2001 Minnesota Statutes

     176.183 Uninsured and self-insured employers; benefits 
  to employees and dependents; liability of employer. 

    Subdivision 1.  When any employee sustains an injury 
 arising out of and in the course of employment while in the 
 employ of an employer, other than the state or its political 
 subdivisions, not insured or self-insured as provided for in 
 this chapter, the employee or the employee's dependents shall 
 nevertheless receive benefits as provided for in this chapter 
 from the special compensation fund.  As used in subdivision 1 or 
 2, "employer" includes any owners or officers of a corporation 
 who direct and control the activities of employees.  In any 
 petition for benefits under this chapter, the naming of an 
 employer corporation not insured or self-insured as provided for 
 in this chapter, as a defendant, shall constitute without more 
 the naming of the owners or officers as defendants, and service 
 of notice of proceeding under this chapter on the corporation 
 shall constitute service upon the owners or officers.  An action 
 to recover benefits paid shall be instituted unless the 
 commissioner determines that no recovery is possible.  There 
 shall be no payment from the special compensation fund if there 
 is liability for the injury under the provisions of section 
 176.215, by an insurer or self-insurer. 

    Subd. 1a. Repealed, 1988 c 674 s 22 

    Subd. 2.  After a hearing on a petition for benefits and 
 prior to issuing an order against the special compensation fund 
 to pay compensation benefits to an employee, a compensation 
 judge shall first make findings regarding the insurance status 
 of the employer and its liability.  The special compensation 
 fund shall not be found liable in the absence of a finding of 
 liability against the employer.  Where the liable employer is 
 found after the hearing to be not insured or self-insured as 
 provided for in this chapter, the compensation judge shall 
 assess and order the employer to pay all compensation benefits 
 to which the employee is entitled, the amount for actual and 
 necessary disbursements expended by the special compensation 
 fund, and a penalty in the amount of 65 percent of all 
 compensation benefits ordered to be paid.  The award issued 
 against an employer after the hearing shall constitute a lien 
 for government services pursuant to section 514.67 on all 
 property of the employer and shall be subject to the provisions 
 of the Revenue Recapture Act in chapter 270A.  The special 
 compensation fund may enforce the terms of that award in the 
 same manner as a district court judgment.  The commissioner of 
 labor and industry, in accordance with the terms of the order 
 awarding compensation, shall pay compensation to the employee or 
 the employee's dependent from the special compensation fund.  
 The commissioner of labor and industry shall certify to the 
 commissioner of finance and to the legislature annually the 
 total amount of compensation paid from the special compensation 
 fund under subdivision 1.  Compensation paid under this section 
 shall remain a liability of the special compensation fund and 
 shall be financed by the percentage assessed under section 
 176.129. 

    Subd. 3.  (a) Notwithstanding subdivision 2, the 
 commissioner may direct payment from the special compensation 
 fund for compensation payable pursuant to subdivision 1, 
 including benefits payable under sections 176.102 and 176.135, 
 prior to issuance of an order of a compensation judge or the 
 workers' compensation court of appeals directing payment or 
 awarding compensation.  Where payment is issued pursuant to a 
 petition for a temporary order, the terms of any resulting order 
 shall have the same status and be governed by the same 
 provisions as an award issued pursuant to subdivision 2. 

    (b) The commissioner may suspend or terminate an order 
 under clause (a) for good cause as determined by the 
 commissioner. 

    Subd. 4.  If the commissioner authorizes the special fund 
 to commence payment without the issuance of a temporary order, 
 the commissioner shall serve by certified mail notice upon the 
 employer and other interested parties of the intention to 
 commence payment.  This notice shall be served at least ten 
 calendar days before commencing payment and shall be mailed to 
 the last known address of the parties.  The notice shall include 
 a statement that failure of the employer to respond within ten 
 calendar days of the date of service will be deemed acceptance 
 by the employer of the proposed action by the commissioner and 
 will be deemed a waiver of defenses the employer has to a 
 subrogation or indemnity action by the commissioner.  At any 
 time prior to final determination of liability, the employer may 
 appear as a party and present defenses the employer has, whether 
 or not an appearance by the employer has previously been made in 
 the matter.  The commissioner has a cause of action against the 
 employer to recover compensation paid by the special fund under 
 this section. 

    HIST: 1967 c 330 s 1; 1969 c 372 s 1; 1969 c 399 s 49; 1973 c 
 388 s 50; 1973 c 750 s 1,2; 1974 c 355 s 22; 1977 c 403 s 6; 
 1981 c 356 s 328; 1983 c 290 s 115-118; 1983 c 301 s 147; 1984 c 
 432 art 2 s 27; 1986 c 444; 1987 c 332 s 48,49; 1988 c 674 s 
 19,20; 1992 c 510 art 3 s 20; 1992 c 513 art 3 s 39; 1995 c 231 
 art 2 s 73,74; 1998 c 294 s 1