The national Workers' Compensation guide explains the system and the standard policy (Part One statutory benefits, Part Two employers liability). This guide covers Minnesota's Workers' Compensation Act, Minn. Stat. chapter 176, and the related insurance rules in chapter 79. Minnesota isn't a monopolistic state. Employers insure with authorized carriers or self-insure, and the assigned risk plan takes employers the voluntary market rejects.

The basic bargain (176.001, 176.021, 176.031)

• The law rests on a mutual renunciation of common-law rights and defenses by employers and employees. It isn't to be construed liberally in favor of either side.
• The employer pays for injury or death arising out of and in the course of employment, without regard to negligence.
• The employer's liability is exclusive, except when the employer fails to insure. In that case the employee may choose to claim compensation or sue for damages. In a lawsuit, the employer loses defenses such as contributory negligence and assumption of risk.

Who is covered (176.041, 176.011)

Excluded

• Sole proprietors and their spouse, parents and children, though owners may elect coverage.
• Household workers earning less than $1,000 in cash in a three-month period from one household, unless they earned $1,000 or more from that employer in a quarter in the past year.
• Employees whose work is casual and not in the usual course of the employer's business.

Included

• An employee who regularly works in Minnesota is covered when injured outside the state for the same employer.
• Employees being transported to or from work by employer-furnished transportation.

Securing coverage (176.181–176.185; 79.251–79.252)

• Every employer except the state and its subdivisions must insure with an authorized carrier or get a written order from the Commissioner of Commerce to self-insure.
• Penalty for not insuring: up to $1,000 per employee per week of noncompliance.
• Injured workers of uninsured employers are paid from the special compensation fund.
• The insurer files notice of coverage with the Commissioner within 10 days of issuing or renewing a policy.
• Cancellation notice: at least 60 days for any reason other than nonpayment, and at least 30 days for nonpayment.
• Assigned risk plan: an employer with a current written refusal from an insurer is entitled to assigned risk coverage on application and payment (79.252).
• Non-experience-rated employers with no lost-time claims in the last three policy years get a 33% premium credit (79.251).

Benefits

Notice of injury (176.141)

• No compensation is due until the employer knows of the injury or receives written notice. Notice should come within 14 days.
• Notice within 30 days isn't barred unless the employer was prejudiced. There's an outer limit of 180 days in some cases.

Common exam traps

• Benefits: 66 2/3% of the weekly wage. The maximum is 108% of the state average weekly wage, reset each October 1.
• Waiting period: 3 days, paid back after 10 days.
• Burial: $15,000. A spouse with no children gets 50% for 10 years.
• Insurer cancellation: 60 days (or 30 for nonpayment). Coverage notice filed within 10 days.
• Failing to insure: up to $1,000 per employee per week, and the employee may sue.
• Rejected employers go to the assigned risk plan.