals Outside Reciprocity

State-to-State Institutional Approval, State Program Approval, and Employment Related Interstate Compliance

State-to-State Institutional Approval

Institutions may need state institutional approval outside SARA when they choose not to participate in reciprocity, are located in a non-SARA state, or offer an out-of-state activity that is not covered by SARA policy.

In those situations, institutions must follow the applicable approval requirements in each state, as directed by that state’s laws and regulations.

Suggested first steps for compliance:

  1. Determine what activities of the institution occur in a state other than the home state of the institution.
  2. Identify the states where the institution wants to conduct those activities.
  3. Determine whether each activity is regulated in those states.
  4. Obtain the appropriate compliance status, such as authorization, registration, exemption, or confirmation that the activity is not regulated.
  5. Check whether other state agencies impose additional requirements.

 

State Program Approval: Licensed Programs and Workforce Pell

Institutions must determine whether a professional licensing board requires program approval in the state where a student participates in program activities. State program approval may include the following examples of responsibilities:

  • program review, 
  • approval to offer clinical experiences, or 
  • faculty licensure to teach in the state. 

These requirements are separate from institutional approval by a state higher education agency or through state authorization reciprocity. 

Institutions intending to offer programs for Workforce Pell grants must obtain program approval by their home state.  Additionally, for Workforce Pell programs offered by interstate distance education, specific state program approval is necessary by the state where the student is located.  That program approval must be obtained through bilateral agreements between the home state and the state where the student is located.


Employment-Related Interstate Compliance

Institutions with employees, faculty, or student placements in other states may need to satisfy employment-related compliance requirements in those states. These requirements can arise from several different state agencies and may include:

  • Business registration or foreign entity registration with the Secretary of State, Treasury, Department of Revenue, or similar state agency.
  • State tax withholding or payroll account requirements for employees or faculty working from another state.
  • Workers’ compensation insurance requirements for remote employees, faculty, staff, or students participating in field placements.
  • Labor agency approvals or registrations for certain student work-based learning activities, including internships, job shadowing, mentoring, or other practical experience opportunities.

Summary: Review where employees, faculty, remote workers, and student placements are located; identify which state agencies regulate those activities; and confirm whether business registration, tax withholding, workers’ compensation, or labor approval requirements apply.

 

Examples of Employment-Related State Oversight:

  • Business Registration and State Agency Requirements
    • Some states require out-of-state institutions that offer education or have employees working in the state to register with the Secretary of State, Treasury, or Department of Revenue. If registration is required, the institution may also need to obtain an Agent for Service of Process. SARA does not cover this registration process or any related agent-for-service requirement. 
  • Tax Withholding for Out-of-State Employees
    • An institution may need a withholding account when it pays compensation to an employee or faculty member working from another state, so state income tax can be deducted and withheld as required.
  • Labor Requirements for Employees and Student Placements
    • Workers’ Compensation Insurance for Remote Faculty and Staff -Institutions that employ faculty or staff who work remotely from another state may be required to provide workers’ compensation insurance in the state where the employee is located. Requirements vary by state, so institutions should confirm the applicable rules.
    • Workers’ Compensation Insurance for Field Placements: Colorado 
    • Internship Registration Requirements
      • Internship Registration Requirements: New Hampshire 
        • New Hampshire requires certain programs—such as internships, job shadowing, or mentoring programs to be approved by the Labor Commissioner when students participate for practical experience and are unpaid or paid at a sub-minimum rate. *Note that the statute has two components. The first relates to all students and the second separately for individuals with disabilities. The corresponding regulation clarifies by indicating students "or" individuals with disabilities.

Beyond Reciprocity Resources