Also i had to use ‘Formula evaluates to true’ instead of easy ‘Criterias are met’ as owner ids are not available in this. Here is the formula i used.
AND( ISPICKVAL( Status ,”New”) , BEGINS(OwnerId, “00G”) ,not( IsClosed ) )
Now coming to other stuffs
Realized that Case Escalation cannot trigger a workflow. Case escalation would cause an ‘isEscalated’ flag to be checked. I assumed that it can be used to trigger a workflow. i used the same entry criteria in workflow as in the escalation rule and used time dependent action instead. Thankfully my use case needed field updates only for the first time the case is escalated.
Couple of more things changes to formulae field would not trigger the workflow and so also field update from a workflow. This link might be useful Workflow considerations
If you could find if salesforce has documented somewhere which all will trigger a workflow, Let me know