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176.221 PAYMENT OF COMPENSATION AND TREATMENT CHARGES,
COMMENCEMENT.
    Subdivision 1. Commencement of payment. Within 14 days of notice to or knowledge
by the employer of an injury compensable under this chapter the payment of temporary total
compensation shall commence. Within 14 days of notice to or knowledge by an employer of a
new period of temporary total disability which is caused by an old injury compensable under
this chapter, the payment of temporary total compensation shall commence; provided that the
employer or insurer may file for an extension with the commissioner within this 14-day period, in
which case the compensation need not commence within the 14-day period but shall commence
no later than 30 days from the date of the notice to or knowledge by the employer of the new
period of disability. Commencement of payment by an employer or insurer does not waive
any rights to any defense the employer has on any claim or incident either with respect to the
compensability of the claim under this chapter or the amount of the compensation due. Where
there are multiple employers, the first employer shall pay, unless it is shown that the injury has
arisen out of employment with the second or subsequent employer. Liability for compensation
under this chapter may be denied by the employer or insurer by giving the employee written
notice of the denial of liability. If liability is denied for an injury which is required to be reported
to the commissioner under section 176.231, subdivision 1, the denial of liability must be filed with
the commissioner and served on the employee within 14 days after notice to or knowledge by the
employer of an injury which is alleged to be compensable under this chapter. If the employer or
insurer has commenced payment of compensation under this subdivision but determines within 60
days of notice to or knowledge by the employer of the injury that the disability is not a result of a
personal injury, payment of compensation may be terminated upon the filing of a notice of denial
of liability within 60 days of notice or knowledge. After the 60-day period, payment may be
terminated only by the filing of a notice as provided under section 176.239. Upon the termination,
payments made may be recovered by the employer if the commissioner or compensation judge
finds that the employee's claim of work related disability was not made in good faith. A notice of
denial of liability must state in detail the facts forming the basis for the denial and specific reasons
explaining why the claimed injury or occupational disease was determined not to be within
the scope and course of employment and shall include the name and telephone number of the
person making this determination.
    Subd. 2.[Repealed, 1983 c 290 s 129]
    Subd. 3. Penalty. If the employer or insurer does not begin payment of compensation within
the time limit prescribed under subdivision 1 or 8, the commissioner may assess a penalty,
payable to the commissioner for deposit in the assigned risk safety account, which shall be a
percentage of the amount of compensation to which the employee is entitled to receive up to the
date compensation payment is made.
The amount of penalty shall be determined as follows:

Number of days late
Penalty


1 - 15
30
percent of compensation
due, not to exceed $500,


16 - 30
55
percent of compensation
due, not to exceed $1,500,


31 - 60
80
percent of compensation
due, not to exceed $3,500,


61 or more
105
percent of compensation
due, not to exceed $5,000.
The penalty under this section is in addition to any penalty otherwise provided by statute.
    Subd. 3a. Penalty. In lieu of any other penalty under this section, the commissioner may
assess a penalty of up to $2,000 payable to the commissioner for deposit in the assigned risk
safety account for each instance in which an employer or insurer does not pay benefits or file a
notice of denial of liability within the time limits prescribed under this section.
    Subd. 4.[Repealed, 1983 c 290 s 129]
    Subd. 5.[Repealed, 1983 c 290 s 129]
    Subd. 6. Assessment of penalties. The division or compensation judge shall assess the
penalty payments provided for by subdivision 3 or 3a and any increase in benefit payments
provided by section 176.225, subdivision 5, against the insurer. The insurer is liable for a penalty
payment assessed against it even if the delay is attributable to the employer.
An insurer who has paid a penalty under this section may recover from the employer the
portion of the penalty attributable to the acts of the employer which resulted in the delay. A
penalty paid by an insurer under this section which is attributable to the fault of the employer
shall be treated as a loss in an experience rated plan, retrospective rating plan, or dividend
calculation where appropriate.
    Subd. 6a. Medical, rehabilitation, and permanent partial compensation. The penalties
provided by this section apply in cases where payment for treatment under section 176.135,
rehabilitation expenses under section 176.102, subdivisions 9 and 11, or permanent partial
compensation are not made in a timely manner as required by law or by rule adopted by the
commissioner.
    Subd. 7. Interest. Any payment of compensation, charges for treatment under section
176.135, rehabilitation expenses under section 176.102, subdivision 9, or penalties assessed under
this chapter not made when due shall bear interest from the due date to the date the payment is
made at the rate set by section 549.09, subdivision 1.
For the purposes of this subdivision, permanent partial disability payment is due 14 days
after receipt of the first medical report which contains a disability rating if such payment is
otherwise due under this chapter, and charges for treatment under section 176.135 are due 30
calendar days after receiving the bill and necessary medical data.
If the claim of the employee or dependent for compensation is contested in a proceeding
before a compensation judge or the commissioner, the decision of the judge or commissioner
shall provide for the payment of unpaid interest on all compensation awarded, including interest
accruing both before and after the filing of the decision.
    Subd. 8. Method and timeliness of payment. Payment of compensation under this chapter
shall be by immediately payable negotiable instrument, or if by any other method, arrangements
shall be available to provide for the immediate negotiability of the payment instrument.
All payment of compensation shall be made within 14 days of the filing of an appropriate
order by the division or a compensation judge, unless the order is appealed or if a different time
period is provided by this chapter.
    Subd. 9. Payment of full wages. An employer who pays full wages to an injured employee is
not relieved of the obligation for reporting the injury and making a liability determination within
the times specified in this chapter. If the full wage is paid the employer's insurer or self-insurer
shall report the amount of this payment to the division and determine the portion which is
temporary total compensation for purposes of administering this chapter and special compensation
fund assessments. The employer shall also make appropriate adjustments to the employee's
payroll records to assure that the employee's sick leave or the vacation time is not inappropriately
charged against the employee, and to assure the proper income tax treatment for the payments.
History: 1953 c 755 s 30; 1973 c 388 s 58-61; 1977 c 342 s 21; Ex1979 c 3 s 53; 1981 c
346 s 96; 1983 c 290 s 129; 1984 c 432 art 2 s 28-30; 1987 c 332 s 56-58; 1992 c 510 art 3 s
24,25; 1995 c 231 art 1 s 27; art 2 s 82-85; 2001 c 123 s 15-18

Official Publication of the State of Minnesota
Revisor of Statutes