Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2000, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 447-S.F.No. 3644
An act relating to workers' compensation; increasing
benefits; clarifying language; providing for a
transfer of funds; modifying various workers'
compensation provisions; amending Minnesota Statutes
1998, sections 176.011, subdivisions 3 and 20;
176.061, subdivisions 3, 5, 7, 10, and by adding a
subdivision; 176.081, subdivision 1; 176.101,
subdivisions 1, 2a, and 8; 176.102, subdivisions 3 and
11; 176.106, subdivision 7; 176.111, subdivisions 5,
18, and by adding a subdivision; 176.129, subdivisions
3 and 4; 176.231, subdivision 2; and 176.611,
subdivision 2a; Minnesota Statutes 1999 Supplement,
section 176.011, subdivision 9; repealing Minnesota
Statutes 1998, section 176.129, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1998, section 176.011,
subdivision 3, is amended to read:
Subd. 3. [DAILY WAGE.] "Daily wage" means the daily wage
of the employee in the employment engaged in at the time of
injury but does not include tips and gratuities paid directly to
an employee by a customer of the employer and not accounted for
by the employee to the employer. If the amount of the daily
wage received or to be received by the employee in the
employment engaged in at the time of injury was irregular or
difficult to determine, or if the employment was part time, the
daily wage shall be computed by dividing the total amount of
wages, vacation pay, and holiday pay the employee actually
earned in such employment in the last 26 weeks, by the total
number of days in which the employee actually performed any of
the duties of such employment such wages, vacation pay, and
holiday pay was earned, provided further, that in the case of
the construction industry, mining industry, or other industry
where the hours of work are affected by seasonal conditions, the
weekly wage shall not be less than five times the daily
wage. If the employee worked or earned less than a full day's
worth of wages, vacation pay, or holiday pay, the total amount
earned shall be divided by the corresponding proportion of that
day. Where board or allowances other than tips and gratuities
are made to an employee in addition to wages as a part of the
wage contract they are deemed a part of earnings and computed at
their value to the employee. In the case of persons performing
services for municipal corporations in the case of emergency,
then the normal working day shall be considered and computed as
eight hours, and in cases where such services are performed
gratis or without fixed compensation the daily wage of the
person injured shall, for the purpose of calculating
compensation payable under this chapter, be taken to be the
usual going wage paid for similar services in municipalities
where such services are performed by paid employees. If, at the
time of injury, the employee was regularly employed by two or
more employers, the employee's earnings in all such employments
shall be included in the computation of daily wage.
Sec. 2. Minnesota Statutes 1999 Supplement, section
176.011, subdivision 9, is amended to read:
Subd. 9. [EMPLOYEE.] "Employee" means any person who
performs services for another for hire including the following:
(1) an alien;
(2) a minor;
(3) a sheriff, deputy sheriff, constable, marshal, police
officer, firefighter, county highway engineer, and peace officer
while engaged in the enforcement of peace or in the pursuit or
capture of a person charged with or suspected of crime;
(4) a person requested or commanded to aid an officer in
arresting or retaking a person who has escaped from lawful
custody, or in executing legal process, in which cases, for
purposes of calculating compensation under this chapter, the
daily wage of the person shall be the prevailing wage for
similar services performed by paid employees;
(5) a county assessor;
(6) an elected or appointed official of the state, or of a
county, city, town, school district, or governmental subdivision
in the state. An officer of a political subdivision elected or
appointed for a regular term of office, or to complete the
unexpired portion of a regular term, shall be included only
after the governing body of the political subdivision has
adopted an ordinance or resolution to that effect;
(7) an executive officer of a corporation, except those
executive officers excluded by section 176.041;
(8) a voluntary uncompensated worker, other than an inmate,
rendering services in state institutions under the commissioners
of human services and corrections similar to those of officers
and employees of the institutions, and whose services have been
accepted or contracted for by the commissioner of human services
or corrections as authorized by law. In the event of injury or
death of the worker, the daily wage of the worker, for the
purpose of calculating compensation under this chapter, shall be
the usual wage paid at the time of the injury or death for
similar services in institutions where the services are
performed by paid employees;
(9) a voluntary uncompensated worker engaged in peace time
in the civil defense program when ordered to training or other
duty by the state or any political subdivision of it. The daily
wage of the worker, for the purpose of calculating compensation
under this chapter, shall be the usual wage paid at the time of
the injury or death for similar services performed by paid
employees;
(10) a voluntary uncompensated worker participating in a
program established by a local social services agency. For
purposes of this clause, "local social services agency" means
any agency established under section 393.01. In the event of
injury or death of the worker, the wage of the worker, for the
purpose of calculating compensation under this chapter, shall be
the usual wage paid in the county at the time of the injury or
death for similar services performed by paid employees working a
normal day and week;
(11) a voluntary uncompensated worker accepted by the
commissioner of natural resources who is rendering services as a
volunteer pursuant to section 84.089. The daily wage of the
worker for the purpose of calculating compensation under this
chapter, shall be the usual wage paid at the time of injury or
death for similar services performed by paid employees;
(12) a voluntary uncompensated worker in the building and
construction industry who renders services for joint
labor-management nonprofit community service projects. The
daily wage of the worker for the purpose of calculating
compensation under this chapter shall be the usual wage paid at
the time of injury or death for similar services performed by
paid employees;
(13) a member of the military forces, as defined in section
190.05, while in state active service, as defined in section
190.05, subdivision 5a. The daily wage of the member for the
purpose of calculating compensation under this chapter shall be
based on the member's usual earnings in civil life. If there is
no evidence of previous occupation or earning, the trier of fact
shall consider the member's earnings as a member of the military
forces;
(14) a voluntary uncompensated worker, accepted by the
director of the Minnesota historical society, rendering services
as a volunteer, pursuant to chapter 138. The daily wage of the
worker, for the purposes of calculating compensation under this
chapter, shall be the usual wage paid at the time of injury or
death for similar services performed by paid employees;
(15) a voluntary uncompensated worker, other than a
student, who renders services at the Minnesota state academy for
the deaf or the Minnesota state academy for the blind, and whose
services have been accepted or contracted for by the
commissioner of children, families, and learning, as authorized
by law. In the event of injury or death of the worker, the
daily wage of the worker, for the purpose of calculating
compensation under this chapter, shall be the usual wage paid at
the time of the injury or death for similar services performed
in institutions by paid employees;
(16) a voluntary uncompensated worker, other than a
resident of the veterans home, who renders services at a
Minnesota veterans home, and whose services have been accepted
or contracted for by the commissioner of veterans affairs, as
authorized by law. In the event of injury or death of the
worker, the daily wage of the worker, for the purpose of
calculating compensation under this chapter, shall be the usual
wage paid at the time of the injury or death for similar
services performed in institutions by paid employees;
(17) a worker who renders in-home attendant care services
to a physically handicapped person, and who is paid directly by
the commissioner of human services for these services, shall be
an employee of the state within the meaning of this subdivision,
but for no other purpose;
(18) students enrolled in and regularly attending the
medical school of the University of Minnesota in the graduate
school program or the postgraduate program. The students shall
not be considered employees for any other purpose. In the event
of the student's injury or death, the weekly wage of the student
for the purpose of calculating compensation under this chapter,
shall be the annualized educational stipend awarded to the
student, divided by 52 weeks. The institution in which the
student is enrolled shall be considered the "employer" for the
limited purpose of determining responsibility for paying
benefits under this chapter;
(19) a faculty member of the University of Minnesota
employed for an academic year is also an employee for the period
between that academic year and the succeeding academic year if:
(a) the member has a contract or reasonable assurance of a
contract from the University of Minnesota for the succeeding
academic year; and
(b) the personal injury for which compensation is sought
arises out of and in the course of activities related to the
faculty member's employment by the University of Minnesota;
(20) a worker who performs volunteer ambulance driver or
attendant services is an employee of the political subdivision,
nonprofit hospital, nonprofit corporation, or other entity for
which the worker performs the services. The daily wage of the
worker for the purpose of calculating compensation under this
chapter shall be the usual wage paid at the time of injury or
death for similar services performed by paid employees;
(21) a voluntary uncompensated worker, accepted by the
commissioner of administration, rendering services as a
volunteer at the department of administration. In the event of
injury or death of the worker, the daily wage of the worker, for
the purpose of calculating compensation under this chapter,
shall be the usual wage paid at the time of the injury or death
for similar services performed in institutions by paid
employees;
(22) a voluntary uncompensated worker rendering service
directly to the pollution control agency. The daily wage of the
worker for the purpose of calculating compensation payable under
this chapter is the usual going wage paid at the time of injury
or death for similar services if the services are performed by
paid employees;
(23) a voluntary uncompensated worker while volunteering
services as a first responder or as a member of a law
enforcement assistance organization while acting under the
supervision and authority of a political subdivision. The daily
wage of the worker for the purpose of calculating compensation
payable under this chapter is the usual going wage paid at the
time of injury or death for similar services if the services are
performed by paid employees; and
(24) a voluntary uncompensated member of the civil air
patrol rendering service on the request and under the authority
of the state or any of its political subdivisions. The daily
wage of the member for the purposes of calculating compensation
payable under this chapter is the usual going wage paid at the
time of injury or death for similar services if the services are
performed by paid employees.
If it is difficult to determine the daily wage as provided
in this subdivision, the trier of fact may determine the wage
upon which the compensation is payable.
Sec. 3. Minnesota Statutes 1998, section 176.011,
subdivision 20, is amended to read:
Subd. 20. [AVERAGE WEEKLY WAGE.] The statewide average
weekly wage for any year means that wage determined by the
commissioner in the following manner: On or before July 1
preceding the year in which the wage is to be applicable, the
total wages reported on contribution tax reports to the
department of economic security for the preceding 12 months
ending on December 31 of that year shall be divided by the
average monthly number of insured covered workers (determined by
dividing the total insured covered workers reported for the year
ending December 31 by 12). The average annual wage thus
obtained shall be divided by 52 and the average weekly wage thus
determined rounded to the next highest dollar.
Sec. 4. Minnesota Statutes 1998, section 176.061,
subdivision 3, is amended to read:
Subd. 3. [ELECTION TO RECEIVE BENEFITS FROM EMPLOYER;
SUBROGATION.] If the employee or the employee's dependents elect
to receive benefits from the employer, or the special
compensation fund, the employer or the special compensation fund
has a right of indemnity or is subrogated to the right of the
employee or the employee's dependents to recover damages against
the other party. The employer, or the attorney general on
behalf of the special compensation fund, may bring legal
proceedings against the party and recover the aggregate amount
of benefits payable to or on behalf of the employee or the
employee's dependents, regardless of whether such benefits are
recoverable by the employee or the employee's dependents at
common law or by statute together with costs, disbursements, and
reasonable attorney's fees of the action.
If an action as provided in this chapter is prosecuted by
the employee, the employer, or the attorney general on behalf of
the special compensation fund, against the third person, and
results in judgment against the third person, or settlement by
the third person, the employer has no liability to reimburse or
hold the third person harmless on the judgment or settlement in
absence of a written agreement to do so executed prior to the
injury.
Sec. 5. Minnesota Statutes 1998, section 176.061,
subdivision 5, is amended to read:
Subd. 5. [CUMULATIVE REMEDIES.] If an injury or death for
which benefits are payable is caused under circumstances which
created a legal liability for damages on the part of a party
other than the employer, that party being then insured or
self-insured in accordance with this chapter, and the provisions
of subdivisions 1, 2, 3, and 4 do not apply, or the party other
than the employer is not then insured or self-insured as
provided by this chapter, legal proceedings may be taken by the
employee or the employee's dependents in accordance with clause
(a), or by the employer, or by the attorney general on behalf of
the special compensation fund, in accordance with clause (b),
against the other party to recover damages, notwithstanding the
payment of benefits by the employer or the special compensation
fund or their liability to pay benefits.
(a) If an action against the other party is brought by the
injured employee or the employee's dependents and a judgment is
obtained and paid or settlement is made with the other party,
the employer or the special compensation fund may deduct from
the benefits payable the amount actually received by the
employee or dependents or paid on their behalf in accordance
with subdivision 6. If the action is not diligently prosecuted
or if the court deems it advisable in order to protect the
interests of the employer or the special compensation fund, upon
application the court may grant the employer or the special
compensation fund the right to intervene in the action for the
prosecution of the action. If the injured employee or the
employee's dependents or any party on their behalf receives
benefits from the employer or the special compensation fund or
institutes proceedings to recover benefits or accepts from the
employer or the special compensation fund any payment on account
of the benefits, the employer or the special compensation fund
is subrogated to the rights of the employee or the employee's
dependents or has a right of indemnity against a third party
regardless of whether such benefits are recoverable by the
employee or the employee's dependents at common law or by
statute. The employer or the attorney general on behalf of the
special compensation fund may maintain a separate action or
continue an action already instituted. This action may be
maintained in the name of the employee or the names of the
employee's dependents, or in the name of the employer, or in the
name of the attorney general on behalf of the special
compensation fund, against the other party for the recovery of
damages. If the action is not diligently prosecuted by the
employer or the attorney general on behalf of the special
compensation fund, or if the court deems it advisable in order
to protect the interest of the employee, the court, upon
application, may grant to the employee or the employee's
dependents the right to intervene in the action for the
prosecution of the action. The proceeds of the action or
settlement of the action shall be paid in accordance with
subdivision 6.
(b) If an employer, being then insured, sustains damages
due to a change in workers' compensation insurance premiums,
whether by a failure to achieve a decrease or by a retroactive
or prospective increase, as a result of the injury or death of
an employee which was caused under circumstances which created a
legal liability for damages on the part of a party other than
the employer, the employer, notwithstanding other remedies
provided, may maintain an action against the other party for
recovery of the premiums. This cause of action may be brought
either by joining in an action described in clause (a) or by a
separate action. Damages recovered under this clause are for
the benefit of the employer and the provisions of subdivision 6
are not applicable to the damages.
(c) The third party is not liable to any person other than
the employee or the employee's dependents, or the employer, or
the special compensation fund, for any damages resulting from
the injury or death.
A coemployee working for the same employer is not liable
for a personal injury incurred by another employee unless the
injury resulted from the gross negligence of the coemployee or
was intentionally inflicted by the coemployee.
Sec. 6. Minnesota Statutes 1998, section 176.061,
subdivision 7, is amended to read:
Subd. 7. [MEDICAL TREATMENT.] The liability of an employer
or the special compensation fund for medical treatment or
payment of any other compensation under this chapter is not
affected by the fact that the employee was injured through the
fault or negligence of a third party, against whom the employee
may have a cause of action which may be sued under this chapter,
but the employer, or the attorney general on behalf of the
special compensation fund, has a separate additional cause of
action against the third party to recover any amounts paid for
medical treatment or for other compensation payable under this
section resulting from the negligence of the third
party regardless of whether such other compensation is
recoverable by the employee or the employee's dependents at
common law or by statute. This separate cause of action of the
employer or the attorney general on behalf of the special
compensation fund may be asserted in a separate action brought
by the employer or the attorney general on behalf of the special
compensation fund against the third party, or in the action
commenced by the employee or the employer or the attorney
general on behalf of the special compensation fund under this
chapter, but in the latter case the cause of action shall be
separately stated, the amount awarded in the action shall be
separately set out in the verdict, and the amount recovered by
suit or otherwise as reimbursement for medical expenses or other
compensation shall be for the benefit of the employer or the
special compensation fund to the extent that the employer or the
special compensation fund has paid or will be required to pay
compensation or pay for medical treatment of the injured
employee and does not affect the amount of periodic compensation
to be paid.
Sec. 7. Minnesota Statutes 1998, section 176.061,
subdivision 10, is amended to read:
Subd. 10. [INDEMNITY.] Notwithstanding the provisions of
chapter 65B or any other law to the contrary, an employer has a
right of indemnity for any compensation paid or payable pursuant
to this chapter, regardless of whether such compensation is
recoverable by the employee or the employee's dependents at
common law or by statute, including temporary total
compensation, temporary partial compensation, permanent partial
compensation, medical compensation, rehabilitation, death, and
permanent total compensation.
Sec. 8. Minnesota Statutes 1998, section 176.061, is
amended by adding a subdivision to read:
Subd. 11. [RIGHT OF CONTRIBUTION.] To the extent the
employer has fault, separate from the fault of the injured
employee to whom workers' compensation benefits are payable, any
nonemployer third party who is liable has a right of
contribution against the employer in an amount proportional to
the employer's percentage of fault but not to exceed the net
amount the employer recovered pursuant to subdivision 6,
paragraphs (c) and (d). The employer may avoid contribution
exposure by affirmatively waiving, before selection of the jury,
the right to recover workers' compensation benefits paid and
payable, thus removing compensation benefits from the damages
payable by any third party.
Procedurally, if the employer waives or settles the right
to recover workers' compensation benefits paid and payable, the
employee or the employee's dependents have the option to present
all common law or wrongful death damages whether they are
recoverable under the Workers' Compensation Act or not.
Following the verdict, the trial court will deduct any awarded
damages that are duplicative of workers' compensation benefits
paid or payable.
Sec. 9. Minnesota Statutes 1998, section 176.081,
subdivision 1, is amended to read:
Subdivision 1. [LIMITATION OF FEES.] (a) A fee for legal
services of 25 percent of the first $4,000 of compensation
awarded to the employee and 20 percent of the next $60,000 of
compensation awarded to the employee is the maximum permissible
fee and does not require approval by the commissioner,
compensation judge, or any other party. All fees, including
fees for obtaining medical or rehabilitation benefits, must be
calculated according to the formula under this subdivision,
except as otherwise provided in clause (1) or (2).
(1) The contingent attorney fee for recovery of monetary
benefits according to the formula in this section is presumed to
be adequate to cover recovery of medical and rehabilitation
benefit or services concurrently in dispute. Attorney fees for
recovery of medical or rehabilitation benefits or services shall
be assessed against the employer or insurer only if the attorney
establishes that the contingent fee is inadequate to reasonably
compensate the attorney for representing the employee in the
medical or rehabilitation dispute. In cases where the
contingent fee is inadequate the employer or insurer is liable
for attorney fees based on the formula in this subdivision or in
clause (2).
For the purposes of applying the formula where the employer
or insurer is liable for attorney fees, the amount of
compensation awarded for obtaining disputed medical and
rehabilitation benefits under sections 176.102, 176.135, and
176.136 shall be the dollar value of the medical or
rehabilitation benefit awarded, where ascertainable.
(2) The maximum attorney fee for obtaining a change of
doctor or qualified rehabilitation consultant, or any other
disputed medical or rehabilitation benefit for which a dollar
value is not reasonably ascertainable, is the amount charged in
hourly fees for the representation or $500, whichever is less,
to be paid by the employer or insurer.
(3) The fees for obtaining disputed medical or
rehabilitation benefits are included in the $13,000 limit in
paragraph (b). An attorney must concurrently file all
outstanding disputed issues. An attorney is not entitled to
attorney fees for representation in any issue which could
reasonably have been addressed during the pendency of other
issues for the same injury.
(b) All fees for legal services related to the same injury
are cumulative and may not exceed $13,000. If multiple injuries
are the subject of a dispute, the commissioner, compensation
judge, or court of appeals shall specify the attorney fee
attributable to each injury.
(c) If the employer or the insurer or the defendant is
given written notice of claims for legal services or
disbursements, the claim shall be a lien against the amount paid
or payable as compensation. Subject to the foregoing maximum
amount for attorney fees, up to 25 percent of the first $4,000
of periodic compensation awarded to the employee and 20 percent
of the next $60,000 of periodic compensation awarded to the
employee may be withheld from the periodic payments for attorney
fees or disbursements if the payor of the funds clearly
indicates on the check or draft issued to the employee for
payment the purpose of the withholding, the name of the
attorney, the amount withheld, and the gross amount of the
compensation payment before withholding. In no case shall fees
be calculated on the basis of any undisputed portion of
compensation awards. Allowable fees under this chapter shall be
based solely upon genuinely disputed claims or portions of
claims, including disputes related to the payment of
rehabilitation benefits or to other aspects of a rehabilitation
plan. The existence of a dispute is dependent upon a
disagreement after the employer or insurer has had adequate time
and information to take a position on liability. Neither the
holding of a hearing nor the filing of an application for a
hearing alone may determine the existence of a dispute. Except
where the employee is represented by an attorney in other
litigation pending at the department or at the office of
administrative hearings, a fee may not be charged after June 1,
1996, for services with respect to a medical or rehabilitation
issue arising under section 176.102, 176.135, or 176.136
performed before the employee has consulted with the department
and the department certifies that there is a dispute and that it
has tried to resolve the dispute.
(d) An attorney who is claiming legal fees for representing
an employee in a workers' compensation matter shall file a
statement of attorney fees with the commissioner, compensation
judge before whom the matter was heard, or workers' compensation
court of appeals on cases before the court. A copy of the
signed retainer agreement shall also be filed. The employee and
insurer shall receive a copy of the statement. The statement
shall be on a form prescribed by the commissioner and shall
report the number of hours spent on the case.
(e) Employers and insurers may not pay attorney fees or
wages for legal services of more than $13,000 per case.
(f) Each insurer and self-insured employer shall file
annual statements with the commissioner detailing the total
amount of legal fees and other legal costs incurred by the
insurer or employer during the year. The statement shall
include the amount paid for outside and in-house counsel,
deposition and other witness fees, and all other costs relating
to litigation.
(g) An attorney must file a statement of attorney fees
within 12 months of the date the attorney has submitted the
written notice specified in paragraph (c). If the attorney has
not filed a statement of attorney fees within the 12 months, the
attorney must send a renewed notice of lien to the insurer. If
12 months have elapsed since the last notice of lien has been
received by the insurer and no statement of attorney fees has
been filed, the insurer must release the withheld money to the
employee, except that before releasing the money to the
employee, the insurer must give the attorney 30 days' written
notice of the pending release. The insurer must not release the
money if the attorney files a statement of attorney fees within
the 30 days.
Sec. 10. Minnesota Statutes 1998, section 176.101,
subdivision 1, is amended to read:
Subdivision 1. [TEMPORARY TOTAL DISABILITY.] (a) For
injury producing temporary total disability, the compensation is
66-2/3 percent of the weekly wage at the time of injury.
(b) (1) Commencing on October 1, 1995 2000, the maximum
weekly compensation payable is $615 $750 per week.
(2) The workers' compensation advisory council may consider
adjustment increases and make recommendations to the legislature.
(c) The minimum weekly compensation payable is $104 $130
per week or the injured employee's actual weekly wage, whichever
is less.
(d) Temporary total compensation shall be paid during the
period of disability subject to the cessation and recommencement
conditions in paragraphs (e) to (l).
(e) Temporary total disability compensation shall cease
when the employee returns to work. Except as otherwise provided
in section 176.102, subdivision 11, temporary total disability
compensation may only be recommenced following cessation under
this paragraph, paragraph (h), or paragraph (j) prior to payment
of 104 weeks of temporary total disability compensation and only
as follows:
(1) if temporary total disability compensation ceased
because the employee returned to work, it may be recommenced if
the employee is laid off or terminated for reasons other than
misconduct within one year after returning to work if the layoff
or termination occurs prior to 90 days after the employee has
reached maximum medical improvement. Recommenced temporary
total disability compensation under this clause ceases when any
of the cessation events in paragraphs (e) to (l) occurs; or
(2) if temporary total disability compensation ceased
because the employee returned to work or ceased under paragraph
(h) or (j), it may be recommenced if the employee is medically
unable to continue at a job due to the injury. Where the
employee is medically unable to continue working due to the
injury, temporary total disability compensation may continue
until any of the cessation events in paragraphs (e) to (l)
occurs following recommencement. If an employee who has not yet
received temporary total disability compensation becomes
medically unable to continue working due to the injury after
reaching maximum medical improvement, temporary total disability
compensation shall commence and shall continue until any of the
events in paragraphs (e) to (l) occurs following commencement.
For purposes of commencement or recommencement under this clause
only, a new period of maximum medical improvement under
paragraph (j) begins when the employee becomes medically unable
to continue working due to the injury. Temporary total
disability compensation may not be recommenced under this clause
and a new period of maximum medical improvement does not begin
if the employee is not actively employed when the employee
becomes medically unable to work. All periods of initial and
recommenced temporary total disability compensation are included
in the 104-week limitation specified in paragraph (k).
(f) Temporary total disability compensation shall cease if
the employee withdraws from the labor market. Temporary total
disability compensation may be recommenced following cessation
under this paragraph only if the employee reenters the labor
market prior to 90 days after the employee reached maximum
medical improvement and prior to payment of 104 weeks of
temporary total disability compensation. Once recommenced,
temporary total disability ceases when any of the cessation
events in paragraphs (e) to (l) occurs.
(g) Temporary total disability compensation shall cease if
the total disability ends and the employee fails to diligently
search for appropriate work within the employee's physical
restrictions. Temporary total disability compensation may be
recommenced following cessation under this paragraph only if the
employee begins diligently searching for appropriate work within
the employee's physical restrictions prior to 90 days after
maximum medical improvement and prior to payment of 104 weeks of
temporary total disability compensation. Once recommenced,
temporary total disability compensation ceases when any of the
cessation events in paragraphs (e) to (l) occurs.
(h) Temporary total disability compensation shall cease if
the employee has been released to work without any physical
restrictions caused by the work injury.
(i) Temporary total disability compensation shall cease if
the employee refuses an offer of work that is consistent with a
plan of rehabilitation filed with the commissioner which meets
the requirements of section 176.102, subdivision 4, or, if no
plan has been filed, the employee refuses an offer of gainful
employment that the employee can do in the employee's physical
condition. Once temporary total disability compensation has
ceased under this paragraph, it may not be recommenced.
(j) Temporary total disability compensation shall cease 90
days after the employee has reached maximum medical improvement,
except as provided in section 176.102, subdivision 11, paragraph
(b). For purposes of this subdivision, the 90-day period after
maximum medical improvement commences on the earlier of: (1)
the date that the employee receives a written medical report
indicating that the employee has reached maximum medical
improvement; or (2) the date that the employer or insurer serves
the report on the employee and the employee's attorney, if any.
Once temporary total disability compensation has ceased under
this paragraph, it may not be recommenced except if the employee
returns to work and is subsequently medically unable to continue
working as provided in paragraph (e), clause (2).
(k) Temporary total disability compensation shall cease
entirely when 104 weeks of temporary total disability
compensation have been paid, except as provided in section
176.102, subdivision 11, paragraph (b). Notwithstanding
anything in this section to the contrary, initial and
recommenced temporary total disability compensation combined
shall not be paid for more than 104 weeks, regardless of the
number of weeks that have elapsed since the injury, except that
if the employee is in a retraining plan approved under section
176.102, subdivision 11, the 104 week limitation shall not apply
during the retraining, but is subject to the limitation before
the plan begins and after the plan ends.
(l) Paragraphs (e) to (k) do not limit other grounds under
law to suspend or discontinue temporary total disability
compensation provided under this chapter.
(m) Once an employee has been paid 52 weeks of temporary
total compensation, the employer or insurer must notify the
employee in writing of the 104 week limitation on payment of
temporary total compensation. A copy of this notice must also
be filed with the department.
Sec. 11. Minnesota Statutes 1998, section 176.101,
subdivision 2a, is amended to read:
Subd. 2a. [PERMANENT PARTIAL DISABILITY.] (a) Compensation
for permanent partial disability is as provided in this
subdivision. Permanent partial disability must be rated as a
percentage of the whole body in accordance with rules adopted by
the commissioner under section 176.105. The percentage
determined pursuant to the rules must be multiplied by the
corresponding amount in the following table:
Impairment rating Amount
(percent)
0-25 $ 75,000
0-5 $ 75,000
6-10 80,000
11-15 85,000
16-20 90,000
21-25 95,000
26-30 80,000 100,000
31-35 85,000 110,000
36-40 90,000 120,000
41-45 95,000 130,000
46-50 100,000 140,000
51-55 120,000 165,000
56-60 140,000 190,000
61-65 160,000 215,000
66-70 180,000 240,000
71-75 200,000 265,000
76-80 240,000 315,000
81-85 280,000 365,000
86-90 320,000 415,000
91-95 360,000 465,000
96-100 400,000 515,000
An employee may not receive compensation for more than a 100
percent disability of the whole body, even if the employee
sustains disability to two or more body parts.
(b) Permanent partial disability is payable upon cessation
of temporary total disability under subdivision 1. If the
employee requests payment in a lump sum, then the compensation
must be paid within 30 days. This lump sum payment may be
discounted to the present value calculated up to a maximum five
percent basis. If the employee does not choose to receive the
compensation in a lump sum, then the compensation is payable in
installments at the same intervals and in the same amount as the
employee's temporary total disability rate on the date of injury.
Permanent partial disability is not payable while temporary
total compensation is being paid.
Sec. 12. Minnesota Statutes 1998, section 176.101,
subdivision 8, is amended to read:
Subd. 8. [CESSATION OF BENEFITS.] Temporary total
disability payments shall cease at retirement. "Retirement"
means that a preponderance of the evidence supports a conclusion
that an employee has retired. The subjective statement of an
employee that the employee is not retired is not sufficient in
itself to rebut objective evidence of retirement but may be
considered along with other evidence.
For injuries occurring after January 1, 1984, an employee
who receives social security old age and survivors insurance
retirement benefits under the Social Security Act, Public Law
Number 98-21, as amended, is presumed retired from the labor
market. This presumption is For injuries occurring after
October 1, 2000, an employee who receives any other
service-based government retirement pension is presumed retired
from the labor market. The term "service-based government
retirement pension" does not include disability-based government
pensions. These presumptions are rebuttable by a preponderance
of the evidence.
Sec. 13. Minnesota Statutes 1998, section 176.102,
subdivision 3, is amended to read:
Subd. 3. [REVIEW PANEL.] There is created a rehabilitation
review panel composed of the commissioner or a designee, who
shall serve as an ex officio member and two members each from
employers, insurers, rehabilitation, and medicine, one member
representing chiropractors, and four members representing
labor. The members shall be appointed by the commissioner and
shall serve four-year terms which may be renewed. Terms,
compensation, and removal for members shall be governed by
section 15.0575. The panel shall select a chair. The panel
shall review and make a determination with respect to appeals
from orders of the commissioner regarding certification approval
of qualified rehabilitation consultants and vendors. The
hearings are de novo and initiated by the panel under the
contested case procedures of chapter 14, and are appealable to
the workers' compensation court of appeals in the manner
provided by section 176.421.
Sec. 14. Minnesota Statutes 1998, section 176.102,
subdivision 11, is amended to read:
Subd. 11. [RETRAINING; COMPENSATION.] (a) Retraining is
limited to 156 weeks. An employee who has been approved for
retraining may petition the commissioner or compensation judge
for additional compensation not to exceed 25 percent of the
compensation otherwise payable. If the commissioner or
compensation judge determines that this additional compensation
is warranted due to unusual or unique circumstances of the
employee's retraining plan, the commissioner may award
additional compensation in an amount not to exceed the
employee's request. This additional compensation shall cease at
any time the commissioner or compensation judge determines the
special circumstances are no longer present.
(b) If the employee is not employed during a retraining
plan that has been specifically approved under this section,
temporary total compensation is payable for up to 90 days after
the end of the retraining plan; except that, payment during the
90-day period is subject to cessation in accordance with section
176.101. If the employee is employed during the retraining plan
but earning less than at the time of injury, temporary partial
compensation is payable at the rate of 66-2/3 percent of the
difference between the employee's weekly wage at the time of
injury and the weekly wage the employee is able to earn in the
employee's partially disabled condition, subject to the maximum
rate for temporary total compensation. Temporary partial
compensation is not subject to the 225-week or 450-week
limitations provided by section 176.101, subdivision 2, during
the retraining plan, but is subject to those limitations before
and after the plan.
(c) Any request for retraining shall be filed with the
commissioner before 104 156 weeks of any combination of
temporary total or temporary partial compensation have been paid.
Retraining shall not be available after 104 156 weeks of any
combination of temporary total or temporary partial compensation
benefits have been paid unless the request for the retraining
has been filed with the commissioner prior to the time the 104
156 weeks of compensation have been paid.
(d) The employer or insurer must notify the employee in
writing of the 104 156 week limitation for filing a request for
retraining with the commissioner. This notice must be given
before 80 weeks of temporary total disability or temporary
partial disability compensation have been paid, regardless of
the number of weeks that have elapsed since the date of injury.
If the notice is not given before the 80 weeks, the period of
time within which to file a request for retraining is extended
by the number of days the notice is late, but in no event may a
request be filed later than 225 weeks after any combination of
temporary total disability or temporary partial disability
compensation have been paid. The commissioner may assess a
penalty of $25 per day that the notice is late, up to a maximum
penalty of $2,000, against an employer or insurer for failure to
provide the notice. The penalty is payable to the assigned risk
safety account.
Sec. 15. Minnesota Statutes 1998, section 176.106,
subdivision 7, is amended to read:
Subd. 7. [REQUEST FOR HEARING.] Any party aggrieved by the
decision of the commissioner's designee may request a formal
hearing by filing the request with the commissioner and serving
the request on all parties no later than 30 days after the
decision; provided, however, that the commissioner shall review
a decision of the commissioner's designee regarding a claim for
a medical benefit of $1,500 or less and the commissioner's
decision shall be final. Requests on other issues shall be
referred to the office of administrative hearings for a de novo
hearing before a compensation judge. Except where the only
issues to be determined pursuant to this section involve
liability for past treatment or services that will not affect
entitlement to ongoing or future proposed treatment or services
under section 176.102 or 176.135, the commissioner shall refer a
timely request to the office of administrative hearings within
five working days after filing of the request and the hearing at
the office of administrative hearings must be held on the first
date that all parties are available but not later than 60 days
after the office of administrative hearings receives the matter.
Following the hearing, the compensation judge must issue the
decision within 30 days. The decision of the compensation judge
is appealable pursuant to section 176.421.
Sec. 16. Minnesota Statutes 1998, section 176.111,
subdivision 5, is amended to read:
Subd. 5. [PAYMENTS, TO WHOM MADE.] In death cases
compensation payable to dependents is computed on the following
basis and shall be paid to the persons entitled thereto or to a
guardian or conservator as required under section 176.092. The
minimum amount of dependency compensation that must be paid to
persons entitled thereto is $60,000.
Sec. 17. Minnesota Statutes 1998, section 176.111,
subdivision 18, is amended to read:
Subd. 18. [BURIAL EXPENSE.] In all cases where death
results to an employee from a personal injury arising out of and
in the course of employment, the employer shall pay the expense
of burial, not exceeding in amount $7,500 $15,000. In case any
dispute arises as to the reasonable value of the services
rendered in connection with the burial, its reasonable value
shall be determined and approved by the commissioner, a
compensation judge, or workers' compensation court of appeals,
in cases upon appeal, before payment, after reasonable notice to
interested parties as is required by the commissioner. If the
deceased leaves no dependents, no compensation is payable,
except as provided by this chapter.
Sec. 18. Minnesota Statutes 1998, section 176.111, is
amended by adding a subdivision to read:
Subd. 22. [PAYMENTS TO ESTATE; DEATH OF EMPLOYEE.] In
every case of death of an employee resulting from personal
injury arising out of and in the course of employment where
there are no persons entitled to monetary benefits of dependency
compensation, the employer shall pay to the estate of the
deceased employee the sum of $60,000.
Sec. 19. Minnesota Statutes 1998, section 176.129,
subdivision 3, is amended to read:
Subd. 3. [PAYMENTS TO FUND, INJURY.] If an employee
suffers a personal injury resulting in permanent partial
disability, temporary total disability, temporary partial
disability, permanent total disability, or death and the
employee or the employee's dependents are entitled to
compensation under sections 176.101 or 176.111 the employer
shall pay to the commissioner a lump sum amount, without any
interest deduction, equal to 20 percent of the total
compensation payable. The rate under this subdivision shall be
adjusted as provided under subdivision 4a and applies to
injuries occurring after June 1, 1971, for payments made on or
after January 1, 1984. This payment is to be credited to the
special compensation fund and shall be in addition to any
compensation payments made by the employer under this chapter.
Payment shall be made as soon as the amount is determined and
approved by and the completed assessment form shall be submitted
to the commissioner no later than April 1 and August 15 of the
same calendar year.
Sec. 20. Minnesota Statutes 1998, section 176.129,
subdivision 4, is amended to read:
Subd. 4. [TIME OF INJURY.] Subdivision 3 applies to all
workers' compensation payments, exclusive of medical costs, paid
under section 176.101 or 176.111 for an injury or death
occurring on or after June 1, 1971.
Payments made for personal injuries that occurred prior to
June 1, 1971, shall be reported to the special compensation fund
but shall not be assessed at the rate in effect on the date of
occurrence.
Sec. 21. Minnesota Statutes 1998, section 176.231,
subdivision 2, is amended to read:
Subd. 2. [INITIAL REPORT, WRITTEN REPORT.] Where
subdivision 1 requires an injury to be reported within 48 hours,
the employer may make an initial report by telephone, telegraph,
or personal notice, and file a written report of the injury
within seven days from its occurrence or within such time as the
commissioner of labor and industry designates. All written
reports of injuries required by subdivision 1 shall include the
date of injury, amounts of payments made, if any, and the date
of the first payment. The reports shall be on a form designed
by the commissioner, with a clear copy suitable for imaging to
the commissioner, one copy to the insurer, and one copy to the
employee.
The employer must give the employee the "Minnesota Workers'
Compensation System Employee Information Sheet" at the time the
employee is given a copy of the first report of injury.
If an insurer or self-insurer repeatedly fails to pay
benefits within three days of the due date, pursuant to section
176.221, the insurer or self-insurer shall be ordered by the
commissioner to explain, in person, the failure to pay benefits
due in a reasonable time. If prompt payments are not thereafter
made, the commissioner shall refer the insurer or self-insurer
to the commissioner of commerce for action pursuant to section
176.225, subdivision 4.
Sec. 22. Minnesota Statutes 1998, section 176.611,
subdivision 2a, is amended to read:
Subd. 2a. [SETTLEMENT AND CONTINGENCY RESERVE ALTERNATIVE
COST ALLOCATION ACCOUNT.] To reduce long-term costs, minimize
impairment to agency operations and budgets, and distribute risk
of one-time catastrophic claims, the commissioner of employee
relations shall maintain a separate account within the state
compensation revolving fund. The account shall be used to pay
for lump-sum or annuitized settlements, structured claim
settlements, and one-time large, legal, catastrophic medical,
indemnity, or other irregular claim costs that might otherwise
pose a significant burden for agencies. The commissioner of
employee relations, with the approval of the commissioner of
finance, may establish criteria and procedures for payment from
the account on an agency's behalf. The commissioner of employee
relations may assess agencies on a reimbursement or premium
basis from time to time to ensure adequate account reserves.
The account consists of appropriations from the general fund,
receipts from billings to agencies, and credited investment
gains or losses attributable to balances in the account. The
state board of investment shall invest the assets of the account
according to section 11A.24.
Sec. 23. [LEGISLATIVE FINDINGS.]
The Minnesota workers' compensation assigned risk plan is
to aid in the operation of the workers' compensation system by
providing a source of workers' compensation insurance for
employers unable to obtain such coverage from the private
insurance market. The operations for this plan have yielded a
surplus from investment returns and other sources. It is in the
public interest and is the intent of the legislature to use a
portion of the excess surplus currently maintained by the
Minnesota workers' compensation assigned risk plan to reduce the
current and future obligations of the second injury and the
supplemental benefits programs of the special compensation fund
administered by the department of labor and industry.
Sec. 24. [MINNESOTA WORKERS' COMPENSATION ASSIGNED RISK
PLAN SURPLUS TRANSFER.]
Subdivision 1. [EXCESS SURPLUS.] "Excess surplus" means
the amount of the Minnesota workers' compensation assigned risk
plan funds that exceeds the amount necessary to pay all current
liabilities of this plan, including, but not limited to:
(1) administrative expenses;
(2) benefit claims; and
(3) in the event the Minnesota workers' compensation
assigned risk plan is dissolved under Minnesota Statutes,
section 79.251, subdivision 8, the amounts which would be due
insurers who have paid assessments to this plan.
Subd. 2. [TRANSFER OF EXCESS SURPLUS FUNDS.] (a) On or
before July 10, 2000, the commissioner of commerce shall certify
to the commissioner of finance the amount of the Minnesota
workers' compensation assigned risk plan excess surplus. On or
before July 10, 2000, the commissioner of finance and the
commissioner of commerce must direct the transfer of
$325,000,000 of assets of the assigned risk plan excess surplus
to a separate account within the special compensation fund
called the excess surplus account. The assets shall be managed
by the state board of investment. The principal portion of the
money in the excess surplus account is appropriated to the
department of labor and industry for settlement of liabilities
of the second injury and supplementary benefits programs.
Interest, gains, and other income of the excess surplus account
shall be credited to the account. Interest earnings on the
excess surplus account are appropriated to the department of
labor and industry to pay annual claims in the second injury and
supplementary benefits programs. Up to $1,000,000 in the excess
surplus account may be applied to administrative costs incurred
by these programs.
(b) The transfer of funds authorized by this subdivision is
not subject to review under Minnesota Statutes, chapter 14.
Subd. 3. [ASSESSMENT.] If excess surplus funds are
transferred as provided in subdivision 2, by January 1, 2001,
the rate assessed by the commissioner of labor and industry
under Minnesota Statutes, section 176.129, subdivisions 3 and
4a, shall be reduced by at least 30 percent from the rate in
effect on January 1, 2000.
Subd. 4. [STATUS REPORT.] On October 15, 2002, and October
15, 2004, the department of labor and industry must report to
the governor and the legislature on the status of its efforts to
reduce the unfunded liabilities of the second injury and the
supplementary benefits programs. These reports must include an
updated projection of the remaining long-term liabilities for
these programs and must make appropriate recommendations.
Sec. 25. [NONSEVERABILITY.]
Notwithstanding Minnesota Statutes, section 645.20, the
provisions of section 24, the minimum and maximum benefit rates
of section 10, and the changes in permanent partial disability
impairment ratings and corresponding dollar amounts of section
11 are not severable, and the provisions of section 24, the
minimum and maximum benefit rates of section 10, and the changes
in permanent partial disability impairment ratings and
corresponding dollar amounts of section 11 shall not be
effective unless the $325,000,000 referenced in section 24 is
used to reduce the rate of assessment as required by section 24,
subdivision 2, by satisfying liabilities of the special
compensation fund. If any of the following events occur on or
before June 1, 2003, the provisions of section 24, the minimum
and maximum benefit rates of section 10, and the changes in
permanent partial disability impairment ratings and
corresponding dollar amounts of section 11 are repealed and the
law as it existed prior to the enactment of these sections shall
be reinstated effective 90 days following the occurrence of any
of the following events and the law, as reinstated, shall be
applicable to any personal injuries occurring after the date of
reinstatement:
(1) section 24 is invalidated by final court adjudication
not subject to further appeal; or
(2) the $325,000,000 referenced in section 24 is
transferred and the funds are used in a manner or for a purpose
inconsistent with the requirements of section 24.
If any of the foregoing events described in clause (1) or
(2) should occur on or before June 1, 2003, any unexpended funds
transferred to the special compensation fund under section 24
shall be returned to the assigned risk plan.
Sec. 26. [NO CLAIM OF RIGHT.]
The transfer of funds required by section 24 does not
create a right nor impose a liability on any person or fund to
the funds transferred except as provided in section 24. If, for
any reason, funds cannot be transferred as required by section
24, the funds shall remain in the assigned risk plan fund.
Sec. 27. [TRANSFER PRIORITY.]
The transfer of excess surplus required by section 24 shall
be made prior to any other transfer of excess surplus from the
assigned risk plan fund authorized by laws passed at the regular
session of the 2000 legislature.
Sec. 28. [REPEALER.]
Minnesota Statutes 1998, section 176.129, subdivision 2, is
repealed.
Sec. 29. [EFFECTIVE DATES.]
Sections 1, 10, 11, and 14 are effective for dates of
injury on or after October 1, 2000. Section 9 is effective for
written notices of claims for legal services that were filed on
or after August 1, 2000. Sections 16, 17, and 18 are effective
for dates of injury on or after the day following final
enactment. Sections 23 to 28 are effective the day following
final enactment.
Presented to the governor April 25, 2000
Signed by the governor April 27, 2000, 11:42 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes