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With a diverse economy that spans from the bustling urban centers of Minneapolis and St. Paul to the vast agricultural lands and manufacturing hubs, the land of 10,000 lakes protects its workforce across all sectors with its workers’ compensation laws.
Minnesota workers’ compensation insurance ensures that injured workers are fairly compensated for lost wages and medical expenses.
Here’s everything you need to know about Minnesota workers’ compensation.
Workers’ compensation is a state-mandated insurance program for nearly all employers in Minnesota. Employers are required to have an active policy before hiring their first employee. Workers’ compensation is designed to provide employees who suffer work-related injuries or illnesses with medical treatment and indemnity benefits.
Without workers’ compensation, the cost of a work-related injured employee’s medical treatment could become the responsibility of your business.
The Minnesota Department of Labor and Industry Workers’ Compensation Division administers the workers’ comp law in the state.
Passed in 1913, the Minnesota Workers’ Compensation Act requires employers with one or more employees to be covered by an active workers’ compensation insurance policy.
Businesses can obtain workers’ comp coverage through a partner like EverPeak Insurance. Alternatively, companies that meet the state’s requirements may also apply to be self-insured.
Some Minnesota businesses with high-risk levels may need an insurance agent to buy coverage through the assigned-risk pool. Employers can contact the Minnesota Workers’ Compensation Insurers’ Association for more information on the assigned-risk pool.
In Minnesota, workers’ compensation cases are "no-fault," which means that the amount a claimant receives will not increase or decrease regardless of who was at fault.
Policies include protection for full and part-time workers.
Some Minnesota workers’ comp exemptions may include, for example:
Workers’ compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases that may develop over time due to job conditions.
Workers’ comp insurance provides three types of benefits for work injuries:
Minnesota workers’ comp benefits include:
Employee workers’ compensation lost wage pay is 66 ⅔% of their average weekly wage.
As of 2023, the maximum Minnesota workers’ comp weekly benefit is $1,363.74.
In the event of a work-related injury or illness:
Employees in Minnesota should report their injury to their employer immediately. Within ten days of learning about the employee’s injury, the employer must fill out a First Report of Injury (FROI) form and file it with their workers’ compensation partner.
The employee should immediately seek medical attention.
If the workers’ compensation claim is accepted, an injured employee may begin to receive workers’ compensation benefits, such as lost wages and medical benefits.
Following their recovery, a worker is expected to resume work safely. If a work injury has left an injured employee unable to do any type of work, the employee might be entitled to permanent disability benefits.
In Minnesota, if a managed care plan covers a business’s employees, the injured worker must select a doctor from the plan or a provider selected by the workers' compensation partner.
Injured workers do not receive wage-loss benefits unless the disability results in ten or more calendar days of missed work. Wage-loss benefits will also be paid for the waiting period.
Injured workers who disagree with their claim outcome can file an Employee’s Claim Petition form at the Minnesota Office of Administrative Hearings.
Generally, unless exempt, employers in Minnesota must carry workers’ compensation insurance or qualify for self-insurance. Compliance with this requirement is essential to protect both the employer and employees.
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
In Minnesota, the penalties for businesses without workers’ compensation coverage include paying a penalty of up to $1,000 for each employee each week during the time the employer and their employees were not insured.
If a business remains uninsured with comp coverage, the employer may have to pay additional penalties.
In most cases, policies bar employees in Minnesota from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
Generally, a business’s workers’ compensation policy does not cover independent contractors in Minnesota. Workers' compensation laws typically apply to employees rather than independent contractors.
However, it's important to note that the classification of a worker as an independent contractor or an employee can be complex, and misclassification can lead to legal disputes. If unsure whether an independent contractor should be treated as an employee, seek legal guidance.
The incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensure the necessary steps are taken to initiate the workers' compensation claims process.