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CHAPTER 176. WORKERS' COMPENSATION

Table of Sections
SectionHeadnote
176.0001APPLICATION OF LAWS 2005, CHAPTER 56, TERMINOLOGY CHANGES.
INTENT
176.001INTENT OF THE LEGISLATURE.
176.01Repealed, 1953 c 755 s 83
DEFINITIONS
176.011DEFINITIONS.
176.012Repealed, 1987 c 332 s 117
176.02Repealed, 1953 c 755 s 83
GENERAL APPLICATION AND LIABILITY
176.021APPLICATION TO EMPLOYERS AND EMPLOYEES.
176.03Repealed, 1953 c 755 s 83
176.031EMPLOYER'S LIABILITY EXCLUSIVE.
176.04Repealed, 1953 c 755 s 83
176.041EXCLUDED EMPLOYMENTS; APPLICATION, EXCEPTIONS, ELECTION OF COVERAGE.
176.042INDEPENDENT CONTRACTORS.
176.05Repealed, 1953 c 755 s 83
176.051ASSUMPTION OF LIABILITY; FARM AND HOUSEHOLD WORKERS; RIDESHARING.
176.06Repealed, 1953 c 755 s 83
176.061THIRD PARTY LIABILITY.
176.07Repealed, 1953 c 755 s 83
176.071JOINT EMPLOYERS; CONTRIBUTION.
176.08Repealed, 1953 c 755 s 83
176.081LEGAL SERVICES OR DISBURSEMENTS; LIEN; REVIEW.
176.09Repealed, 1953 c 755 s 83
176.091MINOR EMPLOYEES.
176.092GUARDIAN; CONSERVATOR.
BENEFITS
176.095LEGISLATIVE FINDINGS.
176.10Repealed, 1953 c 755 s 83
176.101COMPENSATION SCHEDULE.
176.1011Repealed, 1996 c 310 s 1
REHABILITATION
176.102REHABILITATION.
176.1021CONTINUING EDUCATION; COMPENSATION JUDGES.
REVIEW OF SERVICES
176.103MEDICAL HEALTH CARE REVIEW.
176.104REHABILITATION PRIOR TO DETERMINATION OF LIABILITY.
176.1041CERTIFICATION FOR FEDERAL TAX CREDIT.
DISABILITY SCHEDULES
176.105COMMISSIONER TO ESTABLISH DISABILITY SCHEDULES.
CONFERENCES
176.106ADMINISTRATIVE CONFERENCE.
176.107TELECONFERENCES.
MISCELLANEOUS
176.108LIGHT-DUTY WORK POOLS.
176.11Repealed, 1953 c 755 s 83
176.111DEPENDENTS, ALLOWANCES.
176.12Repealed, 1953 c 755 s 83
176.121COMMENCEMENT OF COMPENSATION.
176.129CREATION OF SPECIAL COMPENSATION FUND.
176.13Repealed, 1965 c 327 s 2
176.130TARGETED INDUSTRY FUND; LOGGERS.
176.131Repealed, 1992 c 510 art 3 s 36
176.1311SECOND INJURY FUND DATA.
176.132Repealed, 1995 c 231 art 1 s 35; art 2 s 110
176.1321EFFECTIVE DATE OF BENEFIT CHANGES.
176.133Repealed, 1995 c 231 art 2 s 110
176.134Repealed, 1985 c 234 s 22
TREATMENT AND SUPPLIES
176.135TREATMENT; APPLIANCES; SUPPLIES.
MANAGED CARE
176.1351MANAGED CARE.
FEES FOR SERVICES
176.136MEDICAL FEE REVIEW.
MISCELLANEOUS
176.1361TESTIMONY OF PROVIDERS.
176.137REMODELING OF RESIDENCE; DISABLED EMPLOYEES.
176.138MEDICAL DATA; ACCESS.
NOTICE
176.139NOTICE OF RIGHTS POSTED.
176.14Repealed, 1953 c 755 s 83
176.141NOTICE OF INJURY.
176.145SERVICE OF NOTICE, FORM.
176.15Repealed, 1953 c 755 s 83
TIME LIMITS
176.151TIME LIMITATIONS.
176.152Repealed, 1983 c 290 s 173
EXAMS
176.155EXAMINATIONS.
176.16Repealed, 1953 c 755 s 83
PAYMENTS
176.161ALIEN DEPENDENTS.
176.165LUMP SUM PAYMENTS.
176.17Repealed, 1953 c 755 s 83
176.171PAYMENT TO TRUSTEE.
176.175RIGHT TO COMPENSATION, AWARD.
FRAUD
176.178FRAUD.
OVERPAYMENTS
176.179RECOVERY OF OVERPAYMENTS.
176.18Repealed, 1953 c 755 s 83
INSURANCE
176.181INSURANCE.
MISCELLANEOUS
176.1812COLLECTIVE BARGAINING AGREEMENTS.
176.182BUSINESS LICENSES OR PERMITS; COVERAGE REQUIRED.
176.183UNINSURED AND SELF-INSURED EMPLOYERS; BENEFITS TO EMPLOYEES AND DEPENDENTS; LIABILITY OF EMPLOYER.
176.184INSPECTIONS; ENFORCEMENT.
176.185POLICY OF INSURANCE.
176.186RECORDS FROM OTHER STATE AGENCIES.
176.19Repealed, 1953 c 755 s 83
176.191DISPUTE BETWEEN TWO OR MORE EMPLOYERS OR INSURERS REGARDING LIABILITY.
176.192BOMB DISPOSAL UNIT EMPLOYEES.
PROHIBITIONS AND PENALTIES
176.194PROHIBITED PRACTICES.
176.195REVOCATION OF INSURER'S LICENSE.
176.20Repealed, 1953 c 755 s 83
176.201DISCRIMINATORY RATES.
176.205PERSON DEEMED EMPLOYER.
176.21Repealed, 1953 c 755 s 83
176.211ACTS OR OMISSIONS OF THIRD PERSONS.
176.215SUBCONTRACTOR'S FAILURE TO COMPLY WITH CHAPTER.
176.22Repealed, 1953 c 755 s 83
PAYMENTS
176.221PAYMENT OF COMPENSATION AND TREATMENT CHARGES, COMMENCEMENT.
176.222REPORT ON COLLECTION AND ASSESSMENT OF FINES AND PENALTIES.
176.223PROMPT PAYMENT REPORT.
176.225ADDITIONAL AWARD AS PENALTY.
176.23Repealed, 1953 c 755 s 83
REPORTS
176.231REPORT OF DEATH OR INJURY TO COMMISSIONER OF DEPARTMENT OF LABOR AND INDUSTRY.
176.232Repealed, 1995 c 231 art 2 s 110
176.234RELEASE OF DATA FOR EPIDEMIOLOGIC STUDY.
NOTICE
176.235NOTICE TO EMPLOYERS AND INJURED EMPLOYEE OF RIGHTS AND DUTIES.
176.238NOTICE OF DISCONTINUANCE OF COMPENSATION.
DISCONTINUANCE OF BENEFITS
176.239ADMINISTRATIVE DECISION CONCERNING DISCONTINUANCE OF COMPENSATION.
176.24Repealed, 1953 c 755 s 83
176.241Repealed, 1987 c 332 s 117
176.242Repealed, 1987 c 332 s 117
176.2421Repealed, 1987 c 332 s 117
176.243Repealed, 1987 c 332 s 117
176.244Repealed, 1987 c 332 s 117
RECEIPTS
176.245RECEIPTS FOR PAYMENT OF COMPENSATION, FILING.
176.25Repealed, 1953 c 755 s 83
DUTIES
176.251DUTIES OF COMMISSIONER OF DEPARTMENT OF LABOR AND INDUSTRY.
176.253INSURER, EMPLOYER; PERFORMANCE OF ACTS.
176.255Repealed, 1953 c 755 s 83
176.26Repealed, 1953 c 755 s 83
176.261EMPLOYEE OF COMMISSIONER OF DEPARTMENT OF LABOR AND INDUSTRY MAY ACT FOR AND ADVISE A PARTY TO A PROCEEDING.
SMALL CLAIMS
176.2615SMALL CLAIMS COURT.
176.262Repealed, 1983 c 290 s 173
176.265Repealed, 1986 c 461 s 37
176.27Repealed, 1953 c 755 s 83
PROCEDURE
176.271INITIATION OF PROCEEDINGS.
176.275FILING OF PAPERS; PROOF OF SERVICE.
176.28Repealed, 1953 c 755 s 83
176.281ORDERS, DECISIONS, AND AWARDS; FILING; SERVICE.
176.285SERVICE OF PAPERS AND NOTICES.
176.29Repealed, 1953 c 755 s 83
176.291DISPUTES; PETITIONS; PROCEDURE.
176.295NONRESIDENT EMPLOYERS; FOREIGN CORPORATION.
176.30Repealed, 1953 c 755 s 83
176.301DETERMINATION OF ISSUES.
176.305PETITIONS FILED WITH WORKERS' COMPENSATION DIVISION.
176.306SCHEDULED HEARINGS.
176.307COMPENSATION JUDGES; BLOCK SYSTEM.
176.31Repealed, 1953 c 755 s 83
176.311REASSIGNMENT OF PETITION FOR HEARING.
176.312AFFIDAVITS OF PREJUDICE AND PETITIONS FOR REASSIGNMENT.
176.32Repealed, 1953 c 755 s 83
176.321ANSWER TO PETITION.
176.322DECISIONS BASED ON STIPULATED FACTS.
176.325CERTIFIED QUESTION.
176.33Repealed, 1953 c 755 s 83
176.331PROCEEDINGS WHEN ANSWER NOT FILED.
176.34Repealed, 1953 c 755 s 83
176.341HEARING ON PETITION.
176.35Repealed, 1953 c 755 s 83
176.351TESTIMONIAL POWERS.
176.36Repealed, 1953 c 755 s 83
176.361INTERVENTION.
176.37Repealed, 1953 c 755 s 83
176.371AWARD OR DISALLOWANCE OF COMPENSATION.
176.38Repealed, 1953 c 755 s 83
176.381REFERENCE OF QUESTIONS OF FACT.
176.39Repealed, 1953 c 755 s 83
176.391INVESTIGATIONS.
176.40Repealed, 1953 c 755 s 83
176.401HEARINGS PUBLIC.
176.41Repealed, 1953 c 755 s 83
176.411RULES OF EVIDENCE, PLEADING, AND PROCEDURE.
176.42Repealed, 1953 c 755 s 83
APPEALS
176.421APPEALS TO WORKERS' COMPENSATION COURT OF APPEALS.
176.43Repealed, 1953 c 755 s 83
176.431Repealed, 1986 c 461 s 37
176.44Repealed, 1953 c 755 s 83
176.441
176.442APPEALS FROM DECISIONS OF COMMISSIONER.
176.445Repealed, 2001 c 123 s 23
176.45Repealed, 1953 c 755 s 83
176.451DEFAULTS.
176.46Repealed, 1953 c 755 s 83
176.461SETTING ASIDE AWARD.
176.47Repealed, 1953 c 755 s 83
176.471REVIEW BY SUPREME COURT ON CERTIORARI.
176.48Repealed, 1953 c 755 s 83
176.481ORIGINAL JURISDICTION OF SUPREME COURT.
176.49Repealed, 1953 c 755 s 83
176.491STAY OF PROCEEDINGS PENDING DISPOSITION OF CASE.
176.50Repealed, 1953 c 755 s 83
176.501Repealed, 1987 c 332 s 117
176.51Repealed, 1953 c 755 s 83
COSTS
176.511COSTS.
176.52Repealed, 1953 c 755 s 83
SETTLEMENTS
176.521SETTLEMENT OF CLAIMS.
176.522NOTICE TO EMPLOYER.
176.53Repealed, 1953 c 755 s 83
GOVERNMENT ISSUES
176.531AWARD OF COMPENSATION AGAINST A POLITICAL SUBDIVISION OR SCHOOL DISTRICT.
176.54Repealed, 1953 c 755 s 83
176.540Renumbered 176.5401
176.5401TRANSFER OF STATE CLAIMS UNIT TO DEPARTMENT OF EMPLOYEE RELATIONS.
176.541STATE DEPARTMENTS.
176.55Repealed, 1953 c 755 s 83
176.551REPORTS.
176.56Repealed, 1953 c 755 s 83
176.561WORKERS' COMPENSATION COURT OF APPEALS POWERS AND DUTIES AS TO STATE EMPLOYEES; PROCEDURE FOR DETERMINING LIABILITY.
176.57Repealed, 1953 c 755 s 83
176.571INVESTIGATIONS OF INJURIES TO STATE EMPLOYEES.
176.572CONTRACT WITH INSURANCE CARRIERS.
176.58Repealed, 1953 c 755 s 83
176.581PAYMENT TO STATE EMPLOYEES.
176.59Repealed, 1953 c 755 s 83
176.591STATE COMPENSATION REVOLVING FUND.
176.60Repealed, 1953 c 755 s 83
176.601Repealed, 1974 c 355 s 30
176.602Repealed, 1987 c 332 s 117
176.603COST OF ADMINISTERING CHAPTER, PAYMENT.
176.61Repealed, 1953 c 755 s 83
176.611MAINTENANCE OF STATE COMPENSATION REVOLVING FUND.
176.62Repealed, 1953 c 755 s 83
176.621Repealed, 1975 c 61 s 26
176.63Repealed, 1953 c 755 s 83
176.631Repealed, 1975 c 61 s 26
176.64Repealed, 1953 c 755 s 83
MISCELLANEOUS
176.641ACCIDENTS OR INJURIES ARISING PRIOR TO EFFECTIVE DATE.
176.645ADJUSTMENT OF BENEFITS.
176.65Repealed, 1953 c 755 s 83
176.651SEVERABILITY.
176.66OCCUPATIONAL DISEASES; HOW REGARDED.
176.661Repealed, 1973 c 643 s 12; 1976 c 2 s 164
176.662Repealed, 1973 c 643 s 12; 1976 c 2 s 164
176.663Repealed, 1973 c 643 s 12; 1976 c 2 s 164
176.664Repealed, 1973 c 643 s 12; 1976 c 2 s 164
176.665Repealed, 1973 c 643 s 12; 1976 c 2 s 164
176.666Repealed, 1973 c 643 s 12; 1976 c 2 s 164
176.667Repealed, 1973 c 643 s 12; 1976 c 2 s 164
176.668Repealed, 1973 c 643 s 12; 1976 c 2 s 164
176.669EXPENSES; RULES.
176.79176.67-176.79 Repealed, 1953 c 755 s 83
176.80Obsolete
176.81Repealed, 1953 c 755 s 83
176.82ACTION FOR CIVIL DAMAGES FOR OBSTRUCTING EMPLOYEE SEEKING BENEFITS.
RULES
176.83RULES.
SPECIFICITY OF NOTICE
176.84SPECIFICITY OF NOTICE OR STATEMENT.
PENALTIES
176.85PENALTIES; APPEALS.
176.86Repealed, 1995 c 231 art 1 s 36
DISCLOSURE
176.861DISCLOSURE OF INFORMATION.
176.862DISCLOSURE TO LAW ENFORCEMENT.
176.0001 APPLICATION OF LAWS 2005, CHAPTER 56, TERMINOLOGY CHANGES.
State agencies shall use the terminology changes specified in Laws 2005, chapter 56, section
1, when printed material and signage are replaced and new printed material and signage are
obtained. State agencies do not have to replace existing printed material and signage to comply
with Laws 2005, chapter 56, sections 1 and 2. Language changes made according to Laws 2005,
chapter 56, sections 1 and 2, shall not expand or exclude eligibility to services.
History: 2005 c 56 s 3

INTENT

176.001 INTENT OF THE LEGISLATURE.
It is the intent of the legislature that chapter 176 be interpreted so as to assure the quick and
efficient delivery of indemnity and medical benefits to injured workers at a reasonable cost to the
employers who are subject to the provisions of this chapter. It is the specific intent of the legislature
that workers' compensation cases shall be decided on their merits and that the common law
rule of "liberal construction" based on the supposed "remedial" basis of workers' compensation
legislation shall not apply in such cases. The workers' compensation system in Minnesota is based
on a mutual renunciation of common law rights and defenses by employers and employees alike.
Employees' rights to sue for damages over and above medical and health care benefits and wage
loss benefits are to a certain degree limited by the provisions of this chapter, and employers' rights
to raise common law defenses such as lack of negligence, contributory negligence on the part of
the employee, and others, are curtailed as well. Accordingly, the legislature hereby declares that
the workers' compensation laws are not remedial in any sense and are not to be given a broad
liberal construction in favor of the claimant or employee on the one hand, nor are the rights and
interests of the employer to be favored over those of the employee on the other hand.
History: 1981 c 346 s 52; 1983 c 290 s 25
176.01 [Repealed, 1953 c 755 s 83]

DEFINITIONS

176.011 DEFINITIONS.
    Subdivision 1. Terms. For the purposes of this chapter the terms described in this section
have the meanings ascribed to them.
    Subd. 2. Child. "Child" includes a posthumous child, a child entitled by law to inherit as
a child of a deceased person, a child of a person adjudged by a court of competent jurisdiction
to be the father of the child, and a stepchild, grandchild, or foster child who was a member of
the family of a deceased employee at the time of injury and dependent upon the employee for
support. A stepchild is a "child" within the meaning of section 176.041.
    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 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.
    Subd. 4. Commercial baler. "Commercial baler" means a person going from place to place
baling hay or straw as a business, but does not include a farmer owning a baling machine not
engaged in such business generally and doing the farmer's own baling and casually doing such
work for other farmers in the same community or exchanging work with another farmer.
    Subd. 5. Commercial thresher. "Commercial thresher" means a person going from place to
place threshing grain or shredding or shelling corn as a business, but does not include a farmer
owning a threshing, shredding, or shelling machine not engaged in such business generally and
doing the farmer's own threshing, shredding, or shelling and casually doing such work for other
farmers in the same community or exchanging work with another farmer.
    Subd. 6. (1) Court of appeals. "Court of appeals" means the Workers' Compensation Court
of Appeals of Minnesota.
(2) Division. "Division" means the Workers' Compensation Division of the Department of
Labor and Industry.
(3) Department. "Department" means the Department of Labor and Industry.
(4) Commissioner. "Commissioner," unless the context clearly indicates otherwise, means
the commissioner of labor and industry.
(5) Office. "Office" means the Office of Administrative Hearings.
    Subd. 7. Judge. "Judge" means a member of the Workers' Compensation Court of Appeals.
    Subd. 7a. (1) Compensation judge. "Compensation judge" means a workers' compensation
judge at the Office of Administrative Hearings.
(2) Calendar judge. "Calendar judge" means a workers' compensation judge at the Office of
Administrative Hearings.
(3) Compensation judge. "Compensation judge" means a compensation judge at the
Department of Labor and Industry. Compensation judges may conduct settlement conferences,
issue summary decisions, approve settlements and issue awards thereon, determine petitions for
attorney fees and costs, and make other determinations, decisions, orders, and awards as may be
delegated to them by the commissioner. Compensation judges must be learned in the law.
    Subd. 8. Compensation. "Compensation" includes all benefits provided by this chapter on
account of injury or death.
    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, 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 emergency management as defined in
section 12.03, subdivision 4, who is:
(i) registered with the state or any political subdivision of it, according to the procedures set
forth in the state or political subdivision emergency operations plan; and
(ii) acting under the direction and control of, and within the scope of duties approved by, the
state or political subdivision.
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 education, 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 disabled 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.
    Subd. 9a. Employee. For purposes of this chapter "employee" does not include farmers or
members of their family who exchange work with other farmers in the same community.
    Subd. 10. Employer. "Employer" means any person who employs another to perform a
service for hire; and includes corporation, partnership, limited liability company, association,
group of persons, state, county, town, city, school district, or governmental subdivision.
    Subd. 11. Executive officer of a corporation. "Executive officer of a corporation" means
any officer of a corporation elected or appointed in accordance with its charter or bylaws.
    Subd. 11a. Family farm. (a) "Family farm" means any farm operation which pays or is
obligated to pay cash wages, exclusive of machine hire, to farm laborers for services rendered
during the preceding calendar year in an amount:
(1) less than $8,000; or
(2) less than the statewide average annual wage as described in subdivision 20 when the
farm operation has total liability and medical payment coverage equal to $300,000 and $5,000,
respectively, under a farm liability insurance policy, and the policy covers injuries to farm laborers.
(b) For purposes of this subdivision, farm laborer does not include any spouse, parent or
child, regardless of age, of a farmer employed by the farmer, or any executive officer of a family
farm corporation as defined in section 500.24, subdivision 2, or any spouse, parent or child,
regardless of age, of such an officer employed by that family farm corporation, or other farmers
in the same community or members of their families exchanging work with the employer.
Notwithstanding any law to the contrary, a farm laborer shall not be considered as an independent
contractor for the purposes of this chapter; provided that a commercial baler or commercial
thresher shall be considered an independent contractor.
    Subd. 12. Farm laborer. "Farm laborer" does not include an employee of a commercial
thresher or commercial baler.
    Subd. 13.[Repealed, 1987 c 49 s 20]
    Subd. 14. Member. "Member" includes leg, foot, toe, hand, finger, thumb, arm, back, eye,
and ear when used with reference to the anatomy.
    Subd. 15. Occupational disease. (a) "Occupational disease" means a disease arising out of
and in the course of employment peculiar to the occupation in which the employee is engaged and
due to causes in excess of the hazards ordinary of employment and shall include undulant fever.
Ordinary diseases of life to which the general public is equally exposed outside of employment are
not compensable, except where the diseases follow as an incident of an occupational disease, or
where the exposure peculiar to the occupation makes the disease an occupational disease hazard.
A disease arises out of the employment only if there be a direct causal connection between the
conditions under which the work is performed and if the occupational disease follows as a natural
incident of the work as a result of the exposure occasioned by the nature of the employment. An
employer is not liable for compensation for any occupational disease which cannot be traced to
the employment as a direct and proximate cause and is not recognized as a hazard characteristic
of and peculiar to the trade, occupation, process, or employment or which results from a hazard to
which the worker would have been equally exposed outside of the employment.
(b) If immediately preceding the date of disablement or death, an employee was employed
on active duty with an organized fire or police department of any municipality, as a member of
the Minnesota State Patrol, conservation officer service, state crime bureau, as a forest officer
by the Department of Natural Resources, state correctional officer, or sheriff or full-time deputy
sheriff of any county, and the disease is that of myocarditis, coronary sclerosis, pneumonia or its
sequel, and at the time of employment such employee was given a thorough physical examination
by a licensed doctor of medicine, and a written report thereof has been made and filed with
such organized fire or police department, with the Minnesota State Patrol, conservation officer
service, state crime bureau, Department of Natural Resources, Department of Corrections,
or sheriff's department of any county, which examination and report negatived any evidence
of myocarditis, coronary sclerosis, pneumonia or its sequel, the disease is presumptively an
occupational disease and shall be presumed to have been due to the nature of employment. If
immediately preceding the date of disablement or death, any individual who by nature of their
position provides emergency medical care, or an employee who was employed as a licensed
police officer under section 626.84, subdivision 1; firefighter; paramedic; state correctional
officer; emergency medical technician; or licensed nurse providing emergency medical care; and
who contracts an infectious or communicable disease to which the employee was exposed in the
course of employment outside of a hospital, then the disease is presumptively an occupational
disease and shall be presumed to have been due to the nature of employment and the presumption
may be rebutted by substantial factors brought by the employer or insurer. Any substantial factors
which shall be used to rebut this presumption and which are known to the employer or insurer at
the time of the denial of liability shall be communicated to the employee on the denial of liability.
(c) A firefighter on active duty with an organized fire department who is unable to perform
duties in the department by reason of a disabling cancer of a type caused by exposure to heat,
radiation, or a known or suspected carcinogen, as defined by the International Agency for Research
on Cancer, and the carcinogen is reasonably linked to the disabling cancer, is presumed to have an
occupational disease under paragraph (a). If a firefighter who enters the service after August 1,
1988, is examined by a physician prior to being hired and the examination discloses the existence
of a cancer of a type described in this paragraph, the firefighter is not entitled to the presumption
unless a subsequent medical determination is made that the firefighter no longer has the cancer.
    Subd. 16. Personal injury. "Personal injury" means injury arising out of and in the course
of employment and includes personal injury caused by occupational disease; but does not cover
an employee except while engaged in, on, or about the premises where the employee's services
require the employee's presence as a part of that service at the time of the injury and during
the hours of that service. Where the employer regularly furnished transportation to employees
to and from the place of employment, those employees are subject to this chapter while being
so transported. Personal injury does not include an injury caused by the act of a third person or
fellow employee intended to injure the employee because of personal reasons, and not directed
against the employee as an employee, or because of the employment. An injury or disease
resulting from a vaccine in response to a declaration by the Secretary of the United States
Department of Health and Human Services under the Public Health Service Act to address an
actual or potential health risk related to the employee's employment is an injury or disease arising
out of and in the course of employment.
    Subd. 17. Physician. "Physician" means one authorized by law to practice the medical
profession within one of the United States and in good standing in the profession, and includes
surgeon.
    Subd. 18. Weekly wage. "Weekly wage" is arrived at by multiplying the daily wage by the
number of days and fractional days normally worked in the business of the employer for the
employment involved. If the employee normally works less than five days per week or works an
irregular number of days per week, the number of days normally worked shall be computed by
dividing the total number of days in which the employee actually performed any of the duties
of employment in the last 26 weeks by the number of weeks in which the employee actually
performed such duties, provided that the weekly wage for part time employment during a period
of seasonal or temporary layoff shall be computed on the number of days and fractional days
normally worked in the business of the employer for the employment involved. If, at the time
of the injury, the employee was regularly employed by two or more employers, the employee's
days of work for all such employments shall be included in the computation of weekly wage.
Occasional overtime is not to be considered in computing the weekly wage, but if overtime is
regular or frequent throughout the year it shall be taken into consideration. The maximum weekly
compensation payable to an employee, or to the employee's dependents in the event of death, shall
not exceed 66-2/3 percent of the product of the daily wage times the number of days normally
worked, provided that the compensation payable for permanent partial disability under section
176.101, subdivision 3, and for permanent total disability under section 176.101, subdivision 4, or
death under section 176.111, shall not be computed on less than the number of hours normally
worked in the employment or industry in which the injury was sustained, subject also to such
maximums as are specifically otherwise provided.
    Subd. 19. Worker. "Worker" means employee.
    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 wage detail
reports to the Department of Employment and Economic Development for the preceding 12
months ending on December 31 of that year shall be divided by the average monthly number of
covered workers (determined by dividing the total 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.
    Subd. 21. Household worker. "Household worker" means one who is a domestic, repairer,
groundskeeper, or maintenance worker in, for, or about a private home or household, but the term
shall not include independent contractors nor shall it include persons performing labor for which
they may elect workers' compensation coverage under section 176.041, subdivision 1a.
    Subd. 22. Closely held corporations. "Closely held corporation" means a corporation
whose stock is held by no more than ten persons. The determination of ownership shall be made
annually on the effective date of the policy issued under this chapter. In case of self-insureds the
determination shall be made annually on the date of approval of self-insurance or renewal of
self-insurance.
    Subd. 23. Retraining. "Retraining" means a formal course of study in a school setting which
is designed to train an employee to return to suitable gainful employment.
    Subd. 24. Health care provider. "Health care provider" means a physician, podiatrist,
chiropractor, dentist, optometrist, osteopath, psychologist, psychiatric social worker, or any other
person who furnishes a medical or health service to an employee under this chapter but does not
include a qualified rehabilitation consultant or approved vendor.
    Subd. 25. Maximum medical improvement. "Maximum medical improvement" means
the date after which no further significant recovery from or significant lasting improvement to
a personal injury can reasonably be anticipated, based upon reasonable medical probability,
irrespective and regardless of subjective complaints of pain. Except where an employee is
medically unable to continue working under section 176.101, subdivision 1, paragraph (e),
clause (2)
, once the date of maximum medical improvement has been determined, no further
determinations of other dates of maximum medical improvement for that personal injury is
permitted. The determination that an employee has reached maximum medical improvement
shall not be rendered ineffective by the worsening of the employee's medical condition and
recovery therefrom.
    Subd. 26.[Repealed, 1995 c 231 art 1 s 36; art 2 s 110]
    Subd. 27. Administrative conference. An "administrative conference" is a meeting
conducted by a commissioner's designee where parties can discuss on an expedited basis and in
an informal setting their viewpoints concerning disputed issues arising under section 176.102,
176.103, 176.135, 176.136, or 176.239. If the parties are unable to resolve the dispute, the
commissioner's designee shall issue an administrative decision under section 176.106 or 176.239.
History: 1953 c 443 s 1; 1953 c 755 s 1; 1955 c 206 s 1; 1955 c 652 s 1; 1955 c 765 s 1;
1957 c 834 s 1; 1959 c 20 s 1; 1959 c 283 s 1; 1963 c 493 s 1; 1963 c 497 s 1; 1967 c 701 s 1;
1967 c 806 s 1; 1967 c 905 s 9; Ex1967 c 1 s 6; Ex1967 c 40 s 1,2; 1969 c 9 s 53; 1969 c 148 s 2;
1969 c 276 s 1; 1969 c 936 s 2; 1973 c 123 art 5 s 7; 1973 c 388 s 12; 1973 c 420 s 2; 1973 c 657
s 1; 1975 c 271 s 6; 1975 c 359 s 3,4,23; 1976 c 331 s 36; 1977 c 342 s 1,2; 1977 c 429 s 63;
1977 c 430 s 25 subd 1; 1978 c 574 s 1; 1978 c 702 s 1; 1978 c 757 s 1; 1978 c 764 s 99; 1979 c
92 s 2; Ex1979 c 3 s 28,29; 1980 c 384 s 2; 1980 c 385 s 1,2; 1980 c 414 s 2; 1980 c 556 s 12;
1981 c 37 s 2; 1981 c 346 s 53,54,139; 1983 c 193 s 2; 1983 c 290 s 26-30; 1984 c 469 s 1; 1984
c 544 s 85; 1984 c 654 art 5 s 58; 1985 c 247 s 20; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c
332 s 5-9; 1987 c 348 s 33; 1987 c 384 art 1 s 54; 1988 c 652 s 1; 1988 c 717 s 3; 1989 c 209
art 2 s 1; 1990 c 556 s 4; 1992 c 510 art 1 s 1,2; 1993 c 137 s 5; 1994 c 483 s 1; 1994 c 583
s 2; 1994 c 631 s 31; 1995 c 224 s 69; 1995 c 231 art 1 s 13; art 2 s 44; 1997 c 128 s 3; 1998
c 366 s 89; 1998 c 398 art 5 s 55; 2000 c 447 s 1-3; 2003 c 130 s 12; 2004 c 183 s 1; 2004 c
257 s 10,11; 2005 c 10 art 2 s 4; 2005 c 56 s 1; 2005 c 90 s 1
176.012 [Repealed, 1987 c 332 s 117]
176.02 [Repealed, 1953 c 755 s 83]

GENERAL APPLICATION AND LIABILITY

176.021 APPLICATION TO EMPLOYERS AND EMPLOYEES.
    Subdivision 1. Liability for compensation. Except as excluded by this chapter all employers
and employees are subject to the provisions of this chapter.
Every employer is liable for compensation according to the provisions of this chapter and is
liable to pay compensation in every case of personal injury or death of an employee arising out
of and in the course of employment without regard to the question of negligence. The burden
of proof of these facts is upon the employee.
If the injury was intentionally self-inflicted or the intoxication of the employee is the
proximate cause of the injury, then the employer is not liable for compensation. The burden
of proof of these facts is upon the employer.
    Subd. 1a. Burden of proof. All disputed issues of fact arising under this chapter shall be
determined by a preponderance of the evidence, and in accordance with the principles laid down
in section 176.001. Preponderance of the evidence means evidence produced in substantiation
of a fact which, when weighed against the evidence opposing the fact, has more convincing
force and greater probability of truth.
Questions of law arising under chapter 176 shall be determined on an even-handed basis in
accordance with the principles laid down in section 176.001.
    Subd. 2. Parties liable. The liability imposed by subdivision 1 upon the employer extends to
and binds those conducting the employer's business during insolvency, assignment for the benefit
of creditors, and insofar as agreeable with the controlling federal law during bankruptcy.
    Subd. 3. Compensation, commencement of payment. All employers shall commence
payment of compensation at the time and in the manner prescribed by this chapter without the
necessity of any agreement or any order of the division. Except for medical, burial, and other
nonperiodic benefits, payments shall be made as nearly as possible at the intervals when the wage
was payable, provided, however, that payments for permanent partial disability shall be governed
by section 176.101. If doubt exists as to the eventual permanent partial disability, payment shall
be then made when due for the minimum permanent partial disability ascertainable, and further
payment shall be made upon any later ascertainment of greater permanent partial disability.
Prior to or at the time of commencement of the payment of permanent partial compensation, the
employee and employer shall be furnished with a copy of the medical report upon which the
payment is based and all other medical reports which the insurer has that indicate a permanent
partial disability rating, together with a statement by the insurer as to whether the tendered
payment is for minimum permanent partial disability or final and eventual disability. After receipt
of all reports available to the insurer that indicate a permanent partial disability rating, the
employee shall make available or permit the insurer to obtain any medical report that the employee
has or has knowledge of that contains a permanent partial disability rating which the insurer does
not already have. Permanent partial compensation pursuant to section 176.101 is payable in
addition to but not concurrently with compensation for temporary total disability but is payable
pursuant to section 176.101. Impairment compensation is payable concurrently and in addition
to compensation for permanent total disability pursuant to section 176.101. Permanent partial
compensation pursuant to section 176.101 shall be withheld pending completion of payment
for temporary total disability, and no credit shall be taken for payment of permanent partial
compensation against liability for temporary total or future permanent total disability. Liability on
the part of an employer or the insurer for disability of a temporary total, temporary partial, and
permanent total nature shall be considered as a continuing product and part of the employee's
inability to earn or reduction in earning capacity due to injury or occupational disease and
compensation is payable accordingly, subject to section 176.101. Permanent partial compensation
is payable for functional loss of use or impairment of function, permanent in nature, and payment
therefore shall be separate, distinct, and in addition to payment for any other compensation,
subject to section 176.101. The right to receive temporary total, temporary partial, or permanent
total disability payments vests in the injured employee or the employee's dependents under this
chapter or, if none, in the employee's legal heirs at the time the disability can be ascertained and
the right is not abrogated by the employee's death prior to the making of the payment.
The right to receive permanent partial compensation vests in an injured employee at the time
the disability can be ascertained provided that the employee lives for at least 30 days beyond
the date of the injury. Upon the death of an employee who is receiving economic recovery
compensation or impairment compensation, further compensation is payable pursuant to section
176.101. Impairment compensation is payable under this paragraph if vesting has occurred, the
employee dies prior to reaching maximum medical improvement, and the requirements and
conditions under section 176.101, subdivision 3e, are not met.
Disability ratings for permanent partial disability shall be based on objective medical
evidence.
    Subd. 3a. Permanent partial benefits, payment. Payments for permanent partial disability
as provided in section 176.101, subdivision 2a, shall be made in the following manner:
(a) If the employee returns to work, payment shall be made at the same intervals as temporary
total payments were made;
(b) If temporary total payments have ceased, but the employee has not returned to work,
payment shall be made at the same intervals as temporary total payments were made;
(c) If temporary total disability payments cease because the employee is receiving payments
for permanent total disability or because the employee is retiring or has retired from the work
force, then payment shall be made at the same intervals as temporary total payments were made;
(d) If the employee completes a rehabilitation plan pursuant to section 176.102, but the
employer does not furnish the employee with work the employee can do in a permanently partially
disabled condition, and the employee is unable to procure such work with another employer, then
payment shall be made at the same intervals as temporary total payments were made.
    Subd. 3b. Temporary and permanent partial. If an employee has returned to work for at
least six months and has, if applicable, completed a rehabilitation plan, this section does not
prevent the payment of compensation for permanent partial disability because the employee
is receiving compensation for temporary partial disability. This subdivision is procedural and
applies regardless of the date of injury.
    Subd. 4. Void agreements. Any agreement by any employee or dependent to take as
compensation an amount less than that prescribed by this chapter is void.
    Subd. 5. Accumulated credits, additional payments. If employees of the state or a county,
city or other political subdivision of the state who are entitled to the benefits of the workers'
compensation law have, at the time of compensable injury, accumulated credits under a vacation,
sick leave or overtime plan or system maintained by the governmental agency by which they are
employed, the appointing authority may provide for the payment of additional benefits to such
employees from their accumulated vacation, sick leave or overtime credits. Such additional
payments to an employee may not exceed the amount of the total sick leave, vacation or overtime
credits accumulated by the employee and shall not result in the payment of a total weekly rate of
compensation that exceeds the weekly wage of the employee. Such additional payments to any
employee shall be charged against the sick leave, vacation and overtime credits accumulated by
such employee. Employees of a county, city or other political subdivision entitled to the benefits of
the workers' compensation law may receive additional benefits pursuant to a collective bargaining
agreement or other plan, entered into or in effect on or after January 1, 1980, providing payments
by or on behalf of the employer and these additional benefits may be unrelated to any accumulated
sick leave, holiday or overtime credits and need not be charged against any accumulation;
provided that the additional payments shall not result in the payment of a total weekly rate
of compensation that exceeds the weekly wage of the employee. The commissioner of the
Department of Labor and Industry for the state or the governing body of any county, city or other
political subdivision to which the provisions of this chapter apply, may adopt rules not inconsistent
with this chapter for carrying out the provisions hereof relating to payment of additional benefits
to employees from accumulated sick leave, vacation, overtime credits or other sources.
    Subd. 6. Compensation under city charter. Where, in any city operating under a home rule
charter, a mode and manner of compensation is provided by the charter which is different from
that provided by this chapter, and the amount of compensation provided by the charter would,
if taken thereunder, exceed the amount the employee is entitled to under this chapter for the
same period, the employee shall, in addition to compensation under this chapter, receive under
the charter an amount equal to the excess in compensation provided by the charter over what the
employee is entitled to by this chapter; if the amount of compensation provided by the charter
would, if taken thereunder, be equal to or less than the amount of compensation the employee is
entitled to under this chapter for the same period, the employee shall take only under this chapter.
    Subd. 7. Public officer. If an employee who is a public officer of the state or governmental
subdivision continues to receive the compensation of office during a period when receiving
benefits under the workers' compensation law for temporary total or temporary partial disability
or permanent total disability and the compensation of office exceeds $100 a year, the amount of
that compensation attributable to the period for which benefits under the workers' compensation
law are paid shall be deducted from such benefits. If an employee covered by the Minnesota State
Retirement System receives total and permanent disability benefits pursuant to section 352.113 or
disability benefits pursuant to sections 352.95 and 352B.10, the amount of disability benefits shall
be deducted from workers' compensation benefits otherwise payable. If an employee covered by
the teachers retirement fund receives total and permanent disability benefits pursuant to section
354.48, the amount of disability benefits must be deducted from workers' compensation benefits
otherwise payable. Notwithstanding the provisions of Minnesota Statutes 1994, section 176.132, a
deduction under this subdivision does not entitle an employee to supplemental benefits under
section 176.132.
    Subd. 8. Amounts adjusted. Amounts of compensation payable by an employer or an
employer's insurer under this chapter may be rounded to the nearest dollar amount. An employer
or insurer who elects to make such adjustments shall do so for all compensation payments under
this chapter.
    Subd. 9. Employer responsibility for wellness programs. Injuries incurred while
participating in voluntary recreational programs sponsored by the employer, including health
promotion programs, athletic events, parties, and picnics, do not arise out of and in the course
of the employment even though the employer pays some or all of the cost of the program. This
exclusion does not apply in the event that the injured employee was ordered or assigned by
the employer to participate in the program.
History: 1953 c 755 s 2; 1967 c 701 s 2; Ex1967 c 40 s 3,5; 1973 c 123 art 5 s 7; 1973 c 388
s 13,14; 1973 c 623 s 1; 1974 c 486 s 1; 1975 c 359 s 23; 1977 c 342 s 4; Ex1979 c 3 s 30; 1981 c
346 s 55-59; 1982 c 610 s 1; 1983 c 290 s 32,33; 1985 c 234 s 3,4; 1985 c 248 s 70; 1Sp1985 c 7
s 3; 1986 c 444; 1991 c 340 s 2; 1995 c 231 art 1 s 14,15; 1996 c 305 art 1 s 44
176.03 [Repealed, 1953 c 755 s 83]
176.031 EMPLOYER'S LIABILITY EXCLUSIVE.
The liability of an employer prescribed by this chapter is exclusive and in the place of any
other liability to such employee, personal representative, surviving spouse, parent, any child,
dependent, next of kin, or other person entitled to recover damages on account of such injury
or death. If an employer other than the state or any municipal subdivision thereof fails to insure
or self-insure liability for compensation to injured employees and their dependents, an injured
employee, or legal representatives or, if death results from the injury, any dependent may elect
to claim compensation under this chapter or to maintain an action in the courts for damages on
account of such injury or death. In such action it is not necessary to plead or prove freedom from
contributory negligence. The defendant may not plead as a defense that the injury was caused by
the negligence of a fellow servant, that the employee assumed the risk of employment, or that
the injury was due to the contributory negligence of the employee, unless it appears that such
negligence was willful on the part of the employee. The burden of proof to establish such willful
negligence is upon the defendant. For the purposes of this chapter the state and each municipal
subdivision thereof is treated as a self-insurer when not carrying insurance at the time of the
injury or death of an employee.
History: 1953 c 755 s 3; 1986 c 444
176.04 [Repealed, 1953 c 755 s 83]
176.041 EXCLUDED EMPLOYMENTS; APPLICATION, EXCEPTIONS, ELECTION
OF COVERAGE.
    Subdivision 1. Employments excluded. This chapter does not apply to any of the following:
(a) a person employed by a common carrier by railroad engaged in interstate or foreign
commerce and who is covered by the Federal Employers' Liability Act, United States Code, title
45, sections 51 to 60, or other comparable federal law;
(b) a person employed by a family farm as defined by section 176.011, subdivision 11a;
(c) the spouse, parent, and child, regardless of age, of a farmer-employer working for the
farmer-employer;
(d) a sole proprietor, or the spouse, parent, and child, regardless of age, of a sole proprietor;
(e) a partner engaged in a farm operation or a partner engaged in a business and the spouse,
parent, and child, regardless of age, of a partner in the farm operation or business;
(f) an executive officer of a family farm corporation;
(g) an executive officer of a closely held corporation having less than 22,880 hours of payroll
in the preceding calendar year, if that executive officer owns at least 25 percent of the stock of
the corporation;
(h) a spouse, parent, or child, regardless of age, of an executive officer of a family farm
corporation as defined in section 500.24, subdivision 2, and employed by that family farm
corporation;
(i) a spouse, parent, or child, regardless of age, of an executive officer of a closely held
corporation who is referred to in paragraph (g);
(j) another farmer or a member of the other farmer's family exchanging work with the
farmer-employer or family farm corporation operator in the same community;
(k) a person whose employment at the time of the injury is casual and not in the usual course
of the trade, business, profession, or occupation of the employer;
(l) persons who are independent contractors as defined by rules adopted by the commissioner
pursuant to section 176.83 except that this exclusion does not apply to an employee of an
independent contractor;
(m) an officer or a member of a veterans' organization whose employment relationship arises
solely by virtue of attending meetings or conventions of the veterans' organization, unless the
veterans' organization elects by resolution to provide coverage under this chapter for the officer
or member;
(n) a person employed as a household worker in, for, or about a private home or household
who earns less than $1,000 in cash in a three-month period from a single private home or
household provided that a household worker who has earned $1,000 or more from the household
worker's present employer in a three-month period within the previous year is covered by this
chapter regardless of whether or not the household worker has earned $1,000 in the present
quarter;
(o) persons employed by a closely held corporation who are related by blood or marriage,
within the third degree of kindred according to the rules of civil law, to an officer of the
corporation, who is referred to in paragraph (g), if the corporation files a written election with the
commissioner to exclude such individuals. A written election is not required for a person who is
otherwise excluded from this chapter by this section;
(p) a nonprofit association which does not pay more than $1,000 in salary or wages in a year;
(q) persons covered under the Domestic Volunteer Service Act of 1973, as amended, United
States Code, title 42, sections 5011, et seq.;
(r) a manager of a limited liability company having ten or fewer members and having less
than 22,880 hours of payroll in the preceding calendar year, if that manager owns at least a 25
percent membership interest in the limited liability company;
(s) a spouse, parent, or child, regardless of age, of a manager of a limited liability company
described in paragraph (r);
(t) persons employed by a limited liability company having ten or fewer members and
having less than 22,880 hours of payroll in the preceding calendar year who are related by blood
or marriage, within the third degree of kindred according to the rules of civil law, to a manager
of a limited liability company described in paragraph (r), if the company files a written election
with the commissioner to exclude these persons. A written election is not required for a person
who is otherwise excluded from this chapter by this section; or
(u) members of limited liability companies who satisfy the requirements of paragraph (l).
    Subd. 1a. Election of coverage. The persons, partnerships, limited liability companies, and
corporations described in this subdivision may elect to provide the insurance coverage required
by this chapter.
(a) An owner or owners of a business or farm may elect coverage for themselves.
(b) A partnership owning a business or farm may elect coverage for any partner.
(c) A family farm corporation as defined in section 500.24, subdivision 2, clause (c), may
elect coverage for any executive officer.
(d) A closely held corporation which had less than 22,880 hours of payroll in the previous
calendar year may elect coverage for any executive officer if that executive officer is also an
owner of at least 25 percent of the stock of the corporation.
(e) A limited liability company which had less than 22,880 hours of payroll in the previous
calendar year may elect coverage for any manager if that manager is also an owner of at least 25
percent membership interest in the limited liability company.
(f) A person, partnership, limited liability company, or corporation hiring an independent
contractor, as defined by rules adopted by the commissioner, may elect to provide coverage for
that independent contractor.
A person, partnership, limited liability company, or corporation may charge the independent
contractor a fee for providing the coverage only if the independent contractor (1) elects in writing
to be covered, (2) is issued an endorsement setting forth the terms of the coverage, the name of
the independent contractors, and the fee and how it is calculated.
The persons, partnerships, limited liability companies, and corporations described in this
subdivision may also elect coverage for an employee who is a spouse, parent, or child, regardless
of age, of an owner, partner, manager, or executive officer, who is eligible for coverage under
this subdivision. Coverage may be elected for a spouse, parent, or child whether or not coverage
is elected for the related owner, partner, manager, or executive director and whether or not the
person, partnership, limited liability company, or corporation employs any other person to
perform a service for hire. Any person for whom coverage is elected pursuant to this subdivision
shall be included within the meaning of the term employee for the purposes of this chapter.
Notice of election of coverage or of termination of election under this subdivision shall
be provided in writing to the insurer. Coverage or termination of coverage is effective the day
following receipt of notice by the insurer or at a subsequent date if so indicated in the notice. The
insurance policy shall be endorsed to indicate the names of those persons for whom coverage has
been elected or terminated under this subdivision. An election of coverage under this subdivision
shall continue in effect as long as a policy or renewal policy of the same insurer is in effect.
Nothing in this subdivision shall be construed to limit the responsibilities of owners,
partnerships, limited liability companies, or corporations to provide coverage for their employees,
if any, as required under this chapter.
    Subd. 2. Extraterritorial application. If an employee who regularly performs the primary
duties of employment within this state receives an injury while outside of this state in the employ
of the same employer, the provisions of this chapter shall apply to such injury. If a resident of
this state is transferred outside the territorial limits of the United States as an employee of a
Minnesota employer, the resident shall be presumed to be temporarily employed outside of
this state while so employed.
    Subd. 3. Temporary out-of-state employment. If an employee hired in this state by a
Minnesota employer receives an injury while temporarily employed outside of this state, such
injury shall be subject to the provisions of this chapter.
    Subd. 4. Out-of-state employment. If an employee who regularly performs the primary
duties of employment outside of this state or is hired to perform the primary duties of employment
outside of this state receives an injury within this state in the employ of the same employer,
such injury shall be covered within the provisions of this chapter if the employee chooses to
forego any workers' compensation claim resulting from the injury that the employee may have a
right to pursue in some other state, provided that the special compensation fund is not liable for
payment of benefits pursuant to section 176.183 if the employer is not insured against workers'
compensation liability pursuant to this chapter and the employee is a nonresident of Minnesota
on the date of the personal injury.
    Subd. 5.[Repealed, 1974 c 486 s 6]
    Subd. 5a. Out-of-state injuries. Except as specifically provided by subdivisions 2 and 3,
injuries occurring outside of this state are not subject to this chapter.
    Subd. 5b. North Dakota employers. Notwithstanding the provisions of subdivision 4,
workers' compensation benefits for an employee hired in North Dakota by a North Dakota
employer, arising out of that employee's temporary work in Minnesota, shall not be payable under
this chapter. North Dakota workers' compensation law provides the exclusive remedy available to
the injured worker. For purposes of this subdivision, temporary work means work in Minnesota
for a period of time not to exceed 15 consecutive calendar days or a maximum of 240 total hours
worked by that employee in a calendar year.
    Subd. 6. Commissioner of labor and industry; additional powers. Whenever an employee
is covered by subdivision 2, 3 or 4, the commissioner may enter into agreements with the
appropriate agencies of other states for the purpose of resolving conflicts of jurisdiction or
disputes concerning workers' compensation coverage. An agreement entered into pursuant to this
subdivision may be appealed in the same manner and within the same time as if the appeal
were from an order or decision of a compensation judge to the Workers' Compensation Court of
Appeals or the district court.
History: 1953 c 755 s 4; Ex1967 c 40 s 6; 1971 c 669 s 1; 1973 c 657 s 2; 1974 c 286 s 1;
1975 c 271 s 2; 1975 c 359 s 5; 1977 c 342 s 5; 1978 c 722 s 2; 1979 c 15 s 1; 1979 c 74 s 2; 1979
c 92 s 4; 1981 c 346 s 60; 1983 c 290 s 34; 1983 c 311 s 8; 1984 c 432 art 1 s 3; 1986 c 444; 1986
c 461 s 3-6; 1987 c 332 s 10-12; 1993 c 137 s 6; 1994 c 512 s 1,2; 2005 c 90 s 2
176.042 INDEPENDENT CONTRACTORS.
    Subdivision 1. General rule; independent contractors are employees. Except as provided
in subdivision 2, every independent contractor doing commercial or residential building
construction or improvements in the public or private sector is, for the purpose of this chapter, an
employee of any employer under this chapter for whom the independent contractor is performing
service in the course of the trade, business, profession, or occupation of that employer at the
time of the injury.
    Subd. 2. Exception. An independent contractor, as described in subdivision 1, is not an
employee of an employer for whom the independent contractor performs work or services if the
independent contractor meets all of the following conditions:
(1) maintains a separate business with the independent contractor's own office, equipment,
materials, and other facilities;
(2) holds or has applied for a federal employer identification number or has filed business
or self-employment income tax returns with the federal Internal Revenue Service based on that
work or service in the previous year;
(3) operates under contracts to perform specific services or work for specific amounts of
money and under which the independent contractor controls the means of performing the services
or work;
(4) incurs the main expenses related to the service or work that the independent contractor
performs under contract;
(5) is responsible for the satisfactory completion of work or services that the independent
contractor contracts to perform and is liable for a failure to complete the work or service;
(6) receives compensation for work or service performed under a contract on a commission
or per-job or competitive bid basis and not on any other basis;
(7) may realize a profit or suffer a loss under contracts to perform work or service;
(8) has continuing or recurring business liabilities or obligations; and
(9) the success or failure of the independent contractor's business depends on the relationship
of business receipts to expenditures.
History: 1996 c 374 s 3; 2001 c 123 s 1
176.05 [Repealed, 1953 c 755 s 83]
176.051 ASSUMPTION OF LIABILITY; FARM AND HOUSEHOLD WORKERS;
RIDESHARING.
    Subdivision 1. Farm and household workers. An employer of workers on a farm
operation or household workers not otherwise covered by this chapter may assume the liability
for compensation imposed by this chapter and the employer's procurement of a workers'
compensation policy constitutes an assumption by the employer of liability unless the employer
elects in writing not to have those persons covered and the policy states that election. This
assumption of liability takes effect and continues from the effective date of the policy and only as
long as the policy remains in force. If during the life of the insurance policy, an employee, who is
a worker on a farm operation or a household worker, suffers personal injury or death arising out
of and in the course of employment, the exclusive remedy of the employee or the employee's
dependents is under this chapter. For purposes of this section, farm worker does not include a
spouse, parent, or child, regardless of age, of a farmer, a partner in a farm operation, or an officer
of a family farm corporation as defined in section 500.24, subdivision 1, nor does it include
other farmers in the same community or members of their family exchanging work with the
farmer-employer or family farm corporation operator.
    Subd. 2.[Repealed, 1984 c 432 art 1 s 4]
    Subd. 3.[Repealed, 1984 c 432 art 1 s 4]
    Subd. 4.[Repealed, 1984 c 432 art 1 s 4]
History: 1953 c 755 s 5; 1973 c 657 s 3; 1975 c 359 s 6; 1977 c 342 s 6; 1983 c 311 s 9
176.06 [Repealed, 1953 c 755 s 83]
176.061 THIRD PARTY LIABILITY.
    Subdivision 1. Election of remedies. If an injury or death for which benefits are payable
occurs under circumstances which create a legal liability for damages on the part of a party other
than the employer and at the time of the injury or death that party was insured or self-insured
in accordance with this chapter, the employee, in case of injury, or the employee's dependents,
in case of death, may proceed either at law against that party to recover damages or against the
employer for benefits, but not against both.
    Subd. 2. Action for recovery of damages. If the employee, in case of injury, or the
employee's dependents, in case of death, brings an action for the recovery of damages, the amount
of the damages, the manner in which they are paid, and the persons to whom they are payable,
are as provided in this chapter. In no case shall the party be liable to any person other than the
employee or the employee's dependents for any damages resulting from the injury or death.
    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.
    Subd. 4. Application of subdivisions 1, 2, and 3. The provisions of subdivisions 1, 2, and 3
apply only if the employer liable for benefits and the other party legally liable for damages are
insured or self-insured and engaged, in the due course of business in, (a) furtherance of a common
enterprise, or (b) in the accomplishment of the same or related purposes in operations on the
premises where the injury was received at the time of the injury.
    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.
    Subd. 6. Costs, attorney fees, expenses. The proceeds of all actions for damages or of a
settlement of an action under this section, except for damages received under subdivision 5,
clause (b) received by the injured employee or the employee's dependents or by the employer or
the special compensation fund, as provided by subdivision 5, shall be divided as follows:
(a) After deducting the reasonable cost of collection, including but not limited to attorneys
fees and burial expense in excess of the statutory liability, then
(b) One-third of the remainder shall in any event be paid to the injured employee or the
employee's dependents, without being subject to any right of subrogation.
(c) Out of the balance remaining, the employer or the special compensation fund shall
be reimbursed in an amount equal to all benefits paid under this chapter to or on behalf of the
employee or the employee's dependents by the employer or special compensation fund, less the
product of the costs deducted under clause (a) divided by the total proceeds received by the
employee or dependents from the other party multiplied by all benefits paid by the employer or
the special compensation fund to the employee or the employee's dependents.
(d) Any balance remaining shall be paid to the employee or the employee's dependents,
and shall be a credit to the employer or the special compensation fund for any benefits which
the employer or the special compensation fund is obligated to pay, but has not paid, and for any
benefits that the employer or the special compensation fund is obligated to make in the future.
There shall be no reimbursement or credit to the employer or to the special compensation
fund for interest or penalties.
    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.
    Subd. 8.[Repealed, 1983 c 290 s 35]
    Subd. 8a. Notice to employer. In every case arising under subdivision 5, a settlement
between the third party and the employee is not valid unless prior notice of the intention to settle
is given to the employer within a reasonable time. If the employer or insurer pays compensation
to the employee under the provisions of this chapter and becomes subrogated to the right of the
employee or the employee's dependents or has a right of indemnity, any settlement between the
employee or the employee's dependents and the third party is void as against the employer's right
of subrogation or indemnity. When an action at law is instituted by an employee or the employee's
dependents against a third party for recovery of damages, a copy of the complaint and notice of
trial or note of issue in the action shall be served on the employer or insurer. Any judgment
rendered in the action is subject to a lien of the employer for the amount to which it is entitled to
be subrogated or indemnified under the provisions of subdivision 5.
    Subd. 9. Service of notice on attorney general. In every case in which the state is liable to
pay compensation or is subrogated to the rights of the employee or the employee's dependents or
has a right of indemnity, all notices required to be given the state shall be served on the attorney
general and the commissioner.
    Subd. 10.MS 1974 [Repealed, 1976 c 2 s 70; 1976 c 154 s 3]
    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.
    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.
History: 1953 c 755 s 6; Ex1967 c 1 s 6; Ex1967 c 40 s 4; 1969 c 199 s 1,2; 1969 c 936 s
3,4; 1973 c 388 s 15; 1976 c 154 s 1,2; 1979 c 81 s 1,2; Ex1979 c 3 s 31; 1981 c 346 s 61-66;
1983 c 290 s 35; 1986 c 444; 1995 c 231 art 1 s 16; 2000 c 447 s 4-8
176.07 [Repealed, 1953 c 755 s 83]
176.071 JOINT EMPLOYERS; CONTRIBUTION.
When compensation is payable under this chapter for the injury or death of an employee
employed and paid jointly by two or more employers at the time of the injury or death these
employers shall contribute to the payment of the compensation in the proportion of their
wage liabilities to the employee. If any such employer is excluded from the provisions of this
chapter and is not liable for compensation, the liability of those employers who are liable for
compensation is the proportion of the entire compensation which their wage liability bears to
the employee's entire wages. As between themselves such employers may arrange for a different
distribution of payment of the compensation for which they are liable.
History: 1953 c 755 s 7
176.08 [Repealed, 1953 c 755 s 83]
176.081 LEGAL SERVICES OR DISBURSEMENTS; LIEN; REVIEW.
    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) 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.
    Subd. 2.[Repealed, 1995 c 231 art 2 s 110]
    Subd. 3. Review. A party that is dissatisfied with its attorney fees may file an application
for review by the Workers' Compensation Court of Appeals. The application shall state the basis
for the need of review and whether or not a hearing is requested. A copy of the application shall
be served upon the party's attorney by the court administrator and if a hearing is requested by
either party, the matter shall be set for hearing. The notice of hearing shall be served upon known
interested parties. The Workers' Compensation Court of Appeals shall have the authority to
raise the issue of the attorney fees at any time upon its own motion and shall have continuing
jurisdiction over attorney fees.
    Subd. 4.[Repealed, 1985 c 234 s 22]
    Subd. 5.[Repealed, 1995 c 231 art 2 s 110]
    Subd. 6. Rules. The commissioner, Office of Administrative Hearings, and the Workers'
Compensation Court of Appeals may adopt reasonable and proper joint rules to effect each of
their obligations under this section.
    Subd. 7. Award; additional amount. If the employer or insurer files a denial of liability,
notice of discontinuance, or fails to make payment of compensation or medical expenses within
the statutory period after notice of injury or occupational disease, or otherwise unsuccessfully
resists the payment of compensation or medical expenses, or unsuccessfully disputes the payment
of rehabilitation benefits or other aspects of a rehabilitation plan, and the injured person has
employed an attorney at law, who successfully procures payment on behalf of the employee or
who enables the resolution of a dispute with respect to a rehabilitation plan, the compensation
judge, commissioner, or the Workers' Compensation Court of Appeals upon appeal, upon
application, shall award to the employee against the insurer or self-insured employer or uninsured
employer, in addition to the compensation benefits paid or awarded to the employee, an amount
equal to 30 percent of that portion of the attorney's fee which has been awarded pursuant to
this section that is in excess of $250.
    Subd. 7a. Settlement offer. At any time prior to one day before a matter is to be heard,
a party litigating a claim made pursuant to this chapter may serve upon the adverse party a
reasonable offer of settlement of the claim, with provision for costs and disbursements then
accrued. If before the hearing the adverse party serves written notice that the offer is accepted,
either party may then file the offer and notice of acceptance, together with the proof of service
thereof, and thereupon judgment shall be entered.
If an offer by an employer or insurer is not accepted by the employee, it shall be deemed
withdrawn and evidence thereof is not admissible, except in a proceeding to determine attorney's
fees.
If an offer by an employee is not accepted by the employer or insurer, it shall be deemed
withdrawn and evidence thereof is not admissible, except in a proceeding to determine attorney's
fees.
The fact that an offer is made but not accepted does not preclude a subsequent offer.
    Subd. 8.[Repealed, 1995 c 231 art 2 s 110]
    Subd. 9. Retainer agreement. An attorney who is hired by an employee to provide legal
services with respect to a claim for compensation made pursuant to this chapter shall prepare a
retainer agreement in which the provisions of this section are specifically set out and provide a
copy of this agreement to the employee. The retainer agreement shall provide a space for the
signature of the employee. A signed agreement shall raise a conclusive presumption that the
employee has read and understands the statutory fee provisions. No fee shall be awarded pursuant
to this section in the absence of a signed retainer agreement.
The retainer agreement shall contain a notice to the employee regarding the maximum fee
allowed under this section in ten-point type, which shall read:
Notice of Maximum Fee
The maximum fee allowed by law for legal services is 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 subject to a cumulative maximum fee of $13,000 for fees related to
the same injury.
The employee shall take notice that the employee is under no legal or moral obligation to
pay any fee for legal services in excess of the foregoing maximum fee.
    Subd. 10. Violation; penalty. An attorney who knowingly violates any of the provisions of
this chapter with respect to authorized fees for legal services in connection with any demand made
or suit or proceeding brought under the provisions of this chapter is guilty of a gross misdemeanor.
    Subd. 11. When fees due. Attorney fees and other disbursements for a proceeding under this
chapter shall not be due or paid until the issue for which the fee or disbursement was incurred has
been resolved.
    Subd. 12. Sanctions; failure to prepare, appear, or participate. If a party or party's
attorney fails to appear at any conference or hearing scheduled under this chapter, is substantially
unprepared to participate in the conference or hearing, or fails to participate in good faith, the
commissioner or compensation judge, upon motion or upon its own initiative, shall require the
party or the party's attorney or both to pay the reasonable expenses including attorney fees,
incurred by the other party due to the failure to appear, prepare, or participate. Attorney fees or
other expenses may not be awarded if the commissioner or compensation judge finds that the
noncompliance was substantially justified or that other circumstances would make the sanction
unjust. The Department of Labor and Industry, and the Office of Administrative Hearings may by
rule establish additional sanctions for failure of a party or the party's attorney to appear, prepare
for, or participate in a conference or hearing.
History: 1953 c 755 s 8; 1973 c 388 s 16; 1975 c 271 s 6; 1975 c 359 s 7; 1976 c 134 s
78; 1977 c 342 s 7-11; Ex1979 c 3 s 32; 1981 c 346 s 67-74; 1983 c 290 s 36-41; 1986 c 444;
1986 c 461 s 7; 1987 c 332 s 13; 1989 c 209 art 2 s 23; 1992 c 510 art 2 s 1-3; 1995 c 231 art
2 s 45-49; 1997 c 7 art 1 s 80; 2000 c 447 s 9; 2005 c 90 s 3
176.09 [Repealed, 1953 c 755 s 83]
176.091 MINOR EMPLOYEES.
Except as provided in section 176.092, a minor employee has the same power to enter
into a contract, make election of remedy, make any settlement, and receive compensation as an
adult employee.
History: 1953 c 755 s 9; 1957 c 781 s 1; 1973 c 388 s 17; 1975 c 271 s 6; 1975 c 359
23; 1976 c 134 s 78; 1993 c 194 s 3
176.092 GUARDIAN; CONSERVATOR.
    Subdivision 1. When required. An injured employee or a dependent under section 176.111
who is a minor or an incapacitated person as that term is defined in section 524.5-102, subdivision
6
, shall have a guardian or conservator to represent the interests of the employee or dependent in
obtaining compensation according to the provisions of this chapter. This section applies if the
employee receives or is eligible for permanent total disability benefits, supplementary benefits,
or permanent partial disability benefits totaling more than $3,000 or a dependent receives or is
eligible for dependency benefits, or if the employee or dependent receives or is offered a lump
sum that exceeds five times the statewide average weekly wage.
    Subd. 1a. Parent as guardian. A parent is presumed to be the guardian of the minor
employee for purposes of this section. Where the parents of the minor employee are divorced,
either parent with legal custody may be considered the guardian for purposes of this section.
Notwithstanding subdivision 1, where the employee receives or is eligible for a lump sum
payment of permanent total disability benefits, supplementary benefits, or permanent partial
disability benefits totaling more than $3,000 or if the employee receives or is offered a settlement
that exceeds five times the statewide average weekly wage, the compensation judge shall review
such cases to determine whether benefits should be paid in a lump sum or through an annuity.
    Subd. 2. Appointment. If an injured employee or dependent under section 176.111 does not
have a guardian or conservator and the attorney representing the employee or dependent knows
or has reason to believe the employee or dependent is a minor or an incapacitated person, the
attorney shall, within 30 days, seek a district court order appointing a guardian or conservator.
If the employer, insurer, or special compensation fund in a matter involving a claim against the
fund knows or has reason to believe the employee or dependent is a minor or is incapacitated,
the employer, insurer, or special compensation fund shall notify the attorney representing the
employee or dependent. If the employee or dependent has no attorney or the attorney fails to seek
appointment of a guardian or conservator within 30 days of being notified under this subdivision,
the employer or insurer shall seek the appointment in district court and the special compensation
fund shall notify the commissioner or a compensation judge for referral of the matter under
subdivision 3. In the case of a minor who is not represented by an attorney, the commissioner
shall refer the matter under subdivision 3.
    Subd. 3. Referral. When, in a proceeding before them, it appears to the commissioner,
compensation judge, or, in cases upon appeal, the Workers' Compensation Court of Appeals, that
an injured employee or a dependent is a minor or an incapacitated person without a guardian or
conservator, the commissioner, compensation judge, or court of appeals shall refer the matter to
district court. The commissioner has no duty to monitor files at the department but must review
a file for referral upon receiving a complaint that an injured employee or dependent is a minor
or an incapacitated person without a guardian or conservator.
    Subd. 4. Guardian, conservator; powers, duties. A guardian or conservator of an injured
employee or dependent shall have the powers and duties granted by the district court including,
but not limited to:
(1) representing the interests of the employee or dependent in obtaining compensation
according to the provisions of this chapter;
(2) receiving monetary compensation benefits, including the amount of any award,
settlement, or judgment; and
(3) acting as a fiduciary in distributing, managing, and investing monetary workers'
compensation benefits.
History: 1993 c 194 s 4; 1995 c 189 s 8; 1996 c 277 s 1; 2002 c 262 s 1,2; 2004 c 146 art 3
s 12; 2005 c 90 s 4

BENEFITS

176.095 LEGISLATIVE FINDINGS.
The legislature finds that workers' compensation benefits for total disabilities should exceed
those benefits provided for partial disabilities in order to fairly compensate the person unable to
engage in gainful employment or suffering an injury described in section 176.101, subdivision
5
. It is the policy of the legislature that any change in the benefit schedule for total disability be
accompanied by an appropriate change in the benefit schedule for partial disability.
History: 1969 c 936 s 1; 1975 c 359 s 23
176.10 [Repealed, 1953 c 755 s 83]
176.101 COMPENSATION SCHEDULE.
    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, 2000, the maximum weekly compensation payable is
$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 $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 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.
    Subd. 2. Temporary partial disability. (a) In all cases of temporary partial disability the
compensation shall be 66-2/3 percent of the difference between the weekly wage of the employee
at the time of injury and the wage the employee is able to earn in the employee's partially disabled
condition. This compensation shall be paid during the period of disability except as provided in
this section, payment to be made at the intervals when the wage was payable, as nearly as may be,
and subject to the maximum rate for temporary total compensation.
(b) Temporary partial compensation may be paid only while the employee is employed,
earning less than the employee's weekly wage at the time of the injury, and the reduced wage
the employee is able to earn in the employee's partially disabled condition is due to the injury.
Except as provided in section 176.102, subdivision 11, paragraphs (b) and (c), temporary partial
compensation may not be paid for more than 225 weeks, or after 450 weeks after the date of
injury, whichever occurs first.
(c) Temporary partial compensation must be reduced to the extent that the wage the
employee is able to earn in the employee's partially disabled condition plus the temporary partial
disability payment otherwise payable under this subdivision exceeds 500 percent of the statewide
average weekly wage.
    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)

0-5
$
75,000

6-10

80,000

11-15

85,000

16-20

90,000

21-25

95,000

26-30

100,000

31-35

110,000

36-40

120,000

41-45

130,000

46-50

140,000

51-55

165,000

56-60

190,000

61-65

215,000

66-70

240,000

71-75

265,000

76-80

315,000

81-85

365,000

86-90

415,000

91-95

465,000

96-100

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.
    Subd. 3.[Repealed, 1983 c 290 s 173]
    Subd. 3a.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3b.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3c.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3d.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3e.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3f.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3g.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3h.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3i.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3j.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3k.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3l.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3m.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3n.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3o.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3p.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3q.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3r.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3s.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3t.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3u.[Repealed, 1995 c 231 art 1 s 36]
    Subd. 3v.[Repealed, 1987 c 332 s 117]
    Subd. 4. Permanent total disability. For permanent total disability, as defined in subdivision
5, the compensation shall be 66-2/3 percent of the daily wage at the time of the injury, subject to a
maximum weekly compensation equal to the maximum weekly compensation for a temporary
total disability and a minimum weekly compensation equal to 65 percent of the statewide average
weekly wage. This compensation shall be paid during the permanent total disability of the injured
employee but after a total of $25,000 of weekly compensation has been paid, the amount of the
weekly compensation benefits being paid by the employer shall be reduced by the amount of any
disability benefits being paid by any government disability benefit program if the disability
benefits are occasioned by the same injury or injuries which give rise to payments under this
subdivision. This reduction shall also apply to any old age and survivor insurance benefits.
Payments shall be made at the intervals when the wage was payable, as nearly as may be. In case
an employee who is permanently and totally disabled becomes an inmate of a public institution,
no compensation shall be payable during the period of confinement in the institution, unless
there is wholly dependent on the employee for support some person named in section 176.111,
subdivision 1, 2 or 3
, in which case the compensation provided for in section 176.111, during the
period of confinement, shall be paid for the benefit of the dependent person during dependency.
The dependency of this person shall be determined as though the employee were deceased.
Permanent total disability shall cease at age 67 because the employee is presumed retired from
the labor market. This presumption is rebuttable by the employee. The subjective statement the
employee is not retired is not sufficient in itself to rebut the presumptive evidence of retirement
but may be considered along with other evidence.
    Subd. 4a. Preexisting condition or disability; apportionment. (a) If a personal injury
results in a disability which is attributable in part to a preexisting disability that arises from a
congenital condition or is the result of a traumatic injury or incident, whether or not compensable
under this chapter, the compensation payable for the permanent partial disability pursuant to this
section shall be reduced by the proportion of the disability which is attributable only to the
preexisting disability. An apportionment of a permanent partial disability under this subdivision
shall be made only if the preexisting disability is clearly evidenced in a medical report or record
made prior to the current personal injury. Evidence of a copy of the medical report or record upon
which apportionment is based shall be made available to the employee by the employer at the
time compensation for the permanent partial disability is begun.
(b) The compensable portion of the permanent partial disability under this section shall be
paid at the rate at which the entire disability would be compensated but for the apportionment.
    Subd. 5. Definition. For purposes of subdivision 4, "permanent total disability" means only:
(1) the total and permanent loss of the sight of both eyes, the loss of both arms at the
shoulder, the loss of both legs so close to the hips that no effective artificial members can be used,
complete and permanent paralysis, total and permanent loss of mental faculties; or
(2) any other injury which totally and permanently incapacitates the employee from working
at an occupation which brings the employee an income, provided that the employee must also
meet the criteria of one of the following clauses:
(a) the employee has at least a 17 percent permanent partial disability rating of the whole
body;
(b) the employee has a permanent partial disability rating of the whole body of at least 15
percent and the employee is at least 50 years old at the time of injury; or
(c) the employee has a permanent partial disability rating of the whole body of at least 13
percent and the employee is at least 55 years old at the time of the injury, and has not completed
grade 12 or obtained a GED certificate.
For purposes of this clause, "totally and permanently incapacitated" means that the
employee's physical disability in combination with any one of clause (a), (b), or (c) causes
the employee to be unable to secure anything more than sporadic employment resulting in an
insubstantial income. Other factors not specified in clause (a), (b), or (c), including the employee's
age, education, training and experience, may only be considered in determining whether an
employee is totally and permanently incapacitated after the employee meets the threshold criteria
of clause (a), (b), or (c). The employee's age, level of physical disability, or education may not be
considered to the extent the factor is inconsistent with the disability, age, and education factors
specified in clause (a), (b), or (c).
    Subd. 6. Minors; apprentices. (a) If any employee entitled to the benefits of this chapter
is an apprentice of any age and sustains a personal injury arising out of and in the course of
employment resulting in permanent total or a compensable permanent partial disability, for the
purpose of computing the compensation to which the employee is entitled for the injury, the
compensation rate for temporary total, temporary partial, or permanent total disability shall be the
maximum rate for temporary total disability under subdivision 1.
(b) If any employee entitled to the benefits of this chapter is a minor and sustains a personal
injury arising out of and in the course of employment resulting in permanent total disability, for
the purpose of computing the compensation to which the employee is entitled for the injury, the
compensation rate for a permanent total disability shall be the maximum rate for temporary
total disability under subdivision 1.
    Subd. 7.[Repealed, Ex1979 c 3 s 70]
    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 98-21,
as amended, is presumed retired from the labor market. 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.
History: 1953 c 755 s 10; 1955 c 615 s 1-5; 1957 c 781 s 2-5; Ex1967 c 40 s 7-11; 1969
c 186 s 1; 1969 c 276 s 2; 1969 c 936 s 5-8; 1971 c 422 s 1,2; 1971 c 475 s 1-4; 1973 c 388 s
18-20; 1973 c 600 s 1; 1973 c 643 s 1-4; 1974 c 486 s 2-4; 1975 c 271 s 6; 1975 c 359 s 8,23;
1976 c 134 s 78; 1977 c 342 s 12; 1977 c 347 s 30; Ex1979 c 3 s 33-35; 1981 c 346 s 75; 1983
c 290 s 42-68; 1984 c 432 art 2 s 1-12; 1985 c 234 s 5-7; 1986 c 444; 1986 c 461 s 8,9; 1989
c 209 art 2 s 24; 1992 c 510 art 1 s 3-7; 1994 c 488 s 8; 1995 c 231 art 1 s 17-23; 2000 c 447
s 10-12,25; 2002 c 220 art 13 s 9
176.1011 [Repealed, 1996 c 310 s 1]

REHABILITATION

176.102 REHABILITATION.
    Subdivision 1. Scope. (a) This section applies only to vocational rehabilitation of injured
employees and their spouses as provided under subdivision 1a. Physical rehabilitation of injured
employees is considered treatment subject to section 176.135.
(b) Rehabilitation is intended to restore the injured employee so the employee may return
to a job related to the employee's former employment or to a job in another work area which
produces an economic status as close as possible to that the employee would have enjoyed without
disability. Rehabilitation to a job with a higher economic status than would have occurred without
disability is permitted if it can be demonstrated that this rehabilitation is necessary to increase
the likelihood of reemployment. Economic status is to be measured not only by opportunity for
immediate income but also by opportunity for future income.
    Subd. 1a. Surviving spouse. Upon the request of a qualified dependent surviving spouse,
rehabilitation services shall be provided through the rehabilitation services section of the Workers'
Compensation Division. For the purposes of this subdivision a qualified dependent surviving
spouse is a dependent surviving spouse, as determined under section 176.111, who is in need of
rehabilitation assistance to become self-supporting. A spouse who is provided rehabilitation
services under this subdivision is not entitled to compensation under subdivision 11.
    Subd. 2. Administrators. The commissioner shall hire a director of rehabilitation services
in the classified service. The commissioner shall monitor and supervise rehabilitation services,
including, but not limited to, making determinations regarding the selection and delivery of
rehabilitation services and the criteria used to approve qualified rehabilitation consultants and
rehabilitation vendors. The commissioner may also make determinations regarding fees for
rehabilitation services and shall by rule establish a fee schedule or otherwise limit fees charged by
qualified rehabilitation consultants and vendors. The commissioner shall annually review the fees
and give notice of any adjustment in the State Register. By March 1, 1993, the commissioner shall
report to the legislature on the status of the commission's monitoring of rehabilitation services.
The commissioner may hire qualified personnel to assist in the commissioner's duties under this
section and may delegate the duties and performance.
    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. Notwithstanding section 15.059, this panel does not expire
unless the panel no longer fulfills the purpose for which the panel was established, the panel has
not met in the last 18 months, or the panel does not comply with the registration requirements of
section 15.0599, subdivision 3. 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.
    Subd. 3a. Disciplinary actions. The panel has authority to discipline qualified rehabilitation
consultants and vendors and may impose a penalty of up to $3,000 per violation, payable to
the commissioner for deposit in the assigned risk safety account, and may suspend or revoke
certification. Complaints against registered qualified rehabilitation consultants and vendors shall
be made to the commissioner who shall investigate all complaints. If the investigation indicates
a violation of this chapter or rules adopted under this chapter, the commissioner may initiate a
contested case proceeding under the provisions of chapter 14. In these cases, the rehabilitation
review panel shall make the final decision following receipt of the report of an administrative law
judge. The decision of the panel is appealable to the Workers' Compensation Court of Appeals
in the manner provided by section 176.421. The panel shall continuously study rehabilitation
services and delivery, develop and recommend rehabilitation rules to the commissioner, and assist
the commissioner in accomplishing public education.
The commissioner may appoint alternates for one-year terms to serve as a member when a
member is unavailable. The number of alternates shall not exceed one labor member, one employer
or insurer member, and one member representing medicine, chiropractic, or rehabilitation.
    Subd. 3b. Review panel determinations. Recommendations from the administrative law
judge following a contested case hearing shall be determined by the panel. The panel may adopt
rules of procedure which may be joint rules with the Medical Services Review Board.
    Subd. 4. Rehabilitation plan; development. (a) A rehabilitation consultation must be
provided by the employer to an injured employee upon request of the employee, the employer, or
the commissioner. When the commissioner has received notice or information that an employee
has sustained an injury that may be compensable under this chapter, the commissioner must notify
the injured employee of the right to request a rehabilitation consultation to assist in return to
work. The notice may be included in other information the commissioner gives to the employee
under section 176.235, and must be highlighted in a way to draw the employee's attention to it. If
a rehabilitation consultation is requested, the employer shall provide a qualified rehabilitation
consultant. If the injured employee objects to the employer's selection, the employee may select a
qualified rehabilitation consultant of the employee's own choosing within 60 days following the
filing of a copy of the employee's rehabilitation plan with the commissioner. If the consultation
indicates that rehabilitation services are appropriate under subdivision 1, the employer shall
provide the services. If the consultation indicates that rehabilitation services are not appropriate
under subdivision 1, the employer shall notify the employee of this determination within 14
days after the consultation.
(b) In order to assist the commissioner in determining whether or not to request rehabilitation
consultation for an injured employee, an employer shall notify the commissioner whenever the
employee's temporary total disability will likely exceed 13 weeks. The notification must be made
within 90 days from the date of the injury or when the likelihood of at least a 13-week disability
can be determined, whichever is earlier, and must include a current physician's report.
(c) The qualified rehabilitation consultant shall disclose in writing at the first meeting or
written communication with the employee any ownership interest or affiliation between the firm
which employs the qualified rehabilitation consultant and the employer, insurer, adjusting or
servicing company, including the nature and extent of the affiliation or interest.
The consultant shall also disclose to all parties any affiliation, business referral or other
arrangement between the consultant or the firm employing the consultant and any other party,
attorney, or health care provider involved in the case.
(d) After the initial provision or selection of a qualified rehabilitation consultant as provided
under paragraph (a), the employee may request a different qualified rehabilitation consultant
which shall be granted or denied by the commissioner or compensation judge according to the
best interests of the parties.
(e) The employee and employer shall enter into a program if one is prescribed in a
rehabilitation plan within 30 days of the rehabilitation consultation if the qualified rehabilitation
consultant determines that rehabilitation is appropriate. A copy of the plan, including a target
date for return to work, shall be submitted to the commissioner within 15 days after the plan
has been developed.
(f) If the employer does not provide rehabilitation consultation requested under paragraph
(a), the commissioner or compensation judge shall notify the employer that if the employer
fails to provide a qualified rehabilitation consultant within 15 days to conduct a rehabilitation
consultation, the commissioner or compensation judge shall appoint a qualified rehabilitation
consultant to provide the consultation at the expense of the employer unless the commissioner or
compensation judge determines the consultation is not required.
(g) In developing a rehabilitation plan consideration shall be given to the employee's
qualifications, including but not limited to age, education, previous work history, interest,
transferable skills, and present and future labor market conditions.
(h) The commissioner or compensation judge may waive rehabilitation services under this
section if the commissioner or compensation judge is satisfied that the employee will return to
work in the near future or that rehabilitation services will not be useful in returning an employee
to work.
    Subd. 5. On-the-job training. On-the-job training is to be given consideration in developing
a rehabilitation plan especially where it would produce an economic status similar to that enjoyed
prior to disability.
    Subd. 6. Plan, eligibility for rehabilitation, approval and appeal. (a) The commissioner
or a compensation judge shall determine eligibility for rehabilitation services and shall review,
approve, modify, or reject rehabilitation plans developed under subdivision 4. The commissioner
or a compensation judge shall also make determinations regarding rehabilitation issues not
necessarily part of a plan including, but not limited to, determinations regarding whether an
employee is eligible for further rehabilitation and the benefits under subdivisions 9 and 11
to which an employee is entitled.
(b) A rehabilitation consultant must file a progress report on the plan with the commissioner
six months after the plan is filed. The progress report must include a current estimate of the total
cost and the expected duration of the plan. The commissioner may require additional progress
reports. Based on the progress reports and available information, the commissioner may take
actions including, but not limited to, redirecting, amending, suspending, or terminating the plan.
    Subd. 6a.[Repealed, 1987 c 332 s 117]
    Subd. 7. Plan implementation; reports. Upon request by the commissioner, insurer,
employer or employee, medical and rehabilitation reports shall be made by the provider of the
medical and rehabilitation service to the commissioner, insurer, employer or employee.
    Subd. 8. Plan modification. Upon request to the commissioner or compensation judge by
the employer, the insurer, or employee, or upon the commissioner's own request, the plan may be
suspended, terminated, or altered upon a showing of good cause, including:
(a) a physical impairment that does not allow the employee to pursue the rehabilitation plan;
(b) the employee's performance level indicates the plan will not be successfully completed;
(c) an employee does not cooperate with a plan;
(d) that the plan or its administration is substantially inadequate to achieve the rehabilitation
plan objectives;
(e) that the employee is not likely to benefit from further rehabilitation services.
An employee may request a change in a rehabilitation plan once because the employee feels
ill-suited for the type of work for which rehabilitation is being provided. If the rehabilitation plan
includes retraining, this request must be made within 90 days of the beginning of the retraining
program.
    Subd. 9. Plan; costs. (a) An employer is liable for the following rehabilitation expenses
under this section:
(1) Cost of rehabilitation evaluation and preparation of a plan;
(2) Cost of all rehabilitation services and supplies necessary for implementation of the plan;
(3) Reasonable cost of tuition, books, travel, and custodial day care; and, in addition,
reasonable costs of board and lodging when rehabilitation requires residence away from the
employee's customary residence;
(4) Reasonable costs of travel and custodial day care during the job interview process;
(5) Reasonable cost for moving expenses of the employee and family if a job is found in a
geographic area beyond reasonable commuting distance after a diligent search within the present
community. Relocation shall not be paid more than once during any rehabilitation program, and
relocation shall not be required if the new job is located within the same standard metropolitan
statistical area as the employee's job at the time of injury. An employee shall not be required to
relocate and a refusal to relocate shall not result in a suspension or termination of compensation
under this chapter; and
(6) Any other expense agreed to be paid.
(b) Charges for services provided by a rehabilitation consultant or vendor must be submitted
on a billing form prescribed by the commissioner. No payment for the services shall be made until
the charges are submitted on the prescribed form.
(c) Except as provided in this paragraph, an employer is not liable for charges for services
provided by a rehabilitation consultant or vendor unless the employer or its insurer receives a
bill for those services within 45 days of the provision of the services. The commissioner or a
compensation judge may order payment for charges not timely billed under this paragraph if the
rehabilitation consultant or vendor can prove that the failure to submit the bill as required by this
paragraph was due to circumstances beyond the control of the rehabilitation consultant or vendor.
A rehabilitation consultant or vendor may not collect payment from any other person, including
the employee, for bills that an employer is relieved from liability for paying under this paragraph.
    Subd. 10. Rehabilitation; consultants and vendors. The commissioner shall approve
rehabilitation consultants who may propose and implement plans if they satisfy rules adopted by
the commissioner for rehabilitation consultants. A consultant may be an individual or public or
private entity, and except for rehabilitation services, Department of Employment and Economic
Development, a consultant may not be a vendor or the agent of a vendor of rehabilitation services.
The commissioner shall also approve rehabilitation vendors if they satisfy rules adopted by the
commissioner.
    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 156 weeks of any
combination of temporary total or temporary partial compensation have been paid. Retraining
shall not be available after 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 156 weeks of compensation have been paid.
(d) The employer or insurer must notify the employee in writing of the 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 commissioner for deposit in the assigned risk
safety account.
    Subd. 11a. Applicability of section. This section is applicable to all employees injured
prior to or on and after October 1, 1979, except for those provisions which affect an employee's
monetary benefits.
    Subd. 12.[Repealed, 1983 c 290 s 173]
    Subd. 13. Discontinuance. All benefits payable under chapter 176 may, after a determination
and order by the commissioner or compensation judge, be discontinued or forfeited for any time
during which the employee refuses to submit to any reasonable examinations and evaluative
procedures ordered by the commissioner or compensation judge to determine the need for and
details of a plan of rehabilitation, or refuses to participate in rehabilitation evaluation as required
by this section or does not make a good faith effort to participate in a rehabilitation plan. A
discontinuance under this section is governed by sections 176.238 and 176.239.
    Subd. 14. Fees. The commissioner shall impose fees sufficient to cover the cost of approving
and monitoring qualified rehabilitation consultants, consultant firms, and vendors of rehabilitation
services. These fees are payable to the commissioner for deposit in the special compensation fund.
History: Ex1979 c 3 s 36; 1981 c 346 s 76; 1983 c 290 s 69-83; 1984 c 432 art 2 s 13,14;
1985 c 234 s 8,9; 1Sp1985 c 13 s 273; 1986 c 444; 1987 c 332 s 14-21; 1992 c 510 art 1 s 8;
art 4 s 1-5; 1994 c 483 s 1; 1994 c 632 art 4 s 57,58; 1995 c 231 art 2 s 50,51; 1997 c 187 art
3 s 26; 1999 c 250 art 3 s 22; 2000 c 447 s 13,14; 2001 c 123 s 2-4; 2001 c 161 s 33; 2004
c 206 s 52; 2005 c 90 s 5
176.1021 CONTINUING EDUCATION; COMPENSATION JUDGES.
The commissioner and the chief administrative law judge shall provide continuing education
and training for workers' compensation judges in the conduct of administrative hearings, new
trends in workers' compensation, techniques of alternative dispute resolution and, at least
annually, continuing education in the areas of physical and vocational rehabilitation.
History: 1987 c 332 s 22

REVIEW OF SERVICES

176.103 MEDICAL HEALTH CARE REVIEW.
    Subdivision 1. Purpose. It is the purpose of this section to provide for review of clinical
health care providers who render services to injured employees. This review shall be achieved by
establishing a quality control system within the Department of Labor and Industry.
The commissioner shall hire a medical consultant to assist in the administration of this
section.
The medical consultant shall be a doctor of medicine licensed under the laws of Minnesota.
The medical consultant shall perform all duties assigned by the commissioner relating
to the supervision of the total continuum of care of injured employees and shall also advise
the department on matters on which the commissioner requests the consultant's advice or if
the consultant deems it appropriate.
    Subd. 2. Scope. The commissioner shall monitor the medical and surgical treatment provided
to injured employees, the services of other health care providers and shall also monitor hospital
utilization as it relates to the treatment of injured employees. This monitoring shall include
determinations concerning the appropriateness of the service, whether the treatment is necessary
and effective, the proper cost of services, the quality of the treatment, the right of providers to
receive payment under this chapter for services rendered or the right to receive payment under
this chapter for future services. Insurers and self-insurers must assist the commissioner in this
monitoring by reporting to the commissioner cases of suspected excessive, inappropriate, or
unnecessary treatment. The commissioner in consultation with the Medical Services Review
Board shall adopt rules defining standards of treatment including inappropriate, unnecessary, or
excessive treatment and the sanctions to be imposed for inappropriate, unnecessary, or excessive
treatment. The sanctions imposed may include, without limitation, a warning, a restriction
on providing treatment, requiring preauthorization by the board for a plan of treatment, and
suspension from receiving compensation for the provision of treatment under chapter 176. The
commissioner's authority under this section also includes the authority to make determinations
regarding any other activity involving the questions of utilization of medical services, and any
other determination the commissioner deems necessary for the proper administration of this
section, but does not include the authority to make the initial determination of primary liability,
except as provided by section 176.305.
    Subd. 2a.[Repealed, 1995 c 231 art 2 s 110]
    Subd. 3. Medical Services Review Board; selection; powers. (a) There is created a
Medical Services Review Board composed of the commissioner or the commissioner's designee
as an ex officio member, two persons representing chiropractic, one person representing hospital
administrators, one physical therapist, one registered nurse, and six physicians representing
different specialties which the commissioner determines are the most frequently utilized by
injured employees. The board shall also have one person representing employees, one person
representing employers or insurers, and one person representing the general public. The members
shall be appointed by the commissioner and shall be governed by section 15.0575. Terms of
the board's members may be renewed. The board may appoint from its members whatever
subcommittees it deems appropriate. Notwithstanding section 15.059, this board does not expire
unless the board no longer fulfills the purpose for which the board was established, the board has
not met in the last 18 months, or the board does not comply with the registration requirements
of section 15.0599, subdivision 3.
The commissioner may appoint alternates for one-year terms to serve as a member when a
member is unavailable. The number of alternates shall not exceed one chiropractor, one physical
therapist, one registered nurse, one hospital administrator, three physicians, one employee
representative, one employer or insurer representative, and one representative of the general
public.
The board shall review clinical results for adequacy and recommend to the commissioner
scales for disabilities and apportionment.
The board shall review and recommend to the commissioner rates for individual clinical
procedures and aggregate costs. The board shall assist the commissioner in accomplishing public
education.
In evaluating the clinical consequences of the services provided to an employee by a clinical
health care provider, the board shall consider the following factors in the priority listed:
(1) the clinical effectiveness of the treatment;
(2) the clinical cost of the treatment; and
(3) the length of time of treatment.
The board shall advise the commissioner on the adoption of rules regarding all aspects of
medical care and services provided to injured employees.
(b) The Medical Services Review Board may upon petition from the commissioner and after
hearing, issue a warning, a penalty of $200 per violation, a restriction on providing treatment
that requires preauthorization by the board, commissioner, or compensation judge for a plan of
treatment, disqualify, or suspend a provider from receiving payment for services rendered under
this chapter if a provider has violated any part of this chapter or rule adopted under this chapter,
or where there has been a pattern of, or an egregious case of, inappropriate, unnecessary, or
excessive treatment by a provider. Any penalties collected under this subdivision shall be payable
to the commissioner for deposit in the assigned risk safety account. The hearings are initiated
by the commissioner under the contested case procedures of chapter 14. The board shall make
the final decision following receipt of the recommendation of the administrative law judge. The
board's decision is appealable to the Workers' Compensation Court of Appeals in the manner
provided by section 176.421.
(c) The board may adopt rules of procedure. The rules may be joint rules with the
rehabilitation review panel.
    Subd. 4.[Repealed, 1987 c 332 s 117]
History: 1983 c 290 s 84; 1984 c 432 art 2 s 15,16; 1985 c 234 s 10; 1986 c 461 s 10; 1987
c 329 s 21; 1987 c 332 s 23,24; 1992 c 510 art 4 s 6-8; 1995 c 231 art 2 s 52,53; 2001 c 123 s
5; 2001 c 161 s 34; 2002 c 262 s 3
176.104 REHABILITATION PRIOR TO DETERMINATION OF LIABILITY.
    Subdivision 1. Dispute. If there exists a dispute regarding medical causation or whether an
injury arose out of and in the course and scope of employment and an employee is otherwise
eligible for rehabilitation services under section 176.102 prior to determination of liability, the
employee shall be referred by the commissioner to the department's Vocational Rehabilitation
Unit which shall provide rehabilitation consultation if appropriate. The services provided by the
department's Vocational Rehabilitation Unit and the scope and term of the rehabilitation are
governed by section 176.102 and rules adopted pursuant to that section. Rehabilitation costs and
services under this subdivision shall be monitored by the commissioner.
    Subd. 2. Liability for rehabilitation; lien. (a) If liability is determined after the employee
has commenced rehabilitation under this section the liable party is responsible for the cost of
rehabilitation provided. Future rehabilitation after liability is established is governed by section
176.102.
(b) If the employer, insurer, or defendant is given written notice by the department of a
claim for rehabilitation services or disbursements, the claim is a lien against the amount paid or
payable as compensation.
    Subd. 3. Reimbursements. All money received under this section must be credited to the
special compensation fund.
    Subd. 4. Vocational Rehabilitation Unit funding. The cost of the Vocational Rehabilitation
Unit shall be financed by the special compensation fund beginning July 1, 1992.
History: 1983 c 290 s 85; 1984 c 432 art 2 s 17,18; 1986 c 461 s 11; 1991 c 292 art 10 s 2;
1992 c 513 art 3 s 34-36; 1995 c 231 art 2 s 54
176.1041 CERTIFICATION FOR FEDERAL TAX CREDIT.
    Subdivision 1. Certification program. The Vocational Rehabilitation Unit shall establish
a program authorizing qualified rehabilitation consultants and approved vendors to refer
an employee to the unit for the sole purpose of federal targeted jobs tax credit eligibility
determination. The unit shall set forth the specific requirements, procedures and eligibility criteria
for purposes of this section. The unit shall not be required to certify an injured employee who
does not meet the eligibility requirements set forth in the federal Rehabilitation Act of 1973, as
amended.
    Subd. 2. Fee. The division is authorized to collect a fee from the qualified rehabilitation
consultant or approved vendor in the amount necessary to determine eligibility and to certify an
employee for this program.
History: 1984 c 432 art 2 s 19; 1992 c 464 art 1 s 4

DISABILITY SCHEDULES

176.105 COMMISSIONER TO ESTABLISH DISABILITY SCHEDULES.
    Subdivision 1. Schedule; rules. (a) The commissioner of labor and industry shall by rule
establish a schedule of degrees of disability resulting from different kinds of injuries. Disability
ratings under the schedule for permanent partial disability must be based on objective medical
evidence. The commissioner, in consultation with the Medical Services Review Board, shall
periodically review the rules adopted under this paragraph to determine whether any injuries
omitted from the schedule should be included and amend the rules accordingly.
(b) No permanent partial disability compensation shall be payable except in accordance with
the disability ratings established under this subdivision, except as provided in paragraph (c). The
schedule may provide that minor impairments receive a zero rating.
(c) If an injury for which there is objective medical evidence is not rated by the permanent
partial disability schedule, the unrated injury must be assigned and compensated for at the rating
for the most similar condition that is rated.
    Subd. 2. Rules; internal organs. The commissioner shall by rule establish a schedule of
internal organs that are compensable and indicate in the schedule to what extent the organs are
compensable under section 176.101, subdivision 3.
    Subd. 3. Study. In order to accomplish the purposes of this section, the commissioner shall
study disability or permanent impairment schedules set up by other states, the American Medical
Association and other organizations.
    Subd. 4. Legislative intent; rules; loss of more than one body part. For the purpose
of establishing a disability schedule, the legislature declares its intent that the commissioner
establish a disability schedule which shall be determined by sound actuarial evaluation and shall
be based on the benefit level which exists on January 1, 1983.
The commissioner shall by rulemaking adopt procedures setting forth rules for the evaluation
and rating of functional disability and the schedule for permanent partial disability and to
determine the percentage of loss of function of a part of the body based on the body as a whole,
including internal organs, described in section 176.101, subdivision 3, and any other body part not
listed in section 176.101, subdivision 3, which the commissioner deems appropriate.
The rules shall promote objectivity and consistency in the evaluation of permanent functional
impairment due to personal injury and in the assignment of a numerical rating to the functional
impairment.
Prior to adoption of rules the commissioner shall conduct an analysis of the current
permanent partial disability schedule for the purpose of determining the number and distribution
of permanent partial disabilities and the average compensation for various permanent partial
disabilities. The commissioner shall consider setting the compensation under the proposed
schedule for the most serious conditions higher in comparison to the current schedule and shall
consider decreasing awards for minor conditions in comparison to the current schedule.
The commissioner may consider, among other factors, and shall not be limited to the
following factors in developing rules for the evaluation and rating of functional disability and the
schedule for permanent partial disability benefits:
(1) the workability and simplicity of the procedures with respect to the evaluation of
functional disability;
(2) the consistency of the procedures with accepted medical standards;
(3) rules, guidelines, and schedules that exist in other states that are related to the evaluation
of permanent partial disability or to a schedule of benefits for functional disability provided that
the commissioner is not bound by the degree of disability in these sources but shall adjust the
relative degree of disability to conform to the expressed intent of this section;
(4) rules, guidelines, and schedules that have been developed by associations of health
care providers or organizations provided that the commissioner is not bound by the degree of
disability in these sources but shall adjust the relative degree of disability to conform to the
expressed intent of this section;
(5) the effect the rules may have on reducing litigation;
(6) the treatment of preexisting disabilities with respect to the evaluation of permanent
functional disability provided that any preexisting disabilities must be objectively determined
by medical evidence; and
(7) symptomatology and loss of function and use of the injured member.
The factors in paragraphs (1) to (7) shall not be used in any individual or specific workers'
compensation claim under this chapter but shall be used only in the adoption of rules pursuant
to this section.
Nothing listed in paragraphs (1) to (7) shall be used to dispute or challenge a disability
rating given to a part of the body so long as the whole schedule conforms with the expressed
intent of this section.
If an employee suffers a permanent functional disability of more than one body part due
to a personal injury incurred in a single occurrence, the percent of the whole body which is
permanently partially disabled shall be determined by the following formula so as to ensure that
the percentage for all functional disability combined does not exceed the total for the whole body:
A + B (1 - A)
where: A is the greater percentage whole body loss of the first body part; and B is the
lesser percentage whole body loss otherwise payable for the second body part. A + B (1-A) is
equivalent to A + B - AB.
For permanent partial disabilities to three body parts due to a single occurrence or as the
result of an occupational disease, the above formula shall be applied, providing that A equals
the result obtained from application of the formula to the first two body parts and B equals the
percentage for the third body part. For permanent partial disability to four or more body parts
incurred as described above, A equals the result obtained from the prior application of the
formula, and B equals the percentage for the fourth body part or more in arithmetic progressions.
History: Ex1979 c 3 s 62; 1981 c 346 s 77; 1983 c 290 s 86; 1984 c 640 s 32; 1986 c 461 s
12; 1992 c 510 art 2 s 4; 1995 c 231 art 1 s 24

CONFERENCES

176.106 ADMINISTRATIVE CONFERENCE.
    Subdivision 1. Scope. All determinations by the commissioner or the commissioner's
designee pursuant to section 176.102, 176.103, 176.135, or 176.136 shall be in accordance
with the procedures contained in this section. For medical disputes under sections 176.135 and
176.136, the commissioner or the commissioner's designee shall have jurisdiction to hold an
administrative conference and issue decisions and orders under this section if the amount in
dispute at the time the medical request is filed is $7,500 or less.
    Subd. 2. Request for conference. Any party may request an administrative conference by
filing a request on a form prescribed by the commissioner.
    Subd. 3. Conference. The matter shall be scheduled for an administrative conference within
60 days after receipt of the request for a conference. Notice of the conference shall be served on
all parties no later than 14 days prior to the conference, unless the commissioner determines that a
conference shall not be held. The commissioner may order an administrative conference before
the commissioner's designee whether or not a request for conference is filed.
The commissioner may refuse to hold an administrative conference and refer the matter for
a settlement or pretrial conference or may certify the matter to the Office of Administrative
Hearings for a full hearing before a compensation judge.
    Subd. 4. Appearances. All parties shall appear either personally, by telephone, by
representative, or by written submission. The commissioner's designee shall determine the issues
in dispute based upon the information available at the conference.
    Subd. 5. Decision. A written decision shall be issued by the commissioner's designee
determining all issues considered at the conference or if a conference was not held, based on
the written submissions. Disputed issues of fact shall be determined by a preponderance of the
evidence. The decision must be issued within 30 days after the close of the conference or if no
conference was held, within 60 days after receipt of the request for conference. The decision must
include a statement indicating the right to request a de novo hearing before a compensation
judge and how to initiate the request.
    Subd. 6. Penalty. At a conference, if the insurer does not provide a specific reason for
nonpayment of the items in dispute, the commissioner's designee may assess a penalty of $300
payable to the commissioner for deposit in the assigned risk safety account, unless it is determined
that the reason for the lack of specificity was the failure of the insurer, upon timely request, to
receive information necessary to remedy the lack of specificity. This penalty is in addition to any
penalty that may be applicable for nonpayment.
    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. Requests 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.
    Subd. 8. Denial of primary liability. The commissioner does not have authority to make
determinations relating to medical or rehabilitation benefits when there is a genuine dispute over
whether the injury initially arose out of and in the course of employment, except as provided
by section 176.305.
    Subd. 9. Subsequent causation issues. If initial liability for an injury has been admitted or
established and an issue subsequently arises regarding causation between the employee's condition
and the work injury, the commissioner may make the subsequent causation determination subject
to de novo hearing by a compensation judge with a right to review by the court of appeals, as
provided in this chapter.
History: 1986 c 444; 1987 c 332 s 25; 1992 c 510 art 3 s 11; 1995 c 231 art 2 s 55; 2000 c
447 s 15; 2002 c 262 s 4; 2005 c 90 s 6
176.107 TELECONFERENCES.
The division, department, office, or the court of appeals may, at its discretion, conduct
mediation sessions, administrative conferences, settlement conferences, or hearings as provided
in this chapter in person, by telephone, or by visual or audio teleconferencing methods.
History: 1995 c 231 art 2 s 56

MISCELLANEOUS

176.108 LIGHT-DUTY WORK POOLS.
Employers may form light-duty work pools for the purpose of encouraging the return to work
of injured employees. The commissioner may adopt rules necessary to implement this section.
History: 1995 c 231 art 2 s 57; 1997 c 7 art 5 s 13
176.11 [Repealed, 1953 c 755 s 83]
176.111 DEPENDENTS, ALLOWANCES.
    Subdivision 1. Persons wholly dependent, presumption. For the purposes of this chapter
the following persons are conclusively presumed to be wholly dependent:
(a) spouse, unless it be shown that the spouse and decedent were voluntarily living apart
at the time of the injury or death;
(b) children under 18 years of age, or a child under the age of 25 years who is regularly
attending as a full time student at a high school, college, or university, or regularly attending as a
full time student in a course of vocational or technical training.
    Subd. 2. Children. Children 18 years of age, or over 18 when physically or mentally
incapacitated from earning, are prima facie considered dependent.
    Subd. 3. Persons wholly supported. A wife, child, husband, mother, father, grandmother,
grandfather, grandchild, sister, brother, mother-in-law, father-in-law, wholly supported by a
deceased worker at the time of death and for a reasonable time prior thereto are considered actual
dependents of the deceased worker and compensation shall be paid to them in the order named.
    Subd. 4. Persons partially supported. Any member of a class named in subdivision 3 who
regularly derived partial support from the wages of a deceased worker at the time of death and
for a reasonable time prior thereto is considered a partial dependent and compensation shall be
paid to such dependents in the order named.
    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.
    Subd. 6. Spouse, no dependent child. If the deceased employee leaves a dependent
surviving spouse and no dependent child, there shall be paid to the spouse weekly workers'
compensation benefits at 50 percent of the weekly wage at the time of the injury for a period of
ten years, including adjustments as provided in section 176.645.
    Subd. 7. Spouse, one dependent child. If the deceased employee leaves a surviving spouse
and one dependent child, there shall be paid to the surviving spouse for the benefit of the spouse
and child 60 percent of the daily wage at the time of the injury of the deceased until the child is no
longer a dependent as defined in subdivision 1. At that time there shall be paid to the dependent
surviving spouse weekly benefits at a rate which is 16-2/3 percent less than the last weekly
workers' compensation benefit payment, as defined in subdivision 8a, while the surviving child
was a dependent, for a period of ten years, including adjustments as provided in section 176.645.
    Subd. 8. Spouse, two dependent children. If the deceased employee leaves a surviving
spouse and two dependent children, there shall be paid to the surviving spouse for the benefit of
the spouse and children 66-2/3 percent of the daily wage at the time of the injury of the deceased
until the last dependent child is no longer dependent. At that time the dependent surviving spouse
shall be paid weekly benefits at a rate which is 25 percent less than the last weekly workers'
compensation benefit payment, as defined in subdivision 8a, while the surviving child was a
dependent, for a period of ten years, adjusted according to section 176.645.
    Subd. 8a. Last weekly benefit payment. For the purposes of subdivisions 7 and 8, "last
weekly workers' compensation benefit payment" means the workers' compensation benefit which
would have been payable without the application of subdivision 21.
    Subd. 9.[Repealed, 1975 c 359 s 22]
    Subd. 9a. Remarriage of spouse. A surviving spouse who remarries and is receiving
benefits under subdivision 6, 7, or 8 shall continue to be eligible to receive weekly benefits for the
remaining period that the spouse is entitled to receive benefits pursuant to this section.
    Subd. 10. Allocation of compensation. In all cases where compensation is payable
to the surviving spouse for the benefit of the surviving spouse and dependent children, the
commissioner, compensation judge, or Workers' Compensation Court of Appeals or district court
in cases upon appeal shall determine what portion of the compensation applies for the benefit of
dependent children and may order that portion paid to a guardian. This subdivision shall not be
construed to increase the combined total of weekly government survivor benefits and workers'
compensation beyond the limitation established in subdivision 21.
    Subd. 11.[Repealed, 1981 c 346 s 145]
    Subd. 12. Orphans. If the deceased employee leaves a dependent orphan, there shall be paid
55 percent of the weekly wage at the time of the injury of the deceased, for two or more orphans
there shall be paid 66-2/3 percent of the wages.
    Subd. 13.[Repealed, 1977 c 342 s 28]
    Subd. 14. Parents. If the deceased employee leave no surviving spouse or child entitled to
any payment under this chapter, but leaves both parents wholly dependent on deceased, there
shall be paid to such parents jointly 45 percent of the weekly wage at the time of the injury of
the deceased. In case of the death of either of the wholly dependent parents the survivor shall
receive 35 percent of the weekly wage thereafter. If the deceased employee leave one parent
wholly dependent on the deceased, there shall be paid to such parent 35 percent of the weekly
wage at the time of the injury of the deceased employee. The compensation payments under
this section shall not exceed the actual contributions made by the deceased employee to the
support of the employee's parents for a reasonable time immediately prior to the injury which
caused the death of the deceased employee.
    Subd. 15. Remote dependents. If the deceased employee leaves no surviving spouse or
child or parent entitled to any payment under this chapter, but leaves a grandparent, grandchild,
brother, sister, mother-in-law, or father-in-law wholly dependent on the employee for support,
there shall be paid to such dependent, if but one, 30 percent of the weekly wage at the time of
injury of the deceased, or if more than one, 35 percent of the weekly wage at the time of the injury
of the deceased, divided among them share and share alike.
    Subd. 16. Cessation of compensation. Except as provided in this chapter, compensation
ceases upon the death or marriage of any dependent.
    Subd. 17. Partial dependents. Partial dependents are entitled to receive only that proportion
of the benefits provided for actual dependents which the average amount of wages regularly
contributed by the deceased to such partial dependents at the time of and for a reasonable time
immediately prior to the injury bore to the total income of the dependent during the same time;
and if the amount regularly contributed by the deceased to such partial dependents cannot be
ascertained because of the circumstances of the case, the commissioner, compensation judge, or
court of appeals, in cases upon appeal, shall make a reasonable estimate thereof taking into
account all pertinent factors of the case.
    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 $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.
    Subd. 19.[Repealed, 1975 c 359 s 22]
    Subd. 20. Actual dependents, compensation. Actual dependents are entitled to take
compensation in the order named in subdivision 3 during dependency until 66-2/3 percent of the
weekly wage of the deceased at the time of injury is exhausted. The total weekly compensation to
be paid to full actual dependents of a deceased employee shall not exceed in the aggregate an
amount equal to the maximum weekly compensation for a temporary total disability.
    Subd. 21. Death, benefits; coordination with governmental survivor benefits. The
following provision shall apply to any dependent entitled to receive weekly compensation benefits
under this section as the result of the death of an employee, and who is also receiving or entitled
to receive benefits under any government survivor program:
The combined total of weekly government survivor benefits and workers' compensation
death benefits provided under this section shall not exceed 100 percent of the weekly wage being
earned by the deceased employee at the time of the injury causing death; provided, however, that
no state workers' compensation death benefit shall be paid for any week in which the survivor
benefits paid under the federal program, by themselves, exceed 100 percent of such weekly wage
provided, however, the workers' compensation benefits payable to a dependent surviving spouse
shall not be reduced on account of any governmental survivor benefits payable to decedent's
children if the support of the children is not the responsibility of the dependent surviving spouse.
For the purposes of this subdivision "dependent" means dependent surviving spouse together
with all dependent children and any other dependents. For the purposes of this subdivision,
mother's or father's insurance benefits received pursuant to United States Code, title 42, section
402(g), are benefits under a government survivor program.
    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. This payment must be made within 14
days of notice to the insurer of the appointment of a personal representative of the estate. Within
14 days of notice to the insurer of the death of the employee, the insurer must send notice to the
estate, at the deceased employee's last known address, that this payment will be made after a
personal representative has been appointed by a probate court.
History: 1953 c 755 s 11; 1955 c 615 s 6-8; 1957 c 781 s 6,7; 1965 c 742 s 1; Ex1967 c 40 s
12,13; 1969 c 936 s 9-12; 1971 c 475 s 5-7; 1973 c 388 s 21-25; 1973 c 643 s 5-7; 1975 c 271 s 6;
1975 c 359 s 9-16,23; 1976 c 134 s 78; 1977 c 342 s 13-15; Ex1979 c 3 s 37; 1981 c 346 s 78-83;
1983 c 290 s 87-91; 1984 c 655 art 1 s 34; 1986 c 444; 1986 c 461 s 13-16; 1987 c 49 s 3,4; 1987
c 332 s 26; 1992 c 510 art 1 s 9; 1993 c 194 s 5; 2000 c 447 s 16-18; 2002 c 262 s 5
176.12 [Repealed, 1953 c 755 s 83]
176.121 COMMENCEMENT OF COMPENSATION.
In cases of temporary total or temporary partial disability no compensation is allowed for
the three calendar days after the disability commenced, except as provided by section 176.135,
nor in any case unless the employer has actual knowledge of the injury or is notified thereof
within the period specified in section 176.141. If the disability continues for ten calendar days or
longer, the compensation is computed from the commencement of the disability. Disability is
deemed to commence on the first calendar day or fraction of a calendar day that the employee is
unable to work.
History: 1953 c 755 s 12; 1969 c 936 s 13; 1983 c 290 s 92
176.129 CREATION OF SPECIAL COMPENSATION FUND.
    Subdivision 1. Deposit of funds. The special compensation fund is created for the purposes
provided for in this chapter and chapter 182. The commissioner of finance is the custodian of
the special compensation fund. Sums paid to the commissioner pursuant to this section shall be
deposited with the commissioner of finance for the benefit of the fund and used to pay the benefits
under this chapter and administrative costs pursuant to subdivision 11. Any interest or profit
accruing from investment of these sums shall be credited to the special compensation fund.
Subject to the provisions of this section, all the powers, duties, functions, obligations, and rights
vested in the special compensation fund immediately prior to January 1, 1984 are transferred to
and vested in the special compensation fund recreated by this section. All rights and obligations
of employers with regard to the special compensation fund which existed immediately prior to
January 1, 1984, continue, subject to the provisions of this section.
    Subd. 1a. Interest. Interest earned on revenue collected by the special compensation fund
shall be deposited into the special compensation fund.
    Subd. 1b. Definitions. (a) For purposes of this section, the terms defined in this subdivision
have the meanings given them.
(b) "Paid indemnity losses" means gross benefits paid for temporary total disability,
economic recovery compensation, permanent partial disability, temporary partial disability,
impairment compensation, permanent total disability, retraining compensation paid to the
employee as provided by section 176.102, subdivision 11, or dependency benefits, exclusive of
medical and supplementary benefits. In the case of policy deductibles, paid indemnity losses
includes all benefits paid, including the amount below deductible limits.
(c) "Standard workers' compensation premium" means the data service organization's
designated statistical reporting pure premium after excluding retrospective rating plan
adjustments, other individual risk rating plan adjustments such as schedule rating, premium credits
for small and large deductible coverage, and other deviations from the data service organization's
designated statistical reporting pure premiums and experience rating plan modification factors
but prior to the application of premium discounts, policyholder dividends, other premium
adjustments, and expense constants.
    Subd. 2.[Repealed, 2000 c 447 s 28]
    Subd. 2a. Payments to fund. (a) On or before April 1 of each year, all self-insured employers
shall report paid indemnity losses and insurers shall report paid indemnity losses and standard
workers' compensation premium in the form and manner prescribed by the commissioner. On June
1 of each year, the commissioner shall determine the total amount needed to pay all estimated
liabilities, including administrative expenses, of the special compensation fund for the following
fiscal year. The commissioner shall assess this amount against self-insured employers and insurers.
The total amount of the assessment must be allocated between self-insured employers and insured
employers based on paid indemnity losses for the preceding calendar year, as provided by
paragraph (b). The method of assessing self-insured employers must be based on paid indemnity
losses, as provided by paragraph (c). The method of assessing insured employers is based on
standard workers' compensation premium, as provided by paragraph (c). Each insurer shall collect
the assessment through a policyholder surcharge as provided by paragraph (d). On or before June
30 of each year, the commissioner shall provide notification to each self-insured employer and
insurer of amounts due. Each self-insured employer and each insurer shall pay at least one-half
of the amount due to the commissioner for deposit into the special compensation fund on or
before August 1 of the same calendar year. The remaining balance is due on February 1 of the
following calendar year. Each insurer must pay the full amount due as stated in the commissioner's
notification, regardless of the amount the insurer actually collects from the premium surcharge.
(b) The portion of the total assessment that is allocated to self-insured employers is the
proportion that paid indemnity losses made by all self-insured employers bore to the total paid
indemnity losses made by all self-insured employers and insured employers during the preceding
calendar year. The portion of the total assessment that is allocated to insured employers is the
proportion that paid indemnity losses made on behalf of all insured employers bore to the total
paid indemnity losses made by all self-insured employers and insured employers during the
preceding calendar year.
(c) The portion of the total assessment allocated to self-insured employers that shall be
paid by each self-insured employer must be based upon paid indemnity losses made by that
self-insured employer during the preceding calendar year. The portion of the total assessment
allocated to insured employers that is paid by each insurer must be based on standard workers'
compensation premium earned in the state by that insurer during the preceding calendar year. An
employer who has ceased to be self-insured shall continue to be liable for assessments based on
paid indemnity losses arising out of injuries occurring during periods when the employer was
self-insured, unless the self-insured employer has purchased a replacement policy covering those
losses. An insurer who assumes a self-insured employer's obligation under a replacement policy
shall separately report and pay assessments based on indemnity losses paid by the insurer under
the replacement policy. The replacement policy may provide for reimbursement of the assessment
to the insurer by the self-insured employer.
(d) Insurers shall collect the assessments from their insured employers through a surcharge
based on standard workers' compensation premium for each employer. Assessments when
collected do not constitute an element of loss for the purpose of establishing rates for workers'
compensation insurance but for the purpose of collection are treated as separate costs imposed
on insured employers. The premium surcharge is included in the definition of gross premium as
defined in section 297I.01. An insurer may cancel a policy for nonpayment of the premium
surcharge. The premium surcharge is excluded from the definition of premium except as otherwise
provided in this paragraph.
(e) For purposes of this section, the workers' compensation assigned risk plan established
under section 79.252, shall report and pay assessments on standard workers' compensation
premium in the same manner as an insurer.
    Subd. 3.[Repealed, 2002 c 262 s 23]
    Subd. 4.[Repealed, 2002 c 262 s 23]
    Subd. 4a.[Repealed, 2002 c 262 s 23]
    Subd. 5.[Repealed, 1984 c 432 art 2 s 55]
    Subd. 6. Payments out of fund. The Workers' Compensation Division, a compensation
judge, the Workers' Compensation Court of Appeals, or a district court in cases before them shall
direct the distribution of benefits provided by this chapter. These benefits are payable in the same
manner as other payments of compensation.
    Subd. 7. Refunds. In case deposit is or has been made pursuant to subdivision 2a by mistake
or inadvertence, or under circumstances that justice requires a refund, the commissioner of finance
is authorized to refund the deposit under order of the commissioner, a compensation judge, the
Workers' Compensation Court of Appeals, or a district court. Claims for refunds must be submitted
to the commissioner within three years of the assessment due date. There is appropriated to the
commissioner from the fund an amount sufficient to make the refund and payment.
    Subd. 8. Commissioner as administrator. The commissioner is the administrator of the
special compensation fund. The special fund shall be designated a party in an action regarding any
right, obligation, and liability of the special fund. The commissioner of finance, as custodian, does
not have standing in an action determining any right, obligation, or liability of the special fund.
As requested by the commissioner, the attorney general shall represent the special fund in all legal
matters in which the special fund has an interest. The commissioner may designate one or more
division employees to appear on behalf of the special fund in proceedings under this chapter. The
division employees so designated need not be attorneys-at-law.
    Subd. 9. Powers of fund. In addition to powers granted to the special compensation fund by
this chapter the fund may do the following:
(a) sue and be sued in its own name;
(b) intervene in or commence an action under this chapter or any other law, including, but not
limited to, intervention or action as a subrogee to the division's right in a third-party action, any
proceeding under this chapter in which liability of the special compensation fund is an issue, or any
proceeding which may result in other liability of the fund or to protect the legal right of the fund;
(c) enter into settlements including but not limited to structured, annuity purchase agreements
with appropriate parties under this chapter. Notwithstanding any other provision of this chapter,
any settlement may provide that the fund partially or totally denies liability for payment of
benefits, and no determination of employer insurance status and liability under section 176.183,
subdivision 2
, shall be required for approval of the stipulation for a settlement;
(d) contract with another party to administer the special compensation fund;
(e) take any other action which an insurer is permitted by law to take in operating within
this chapter; and
(f) conduct a financial audit of indemnity claim payments, premium, and assessments
reported to the fund. This may be contracted by the fund to a private auditing firm.
    Subd. 10. Penalty. Sums paid to the commissioner pursuant to this section shall be in the
manner prescribed by the commissioner. The commissioner may impose a penalty payable to the
commissioner for deposit in the assigned risk safety account of up to 15 percent of the amount
due under this section but not less than $1,000 in the event payment is not made or reports are not
submitted in the manner prescribed.
    Subd. 11. Administrative provisions. The accounting, investigation, and legal costs
necessary for the administration of the programs financed by the special compensation fund shall
be paid from the fund during each biennium commencing July 1, 1981. Staffing and expenditures
related to the administration of the special compensation fund shall be approved through the
regular budget and appropriations process. All sums recovered by the special compensation
fund as a result of action under section 176.061, or recoveries of payments made by the special
compensation fund under section 176.183 or 176.191, or sums recovered under chapter 182, shall
be credited to the special compensation fund.
    Subd. 12. Report of commissioner. The commissioner shall report biennially to the
governor and to the legislature as to the financial status of the special compensation fund. The
report shall include a statement of the receipts and the disbursements for the period covered.
    Subd. 13. Employer reports. All employers and insurers shall make reports to the
commissioner as required for the proper administration of this section and Minnesota Statutes
1990, section 176.131, and Minnesota Statutes 1994, section 176.132. Employers and insurers
may not be reimbursed from the special compensation fund for any periods unless the employer
or insurer is up to date with all past due and currently due assessments, penalties, and reports to
the special compensation fund under this section. The commissioner may allow an offset of the
reimbursements due an employer or insurer pursuant to Minnesota Statutes 1990, section 176.131,
and Minnesota Statutes 1994, section 176.132, against the assessment due under the section.
History: 1983 c 290 s 93; 1984 c 432 art 2 s 20-22; 1986 c 461 s 17; 1987 c 268 art 2 s
28; 1987 c 332 s 27-29; 1992 c 510 art 3 s 12; 1992 c 513 art 3 s 37,38; 1995 c 231 art 2 s
58,59; 1996 c 305 art 1 s 45,46; 2000 c 447 s 19,20; 2001 c 123 s 6-8; 2002 c 262 s 6-11,24;
2003 c 112 art 2 s 50; 2005 c 90 s 7-9
176.13 [Repealed, 1965 c 327 s 2]
176.130 TARGETED INDUSTRY FUND; LOGGERS.
    Subdivision 1. Definitions. For purposes of this section, the following terms have the
meanings given them, except where the context clearly indicates a different meaning.
(a) "Commissioner" means the commissioner of labor and industry, unless otherwise
provided.
(b) "Logger" means the following occupations:
(1) timber fellers: those who employ chainsaws or other mechanical devices mounted on
logging vehicles to fell or delimb trees;
(2) buckers or chippers: those who cut trees into merchantable lengths with either chainsaws
or heavier machinery, including slashers, harvesters, and processors;
(3) skidders or forwarders: those who either drag logs or trees to roadside landings, or load
and transport logs or short wood (fuel wood or pulp wood) to similar destinations; and
(4) timber harvesters or processors: those who combine two or more of the operations listed
in clauses (1) to (3).
(c) "Logging industry" means loggers and employers of loggers.
(d) "Wood mill" means the primary processors of wood or wood chips including, but not
limited to, hard board manufacturers, wafer board or oriented strand board manufacturers, pulp
and paper manufacturers, sawmills, and other primary manufacturers who do the initial processing
of wood purchased from loggers.
(e) "Insurer" means an insurance company that provides workers' compensation coverage for
loggers, including the Minnesota assigned risk plan.
(f) "Qualified employer" means a self-employed logger, or an employer of a logger, who has
paid a premium for workers' compensation insurance coverage for the preceding calendar year
and who has attended, or whose logger employees have attended, in the preceding calendar year,
at least one safety seminar sponsored by or approved by the commissioner.
(g) "Rebate" means amounts allocated and paid to qualified employers under subdivision 6.
    Subd. 2. Administration. The commissioner shall administer and enforce this section.
Payments and reports required by this section must be made with forms provided by the
commissioner. The commissioner shall collect all assessments and allocate the rebate as provided
in this section.
    Subd. 3. Proof of insurance; logging industry. Purchasers of wood from the logging
industry shall obtain from the logger a certification of compliance with the mandatory insurance
requirements of this chapter, or reason for exemption, on a form prescribed by the commissioner.
A purchaser includes, but is not limited to, dealers and jobbers buying from the logging industry
to sell to wood mills, and wood mills that buy directly from the logging industry. Certificates
obtained by the purchaser shall be submitted to the commissioner on request. The powers of
inspection and enforcement pertaining to employers under section 176.184 shall be available
with regard to purchasers under this section.
    Subd. 4. Assessment. There is imposed an assessment, at the rate of 30 cents per cord of
wood, for every cord or equivalent measurement of wood in excess of 5,000 cords, purchased
or acquired in any calendar year, either inside or outside the state, by a wood mill located in
Minnesota. This assessment must be paid by the wood mill to the commissioner on or before
February 15 for the previous calendar year and may not, in any way, be recovered by the wood
mill from the logging industry. All revenue collected from this assessment must be deposited in a
separately maintained account in the special compensation fund for the payment of rebates under
subdivision 6 and the loggers safety and education program under subdivision 11.
    Subd. 5. Annual reports; wood mills; qualified employers. (a) Each wood mill that
purchases or acquires more than 5,000 cords or equivalent measurement of wood in a calendar
year shall, on or before February 15, make and file with the commissioner a report setting forth
the number of cords purchased or acquired in the preceding calendar year, and other information
the commissioner may require for the proper administration of this section.
(b) Each qualified employer shall, on or before February 15 each year, make and file with the
commissioner a report setting forth the total amount of payroll paid to loggers in the preceding
calendar year, together with proof of attendance at an approved safety seminar in the preceding
calendar year, and other information the commissioner may require for the proper administration
of this section. The commissioner may, for enforcement purposes, share reported payroll data
for a particular employer with the workers' compensation insurer for that employer or with the
workers' compensation insurance association.
    Subd. 6. Allocation of rebate. Money collected under this section, less an amount as
provided in subdivision 11, is appropriated to and, must be paid by the commissioner, on or before
June 1 each year, directly to each qualified employer in a proportion equal to the proportion that
the qualified employer's reported payroll dollars for loggers in the preceding calendar year is to
the total reported payroll dollars for loggers from all qualified employers in the preceding calendar
year. Payment under this section shall be made only to those qualified employers reporting within
the time limits provided in subdivision 5, paragraph (b).
    Subd. 7. Inspection. The commissioner or duly authorized employees may, at all reasonable
hours, enter in and upon the premises of a wood mill or a qualified employer and examine
books, papers, and records to determine whether the assessment has been properly paid or
payroll properly reported.
    Subd. 8. Penalties; wood mills. If the assessment provided for in this chapter is not paid
on or before February 15 of the year when due and payable, the commissioner may impose
penalties as provided in section 176.129, subdivision 10, payable to the commissioner for deposit
in the assigned risk safety account.
    Subd. 9. False reports. Any person or entity that, for the purpose of evading payment of
the assessment or avoiding the reimbursement, or any part of it, makes a false report under
this section shall pay to the commissioner for deposit in the assigned risk safety account, in
addition to the assessment, a penalty of 75 percent of the amount of the assessment. A person
who knowingly makes or signs a false report, or who knowingly submits other false information,
is guilty of a misdemeanor.
    Subd. 10. Employer-employee relationship. This section does not create an
employer-employee relationship nor can it be used as a factor in determining the existence of
an employer-employee relationship.
    Subd. 11. Safety program. The commissioner shall establish or approve a safety and
education program for Minnesota loggers. Funding for the program must be in the amount of
$125,000 each calendar year provided from amounts collected in the previous calendar year
pursuant to subdivision 4. If the amounts collected under subdivision 4 are less than $125,000
in any calendar year, funding for the safety and education program for the next calendar year
must be the actual amount collected.
History: 1990 c 521 s 1,4; 1992 c 510 art 3 s 13,14; 1995 c 224 s 126; 1995 c 231 art 1 s
36; art 2 s 60; 2002 c 262 s 12,13
176.131 [Repealed, 1992 c 510 art 3 s 36]
176.1311 SECOND INJURY FUND DATA.
No person shall, directly or indirectly, provide the names of persons who have registered a
preexisting physical impairment under Minnesota Statutes 1990, section 176.131, to an employer
with the intent of assisting the employer to discriminate against those persons who have so
registered with respect to hiring or other terms and conditions of employment.
A violation of this section is a gross misdemeanor.
History: 1992 c 510 art 2 s 5; 1993 c 13 art 2 s 1
176.132 [Repealed, 1995 c 231 art 1 s 35; art 2 s 110]
176.1321 EFFECTIVE DATE OF BENEFIT CHANGES.
Unless otherwise specified in the act making the change, any workers' compensation benefit
change shall be effective on the October 1 next following its final enactment.
History: Ex1979 c 3 s 42
176.133 [Repealed, 1995 c 231 art 2 s 110]
176.134 [Repealed, 1985 c 234 s 22]

TREATMENT AND SUPPLIES

176.135 TREATMENT; APPLIANCES; SUPPLIES.
    Subdivision 1. Medical, psychological, chiropractic, podiatric, surgical, hospital. (a) The
employer shall furnish any medical, psychological, chiropractic, podiatric, surgical and hospital
treatment, including nursing, medicines, medical, chiropractic, podiatric, and surgical supplies,
crutches and apparatus, including artificial members, or, at the option of the employee, if the
employer has not filed notice as hereinafter provided, Christian Science treatment in lieu of
medical treatment, chiropractic medicine and medical supplies, as may reasonably be required at
the time of the injury and any time thereafter to cure and relieve from the effects of the injury.
This treatment shall include treatments necessary to physical rehabilitation.
(b) The employer shall pay for the reasonable value of nursing services provided by a
member of the employee's family in cases of permanent total disability.
(c) Exposure to rabies is an injury and an employer shall furnish preventative treatment to
employees exposed to rabies.
(d) The employer shall furnish replacement or repair for artificial members, glasses or
spectacles, artificial eyes, podiatric orthotics, dental bridge work, dentures or artificial teeth,
hearing aids, canes, crutches, or wheel chairs damaged by reason of an injury arising out of and
in the course of the employment. For the purpose of this paragraph, "injury" includes damage
wholly or in part to an artificial member. In case of the employer's inability or refusal seasonably
to provide the items required to be provided under this paragraph, the employer is liable for the
reasonable expense incurred by or on behalf of the employee in providing the same, including
costs of copies of any medical records or medical reports that are in existence, obtained from
health care providers, and that directly relate to the items for which payment is sought under
this chapter, limited to the charges allowed by subdivision 7, and attorney fees incurred by the
employee.
(e) Both the commissioner and the compensation judges have authority to make
determinations under this section in accordance with sections 176.106 and 176.305.
(f) An employer may require that the treatment and supplies required to be provided by an
employer by this section be received in whole or in part from a managed care plan certified under
section 176.1351 except as otherwise provided by that section.
(g) An employer may designate a pharmacy or network of pharmacies that employees must
use to obtain outpatient prescription and nonprescription medications. An employee is not
required to obtain outpatient medications at a designated pharmacy unless the pharmacy is located
within 15 miles of the employee's place of residence.
(h) Notwithstanding any fees established by rule adopted under section 176.136, an employer
may contract for the cost of medication provided to employees.
    Subd. 1a. Nonemergency surgery; second surgical opinion. The employer is required to
furnish surgical treatment pursuant to subdivision 1 when the surgery is reasonably required to
cure and relieve the effects of the personal injury or occupational disease. An employee may not
be compelled to undergo surgery. If an employee desires a second opinion on the necessity of
the surgery, the employer shall pay the costs of obtaining the second opinion. Except in cases of
emergency surgery, the employer or insurer may require the employee to obtain a second opinion
on the necessity of the surgery, at the expense of the employer, before the employee undergoes
surgery. Failure to obtain a second surgical opinion shall not be reason for nonpayment of the
charges for the surgery. The employer is required to pay the reasonable value of the surgery unless
the commissioner or compensation judge determines that the surgery is not reasonably required.
    Subd. 2. Change of physicians, podiatrists, or chiropractors. The commissioner shall
adopt rules establishing standards and criteria to be used when a dispute arises over a change of
physicians, podiatrists, or chiropractors in the case that either the employee or the employer desire
a change. If a change is agreed upon or ordered, the medical expenses shall be borne by the
employer upon the same terms and conditions as provided in subdivision 1.
    Subd. 2a. Definitions. For the purposes of this section, the word "physicians" shall include
persons holding the degree M. D. (Doctor of Medicine) and persons holding the degree D. O.
(Doctor of Osteopathy); and the terms "medical, surgical and hospital treatment" shall include
professional services rendered by licensed persons who have earned the degree M. D. or the
degree D. O.
    Subd. 3.[Repealed, 1992 c 510 art 4 s 26]
    Subd. 4. Christian Science treatment. Any employee electing to receive Christian Science
treatment as provided in subdivision 1 shall notify the employer in writing of the election within
30 days after July 1, 1953, and any person hereafter accepting employment shall give such notice
at the time of accepting employment. Any employer may elect not to be subject to the provisions
for Christian Science treatment provided for in this section by filing a written notice of such
election with the commissioner of the Department of Labor and Industry, in which event the
election of the employee shall have no force or effect whatsoever.
    Subd. 5. Occupational disease medical eligibility. Notwithstanding section 176.66, an
employee who has contracted an occupational disease is eligible to receive compensation under
this section even if the employee is not disabled from earning full wages at the work at which
the employee was last employed.
Payment of compensation under this section shall be made by the employer and insurer on
the date of the employee's last exposure to the hazard of the occupational disease. Reimbursement
for medical benefits paid under this subdivision or subdivision 1a is allowed from the employer
and insurer liable under section 176.66, subdivision 10, only in the case of disablement.
    Subd. 6. Commencement of payment. As soon as reasonably possible, and no later than 30
calendar days after receiving the bill, the employer or insurer shall pay the charge or any portion
of the charge which is not denied, or deny all or a part of the charge with written notification to
the employee and the provider explaining the basis for denial. All or part of a charge must be
denied if any of the following conditions exists:
(1) the injury or condition is not compensable under this chapter;
(2) the charge or service is excessive under this section or section 176.136;
(3) the charges are not submitted on the prescribed billing form; or
(4) additional medical records or reports are required under subdivision 7 to substantiate
the nature of the charge and its relationship to the work injury.
If payment is denied under clause (3) or (4), the employer or insurer shall reconsider the
charges in accordance with this subdivision within 30 calendar days after receiving additional
medical data, a prescribed billing form, or documentation of enrollment or certification as a
provider.
    Subd. 7. Medical bills and records. Health care providers shall submit to the insurer an
itemized statement of charges on a billing form prescribed by the commissioner. A paper billing
form is not required if the health care provider and insurer agree to electronic submission under
section 62J.535. Health care providers shall also submit copies of medical records or reports that
substantiate the nature of the charge and its relationship to the work injury. Health care providers
may charge for copies of any records or reports that are in existence and directly relate to the
items for which payment is sought under this chapter. The commissioner shall adopt a schedule of
reasonable charges by rule.
A health care provider shall not collect, attempt to collect, refer a bill for collection, or
commence an action for collection against the employee, employer, or any other party until the
information required by this section has been furnished.
A United States government facility rendering health care services to veterans is not subject
to the uniform billing form requirements of this subdivision.
History: 1953 c 439 s 1; 1953 c 755 s 13; 1971 c 863 s 1,2; 1973 c 258 s 1; 1973 c 388
s 35-38; 1975 c 271 s 6; 1975 c 359 s 23; 1976 c 134 s 78; 1979 c 107 s 1,2; Ex1979 c 3 s
44; 1983 c 290 s 106,107; 1984 c 432 art 2 s 23,24; 1986 c 444; 1986 c 461 s 20,21; 1987 c
332 s 33-38; 1989 c 335 art 1 s 180; 1990 c 522 s 3; 1992 c 510 art 4 s 9-12; 1995 c 231 art
2 s 61; 2005 c 90 s 10,11

MANAGED CARE

176.1351 MANAGED CARE.
    Subdivision 1. Application. Any person or entity, other than a workers' compensation insurer
or an employer for its own employees, may make written application to the commissioner to have
a plan certified that provides management of quality treatment to injured workers for injuries and
diseases compensable under this chapter. Specifically, and without limitation, an entity licensed
under chapter 62C or 62D or a preferred provider organization that is subject to chapter 72A is
eligible for certification under this section. Each application for certification shall be accompanied
by a reasonable fee prescribed by the commissioner which shall be deposited in the special
compensation fund. A plan may be certified to provide services in a limited geographic area. A
certificate is valid for the period the commissioner prescribes unless revoked or suspended.
Application for certification shall be made in the form and manner and shall set forth information
regarding the proposed plan for providing services as the commissioner may prescribe. The
information shall include, but not be limited to:
(1) a list of the names of all health care providers who will provide services under the
managed care plan, together with appropriate evidence of compliance with any licensing or
certification requirements for those providers to practice in this state; and
(2) a description of the places and manner of providing services under the plan.
    Subd. 2. Certification. The commissioner shall certify a managed care plan if the
commissioner finds that the plan:
(1) proposes to provide quality services that meet uniform treatment standards prescribed by
the commissioner and all medical and health care services that may be required by this chapter in
a manner that is timely, effective, and convenient for the worker;
(2) is reasonably geographically convenient to employees it serves;
(3) provides appropriate financial incentives to reduce service costs and utilization without
sacrificing the quality of service;
(4) provides adequate methods of peer review, utilization review, and dispute resolution to
prevent inappropriate, excessive, or not medically necessary treatment, and excludes participation
in the plan by those individuals who violate these treatment standards;
(5) provides a procedure for the resolution of medical disputes;
(6) provides aggressive case management for injured workers and provides a program for
early return to work and cooperative efforts by the workers, the employer, and the managed care
plan to promote workplace health and safety consultative and other services;
(7) provides a timely and accurate method of reporting to the commissioner necessary
information regarding medical and health care service cost and utilization to enable the
commissioner to determine the effectiveness of the plan;
(8) authorizes workers to receive compensable treatment from a health care provider who is
not a member of the managed care plan, if that provider maintains the employee's medical records
and has a documented history of treatment with the employee and agrees to refer the employee to
the managed care plan for any other treatment that the employee may require and if the health
care provider agrees to comply with all the rules, terms, and conditions of the managed care plan;
(9) authorizes necessary emergency medical treatment for an injury provided by a health care
provider not a part of the managed care plan;
(10) does not discriminate against or exclude from participation in the plan any category of
health care provider and includes an adequate number of each category of health care providers
to give workers convenient geographic accessibility to all categories of providers and adequate
flexibility to choose health care providers from among those who provide services under the plan;
(11) provides an employee the right to change health care providers under the plan at least
once; and
(12) complies with any other requirement the commissioner determines is necessary to
provide quality medical services and health care to injured workers.
The commissioner may accept findings, licenses, or certifications of other state agencies as
satisfactory evidence of compliance with a particular requirement of this subdivision.
    Subd. 3. Dispute resolution. An employee must exhaust the dispute resolution procedure
of the certified managed care plan prior to filing a petition or otherwise seeking relief from the
commissioner or a compensation judge on an issue related to managed care. If an employee has
exhausted the dispute resolution procedure of the managed care plan on the issue of a rating for a
disability, the employee may seek a disability rating from a health care provider outside of the
managed care organization. The employer is liable for the reasonable fees of the outside provider
as limited by the medical fee schedule adopted under this chapter.
    Subd. 4. Access to all health care disciplines. The commissioner may refuse to certify or
may revoke or suspend the certification of a managed care plan that unfairly restricts direct access
within the managed care plan to any health care provider profession. Direct access within the
managed care plan is unfairly restricted if direct access is denied and the treatment or service
sought is within the scope of practice of the profession to which direct access is sought and is
appropriate under the standards of treatment adopted by the managed care plan or, in instances
where the commissioner has adopted standards of treatment, the standards adopted by the
commissioner.
    Subd. 5. Revocation, suspension, and refusal to certify; penalties and enforcement. (a)
The commissioner shall refuse to certify or shall revoke or suspend the certification of a managed
care plan if the commissioner finds that the plan for providing medical or health care services
fails to meet the requirements of this section, or service under the plan is not being provided in
accordance with the terms of a certified plan.
(b) In lieu of or in addition to suspension or revocation under paragraph (a), the
commissioner may, for any noncompliance with the managed care plan as certified or any
violation of a statute or rule applicable to a managed care plan, assess an administrative penalty
payable to the commissioner for deposit in the assigned risk safety account in an amount up to
$25,000 for each violation or incidence of noncompliance. The commissioner may adopt rules
necessary to implement this subdivision. In determining the level of an administrative penalty, the
commissioner shall consider the following factors:
(1) the number of workers affected or potentially affected by the violation or noncompliance;
(2) the effect or potential effect of the violation or noncompliance on workers' health, access
to health services, or workers' compensation benefits;
(3) the effect or potential effect of the violation or noncompliance on workers' understanding
of their rights and obligations under the workers' compensation law and rules;
(4) whether the violation or noncompliance is an isolated incident or part of a pattern of
violations; and
(5) the potential or actual economic benefits derived by the managed care plan or a
participating provider by virtue of the violation or noncompliance.
The commissioner shall give written notice to the managed care plan of the penalty
assessment and the reasons for the penalty. The managed care plan has 30 days from the date the
penalty notice is issued within which to file a written request for an administrative hearing and
review of the commissioner's determination pursuant to section 176.85, subdivision 1.
(c) If the commissioner, for any reason, has cause to believe that a managed care plan
has or may violate a statute or rule or a provision of the managed care plan as certified, the
commissioner may, before commencing action under paragraph (a) or (b), call a conference
with the managed care plan and other persons who may be involved in the suspected violation
or noncompliance for the purpose of ascertaining the facts relating to the suspected violation or
noncompliance and arriving at an adequate and effective means of correcting or preventing the
violation or noncompliance. The commissioner may enter into stipulated consent agreements with
the managed care plan for corrective or preventive action or the amount of the penalty to be paid.
Proceedings under this paragraph shall not be governed by any formal procedural requirements,
and may be conducted in a manner the commissioner deems appropriate under the circumstances.
(d) The commissioner may issue an order directing a managed care plan or a representative
of a managed care plan to cease and desist from engaging in any act or practice that is not in
compliance with the managed care plan as certified, or that it is in violation of an applicable
statute or rule. Within 30 days of service of the order, the managed care plan may request review
of the cease and desist order by an administrative law judge pursuant to chapter 14. The decision
of the administrative law judge shall include findings of fact, conclusions of law and appropriate
orders, which shall be the final decision of the commissioner. In the event of noncompliance
with a cease and desist order, the commissioner may institute a proceeding in district court to
obtain injunctive or other appropriate relief.
(e) A managed care plan, participating health care provider, or an employer or insurer that
receives services from the managed care plan, shall cooperate fully with an investigation by the
commissioner. For purposes of this section, cooperation includes, but is not limited to, attending a
conference called by the commissioner under paragraph (c), responding fully and promptly to any
questions relating to the subject of the investigation, and providing copies of records, reports,
logs, data, and other information requested by the commissioner to assist in the investigation.
(f) Any person acting on behalf of a managed care plan who knowingly submits false
information in any report required to be filed by a managed care plan is guilty of a misdemeanor.
    Subd. 6. Rules. The commissioner may adopt rules necessary to implement this section.
History: 1992 c 510 art 4 s 13; 1995 c 231 art 2 s 62,63; 1997 c 7 art 5 s 14,15; 2001
c 123 s 9; 2005 c 90 s 12

FEES FOR SERVICES

176.136 MEDICAL FEE REVIEW.
    Subdivision 1. Schedule. (a) The commissioner shall by rule establish procedures for
determining whether or not the charge for a health service is excessive. In order to accomplish this
purpose, the commissioner shall consult with insurers, associations and organizations representing
the medical and other providers of treatment services and other appropriate groups.
(b) The procedures established by the commissioner must limit, in accordance with
subdivisions 1a, 1b, and 1c, the charges allowable for medical, chiropractic, podiatric, surgical,
hospital and other health care provider treatment or services, as defined and compensable under
section 176.135. The procedures established by the commissioner for determining whether or not
the charge for a health service is excessive must be structured to encourage providers to develop
and deliver services for rehabilitation of injured workers. The procedures must incorporate the
provisions of sections 144.701, 144.702, and 144.703 to the extent that the commissioner finds
that these provisions effectively accomplish the intent of this section or are otherwise necessary to
ensure that quality hospital care is available to injured employees.
    Subd. 1a. Relative value fee schedule. (a) The liability of an employer for services included
in the medical fee schedule is limited to the maximum fee allowed by the schedule in effect on
the date of the medical service, or the provider's actual fee, whichever is lower. The medical fee
schedule effective on October 1, 1991, remains in effect until the commissioner adopts a new
schedule by permanent rule. The commissioner shall adopt permanent rules regulating fees
allowable for medical, chiropractic, podiatric, surgical, and other health care provider treatment
or service, including those provided to hospital outpatients, by implementing a relative value
fee schedule to be effective on October 1, 1993. The commissioner may adopt by reference
the relative value fee schedule adopted for the federal Medicare program or a relative value
fee schedule adopted by other federal or state agencies. The relative value fee schedule must
contain reasonable classifications including, but not limited to, classifications that differentiate
among health care provider disciplines. The conversion factors for the original relative value fee
schedule must reasonably reflect a 15 percent overall reduction from the medical fee schedule
most recently in effect. The reduction need not be applied equally to all treatment or services, but
must represent a gross 15 percent reduction.
(b) Effective October 1, 2005, the commissioner shall remove all scaling factors from the
relative value units and establish four separate conversion factors according to paragraphs (c) and
(d) for each of the following parts of Minnesota Rules:
(1) Medical/surgical services in Minnesota Rules, part 5221.4030, as defined in part
5221.0700, subpart 3, item C, subitem (2);
(2) Pathology and laboratory services in Minnesota Rules, part 5221.4040, as defined in
part 5221.0700, subpart 3, item C, subitem (3);
(3) Physical medicine and rehabilitation services in Minnesota Rules, part 5221.4050, as
defined in part 5221.0700, subpart 3, item C, subitem (4); and
(4) Chiropractic services in Minnesota Rules, part 5221.4060, as defined in part 5221.0700,
subpart 3, item C, subitem (5).
(c) The four conversion factors established under paragraph (b) shall be calculated so that
there is no change in each maximum fee for each service under the current fee schedule, except as
provided in paragraphs (d) and (e).
(d) By October 1, 2006, the conversion factor for chiropractic services described in
paragraph (b), clause (4), shall be increased to equal 72 percent of the conversion factor for
medical/surgical services described in paragraph (b), clause (1). Beginning October 1, 2005, the
increase in chiropractic conversion factor shall be phased in over two years by approximately
equal percentage point increases.
(e) When adjusting the conversion factors in accordance with paragraph (g) on October
1, 2005, and October 1, 2006, the commissioner may adjust by no less than zero, all of the
conversion factors as necessary to offset any overall increase in payments under the fee schedule
resulting from the increase in the chiropractic conversion factor.
(f) The commissioner shall give notice of the relative value units and conversion factors
established under paragraphs (b), (c), and (d) according to the procedures in section 14.386,
paragraph (a)
. The relative value units and conversion factors established under paragraphs (b),
(c), and (d) are not subject to expiration under section 14.386, paragraph (b).
(g) After permanent rules have been adopted to implement this section, the conversion
factors must be adjusted annually on October 1 by no more than the percentage change computed
under section 176.645, but without the annual cap provided by that section. The commissioner
shall annually give notice in the State Register of the adjusted conversion factors and may also
give annual notice of any additions, deletions, or changes to the relative value units or service
codes adopted by the federal Medicare program. The relative value units may be statistically
adjusted in the same manner as for the original workers' compensation relative value fee schedule.
The notices of the adjusted conversion factors and additions, deletions, or changes to the relative
value units and service codes is in lieu of the requirements of chapter 14. The commissioner
shall follow the requirements of section 14.386, paragraph (a). The annual adjustments to the
conversion factors and the medical fee schedules adopted under this section, including all previous
fee schedules, are not subject to expiration under section 14.386, paragraph (b).
    Subd. 1b. Limitation of liability. (a) The liability of the employer for treatment, articles,
and supplies provided to an employee while an inpatient or outpatient at a small hospital shall be
the hospital's usual and customary charge, unless the charge is determined by the commissioner
or a compensation judge to be unreasonably excessive. A "small hospital," for purposes of this
paragraph, is a hospital which has 100 or fewer licensed beds.
(b) The liability of the employer for the treatment, articles, and supplies that are not limited
by subdivision 1a or 1c or paragraph (a) shall be limited to 85 percent of the provider's usual and
customary charge, or 85 percent of the prevailing charges for similar treatment, articles, and
supplies furnished to an injured person when paid for by the injured person, whichever is lower.
On this basis, the commissioner or compensation judge may determine the reasonable value of all
treatment, services, and supplies, and the liability of the employer is limited to that amount. The
commissioner may by rule establish the reasonable value of a service, article, or supply in lieu of
the 85 percent limitation in this paragraph.
(c) The limitation of liability for charges provided by paragraph (b) does not apply to a
nursing home that participates in the medical assistance program and whose rates are established
by the commissioner of human services.
    Subd. 1c. Charges for independent medical examinations. The commissioner shall
adopt rules that reasonably limit amounts which may be charged for, or in connection with,
independent or adverse medical examinations requested by any party, including the amount that
may be charged for depositions, witness fees, or other expenses. No party may pay fees above
the amount in the schedule.
    Subd. 2. Excessive fees. If the employer or insurer determines that the charge for a health
service or medical service is excessive, no payment in excess of the reasonable charge for that
service shall be made under this chapter nor may the provider collect or attempt to collect from
the injured employee or any other insurer or government amounts in excess of the amount payable
under this chapter unless the commissioner, compensation judge, or court of appeals determines
otherwise. In such a case, the health care provider may initiate an action under this chapter for
recovery of the amounts deemed excessive by the employer or insurer.
A charge for a health service or medical service is excessive if it:
(1) exceeds the maximum permissible charge pursuant to subdivision 1, 1a, 1b, or 1c;
(2) is for a service provided at a level, duration, or frequency that is excessive, based upon
accepted medical standards for quality health care and accepted rehabilitation standards;
(3) is for a service that is outside the scope of practice of the particular provider or is not
generally recognized within the particular profession of the provider as of therapeutic value
for the specific injury or condition treated; or
(4) is otherwise deemed excessive or inappropriate pursuant to rules adopted pursuant to
this chapter.
    Subd. 3. Report. The commissioner shall contract with a review organization as defined in
section 145.61 for the purposes listed in section 145.61, subdivision 5, and report to the legislature
on January 15 of every odd-numbered year, regarding the delivery of medical and health care
services, including rehabilitation services, under the workers' compensation laws of this state.
The commissioner shall also conduct a study of the qualifications and background of
rehabilitation consultants and vendors providing services under section 176.102 for the purpose of
determining whether there are adequate professional standards provided, including safeguards to
protect against conflicts of interest.
    Subd. 4.[Repealed, 1987 c 332 s 117]
    Subd. 5.[Repealed, 1992 c 510 art 4 s 26]
History: Ex1979 c 3 s 45; 1981 c 346 s 87; 1982 c 424 s 130; 1983 c 289 s 114 subd 1; 1983
c 290 s 108; 1984 c 432 art 2 s 25; 1984 c 640 s 32; 1984 c 655 art 1 s 92; 1985 c 234 s 11; 1987
c 332 s 39; 1989 c 282 art 2 s 51,52; 1992 c 510 art 4 s 14-18; 1993 c 194 s 6; 1995 c 231 art 2 s
64-66; 1996 c 374 s 4; 1997 c 187 art 5 s 26; 1Sp2005 c 1 art 4 s 40

MISCELLANEOUS

176.1361 TESTIMONY OF PROVIDERS.
When the commissioner, a compensation judge, or the court of appeals has reason to believe
that a medical or other provider of treatment services has submitted false testimony or a false
report in any proceeding under this chapter, the commissioner, compensation judge, or the court
of appeals shall refer the matter to an appropriate licensing body or other professional certifying
organization for review and recommendations. Based upon their recommendation, the Medical
Services Review Board, after hearing, may bar the provider from making an appearance, and
disallow the admission into evidence of written reports of the provider, in any proceeding under
this chapter for a period not to exceed one year in the first instance and three years in the second
instance, and may permanently bar the provider from appearance and the provider's reports
from admission in evidence thereafter.
History: 1981 c 346 s 88; 1986 c 444; 1987 c 332 s 40
176.137 REMODELING OF RESIDENCE; DISABLED EMPLOYEES.
    Subdivision 1. Requirement; determination. The employer shall furnish to an employee
who is permanently disabled because of a personal injury suffered in the course of employment
with that employer such alteration or remodeling of the employee's principal residence as is
reasonably required to enable the employee to move freely into and throughout the residence
and to otherwise adequately accommodate the disability. Any remodeling or alteration shall be
furnished only when the division or Workers' Compensation Court of Appeals determines that
the injury is to such a degree that the employee is substantially prevented from functioning
within the principal residence.
    Subd. 2. Cost. The pecuniary liability of an employer for remodeling or alteration required
by this section is limited to prevailing costs in the community for remodeling or alteration of
that type.
    Subd. 3. New residence. Where the alteration or remodeling of the employee's residence is
not practicable, the award may be to purchase or lease a new or different residence if the new or
different residence would better accommodate the disability.
    Subd. 4. Certification. No award may be made except upon the certification of a licensed
architect to the division or Workers' Compensation Court of Appeals that the proposed alteration
or remodeling of an existing residence or the building or purchase of a new or different residence
is reasonably required for the purposes specified in subdivision 1. The Council on Disability shall
advise the division or Workers' Compensation Court of Appeals as provided in section 256.482,
subdivision 5, clause (7)
. The alteration or remodeling of an existing residence, or the building or
purchase of a new home must be done under the supervision of a licensed architect relative to the
specific needs to accommodate the disability.
    Subd. 5. Limitation. An employee is limited to $60,000 under this section for each personal
injury.
History: 1977 c 177 s 1; 1986 c 444; 1987 c 354 s 8; 1992 c 510 art 4 s 19; 2005 c 56 s 1
176.138 MEDICAL DATA; ACCESS.
(a) Notwithstanding any other state laws related to the privacy of medical data or any
private agreements to the contrary, the release in writing, by telephone discussion, or otherwise
of medical data related to a current claim for compensation under this chapter to the employee,
employer, or insurer who are parties to the claim, or to the Department of Labor and Industry,
shall not require prior approval of any party to the claim. This section does not preclude the
release of medical data under section 175.10 or 176.231, subdivision 9. Requests for pertinent
data shall be made, and the date of discussions with medical providers about medical data shall be
confirmed, in writing to the person or organization that collected or currently possesses the data.
Written medical data that exists at the time the request is made shall be provided by the collector
or possessor within seven working days of receiving the request. Nonwritten medical data may be
provided, but is not required to be provided, by the collector or possessor. In all cases of a request
for the data or discussion with a medical provider about the data, except when it is the employee
who is making the request, the employee shall be sent written notification of the request by the
party requesting the data at the same time the request is made or a written confirmation of the
discussion. This data shall be treated as private data by the party who requests or receives the data
and the party receiving the data shall provide the employee or the employee's attorney with a
copy of all data requested by the requester.
(b) Medical data which is not directly related to a current injury or disability shall not be
released without prior authorization of the employee.
(c) The commissioner may impose a penalty of up to $600 payable to the commissioner for
deposit in the assigned risk safety account against a party who does not timely release data as
required in this section. A party who does not treat this data as private pursuant to this section is
guilty of a misdemeanor. This paragraph applies only to written medical data which exists at the
time the request is made.
(d) Workers' compensation insurers and self-insured employers may, for the sole purpose
of identifying duplicate billings submitted to more than one insurer, disclose to health insurers,
including all insurers writing insurance described in section 60A.06, subdivision 1, clause
(5)(a), nonprofit health service plan corporations subject to chapter 62C, health maintenance
organizations subject to chapter 62D, and joint self-insurance employee health plans subject
to chapter 62H, computerized information about dates, coded items, and charges for medical
treatment of employees and other medical billing information submitted to them by an
employee, employer, health care provider, or other insurer in connection with a current claim for
compensation under this chapter, without prior approval of any party to the claim. The data may
not be used by the health insurer for any other purpose whatsoever and must be destroyed after
verification that there has been no duplicative billing. Any person who is the subject of the data
which is used in a manner not allowed by this paragraph has a cause of action for actual damages
and punitive damages for a minimum of $5,000.
History: 1983 c 290 s 109; 1984 c 432 art 2 s 26; 1985 c 234 s 12; 1986 c 461 s 22; 1990 c
522 s 4; 1992 c 510 art 3 s 15; 1995 c 231 art 2 s 67; 2001 c 123 s 10

NOTICE

176.139 NOTICE OF RIGHTS POSTED.
    Subdivision 1. Posting requirement. All employers required or electing to carry workers'
compensation coverage in the state of Minnesota shall post and display in a conspicuous location
a notice, in a form approved by the commissioner, advising employees of their rights and
obligations under this chapter, assistance available to them, and the operation of the workers'
compensation system, the name and address of the workers' compensation carrier insuring them
or the fact that the employer is self-insured.
The notice shall be displayed at all locations where the employer is engaged in business.
    Subd. 2. Failure to post; penalty. The commissioner may assess a penalty of $500 against
the employer payable to the commissioner for deposit in the assigned risk safety account if, after
notice from the commissioner, the employer violates the posting requirement of this section.
History: Ex1979 c 3 s 46; 1987 c 332 s 41; 1992 c 510 art 3 s 16; 1995 c 231 art 2 s
68; 2002 c 262 s 14
176.14 [Repealed, 1953 c 755 s 83]
176.141 NOTICE OF INJURY.
Unless the employer has actual knowledge of the occurrence of the injury or unless the
injured worker, or a dependent or someone in behalf of either, gives written notice thereof to the
employer within 14 days after the occurrence of the injury, then no compensation shall be due
until the notice is given or knowledge obtained. If the notice is given or the knowledge obtained
within 30 days from the occurrence of the injury, no want, failure, or inaccuracy of a notice shall
be a bar to obtaining compensation unless the employer shows prejudice by such want, defect, or
inaccuracy, and then only to the extent of the prejudice. If the notice is given or the knowledge
obtained within 180 days, and if the employee or other beneficiary shows that failure to give prior
notice was due to the employee's or beneficiary's mistake, inadvertence, ignorance of fact or law, or
inability, or to the fraud, misrepresentation, or deceit of the employer or agent, then compensation
may be allowed, unless the employer shows prejudice by failure to receive the notice, in which
case the amount of compensation shall be reduced by a sum which fairly represents the prejudice
shown. Unless knowledge is obtained or written notice given within 180 days after the occurrence
of the injury no compensation shall be allowed, except that an employee who is unable, because
of mental or physical incapacity, to give notice to the employer within 180 days from the injury
shall give the prescribed notice within 180 days from the time the incapacity ceases.
History: 1953 c 755 s 14; 1977 c 342 s 19; Ex1979 c 3 s 47; 1986 c 444
176.145 SERVICE OF NOTICE, FORM.
The notice referred to in section 176.141 may be served personally upon the employer, or
upon any agent of the employer upon whom a summons may be served in a civil action, or by
sending it by certified mail to the employer at the last known residence or business place thereof
within the state, and may be substantially in the following form:
"NOTICE
You are hereby notified that an injury was received by (Name) .................., who was in
your employment at (place) .............., while engaged as (kind of work) .........., on or about the
...... day of ..............., ......., and who is now located at (give town, street, and number) ............;
that, so far as now known, the nature of the injury was ..............., and that compensation may
be claimed therefor.
Dated .........., ....... (signed) ..................
(giving address)"
No variation from this form shall be material if the notice is sufficient to advise the employer
that a certain employee, by name, received a specified injury in the course of employment on
or about a specified time, at or near a certain place specified.
History: 1953 c 755 s 15; 1978 c 674 s 60; 1986 c 444; 1998 c 254 art 1 s 107
176.15 [Repealed, 1953 c 755 s 83]

TIME LIMITS

176.151 TIME LIMITATIONS.
The time within which the following acts shall be performed shall be limited to the following
periods, respectively:
(1) Actions or proceedings by an injured employee to determine or recover compensation,
three years after the employer has made written report of the injury to the commissioner of the
Department of Labor and Industry, but not to exceed six years from the date of the accident.
(2) Actions or proceedings by dependents to determine or recover compensation, three years
after the receipt by the commissioner of the Department of Labor and Industry of written notice
of death, given by the employer, but not to exceed six years from the date of injury, provided,
however, if the employee was paid compensation for the injury from which the death resulted,
such actions or proceedings by dependents must be commenced within three years after the
receipt by the commissioner of the Department of Labor and Industry of written notice of death,
given by the employer, but not to exceed six years from the date of death. In any such case, if a
dependent of the deceased, or any one in the dependent's behalf, gives written notice of such death
to the commissioner of the Department of Labor and Industry, the commissioner shall forthwith
give written notice to the employer of the time and place of such death. In case the deceased
was a native of a foreign country and leaves no known dependent within the United States, the
commissioner of the Department of Labor and Industry shall give written notice of the death to
the consul or other representative of the foreign country forthwith.
(3) In case of physical or mental incapacity, other than minority, of the injured person or
dependents to perform or cause to be performed any act required within the time specified in this
section, the period of limitation in any such case shall be extended for three years from the date
when the incapacity ceases.
(4) In the case of injury caused by X-rays, radium, radioactive substances or machines,
ionizing radiation, or any other occupational disease, the time limitations otherwise prescribed
by Minnesota Statutes 1961, chapter 176, and acts amendatory thereof, shall not apply, but the
employee shall give notice to the employer and commence an action within three years after the
employee has knowledge of the cause of such injury and the injury has resulted in disability.
History: 1953 c 755 s 16; 1965 c 419 s 1; Ex1967 c 40 s 14; 1973 c 388 s 39; 1973 c 643
s 10; 1975 c 359 s 17; 1986 c 444
176.152 [Repealed, 1983 c 290 s 173]

EXAMS

176.155 EXAMINATIONS.
    Subdivision 1. Employer's physician. The injured employee must submit to examination
by the employer's physician, if requested by the employer, and at reasonable times thereafter
upon the employer's request. The examination must be scheduled at a location within 150 miles
of the employee's residence unless the employer can show cause to the department to order an
examination at a location further from the employee's residence. The employee is entitled upon
request to have a personal physician present at any such examination. Each party shall defray the
cost of that party's physician. Any report or written statement made by the employer's physician
as a result of an examination of the employee, regardless of whether the examination preceded
the injury or was made subsequent to the injury, shall be made available, upon request and
without charge, to the injured employee or representative of the employee. The employer shall
pay reasonable travel expenses incurred by the employee in attending the examination including
mileage, parking, and, if necessary, lodging and meals. The employer shall also pay the employee
for any lost wages resulting from attendance at the examination. A self-insured employer or
insurer who is served with a claim petition pursuant to section 176.271, subdivision 1, or 176.291,
shall schedule any necessary examinations of the employee, if an examination by the employer's
physician or health care provider is necessary to evaluate benefits claimed. The examination shall
be completed and the report of the examination shall be served on the employee and filed with the
commissioner within 120 days of service of the claim petition.
No evidence relating to the examination or report shall be received or considered by the
commissioner, a compensation judge, or the court of appeals in determining any issues unless
the report has been served and filed as required by this section, unless a written extension has
been granted by the commissioner or compensation judge. The commissioner or a compensation
judge shall extend the time for completing the adverse examination and filing the report upon
good cause shown. The extension must not be for the purpose of delay and the insurer must make
a good faith effort to comply with this subdivision. Good cause shall include but is not limited to:
(1) that the extension is necessary because of the limited number of physicians or health
care providers available with expertise in the particular injury or disease, or that the extension is
necessary due to the complexity of the medical issues, or
(2) that the extension is necessary to gather additional information which was not included
on the petition as required by section 176.291.
    Subd. 2. Neutral physician. In each case of dispute as to the injury the commissioner of
labor and industry, or in case of a hearing the compensation judge conducting the hearing, or the
Workers' Compensation Court of Appeals if the matter is before it, may with or without the
request of any interested party, designate a neutral physician to make an examination of the
injured worker and report the findings to the commissioner of labor and industry, compensation
judge, or the Workers' Compensation Court of Appeals, as the case may be; provided that the
request of the interested party must comply with the rules of the commissioner of labor and
industry and the Workers' Compensation Court of Appeals regulating the proper time and forms
for the request, and further provided that when an interested party requests, not later than 30
days prior to a scheduled prehearing conference, that a neutral physician be designated, the
compensation judge shall make such a designation. When a party has requested the designation
of a neutral physician prior to a prehearing conference, that party may withdraw the request at
any time prior to the hearing. The commissioner of labor and industry, compensation judge,
or the Workers' Compensation Court of Appeals, as the case may be, may request the neutral
physician to answer any particular question with reference to the medical phases of the case,
including questions calling for an opinion as to the cause and occurrence of the injury insofar
as medical knowledge is relevant in the answer. A copy of the signed certificate of the neutral
physician shall be mailed to the parties in interest and either party, within five days from date
of mailing, may demand that the physician be produced for purposes of cross-examination. The
signed certificate of a neutral physician is competent evidence of the facts stated therein. The
expense of the examination shall be paid as ordered by the commissioner of labor and industry,
compensation judge, or the Workers' Compensation Court of Appeals.
    Subd. 3. Refusal to be examined. If the injured employee refuses to comply with any
reasonable request for examination, the right to compensation may be suspended by order of the
commissioner or a compensation judge, and no compensation shall be paid while the employee
continues in the refusal.
    Subd. 4. Autopsies. In all death claims where the cause of death is obscure or disputed any
interested party may request an autopsy and, if denied, the compensation judge, or Workers'
Compensation Court of Appeals upon appeal, upon petition and proper showing, shall order an
autopsy. If any dependent claiming compensation or benefits does not consent to such autopsy
within the time fixed by the order, all dependents shall forfeit all rights to compensation. The
party demanding an autopsy shall bear the cost thereof.
    Subd. 5. Testimony of health care provider. Any physician or other health care provider
designated by the commissioner or compensation judge, or whose services are furnished or paid
for by the employer, or who treats, examines, or is present at any examination, of an injured
employee, may be required to testify as to any knowledge acquired by the physician or health
care provider in the course of the treatment or examination relative to the injury or disability
resulting from the injury only in cases involving occupational disease, cardiopulmonary injuries
or diseases, injuries resulting from cumulative trauma, issues of apportionment of liability, and
mental disorders, or upon an order of a compensation judge. In all other cases all evidence related
to health care must be submitted by written report as prescribed by the chief administrative
law judge. A party may cross-examine by deposition a physician or health care provider who
has examined or treated the employee. If a physician or health care provider is not available for
cross-examination prior to the hearing and the physician's or health care provider's written report is
submitted at the hearing, the compensation judge shall, upon request of the adverse party, require
the physician or health care provider to testify at the hearing or to be present at a posthearing
deposition for the purpose of being cross-examined by the adverse party. All written evidence
relating to health care must be submitted prior to or at the time of the hearing and no evidence
shall be considered which was submitted after the hearing unless the compensation judge orders
otherwise, and, in no case later than 30 days following the final hearing date unless an extension
is granted by the chief administrative law judge. Existing medical reports must be submitted
with a claim petition or answer as provided in sections 176.291 and 176.321. All reports shall
substantially conform to rules prescribed by the chief administrative law judge. When a written
report is used to present the testimony, it shall be admitted into evidence without the necessity for
foundational testimony and shall be considered as prima facie evidence of the opinions it contains.
History: 1953 c 755 s 17; 1969 c 276 s 2; 1973 c 388 s 40-43; 1975 c 271 s 6; 1975 c 359 s
23; 1976 c 134 s 78; 1977 c 342 s 20; Ex1979 c 3 s 48; 1983 c 290 s 110,111; 1984 c 640 s 32;
1986 c 444; 1987 c 332 s 42-44; 1992 c 510 art 4 s 20; 2002 c 262 s 15
176.16 [Repealed, 1953 c 755 s 83]

PAYMENTS

176.161 ALIEN DEPENDENTS.
    Subdivision 1. Residing outside United States. In case a deceased employee for whose
injury or death compensation is payable leaves surviving an alien dependent residing outside the
United States the commissioner shall direct the payment of all compensation due the dependent
to be made to the duly accredited consular officer of the country of which the beneficiary is
a citizen residing within the state, or to a designated representative residing within the state;
or, if the commissioner believes that the interests of the dependent will be better served and
at any time prior to the final settlement the dependent files with the commissioner a power of
attorney designating any other suitable person residing in this state to act as attorney in fact
in such proceedings, the commissioner may appoint such person. If it appears necessary to
institute proceedings to enforce payment of compensation due the dependent, the commissioner
may permit the consular officer to institute these proceedings. If during the pendency of these
proceedings, such power of attorney is filed by the alien dependent, the commissioner shall then
determine whether such attorney in fact be substituted to represent such dependent or if the
consular officer or a representative continue therein. The person so appointed may carry on
proceedings to settle all claims for compensation and receive for distribution to such dependent
all compensation arising under this chapter. The settlement and distribution of the funds shall be
made only on the written order of the commissioner. The person so appointed shall furnish a bond
satisfactory to the commissioner, conditioned upon the proper application of the money received.
Before the bond is discharged, the person so appointed shall file with the commissioner a verified
account of receipts and disbursements of such compensation.
    Subd. 2. List of dependents. Before receiving the first payment of such compensation and
thereafter when ordered so to do by the commissioner of the Department of Labor and Industry,
the person so appointed shall furnish to the commissioner of the Department of Labor and
Industry a sworn statement containing a list of the dependents showing the name, age, residence,
extent of dependency, and relationship to the deceased of each dependent.
    Subd. 3. Certain proceedings legalized. In any proceedings heretofore taken to recover
compensation for any alien dependent carried on for at least five years in the name of a person as
petitioner, designated by power of attorney from the alien dependent, the right of this designated
petitioner to conclude the proceedings or final settlement and to fully bind all parties thereby
is hereby legalized in all respects.
History: 1953 c 755 s 18; 1973 c 388 s 44,45; 1975 c 271 s 6; 1975 c 359 s 23; 1976 c 134
s 78; 1981 c 346 s 90; 1986 c 444
176.165 LUMP SUM PAYMENTS.
The amounts of compensation payable periodically may be commuted to one or more lump
sum payments only by order of the commissioner of the Department of Labor and Industry,
compensation judge, or Workers' Compensation Court of Appeals in cases upon appeal, and
on such terms and conditions as the commissioner of the Department of Labor and Industry,
compensation judge, or Workers' Compensation Court of Appeals prescribes. In making these
commutations the lump sum payments shall amount, in the aggregate, to a sum equal to the
present value of all future installments of the compensation calculated on a five percent basis.
History: 1953 c 755 s 19; 1973 c 388 s 46; 1975 c 271 s 6; 1975 c 359 s 23; 1976 c 134 s 78
176.17 [Repealed, 1953 c 755 s 83]
176.171 PAYMENT TO TRUSTEE.
At any time after the amount of any award or commutation is finally determined, a sum equal
to the present value of all future installments of the compensation, calculated on a five percent
basis, where death or the nature of the injury renders the amount of future payments certain,
may be paid by the employer to any bank, mutual savings bank, savings association, or trust
company in this state approved and designated by the commissioner of the Department of Labor
and Industry, compensation judge, or Workers' Compensation Court of Appeals in cases upon
appeal. Such sum, together with all interest thereon, shall be held in trust for the employee or for
the dependents of the employee, who shall have no further recourse against the employer. The
employer's payment of this sum evidenced by a receipt of the trustee filed with the commissioner
of the Department of Labor and Industry, operates as a satisfaction of the compensation liability
as to the employer. The trustee shall make payments from the fund in the same amounts and at
the same time as are required of the employer until the fund and interest is exhausted, except
when otherwise ordered by the commissioner of the Department of Labor and Industry. In the
appointment of trustee the preference shall be given to the choice of the injured employee or the
choice of the dependents of the deceased employee.
History: 1953 c 755 s 20; 1971 c 422 s 3; 1973 c 388 s 47; 1975 c 271 s 6; 1975 c 359 s
23; 1976 c 134 s 78; 1995 c 202 art 1 s 25
176.175 RIGHT TO COMPENSATION, AWARD.
    Subdivision 1. Preferred claim. The right to compensation and all compensation awarded
any injured employee or for death claims to dependents have the same preference against the
assets of the employer as unpaid wages for labor. This compensation does not become a lien on
the property of third persons by reason of this preference.
    Subd. 2. Nonassignability. No claim for compensation or settlement of a claim for
compensation owned by an injured employee or dependents is assignable. Except as otherwise
provided in this chapter, any claim for compensation owned by an injured employee or dependents
is exempt from seizure or sale for the payment of any debt or liability.
History: 1953 c 755 s 21; 1986 c 444; 1999 c 212 s 1

FRAUD

176.178 FRAUD.
    Subdivision 1. Intent. Any person who, with intent to defraud, receives workers'
compensation benefits to which the person is not entitled by knowingly misrepresenting,
misstating, or failing to disclose any material fact is guilty of theft and shall be sentenced pursuant
to section 609.52, subdivision 3.
    Subd. 2. Forms. The text of subdivision 1 shall be placed on all forms prescribed by
the commissioner for claims or responses to claims for workers' compensation benefits under
this chapter. The absence of the text does not constitute a defense against prosecution under
subdivision 1.
History: 1992 c 510 art 2 s 6; 1995 c 231 art 1 s 25

OVERPAYMENTS

176.179 RECOVERY OF OVERPAYMENTS.
Notwithstanding section 176.521, subdivision 3, or any other provision of this chapter to
the contrary, except as provided in this section, no lump sum or weekly payment, or settlement,
which is voluntarily paid to an injured employee or the survivors of a deceased employee in
apparent or seeming accordance with the provisions of this chapter by an employer or insurer,
or is paid pursuant to an order of the workers' compensation division, a compensation judge, or
court of appeals relative to a claim by an injured employee or the employee's survivors, and
received in good faith by the employee or the employee's survivors shall be refunded to the
paying employer or insurer in the event that it is subsequently determined that the payment was
made under a mistake in fact or law by the employer or insurer. When the payments have been
made to a person who is entitled to receive further payments of compensation for the same injury,
the mistaken compensation may be taken as a partial credit against future periodic benefits. The
credit applied against further payments of temporary total disability, temporary partial disability,
permanent partial disability, permanent total disability, retraining benefits, death benefits, or
weekly payments of economic recovery or impairment compensation shall not exceed 20 percent
of the amount that would otherwise be payable.
A credit may not be applied against medical expenses due or payable.
Where the commissioner or compensation judge determines that the mistaken compensation
was not received in good faith, the commissioner or compensation judge may order reimbursement
of the compensation. For purposes of this section, a payment is not received in good faith if it is
obtained through fraud, or if the employee knew that the compensation was paid under mistake of
fact or law, and the employee has not refunded the mistaken compensation.
History: 1974 c 486 s 5; 1975 c 271 s 6; 1975 c 359 s 23; 1976 c 134 s 78; Ex1979 c 3 s 49;
1983 c 290 s 112; 1986 c 461 s 23; 1987 c 332 s 45; 1992 c 510 art 1 s 11; 1995 c 231 art 1 s 26
176.18 [Repealed, 1953 c 755 s 83]

INSURANCE

176.181 INSURANCE.
    Subdivision 1. Authorization. Any employer responsible for compensation may insure the
risk in any manner authorized by law.
    Subd. 2. Compulsory insurance; self-insurers. (1) Every employer, except the state and its
municipal subdivisions, liable under this chapter to pay compensation shall insure payment of
compensation with some insurance carrier authorized to insure workers' compensation liability in
this state, or obtain a written order from the commissioner of commerce exempting the employer
from insuring liability for compensation and permitting self-insurance of the liability. The terms,
conditions and requirements governing self-insurance shall be established by the commissioner
pursuant to chapter 14. The commissioner of commerce shall also adopt, pursuant to clause
(2)(c), rules permitting two or more employers, whether or not they are in the same industry, to
enter into agreements to pool their liabilities under this chapter for the purpose of qualifying as
group self-insurers. With the approval of the commissioner of commerce, any employer may
exclude medical, chiropractic and hospital benefits as required by this chapter. An employer
conducting distinct operations at different locations may either insure or self-insure the other
portion of operations as a distinct and separate risk. An employer desiring to be exempted from
insuring liability for compensation shall make application to the commissioner of commerce,
showing financial ability to pay the compensation, whereupon by written order the commissioner
of commerce, on deeming it proper, may make an exemption. An employer may establish
financial ability to pay compensation by providing financial statements of the employer to the
commissioner of commerce. Upon ten days' written notice the commissioner of commerce may
revoke the order granting an exemption, in which event the employer shall immediately insure the
liability. As a condition for the granting of an exemption the commissioner of commerce may
require the employer to furnish security the commissioner of commerce considers sufficient to
insure payment of all claims under this chapter, consistent with subdivision 2b. If the required
security is in the form of currency or negotiable bonds, the commissioner of commerce shall
deposit it with the commissioner of finance. In the event of any default upon the part of a
self-insurer to abide by any final order or decision of the commissioner of labor and industry
directing and awarding payment of compensation and benefits to any employee or the dependents
of any deceased employee, then upon at least ten days' notice to the self-insurer, the commissioner
of commerce may by written order to the commissioner of finance require the commissioner of
finance to sell the pledged and assigned securities or a part thereof necessary to pay the full
amount of any such claim or award with interest thereon. This authority to sell may be exercised
from time to time to satisfy any order or award of the commissioner of labor and industry or any
judgment obtained thereon. When securities are sold the money obtained shall be deposited in
the state treasury to the credit of the commissioner of commerce and awards made against any
such self-insurer by the commissioner of commerce shall be paid to the persons entitled thereto
by the commissioner of finance upon warrants prepared by the commissioner of commerce out
of the proceeds of the sale of securities. Where the security is in the form of a surety bond or
personal guaranty the commissioner of commerce, at any time, upon at least ten days' notice and
opportunity to be heard, may require the surety to pay the amount of the award, the payments
to be enforced in like manner as the award may be enforced.
(2)(a) No association, corporation, partnership, sole proprietorship, trust or other business
entity shall provide services in the design, establishment or administration of a group
self-insurance plan under rules adopted pursuant to this subdivision unless it is licensed, or
exempt from licensure, pursuant to section 60A.23, subdivision 8, to do so by the commissioner
of commerce. An applicant for a license shall state in writing the type of activities it seeks
authorization to engage in and the type of services it seeks authorization to provide. The license
shall be granted only when the commissioner of commerce is satisfied that the entity possesses
the necessary organization, background, expertise, and financial integrity to supply the services
sought to be offered. The commissioner of commerce may issue a license subject to restrictions or
limitations, including restrictions or limitations on the type of services which may be supplied or
the activities which may be engaged in. The license is for a two-year period.
(b) To assure that group self-insurance plans are financially solvent, administered in a fair
and capable fashion, and able to process claims and pay benefits in a prompt, fair and equitable
manner, entities licensed to engage in such business are subject to supervision and examination
by the commissioner of commerce.
(c) To carry out the purposes of this subdivision, the commissioner of commerce may
promulgate administrative rules pursuant to sections 14.001 to 14.69. These rules may:
(i) establish reporting requirements for administrators of group self-insurance plans;
(ii) establish standards and guidelines consistent with subdivision 2b to assure the adequacy
of the financing and administration of group self-insurance plans;
(iii) establish bonding requirements or other provisions assuring the financial integrity of
entities administering group self-insurance plans;
(iv) establish standards, including but not limited to minimum terms of membership in
self-insurance plans, as necessary to provide stability for those plans;
(v) establish standards or guidelines governing the formation, operation, administration,
and dissolution of self-insurance plans; and
(vi) establish other reasonable requirements to further the purposes of this subdivision.
    Subd. 2a. Application fee. Every initial application filed pursuant to subdivision 2 requesting
authority to self-insure shall be accompanied by a nonrefundable fee of $4,000. When an
employer seeks to be added as a member of an existing approved group under section 79A.03,
subdivision 6
, the proposed new member shall pay a nonrefundable $400 application fee to the
commissioner at the time of application. Each annual report due August 1 under section 79A.03,
subdivision 9
, shall be accompanied by an annual fee of $500.
    Subd. 2b. Acceptable securities. The following are acceptable securities and surety bonds
for the purpose of funding self-insurance plans and group self-insurance plans:
(1) direct obligations of the United States government except mortgage-backed securities of
the Government National Mortgage Association;
(2) bonds, notes, debentures, and other instruments which are obligations of agencies and
instrumentalities of the United States including, but not limited to, the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Bank, the
Student Loan Marketing Association, and the Farm Credit System, and their successors, but not
including collateralized mortgage obligations or mortgage pass-through instruments;
(3) bonds or securities that are issued by the state of Minnesota and that are secured by
the full faith and credit of the state;
(4) certificates of deposit which are insured by the Federal Deposit Insurance Corporation
and are issued by a Minnesota depository institution;
(5) obligations of, or instruments unconditionally guaranteed by, Minnesota depository
institutions whose long-term debt rating is at least AA-, Aa3, or their equivalent, by at least two
nationally recognized rating agencies;
(6) surety bonds issued by a corporate surety authorized by the commissioner of commerce
to transact such business in the state;
(7) obligations of or instruments unconditionally guaranteed by Minnesota insurance
companies, whose long-term debt rating is at least AA-, Aa3, or their equivalent, by at least two
nationally recognized rating agencies and whose rating is A+ by A. M. Best, Inc.; and
(8) any guarantee from the United States government whereby the payment of the workers'
compensation liability of a self-insurer is guaranteed; and bonds which are the general obligation
of the Minnesota Housing Finance Agency.
    Subd. 3. Failure to insure, penalty. (a) The commissioner, having reason to believe that an
employer is in violation of subdivision 2, may issue an order directing the employer to comply
with subdivision 2, to refrain from employing any person at any time without complying with
subdivision 2, and to pay a penalty of up to $1,000 per employee per week during which the
employer was not in compliance.
(b) An employer shall have ten working days to contest such an order by filing a written
objection with the commissioner, stating in detail its reasons for objecting. If the commissioner
does not receive an objection within ten working days, the commissioner's order shall constitute
a final order not subject to further review, and violation of that order shall be enforceable by
way of civil contempt proceedings in district court. If the commissioner does receive a timely
objection, the commissioner shall refer the matter to the Office of Administrative Hearings for an
expedited hearing before a compensation judge. The compensation judge shall issue a decision
either affirming, reversing, or modifying the commissioner's order within ten days of the close of
the hearing. If the compensation judge affirms the commissioner's order, the compensation judge
may order the employer to pay an additional penalty if the employer continued to employ persons
without complying with subdivision 2 while the proceedings were pending.
(c) All penalties assessed under this subdivision shall be payable to the commissioner for
deposit in the assigned risk safety account. Penalties assessed under this section shall constitute a
lien for government services pursuant to section 514.67, on all the employer's property and shall
be subject to the Revenue Recapture Act in chapter 270A.
(d) For purposes of this subdivision, the term "employer" includes any owners or officers of
a corporation who direct and control the activities of employees.
    Subd. 4. Gross misdemeanor. In addition to being subject to the penalty prescribed in
subdivision 3, any employer willfully and intentionally failing to comply with the provisions of
subdivision 2 is guilty of a gross misdemeanor.
    Subd. 5. Indemnification. A political subdivision or association of political subdivisions
which is self-insured, may be indemnified by the special compensation fund for payments for
which the political subdivision or association is liable under this chapter. This indemnification
shall be made only if all other assets together with the interest earned thereon which have been
contributed by the subdivision pursuant to rules adopted by the commissioner of commerce as
provided for in this section have been exhausted.
The commissioner of finance, as custodian of the fund, has a cause of action for all money
paid out or to be paid out if the political subdivisions or association of subdivisions fail to meet a
repayment schedule which the commissioner of finance establishes at the time the request for
indemnification is granted.
    Subd. 6. Financial statements. No employer shall be required to provide financial statements
certified by an "independent certified public accountant" or "certified public accountant" as a
condition of approval for group self-insurance.
    Subd. 7. Penalty. Any entity that is self-insured pursuant to subdivision 2, and that
knowingly violates any provision of subdivision 2 or any rule adopted pursuant thereto is subject
to a civil penalty of not more than $10,000 for each offense.
    Subd. 8. Data sharing. (a) The Departments of Labor and Industry, Employment and
Economic Development, Human Services, Agriculture, Transportation, and Revenue are
authorized to share information regarding the employment status of individuals, including but not
limited to payroll and withholding and income tax information, and may use that information
for purposes consistent with this section and regarding the employment or employer status of
individuals, partnerships, limited liability companies, corporations, or employers, including,
but not limited to, general contractors, intermediate contractors, and subcontractors. The
commissioner shall request data in writing and the responding department shall respond to the
request by producing the requested data within 30 days.
(b) The commissioner is authorized to inspect and to order the production of all payroll
and other business records and documents of any alleged employer in order to determine the
employment status of persons and compliance with this section. If any person or employer refuses
to comply with such an order, the commissioner may apply to the district court of the county
where the person or employer is located for an order compelling production of the documents.
History: 1953 c 755 s 22; 1959 c 265 s 1; 1971 c 863 s 3; 1973 c 388 s 48,49; 1973 c 492 s
14; 1978 c 797 s 4; Ex1979 c 3 s 50,51; 1981 c 346 s 91-93; 1982 c 424 s 130; 1983 c 289 s 114
subd 1; 1983 c 290 s 113; 1984 c 592 s 80,81; 1984 c 655 art 1 s 92; 1986 c 444; 1987 c 332
s 46; 1987 c 384 art 2 s 1; 1988 c 674 s 18; 1990 c 422 s 10; 1992 c 510 art 3 s 17,18; 1992
c 545 art 2 s 1,2; 1994 c 483 s 1; 1994 c 485 s 60; 1995 c 231 art 2 s 69,70; 1995 c 233 art 2
s 56; 1995 c 258 s 62; 1997 c 200 art 1 s 64; 1999 c 223 art 2 s 33; 2002 c 262 s 16; 2003 c
112 art 2 s 25,50; 2004 c 206 s 52

MISCELLANEOUS

176.1812 COLLECTIVE BARGAINING AGREEMENTS.
    Subdivision 1. Requirements. Upon appropriate filing, the commissioner, compensation
judge, Workers' Compensation Court of Appeals, and courts shall recognize as valid and
binding a provision in a collective bargaining agreement between a qualified employer or
qualified groups of employers and the certified and exclusive representative of its employees to
establish certain obligations and procedures relating to workers' compensation. For purposes
of this section, "qualified employer" means any self-insured employer, any employer, through
itself or any affiliate as defined in section 60D.15, subdivision 2, who is responsible for the
first $100,000 or more of any claim, or a private employer developing or projecting an annual
workers' compensation premium, in Minnesota, of $250,000 or more. For purposes of this
section, a "qualified group of employers" means a group of private employers engaged in workers'
compensation group self-insurance complying with chapter 79A, or a group of private employers
who purchase workers' compensation insurance as a group, which develops or projects annual
workers' compensation insurance premiums of $2,000,000 or more. This agreement must be
limited to, but need not include, all of the following:
(a) an alternative dispute resolution system to supplement, modify, or replace the procedural
or dispute resolution provisions of this chapter. The system may include mediation, arbitration,
or other dispute resolution proceedings, the results of which may be final and binding upon the
parties. A system of arbitration shall provide that the decision of the arbiter is subject to review
either by the Workers' Compensation Court of Appeals in the same manner as an award or order
of a compensation judge or, in lieu of review by the Workers' Compensation Court of Appeals, by
the Office of Administrative Hearings, by the district court, by the Minnesota Court of Appeals,
or by the Supreme Court in the same manner as the Workers' Compensation Court of Appeals
and may provide that any arbiter's award disapproved by a court be referred back to the arbiter
for reconsideration and possible modification;
(b) an agreed list of providers of medical treatment that may be the exclusive source of all
medical and related treatment provided under this chapter which need not be certified under
section 176.1351;
(c) the use of a limited list of impartial physicians to conduct independent medical
examinations;
(d) the creation of a light duty, modified job, or return to work program;
(e) the use of a limited list of individuals and companies for the establishment of vocational
rehabilitation or retraining programs which list is not subject to the requirements of section
176.102;
(f) the establishment of safety committees and safety procedures; or
(g) the adoption of a 24-hour health care coverage plan if a 24-hour plan pilot project is
authorized by law, according to the terms and conditions authorized by that law.
    Subd. 2. Filing and review. A copy of the agreement and the approximate number of
employees who will be covered under it must be filed with the commissioner. Within 21 days
of receipt of an agreement, the commissioner shall review the agreement for compliance with
this section and the benefit provisions of this chapter and notify the parties of any additional
information required or any recommended modification that would bring the agreement into
compliance. Upon receipt of any requested information or modification, the commissioner must
notify the parties within 21 days whether the agreement is in compliance with this section and the
benefit provisions of this chapter.
In order for any agreement to remain in effect, it must provide for a timely and accurate
method of reporting to the commissioner necessary information regarding service cost and
utilization to enable the commissioner to annually report to the legislature. The information
provided to the commissioner must include aggregate data on the:
(i) person hours and payroll covered by agreements filed;
(ii) number of claims filed;
(iii) average cost per claim;
(iv) number of litigated claims, including the number of claims submitted to arbitration, the
Workers' Compensation Court of Appeals, the Office of Administrative Hearings, the district
court, the Minnesota Court of Appeals or the Supreme Court;
(v) number of contested claims resolved prior to arbitration;
(vi) projected incurred costs and actual costs of claims;
(vii) employer's safety history;
(viii) number of workers participating in vocational rehabilitation; and
(ix) number of workers participating in light-duty programs.
    Subd. 3. Refusal to recognize. A person aggrieved by the commissioner's decision
concerning an agreement may request in writing, within 30 days of the date the notice is issued,
the initiation of a contested case proceeding under chapter 14. The request to initiate a contested
case must be received by the department by the 30th day after the commissioner's decision.
An appeal from the commissioner's final decision and order may be taken to the Workers'
Compensation Court of Appeals pursuant to sections 176.421 and 176.442.
    Subd. 4. Void agreements. Nothing in this section shall allow any agreement that diminishes
an employee's entitlement to benefits as otherwise set forth in this chapter. For the purposes of this
section, the procedural rights and dispute resolution agreements under subdivision 1, clauses (a)
to (g), are not agreements which diminish an employee's entitlement to benefits. Any agreement
that diminishes an employee's entitlement to benefits as set forth in this chapter is null and void.
    Subd. 5. Notice to insurance carrier. If the employer is insured under this chapter,
the collective bargaining agreement provision shall not be recognized by the commissioner,
compensation judge, Workers' Compensation Court of Appeals, and other courts unless the
employer has given notice to the employer's insurance carrier, in the manner provided in the
insurance contract, of intent to enter into an agreement with its employees as provided in this
section.
    Subd. 6.[Repealed, 2005 c 90 s 20]
    Subd. 7. Rules. The commissioner may adopt rules necessary to implement this section.
History: 1995 c 231 art 2 s 71; 1996 c 374 s 5,6; 1997 c 7 art 5 s 16; 2001 c 123 s 11;
2005 c 90 s 13
176.182 BUSINESS LICENSES OR PERMITS; COVERAGE REQUIRED.
Every state or local licensing agency shall withhold the issuance or renewal of a license or
permit to operate a business in Minnesota until the applicant presents acceptable evidence of
compliance with the workers' compensation insurance coverage requirement of section 176.181,
subdivision 2
, by providing the name of the insurance company, the policy number, and dates of
coverage or the permit to self-insure. The commissioner shall assess a penalty to the employer
of $2,000 payable to the commissioner for deposit in the assigned risk safety account, if the
information is not reported or is falsely reported.
Neither the state nor any governmental subdivision of the state shall enter into any contract
for the doing of any public work before receiving from all other contracting parties acceptable
evidence of compliance with the workers' compensation insurance coverage requirement of
section 176.181, subdivision 2.
This section shall not be construed to create any liability on the part of the state or any
governmental subdivision to pay workers' compensation benefits or to indemnify the special
compensation fund, an employer, or insurer who pays workers' compensation benefits.
History: 1981 c 346 s 94; 1983 c 290 s 114; 1987 c 332 s 47; 1992 c 510 art 3 s 19; 1995
c 231 art 2 s 72; 2002 c 262 s 17
176.183 UNINSURED AND SELF-INSURED EMPLOYERS; BENEFITS TO
EMPLOYEES AND DEPENDENTS; LIABILITY OF EMPLOYER.
    Subdivision 1. Uninsured and self-insured employers; special compensation fund.
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. Special compensation fund; penalties. 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. Commissioner-directed payments. (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 paragraph (a) for good cause
as determined by the commissioner.
    Subd. 4. Notice by commissioner; rights of parties. 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.
History: 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
176.184 INSPECTIONS; ENFORCEMENT.
    Subdivision 1. Proof of insurance. The commissioner of labor and industry, in order to carry
out the purpose of section 176.181, may request satisfactory proof of authority to self-insure
workers' compensation liability or satisfactory proof of insurance coverage for workers'
compensation liability. If an employer does not provide satisfactory proof as requested within
seven working days of the mailing of the request, the commissioner may proceed in accordance
with the provisions of subdivisions 2 to 7.
    Subd. 2. At place of employment. In order to carry out the purposes of section 176.181,
the commissioner, upon presenting appropriate credentials to the owner, operator, or agent in
charge, is authorized to enter without delay and at reasonable times any place of employment
and to inspect and investigate during regular working hours and at other reasonable times, within
reasonable limits, and in a reasonable manner, any records pertaining to that employer's workers'
compensation insurance policy, number of employees, documents governing conditions and
benefits of employment, contracts with employees and their authorized representatives, and any
other documents which may be relevant to the enforcement of section 176.181 and to question
privately any employer, owner, operator, agent, or employee with respect to matters relevant to
the enforcement of section 176.181.
    Subd. 3. Powers; commissioner and district court. In making inspections and
investigations under this chapter, the commissioner shall have the power to administer oaths,
certify official acts, take and cause to be taken depositions of witnesses, issue subpoenas, and
compel the attendance of witnesses and production of papers, books, documents, records, and
testimony. In case of failure of any person to comply with any subpoena lawfully issued, or on the
refusal of any witness to produce evidence or to testify to any matter regarding which the person
may be lawfully interrogated, the district court shall, upon application of the commissioner,
compel obedience in proceedings for contempt, as in the case of disobedience of the requirements
of a subpoena issued by the court or a refusal to testify.
    Subd. 4. Rights of employer and employee representative. A representative of the
employer and a representative authorized by employees shall be given an opportunity to
participate in any conference or discussion held prior to, during, or after any inspection. Where
there is no authorized employee representative, the commissioner shall consult with a reasonable
number of employees. No employee as a consequence of aiding an inspection shall lose any
privilege or payment that the employee would otherwise earn.
    Subd. 5. Request for investigation by employee. (a) Any employee or representative of an
employee who believes that their employer is uninsured against workers' compensation liability,
may request an inspection by giving notice to the commissioner of the belief and grounds for
the belief. Any notice shall be written, shall set forth with reasonable particularity the grounds
for the notice, and shall be signed by the employee or representative of employees. A copy
of the notice shall be provided the employer, representative, or agent no later than the time of
inspection, except that, upon the request of a person giving the notice, the employee's name
and the names of individual employees referred to in the notice shall not appear in the copy
or on any record published, released, or made available. If upon receipt of the notification
the commissioner determines that reasonable grounds exist to believe that the employer is
uninsured against workers' compensation liability, the commissioner shall make an inspection in
accordance with this section as soon as practicable. If the commissioner determines that there
are not reasonable grounds to believe that a violation exists, the commissioner shall so notify
the employee or representative of employees in writing. Upon notification, the employee or the
employee representative may request the commissioner to reconsider the determination. Upon
receiving the request, the commissioner shall review the determination.
(b) The commissioner, upon receipt of a report of violation of the mandatory insurance
provisions of section 176.181 or 176.185 verified by review of the department's insurance
registration records and other relevant information, shall initiate a preliminary investigation to
determine if reasonable grounds exist to believe that the employer is uninsured against workers'
compensation liability, and upon certification of reasonable belief that the employer is uninsured
the commissioner shall make an inspection in accordance with paragraph (a).
    Subd. 6. Order permitting entry. Upon the refusal of an owner, operator, or agent in charge
to permit entry as specified in this section, the commissioner may apply for an order in the district
court in the county which entry was refused, to compel the employer to permit the commissioner
to enter and inspect the place of employment.
    Subd. 7. Advance notice. Advance notice may not be authorized by the commissioner except:
(1) in circumstances where the inspection can most effectively be conducted after regular
business hours or where special preparations are necessary for an inspection;
(2) where necessary to assure the presence of representatives of the employer and employees
or the appropriate personnel needed to aid in the inspection; and
(3) in other circumstances where the commissioner determines that the giving of advance
notice would enhance the probability of an effective and thorough inspection.
When advance notice is given to an employer, notice shall also be given by the commissioner
to the authorized representative of employees if the identity of the representative is known to the
employer.
History: 1987 c 332 s 50
176.185 POLICY OF INSURANCE.
    Subdivision 1. Notice of coverage; notice to insured before policy cancellation,
termination or nonrenewal. Within ten days after the issuance or renewal of a policy of insurance
covering the liability to pay compensation under this chapter written by an insurer licensed to
insure such liability in this state, the insurer shall file notice of coverage with the commissioner
under rules and on forms prescribed by the commissioner. No policy shall be canceled by the
insurer within the policy period nor terminated upon its expiration date until a notice in writing is
delivered or mailed to the insured that meets all of the requirements in paragraphs (a) to (c).
(a) The notice must specify the date the policy will be terminated if the premium is not paid,
declare that the insurer intends to cancel the policy by the specified date, or does not intend
to renew the policy upon the expiration date.
(b) The notice must include the following statement, which must be placed on or sent
with the premium invoice or other document sent by the insurer to notify the insured of the
intended cancellation or termination: "You must maintain workers' compensation insurance, or
obtain permission to self-insure for workers' compensation from the Minnesota Department of
Commerce. The failure to maintain workers' compensation coverage is a violation of section
176.181, and could result in criminal prosecution and civil penalties of up to $1,000 per week
per uninsured employee." This statement must be in at least 12-point font, bold-faced type, and
be set out in a separate paragraph.
(c) The notice must be mailed or delivered to the insured as follows, notwithstanding any
contrary time frame for notice to the policyholder in section 60A.36 or 60A.37:
(1) at least 60 days before the actual date the policy is due to expire or be terminated or
canceled for any reason other than as provided in clause (2);
(2) if the cancellation is due to nonpayment of premium, the notice must be sent at least 30
days before the actual date of cancellation and shall state the amount of premium due and the
due date.
    Subd. 1a. Notice to commissioner of cancellation or termination; effective date. (a)
Within ten calendar days after the specified cancellation or termination date, the insurer must send
to the insured and file with the commissioner a written notice of cancellation or termination in
the manner prescribed by the commissioner. Upon the commissioner's request, the insurer shall
provide documentation of the dates the notices required by this subdivision and subdivision 1
were sent to the insured. The effective dates of cancellation or termination specified in paragraphs
(b) to (e) apply notwithstanding any contrary time frames in section 60A.36 or 60A.37.
(b) If within the ten calendar days after the specified cancellation or termination date the
notice of cancellation or termination is both sent to the insured and received by the commissioner,
the cancellation or termination shall be effective on the date specified on the notice of cancellation
or termination, except as otherwise provided in paragraph (d).
(c) If within the ten calendar days after the specified cancellation or termination date the
notice of cancellation or termination is not sent to the insured and received by the commissioner,
the cancellation or termination shall not be effective until the notice has been sent to the insured
and received by the commissioner, except as otherwise provided in paragraph (d) or (e).
(d) If the notice required by subdivision 1 is not sent to the insured or does not meet all of the
requirements of subdivision 1, the cancellation or termination shall not be effective until 60 days
after the notice of cancellation or termination has been sent to the insured and received by the
commissioner, except as otherwise provided in paragraph (e).
(e) Paragraphs (c) and (d) do not extend the effective date of cancellation or termination
if, on or before the cancellation or termination date determined under paragraph (c) or (d), the
employer obtains other insurance coverage or an order exempting the employer from carrying
insurance as provided in section 176.181.
    Subd. 1b. Continued or replacement coverage. If, after receiving a notice of cancellation
or termination of a policy under subdivision 1a, the commissioner does not receive a notice of
continued or replacement coverage, the commissioner shall notify the insured that the insured
must obtain coverage from some other licensed carrier and that, if unable to do so, the insured
shall request the commissioner of commerce to require the issuance of a policy as provided in
section 79.251, subdivision 4. Upon a cancellation or termination of a policy by the insurer, the
employer is entitled to be assigned a policy in accordance with sections 79.251 and 79.252.
    Subd. 1c. Cancellation by employer. Notice of cancellation or termination by the insured
shall be served upon the insurer by written statement mailed or delivered to the insurer. Upon
receipt of the notice, the insurer shall notify the commissioner of the cancellation or termination
and the commissioner shall ask the employer for the reasons for the cancellation or termination
and notify the employer of the duty under this chapter to insure the employer's employees.
    Subd. 2. Conditions. A policy of insurance covering the liability to pay compensation under
this chapter written by any insurer licensed to insure such liability in this state shall in every case
be subject to the conditions of this section hereinafter named.
    Subd. 3. Provision for benefits conferred by this chapter. Where the employer's risk is
carried by an insurer the insurance policy shall provide compensation for injury or death in
accordance with the full benefits conferred by this chapter.
    Subd. 4. Compulsory provisions. Every insurance policy which insures the payment of
compensation shall contain provisions declaring the following:
(1) Notice to or knowledge by the employer is notice to or knowledge by the insurer.
(2) Jurisdiction of the employer for any purpose is jurisdiction of the insurer.
(3) The insurer is bound by an award rendered against the employer.
(4) The employee has an equitable lien upon any amount which the insurer owes under
the policy to the employer. Where the employer is legally incapacitated or otherwise unable to
receive this amount and pay it over to the employee or the employee's dependent, the insurer will
pay the amount directly to the employee or dependent. This payment by the insurer directly to
the employee or dependent discharges the obligation of the insurer to the employee, and the
obligations of the insurer and the employer to the employee or dependent.
(5) The insolvency or bankruptcy of the employer does not relieve the insurer from its
obligation to pay compensation.
    Subd. 5. Agreement that employee pay part of cost of insurance. Subject to the provisions
of subdivision 6, an agreement between an employee and employer under which the employee
is to pay any part of the cost of insuring the employer's risk is void. An employer who makes a
charge or deduction prohibited by this subdivision is guilty of a misdemeanor.
    Subd. 5a. Penalty for improper withholding. An employer who violates subdivision 5 after
notice from the commissioner is subject to a penalty of 400 percent of the amount withheld from
or charged the employee. The penalty shall be imposed by the commissioner. Forty percent of
this penalty is payable to the commissioner for deposit in the assigned risk safety account and 60
percent is payable to the employee.
    Subd. 6. Joining risks with other risks in policy. Where the agreement has been approved
by the commissioner of the Department of Labor and Industry the employer and employee may
agree to carry the risk provided for in this chapter in conjunction with other and greater risks
providing other and greater benefits in the form of additional compensation, or accident, sickness,
or old age insurance or benefits. This agreement may provide for appropriate contribution by
the employee.
    Subd. 7. Notice, effect. Where an employer has properly insured the payment of
compensation to an employee, the employee, or the employee's dependent, shall proceed directly
against the insurer. In such case but subject to subdivision 8a, the employer is released from
further liability in this respect.
    Subd. 8.[Repealed, 1977 c 342 s 28]
    Subd. 8a. Insolvent insurer. (a) If an insurer is or becomes insolvent as defined in section
60C.03, subdivision 8, the insured employer is liable, as of May 23, 2003, for payment of the
compensable workers' compensation claims that were covered under the employer's policy with
the insolvent insurer, to the extent that the Insurance Guaranty Association has determined that
the claims are not covered claims under chapter 60C. This paragraph does not in any way limit
the Insurance Guaranty Association's right of recovery from an employer under section 60C.11,
subdivision 7
, for workers' compensation claims that are covered claims under chapter 60C.
The Insurance Guaranty Association shall notify the employer and the commissioners of the
Departments of Commerce and Labor and Industry of the association's determination and of the
employer's liability under this subdivision. The association's failure to notify the employer or the
commissioners shall not relieve the employer of its liability and obligations under this subdivision.
(b) An employer who is liable for payment of claims under paragraph (a) shall have all of the
rights, responsibilities, and obligations of a self-insured employer under this chapter for those
claims only, but without the need for an order from the commissioner of commerce. The employer
shall not be self-insured for purposes of the workers' compensation self-insurers' security fund
under chapter 79A for those claims. The employer shall not be required to pay assessments to
the workers' compensation self-insurers' security fund, and the security fund shall not be liable
for the claims under section 79A.10. Notwithstanding any contrary provision of chapter 60C,
the Insurance Guaranty Association shall pay the claims as covered claims under chapter 60C
if the employer fails to pay the claims as required under this chapter and the commissioner of
commerce determines that:
(1) the employer is the subject of a voluntary or involuntary petition under the United States
Bankruptcy Code, title 11;
(2) a court of competent jurisdiction has declared the employer to be bankrupt or insolvent; or
(3) the employer is insolvent.
(c) If the employer contracts with an entity or person to administer the claims under paragraph
(a), the entity or person must be a licensed workers' compensation insurer or a licensed third-party
administrator under section 60A.23, subdivision 8. The commissioner of commerce may require
the employer to contract with a licensed third-party administrator when the commissioner
determines it is necessary to ensure proper payment of compensation under this chapter.
(d) For all claims that an employer is liable for under paragraph (a) and pays on or after May
26, 2005, and for all deductible amounts an employer pays on or after May 26, 2005, under an
employer's policy with an insurer that became insolvent before May 23, 2003:
(1) the employer shall file reports and pay assessments to the special compensation fund,
according to the requirements of section 176.129 that apply to self-insured employers, based on
paid indemnity losses for the claims and deductible amounts it paid; and
(2) the employer may request supplementary benefit and second injury reimbursement from
the special compensation fund for the claims and deductible amounts it paid, subject to section
176.129, subdivision 13. Reimbursement from the special compensation fund is limited to claims
that are eligible for supplementary benefit and second injury reimbursement under Minnesota
Statutes 1990, section 176.131, and Minnesota Statutes 1994, section 176.132.
(e) For all claims for which an employer is liable under paragraph (a) and paid between the
date of the insurer's insolvency and May 26, 2005, and for all deductible amounts an employer
paid between the date of the insurer's insolvency and May 26, 2005, under an employer's
policy with an insurer that became insolvent before May 23, 2003, the employer may request
supplementary benefit and second injury reimbursement from the special compensation fund,
subject to section 176.129, subdivision 13, if:
(1) the employer files reports and pays all past assessments based on paid indemnity losses,
for all claims and deductible amounts it paid from the date of the insolvency of the insurer to May
26, 2005, at the rate that was in effect for self-insured employers under section 176.129 during
the applicable assessment reporting period;
(2) the employer has a pending request for reimbursement of the claims and deductible
amounts it paid from the special compensation fund as of May 26, 2005, or files a request for
reimbursement within one year after May 26, 2005; and
(3) the claims are eligible for supplementary benefit and second injury reimbursement under
Minnesota Statutes 1990, section 176.131, and Minnesota Statutes 1994, section 176.132.
(f) An employer who is liable for claims under paragraph (a) shall be eligible for
reimbursement from the Workers' Compensation Reinsurance Association under chapter 79 for
those claims to the extent they exceed the applicable retention limit selected by the insolvent
insurer and if the employer has complied with the requirements for reimbursement established by
the Workers' Compensation Reinsurance Association for its self-insured members. The employer
is not responsible for payment of premiums to the reinsurance association to the extent the
premiums have been paid by the insolvent insurer.
(g) The expenses of the employer in handling the claims paid under paragraph (a) are
accorded the same priority as the liquidator's expenses. The employer must be recognized as
a claimant in the liquidation of an insolvent insurer for amounts paid by the employer under
this subdivision, and must receive dividends and other distributions at the priority set forth in
chapter 60B. The receiver, liquidator, or statutory successor of an insolvent insurer is bound by
settlements of claims made by the employer under this subdivision. The court having jurisdiction
shall grant the claims priority equal to that which the claimant would have been entitled against
the assets of the insolvent insurer in the absence of this subdivision.
(h) The Workers' Compensation Reinsurance Association and the special compensation fund,
as a condition of directly reimbursing an employer eligible for reimbursement, may require the
employer to hold it harmless from any claims by a liquidator, receiver, or statutory successor
to the insolvent insurer that the Workers' Compensation Reinsurance Association or special
compensation fund improperly indemnified or reimbursed the employer. In no event shall the
Workers' Compensation Reinsurance Association or the special compensation fund be required to
reimburse any amounts for any claim more than once.
    Subd. 9. Application of section. Where an employer, who has been exempted from the
requirement to insure liability for compensation under this chapter, insures any part of that
liability, this section applies to such an employer to the extent that its provisions are applicable.
    Subd. 10. Data collection contracts. The commissioner may contract with other parties
regarding the collection of appropriate data to assist in meeting the requirements of this section.
History: 1953 c 755 s 23; Ex1967 c 1 s 6; 1969 c 178 s 1; 1973 c 388 s 51-53; 1983 c 289 s
114 subd 1; 1983 c 290 s 119,120; 1984 c 655 art 1 s 92; 1985 c 248 s 70; 1986 c 444; 1987
c 332 s 51; 1990 c 522 s 5; 1992 c 510 art 3 s 21; 1995 c 231 art 2 s 75; 2002 c 262 s 18;
2005 c 90 s 14-16; 2006 c 178 s 1
176.186 RECORDS FROM OTHER STATE AGENCIES.
Notwithstanding any other state law to the contrary except chapter 270B, the commissioner
may obtain from the Department of Employment and Economic Development, and Office of the
Secretary of State, or any other state agency, upon request, names or lists of employers doing
business in the state. This information shall be treated by the commissioner in the manner
provided by chapter 13 and shall be used only for insurance verification by the commissioner.
History: 1983 c 290 s 121; 1984 c 514 art 3 s 2; 1Sp1985 c 14 art 9 s 75; 1989 c 184 art 2 s
8; 1994 c 483 s 1; 2004 c 206 s 52
176.19 [Repealed, 1953 c 755 s 83]
176.191 DISPUTE BETWEEN TWO OR MORE EMPLOYERS OR INSURERS
REGARDING LIABILITY.
    Subdivision 1. Order; employer, insurer, or special compensation fund payment. Where
compensation benefits are payable under this chapter, and a dispute exists between two or more
employers or two or more insurers or the special compensation fund as to which is liable for
payment, the commissioner, compensation judge, or court of appeals upon appeal shall direct
that one or more of the employers or insurers or the special compensation fund make payment
of the benefits pending a determination of which has liability. The special compensation fund
may be ordered to make payment only if it has been made a party to the claim because the
petitioner has alleged that one or more of the employers is uninsured for workers' compensation
under section 176.183. A temporary order may be issued under this subdivision whether or not
the employers, insurers, or special compensation fund agree to pay under the order, and whether
or not they agree that benefits are payable under this chapter. A temporary order shall be issued
if the commissioner or compensation judge determines based on evidence submitted by the
employee that benefits are payable under this chapter and if two or more employers, insurers, or
the special compensation fund deny liability based on an assertion that another employer, insurer,
or the special compensation fund is liable. A temporary order shall not be withheld where the
denials of liability are frivolous as defined in section 176.225, subdivision 1, or nonspecific
as defined in section 176.84, subdivision 1.
If the parties do not agree to a temporary order, the commissioner or compensation judge
shall summarily hear and determine the issues and issue an order without the need for a formal
evidentiary hearing. At any time after a temporary order is issued, the paying party may request to
discontinue payment of benefits based on new evidence that benefits are not payable under this
chapter by following the procedures of section 176.238 or 176.239.
At any time after a temporary order is issued, the paying party may also petition for a formal
hearing before a compensation judge for a determination of liability among the parties. If the
petition is filed within one year after a temporary order was issued, the hearing shall be held within
45 days after the petition was filed. Payments under a temporary order shall continue pending
the determination of the compensation judge. The compensation judge shall have jurisdiction
to resolve all issues properly raised, including equitable apportionment. The procedures and
monetary thresholds contained in section 176.191, subdivisions 1a and 5, shall not apply to these
proceedings. This subdivision applies to all dates of injury.
When liability has been determined, the party held liable for the benefits shall be ordered
to reimburse any other party for payments which the latter has made, including interest at the
rate of 12 percent a year. The claimant shall also be awarded a reasonable attorney fee, to be
paid by the party held liable for the benefits.
An order directing payment of benefits pending a determination of liability may not be used
as evidence before a compensation judge, the Workers' Compensation Court of Appeals, or
court in which the dispute is pending.
    Subd. 1a. Equitable apportionment. Equitable apportionment of liability for an injury
under this chapter is not allowed except that apportionment among employers and insurers is
allowed in a settlement agreement filed pursuant to section 176.521, and an employer or insurer
may request equitable apportionment of liability for workers' compensation benefits among
employer and insurers by arbitration pursuant to subdivision 5. For purposes of this subdivision,
the term "equitable apportionment of liability" shall include all attempts to obtain contribution
and/or reimbursement from other employers or insurers. To the same extent limited by this
subdivision, contribution and reimbursement actions based on equitable apportionment are not
allowed under this chapter. If the insurers choose to arbitrate apportionment, contribution, or
reimbursement issues pursuant to subdivision 5, the arbitration proceeding is for the limited
purpose of apportioning liability for workers' compensation benefits payable among employers
and insurers. This subdivision applies without regard to whether one or more of the injuries results
from cumulative trauma or a specific injury, but does not apply to an occupational disease. In
the case of an occupational disease, section 176.66 applies. Apportionment against preexisting
disability is allowed only for permanent partial disability as provided in section 176.101,
subdivision 4a
. Nothing in this subdivision shall be interpreted to repeal or in any way affect the
law with respect to special compensation fund statutory liability or benefits.
    Subd. 2.[Repealed, 1995 c 231 art 2 s 110]
    Subd. 3. Insurer payment. If a dispute exists as to whether an employee's injury is
compensable under this chapter and the employee is otherwise covered by an insurer or entity
pursuant to chapters 62A, 62C, 62D, 62E, 62R, and 62T, that insurer or entity shall pay any
medical costs incurred by the employee for the injury up to the limits of the applicable coverage
and shall make any disability payments otherwise payable by that insurer or entity in the absence
of or in addition to workers' compensation liability. If the injury is subsequently determined to
be compensable pursuant to this chapter, the workers' compensation insurer shall be ordered
to reimburse the insurer or entity that made the payments for all payments made under this
subdivision by the insurer or entity, including interest at a rate of 12 percent a year. If a payment
pursuant to this subdivision exceeds the reasonable value as permitted by sections 176.135 and
176.136, the provider shall reimburse the workers' compensation insurer for all the excess as
provided by rules promulgated by the commissioner.
    Subd. 4. Program payments. If the employee's medical expenses for a personal injury are
paid pursuant to any program administered by the commissioner of human services, or if the
employee or spouse or dependents living with the employee receive subsistence or other payments
pursuant to such a program, and it is subsequently determined that the injury is compensable
pursuant to this chapter, the workers' compensation insurer shall reimburse the commissioner of
human services for the payments made, including interest at a rate of 12 percent a year.
Amounts paid to an injured employee or spouse or dependents living with the employee
pursuant to such a program and attributable to the personal injury shall be deducted from any
settlement or award of compensation or benefits under this chapter, including, but not limited to,
temporary and permanent disability benefits.
The insurer shall attempt, with due diligence, to ascertain whether payments have been made
to an injured employee pursuant to such a program prior to any settlement or issuance of a binding
award and shall notify the Department of Human Services, Benefit Recovery Section, when such
payments have been made. An employee who has received public assistance payments shall
notify the Department of Human Services, Benefit Recovery Section, of its potential intervention
claim prior to making or settling a claim for benefits under this chapter. Notice served on local
human services agencies is not sufficient to meet the notification requirement in this subdivision.
    Subd. 5. Arbitration. Where a dispute exists between an employer, insurer, the special
compensation fund, or the Workers' Compensation Reinsurance Association, regarding
apportionment of liability for benefits payable under this chapter, and the requesting party has
expended over $10,000 in medical or 52 weeks worth of indemnity benefits and made the request
within one year thereafter, a party may require submission of the dispute as to apportionment
of liability among employers and insurers to binding arbitration. However, these monetary
thresholds shall not apply in any case where the employers and insurers agree to submit the
apportionment dispute to arbitration. The decision of the arbitrator shall be conclusive on the issue
of apportionment among employers and insurers. Consent of the employee is not required for
submission of a dispute to arbitration pursuant to this section and the employee is not bound by
the results of the arbitration. An arbitration award shall not be admissible in any other proceeding
under this chapter. Notice of the proceeding shall be given to the employee.
The employee, or any person with material information to the facts to be arbitrated, shall
attend the arbitration proceeding if any party to the proceeding deems it necessary. Nothing said
by an employee in connection with any arbitration proceeding may be used against the employee
in any other proceeding under this chapter. Reasonable expenses of meals, lost wages, and travel
of the employee or witnesses in attending shall be reimbursed on a pro rata basis. Arbitration
costs shall be paid by the parties, except the employee, on a pro rata basis.
    Subd. 6. Award. If the employee commences an action under this chapter for benefits arising
out of the same injury which resulted in the dispute arbitrated under subdivision 5, and if the
benefits awarded to the employee under the employee's claim are inconsistent with the arbitration
decision, any increase in benefits over those paid pursuant to the arbitration proceeding is paid by
the party or parties who ordinarily would have been required to pay the increased benefits but
for the arbitration. Any reimbursement from the employee of any decrease in benefits from
those paid pursuant to the arbitration is paid to the party or parties who previously had paid
the increased benefits. The provisions of this subdivision apply regardless of whether more or
fewer employers and insurers or the special fund have been added or omitted as parties to the
employee's subsequent action after arbitration.
    Subd. 7. Representation. If an employee brings an action under the circumstances described
in subdivision 6, the parties to the previous arbitration may be represented at the new action by a
common or joint attorney.
    Subd. 8. Attorney fees. No attorney's fees shall be awarded under either section 176.081 or
176.191 against any employer or insurer in connection with any arbitration proceeding unless the
employee chooses to retain an attorney to represent the employee's interests during arbitration.
History: 1953 c 755 s 24; Ex1967 c 1 s 6; 1973 c 388 s 54; 1975 c 271 s 6; 1975 c 359 s 23;
1976 c 134 s 78; Ex1979 c 3 s 52; 1981 c 346 s 95; 1983 c 290 s 122-125; 1984 c 654 art 5 s 58;
1985 c 234 s 13,14; 1986 c 444; 1987 c 332 s 52,53; 1987 c 370 art 2 s 2; 1993 c 13 art 2 s 1;
1995 c 231 art 2 s 76-79; 1997 c 128 s 4,5; 2001 c 123 s 12; 2005 c 132 s 36
176.192 BOMB DISPOSAL UNIT EMPLOYEES.
For purposes of this chapter, a member of a bomb disposal unit approved by the
commissioner of public safety and employed by a municipality defined in section 466.01, is
considered an employee of the Department of Public Safety solely for the purposes of this chapter
when disposing of or neutralizing bombs or other similar hazardous explosives, as defined in
section 299C.063, outside the jurisdiction of the employer-municipality.
History: 1988 c 717 s 2; 1995 c 226 art 4 s 2; 2001 c 123 s 13

PROHIBITIONS AND PENALTIES

176.194 PROHIBITED PRACTICES.
    Subdivision 1. Application. This section applies to insurers, self-insurers, group
self-insurers, political subdivisions of the state, and the administrator of state employees' claims.
This section also applies to adjusters and third-party administrators who act on behalf of an
insurer, self-insurer, group self-insurer, the assigned risk plan, the Minnesota Insurance Guaranty
Association, a political subdivision, or any other entity.
This section shall be enforceable only by the commissioner of labor and industry. Evidence
of violations under this section shall not be admissible in any civil action.
    Subd. 2. Purpose. This section is not intended to replace existing requirements of this
chapter which govern the same or similar conduct; these requirements and penalties are in
addition to any others provided by this chapter.
    Subd. 3. Prohibited conduct. The following conduct is prohibited:
(1) failing to reply, within 30 calendar days after receipt, to all written communication about
a claim from a claimant that requests a response;
(2) failing, within 45 calendar days after receipt of a written request, to commence benefits
or to advise the claimant of the acceptance or denial of the claim by the insurer;
(3) failing to pay or deny medical bills within 45 days after the receipt of all information
requested from medical providers;
(4) filing a denial of liability for workers' compensation benefits without conducting an
investigation;
(5) failing to regularly pay weekly benefits in a timely manner as prescribed by rules adopted
by the commissioner once weekly benefits have begun. Failure to regularly pay weekly benefits
means failure to pay an employee on more than three occasions in any 12-month period within
three business days of when payment was due;
(6) failing to respond to the department within 30 calendar days after receipt of a written
inquiry from the department about a claim;
(7) failing to pay pursuant to an order of the department, compensation judge, Court of
Appeals, or the Supreme Court, within 45 days from the filing of the order unless the order
is under appeal;
(8) advising a claimant not to obtain the services of an attorney or representing that payment
will be delayed if an attorney is retained by the claimant; or
(9) altering information on a document to be filed with the department without the notice
and consent of any person who previously signed the document and who would be adversely
affected by the alteration.
    Subd. 4. Penalties. The penalties for violations of subdivision 3, clauses (1) through (6)
and (9), are as follows:

1st through 5th violation of each paragraph
written warning


6th through 10th violation of each
paragraph
$3,000 per violation in excess
of five


11 or more violations of each paragraph
$6,000 per violation in excess
of ten
For violations of subdivision 3, clauses (7) and (8), the penalties are:

1st through 5th violation of each paragraph
$3,000 per violation


6 or more violations of each paragraph
$6,000 per violation in excess
of five
The penalties under this section may be imposed in addition to other penalties under this
chapter that might apply for the same violation. The penalties under this section are assessed by
the commissioner and are payable to the commissioner for deposit in the assigned risk safety
account. A party may object to the penalty and request a formal hearing under section 176.85. If
an entity has more than 30 violations within any 12-month period, in addition to the monetary
penalties provided, the commissioner may refer the matter to the commissioner of commerce
with recommendation for suspension or revocation of the entity's (a) license to write workers'
compensation insurance; (b) license to administer claims on behalf of a self-insured, the assigned
risk plan, or the Minnesota Insurance Guaranty Association; (c) authority to self-insure; or (d)
license to adjust claims. The commissioner of commerce shall follow the procedures specified in
section 176.195.
    Subd. 5. Rules. The commissioner may, by rules adopted in accordance with chapter 14,
specify additional illegal, misleading, deceptive, fraudulent practices or conduct which are subject
to the penalties under this section.
History: 1987 c 332 s 54; 1992 c 510 art 3 s 22,23; 1995 c 231 art 2 s 80; 2001 c 123 s 14;
2002 c 262 s 19,20
176.195 REVOCATION OF INSURER'S LICENSE.
    Subdivision 1. Grounds. Where an insurer, or an agent of an insurer, has been guilty of
fraud, misrepresentation, or culpable, persistent, and unreasonable delay in making payments
or settlements under this chapter, the commissioner of commerce shall revoke the license of the
insurer to write workers' compensation insurance.
    Subd. 1a. Additional grounds. Where an insurer or agent of an insurer has failed to comply
with provisions of this chapter, other than the provisions in subdivision 1, the commissioner of
commerce may revoke the license of the insurer to write workers' compensation insurance.
    Subd. 2. Commencement of proceedings. The commissioner of commerce may act under
subdivision 1 or subdivision 1a upon the commissioner's own motion, the recommendation of
the commissioner of labor and industry, the chief administrative law judge, or the Workers'
Compensation Court of Appeals, or the complaint of any interested person.
    Subd. 3. Complaint, answer; hearing. A complaint against an insurer shall include a notice
and order for hearing, shall be in writing and shall specify clearly the grounds upon which the
license is sought to be suspended or revoked. The insurer shall file a written answer to the
complaint within 20 days of service of the complaint. The hearing shall be conducted under
chapter 14.
    Subd. 4.[Repealed, 1987 c 332 s 117]
    Subd. 5.[Repealed, 1987 c 332 s 117]
    Subd. 6.[Repealed, 1987 c 332 s 117]
    Subd. 7. Report to commissioner of commerce. The commissioner may send reports to the
commissioner of commerce regarding compliance with this chapter by insurers writing workers'
compensation insurance. A report may include a recommendation for revocation of an insurer's
license under this section and may also recommend the imposition of other penalties which may
be imposed upon insurers by the commissioner of commerce.
History: 1953 c 755 s 25; Ex1967 c 1 s 6; 1973 c 388 s 55,56; 1975 c 271 s 6; 1975 c 359 s
23; 1976 c 134 s 78; 1983 c 289 s 114 subd 1; 1983 c 290 s 126-128; 1984 c 640 s 32; 1984 c 655
art 1 s 92; 1986 c 444; 1Sp1986 c 3 art 1 s 82; 1987 c 332 s 55
176.20 [Repealed, 1953 c 755 s 83]
176.201 DISCRIMINATORY RATES.
    Subdivision 1. Physically disabled persons. An insurer, or an agent or employee of an
insurer, shall not make or charge a rate which discriminates against the employment of a person
who is physically disabled through the loss or loss of use of a member whether due to accident
or other cause.
    Subd. 2. Violation a misdemeanor. A person who violates subdivision 1 is guilty of
a misdemeanor.
    Subd. 3. Conviction of violation, cancellation of license. Where an insurer, or an agent or
employee of an insurer, has been convicted under this section, the fact of conviction is sufficient
cause for the commissioner of commerce to cancel the license of the insurer to write workers'
compensation insurance.
History: 1953 c 755 s 26; 1975 c 359 s 23; 1983 c 289 s 114 subd 1; 1984 c 655 art 1
s 92; 2005 c 56 s 1
176.205 PERSON DEEMED EMPLOYER.
    Subdivision 1. Fraudulent device to evade responsibility to worker. Subject to subdivision
2, a person who creates or executes any fraudulent scheme, artifice, or device to enable the
person to execute work without being responsible to the worker under this chapter, is deemed an
"employer" and is subject to the liabilities which this chapter imposes on employers.
    Subd. 2. Contractor, subcontractor. Subdivision 1 does not apply to an owner who in
good faith lets a contract to a contractor. In such case, the contractor or subcontractor is deemed
the "employer."
    Subd. 3. Exceptions. A person shall not be deemed a contractor or subcontractor where:
(a) the person performs work upon another's premises, with the other's tools or appliances,
and under the other's direction; or
(b) the person does what is commonly called "piece work"; or
(c) in any way the system of employment merely provides a method of fixing the worker's
wages.
    Subd. 4. Calculation of compensation. Where compensation is claimed against a person
under the terms of this section, the compensation shall be calculated with reference to the wages
the worker was receiving at the time of the injury or death from the person by whom the worker
was immediately employed.
History: 1953 c 755 s 27; 1986 c 444
176.21 [Repealed, 1953 c 755 s 83]
176.211 ACTS OR OMISSIONS OF THIRD PERSONS.
Except as provided by this chapter the employer need not pay compensation for injuries due
to the acts or omissions of third persons who are at the time neither in the service of the employer
nor engaged in the work in which the injury occurs.
History: 1953 c 755 s 28
176.215 SUBCONTRACTOR'S FAILURE TO COMPLY WITH CHAPTER.
    Subdivision 1. Liability for payment of compensation. Where a subcontractor fails to
comply with this chapter, the general contractor, or intermediate contractor, or subcontractor is
liable for payment of all compensation due an employee of a subsequent subcontractor who is
engaged in work upon the subject matter of the contract.
    Subd. 1a. Enforcement of order. If the compensation judge orders the general contractor,
intermediate contractor, or subcontractor to pay compensation benefits, the award issued against
the general contractor, intermediate contractor, or subcontractor constitutes a lien for government
services under section 514.67 on all property of the general contractor, intermediate contractor,
or subcontractor and is subject to the provisions of the Revenue Recapture Act under chapter
270A. The special compensation fund may enforce the terms of the award in the same manner as
a district court judgment.
    Subd. 2. Subrogation. A person who has paid compensation under this section is subrogated
to the rights of the injured employee against the employee's immediate employer, or any person
whose liability for compensation payment to the employee is prior to the liability of the person
who paid it.
    Subd. 3. Determination of respective liabilities. The Workers' Compensation Division may
determine the respective liabilities of persons under this section.
History: 1953 c 755 s 29; Ex1967 c 1 s 6; 1973 c 388 s 57; 1975 c 359 s 23; 1986 c 444;
1995 c 231 art 2 s 81
176.22 [Repealed, 1953 c 755 s 83]

PAYMENTS

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
176.222 REPORT ON COLLECTION AND ASSESSMENT OF FINES AND PENALTIES.
The commissioner shall annually, by January 30, submit a report to the legislature detailing
the assessment and collection of fines and penalties under this chapter on a fiscal year basis for the
immediately preceding fiscal year and for as many prior years as the data is available.
History: 1992 c 510 art 3 s 26
176.223 PROMPT PAYMENT REPORT.
The department shall publish an annual report providing data on the promptness of all
insurers and self-insurers in making first payments on a claim for injury. The report shall identify
all insurers and self-insurers and state the percentage of first payments made within 14 days from
the last date worked for each of the insurers and self-insurers. The report shall also list the total
number of claims and the number of claims paid within the 14-day standard. Each report shall
contain the required information for each of the last four years the report has been compiled so
that a total of five years is included. The department shall make the report available to employers
and shall provide a copy to each insurer and self-insurer listed in the report for the current year.
History: 1995 c 231 art 2 s 86
176.225 ADDITIONAL AWARD AS PENALTY.
    Subdivision 1. Grounds. Upon reasonable notice and hearing or opportunity to be heard, the
commissioner, a compensation judge, or upon appeal, the court of appeals or the Supreme Court
shall award compensation, in addition to the total amount of compensation award, of up to 30
percent of that total amount where an employer or insurer has:
(a) instituted a proceeding or interposed a defense which does not present a real controversy
but which is frivolous or for the purpose of delay; or
(b) unreasonably or vexatiously delayed payment; or
(c) neglected or refused to pay compensation; or
(d) intentionally underpaid compensation; or
(e) frivolously denied a claim; or
(f) unreasonably or vexatiously discontinued compensation in violation of sections 176.238
and 176.239.
For the purpose of this section, "frivolously" means without a good faith investigation of the
facts or on a basis that is clearly contrary to fact or law.
    Subd. 2. Examination of books and records. To determine whether an employer or insurer
is liable for the payment provided by subdivision 1, the division, a compensation judge, or the
Workers' Compensation Court of Appeals upon appeal may examine the books and records of the
employer or insurer relating to the payment of compensation, and may require the employer or
insurer to furnish any other information relating to the payment of compensation.
The right of the division to review the records of an employer or insurer includes the right
of the special compensation fund to examine records for the proper administration of section
176.129, Minnesota Statutes 1990, section 176.131, Minnesota Statutes 1994, section 176.132,
and sections 176.181 and 176.183. The special compensation fund may not review the records of
the employer or insurer relating to a claim under Minnesota Statutes 1990, section 176.131, until
the special compensation fund has accepted liability under that section or a final determination
of liability under that section has been made. The special compensation fund may withhold
reimbursement to the employer or insurer under Minnesota Statutes 1990, section 176.131, or
Minnesota Statutes 1994, section 176.132, if the employer or insurer denies access to records
requested for the proper administration of section 176.129, Minnesota Statutes 1990, section
176.131, Minnesota Statutes 1994, section 176.132, section 176.181 or 176.183.
    Subd. 3. Defiance of division, compensation judge, or Workers' Compensation Court
of Appeals, complaint. If an insurer persists in an action or omission listed in subdivision 1, or
does not permit the examination of books and records, or fails to furnish information as required,
the commissioner or the chief administrative law judge shall file a written complaint with the
commissioner of commerce. The complaint shall specify the facts and recommend the revocation
of the license of the insurer to do business in this state. The Workers' Compensation Court of
Appeals may also file a written complaint.
    Subd. 4. Hearing before commissioner of commerce. Upon receipt of a complaint filed
under subdivision 3, the commissioner of commerce shall hear and determine the matter in the
manner provided by chapter 14. On finding that a charge made by the complaint is true, the
commissioner of commerce may suspend or revoke the license of the insurer to do business in
this state. The insurer may appeal from the action of the commissioner revoking the license in
the manner provided in chapter 14.
    Subd. 5. Penalty. Where the employer is guilty of inexcusable delay in making payments,
the payments which are found to be delayed shall be increased by 25 percent. Withholding
amounts unquestionably due because the injured employee refuses to execute a release of the
employee's right to claim further benefits will be regarded as inexcusable delay in the making of
compensation payments. If any sum ordered by the department to be paid is not paid when due,
and no appeal of the order is made, the sum shall bear interest at the rate of 12 percent per annum.
Any penalties paid pursuant to this section shall not be considered as a loss or expense item for
purposes of a petition for a rate increase made pursuant to chapter 79.
History: 1953 c 755 s 31; Ex1967 c 1 s 6; 1973 c 388 s 62-64; 1975 c 271 s 6; 1975 c 359 s
23; 1976 c 134 s 78; 1981 c 346 s 97; 1983 c 289 s 114 subd 1; 1983 c 290 s 130-132; 1984 c
640 s 32; 1984 c 655 art 1 s 92; 1986 c 444; 1986 c 461 s 24; 1987 c 332 s 59-61; 1995 c 231
art 2 s 87,88; 1996 c 305 art 1 s 47
176.23 [Repealed, 1953 c 755 s 83]

REPORTS

176.231 REPORT OF DEATH OR INJURY TO COMMISSIONER OF DEPARTMENT
OF LABOR AND INDUSTRY.
    Subdivision 1. Time limitation. Where death or serious injury occurs to an employee during
the course of employment, the employer shall report the injury or death to the commissioner and
insurer within 48 hours after its occurrence. Where any other injury occurs which wholly or partly
incapacitates the employee from performing labor or service for more than three calendar days,
the employer shall report the injury to the insurer on a form prescribed by the commissioner
within ten days from its occurrence. An insurer and self-insured employer shall report the injury
to the commissioner no later than 14 days from its occurrence. Where an injury has once been
reported but subsequently death ensues, the employer shall report the death to the commissioner
and insurer within 48 hours after the employer receives notice of this fact.
    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. 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.
    Subd. 3. Physicians, chiropractors, or other health care providers to report injuries. A
physician, chiropractor, or other health care provider who has examined, treated, or has special
knowledge of an injury to an employee which may be compensable under this chapter, shall report
to the commissioner all facts relating to the nature and extent of the injury and disability, and
the treatment provided for the injury or disability, within ten days after the health care provider
has received a written request for the information from the commissioner or an authorized
representative of the commissioner.
    Subd. 4. Supplementary reports. The commissioner or an authorized representative
may require the filing of supplementary reports of accidents as is deemed necessary to provide
information required by law.
Supplementary reports related to the current nature and extent of the employee's injury,
disability, or treatment may be requested from a physician, surgeon, chiropractor, or other health
care provider by the commissioner or a representative, an employer or insurer, or the employee.
    Subd. 5. Forms for reports. The commissioner shall prescribe forms for use in making the
reports required by this section. Forms for reports required by this section shall be as prescribed
by the commissioner and shall be the only forms used by an employer, insurer, self-insurer,
group self-insurer, and all health care providers.
    Subd. 6. Commissioner of the Department of Labor and Industry; duty to keep
informed. The commissioner of the Department of Labor and Industry shall keep fully informed
of the nature and extent of all injuries compensable under this chapter, their resultant disabilities,
and of the rights of employees to compensation. The insurer or self-insured employer must keep
the department advised of all payments of compensation, the amounts of payments made, and
the date of the first payment. Where a physician or surgeon has examined, treated, or has special
knowledge relating to an injury which may be compensable under this chapter, the commissioner
of the Department of Labor and Industry or any member or employee thereof shall request in
writing a report from such person of the attendant facts.
    Subd. 7. Medical reports. If requested by the division, a compensation judge, the Workers'
Compensation Court of Appeals, or any member or employee thereof an employer, insurer, or
employee shall file with the commissioner a verified copy suitable for imaging of any medical
report in possession which bears upon the case and shall also file a verified copy of the same
report with the agency or individual who made the request.
    Subd. 8. No public inspection of reports. Subject to subdivision 9, a report or its copy
which has been filed with the commissioner of the Department of Labor and Industry under this
section is not available to public inspection. Any person who has access to such a report shall not
disclose its contents to anyone in any manner.
A person who unauthorizedly discloses a report or its contents to another is guilty of
a misdemeanor.
    Subd. 9. Uses which may be made of reports. Reports filed with the commissioner
under this section may be used in hearings held under this chapter, and for the purpose of state
investigations and for statistics. These reports are available to the Department of Revenue for use
in enforcing Minnesota income tax and property tax refund laws, and the information shall be
protected as provided in chapter 270B.
The division or Office of Administrative Hearings or Workers' Compensation Court of
Appeals may permit the examination of its file by the employer, insurer, employee, or dependent
of a deceased employee or any person who furnishes written authorization to do so from the
employer, insurer, employee, or dependent of a deceased employee. Reports filed under this
section and other information the commissioner has regarding injuries or deaths shall be made
available to the Workers' Compensation Reinsurance Association for use by the association in
carrying out its responsibilities under chapter 79.
    Subd. 10. Failure to file required report, penalty. If an employer, insurer, physician,
chiropractor, or other health provider fails to file with the commissioner any report required by
this section in the manner and within the time limitations prescribed, or otherwise fails to provide
a report required by this section in the manner provided by this section, the commissioner may
impose a penalty of up to $500 for each failure.
The imposition of a penalty may be appealed to a compensation judge within 30 days of
notice of the penalty.
Penalties collected by the state under this subdivision shall be payable to the commissioner
for deposit into the assigned risk safety account.
    Subd. 11. Failure to file required report; substitute filing. Where this section requires the
employer to file a report of injury with the commissioner, and the employer is unable or refuses to
file the report, the insurer shall file the report within ten days of a request from the division. The
report shall be filed in the manner prescribed by this section. If both the employer and the insurer
fail to file the report within 30 days of notice of the injury, the commissioner shall file the report.
The filing of a report of injury by the commissioner does not subject an employee or the
dependents of an employee to the three-year time limitations under section 176.151, paragraphs
(1) and (2).
A substitute filing under this subdivision shall not be a defense to a penalty assessed under
subdivision 10.
    Subd. 12. Reports; electronic monitoring. Beginning July 1, 1995, the commissioner shall
monitor electronically all reports of injury, all payments for reported injuries, and compliance
with all reporting and payment timelines.
History: 1953 c 755 s 32; 1969 c 583 s 1; 1971 c 422 s 4-9; 1973 c 388 s 65-74; 1975 c
271 s 6; 1975 c 359 s 23; 1976 c 134 s 78; Ex1979 c 3 s 54,55; 1981 c 346 s 98,99; 1983 c 15
s 2; 1983 c 289 s 114 subd 1; 1983 c 290 s 133-137; 1984 c 432 art 2 s 31,32; 1984 c 655 art
1 s 92; 1986 c 444; 1986 c 461 s 25,26; 1987 c 332 s 62-64; 1989 c 184 art 2 s 9; 1992 c 510
art 3 s 27; 1995 c 224 s 70; 1995 c 231 art 2 s 89; 1998 c 294 s 2,3; 2000 c 447 s 21; 2001 c
123 s 19-21; 2005 c 90 s 17
176.232 [Repealed, 1995 c 231 art 2 s 110]
176.234 RELEASE OF DATA FOR EPIDEMIOLOGIC STUDY.
The commissioner of the Department of Labor and Industry shall, upon request, provide
the commissioner of health data classified as private data under section 13.02, subdivision 12,
which are contained in the initial report of injury under section 176.231, and other workers'
compensation records related to any individual's injury or illness. Data to be provided include, but
are not limited to, all personal identifiers such as name, address, age, sex, and Social Security
number for the injured person, employer identification information, insurance information,
compensation payments, and physician and rehabilitation reports which the commissioner
of labor and industry determines may pertain to specific epidemiologic investigations being
conducted by the Department of Health.
History: 1991 c 202 s 15

NOTICE

176.235 NOTICE TO EMPLOYERS AND INJURED EMPLOYEE OF RIGHTS AND
DUTIES.
    Subdivision 1. Employee brochure. When the commissioner of labor and industry
has received notice or information that an employee has sustained an injury which may be
compensable under this chapter, the commissioner of labor and industry shall mail a brochure,
written in language easily readable and understandable by a person of average intelligence and
education, to the employee explaining the rights and obligations of the employee, the assistance
available to the employee, the operation of the workers' compensation system, and whatever other
relevant information the commissioner of labor and industry deems necessary.
    Subd. 2. Employer brochure. The commissioner shall prepare, in language easily readable
and understandable by a person of average intelligence and education, a brochure explaining to
employers their rights and obligations under this chapter and shall furnish it to employers subject
to this chapter.
History: 1953 c 755 s 33; Ex1967 c 1 s 6; 1973 c 388 s 75; Ex1979 c 3 s 56
176.238 NOTICE OF DISCONTINUANCE OF COMPENSATION.
    Subdivision 1. Necessity for notice and showing; contents. Except as provided in section
176.221, subdivision 1, once the employer has commenced payment of benefits, the employer may
not discontinue payment of compensation until it provides the employee with notice in writing
of intention to do so. A copy of the notice shall be filed with the division by the employer. The
notice to the employee and the copy to the division shall state the date of intended discontinuance
and set forth a statement of facts clearly indicating the reason for the action. Copies of whatever
medical reports or other written reports in the employer's possession which are relied on for the
discontinuance shall be attached to the notice.
    Subd. 2. Continuance of employer's liability; suspension. (a) Discontinuance because
of return to work. If the reason for discontinuance is that the employee has returned to work,
temporary total compensation may be discontinued effective the day the employee returned to
work. Written notice shall be served on the employee and filed with the division within 14 days of
the date the insurer or self-insured employer has notice that the employee has returned to work.
(b) Discontinuance for reasons other than return to work. If the reason for the
discontinuance is for other than that the employee has returned to work, the liability of the
employer to make payments of compensation continues until the copy of the notice and reports
have been filed with the division. When the division has received a copy of the notice of
discontinuance, the statement of facts and available medical reports, the duty of the employer
to pay compensation is suspended, except as provided in the following subdivisions and in
section 176.239.
    Subd. 3. Interim administrative decision. An employee may request the commissioner
to schedule an administrative discontinuance conference to obtain an expedited interim
decision concerning the discontinuance of compensation. Procedures relating to discontinuance
conferences are set forth in section 176.239.
    Subd. 4. Objection to discontinuance. An employee may serve on the employer and file
with the commissioner an objection to discontinuance if:
(a) the employee elects not to request an administrative conference under section 176.239;
(b) if the employee fails to timely proceed under that section;
(c) if the discontinuance is not governed by that section; or
(d) if the employee disagrees with the commissioner's decision issued under that section.
Within ten calendar days after receipt of an objection to discontinuance, the commissioner shall
refer the matter to the office for a de novo hearing before a compensation judge to determine the
right of the employee to further compensation.
    Subd. 5. Petition to discontinue. Instead of filing a notice of discontinuance, an employer
may serve on the employee and file with the commissioner a petition to discontinue compensation.
A petition to discontinue compensation may also be used when the employer disagrees with
the commissioner's decision under section 176.239. Within ten calendar days after receipt of a
petition to discontinue, the commissioner shall refer the matter to the office for a de novo hearing
before a compensation judge to determine the right of the employer to discontinue compensation.
The petition shall include copies of medical reports or other written reports or evidence in
the possession of the employer bearing on the physical condition or other present status of the
employee which relate to the proposed discontinuance. The employer shall continue payment
of compensation until the filing of the decision of the compensation judge and thereafter as the
compensation judge, court of appeals, or the Supreme Court directs, unless, during the interim,
occurrences arise justifying the filing of a notice under subdivision 1 or 2 and the discontinuance
is permitted by the commissioner's order or no conference under section 176.239 is requested.
    Subd. 6. Expedited hearing before compensation judge. A hearing before a compensation
judge shall be held within 60 calendar days after the office receives the file from the commissioner
if:
(a) an objection to discontinuance has been filed under subdivision 4 within 60 calendar days
after the notice of discontinuance was filed and where no administrative conference has been held;
(b) an objection to discontinuance has been filed under subdivision 4 within 60 calendar days
after the commissioner's decision under this section has been issued;
(c) a petition to discontinue has been filed by the insurer in lieu of filing a notice of
discontinuance; or
(d) a petition to discontinue has been filed within 60 calendar days after the commissioner's
decision under this section has been issued.
If the petition or objection is filed later than the deadlines listed above, the expedited
procedures in this section apply only where the employee is unemployed at the time of filing the
objection and shows, to the satisfaction of the chief administrative judge, by sworn affidavit, that
the failure to file the objection within the deadlines was due to some infirmity or incapacity of
the employee or to circumstances beyond the employee's control. The hearing shall be limited to
the issues raised by the notice or petition unless all parties agree to expanding the issues. If the
issues are expanded, the time limits for hearing and issuance of a decision by the compensation
judge under this subdivision shall not apply.
Once a hearing date has been set, a continuance of the hearing date will be granted only
under the following circumstances:
(a) the employer has agreed, in writing, to a continuation of the payment of benefits pending
the outcome of the hearing; or
(b) the employee has agreed, in a document signed by the employee, that benefits may be
discontinued pending the outcome of the hearing.
Absent a clear showing of surprise at the hearing or the unexpected unavailability of a crucial
witness, all evidence must be introduced at the hearing. If it is necessary to accept additional
evidence or testimony after the scheduled hearing date, it must be submitted no later than 14 days
following the hearing, unless the compensation judge, for good cause, determines otherwise.
The compensation judge shall issue a decision pursuant to this subdivision within 30 days
following the close of the hearing record.
    Subd. 7. Order of compensation judge. If the order of the compensation judge confirms a
discontinuance of compensation, the service and filing of the order relieves the employer from
further liability for compensation subject to the right of review provided by this chapter, and to
the right of the compensation judge to set aside the order at any time prior to the review and to
grant a new hearing pursuant to this chapter. Once an appeal to the Workers' Compensation Court
of Appeals is filed, a compensation judge may not set aside the order. In any appeal from the
compensation judge's decision under this section, the court of appeals shall conclude any oral
arguments by the parties within 60 days following certification of the record from the office.
    Subd. 8. Notice forms. Notices under this section shall be on forms prescribed by the
commissioner.
    Subd. 9. Service on attorney. If the employee has been presently represented by an attorney
for the same injury, all notices required by this section shall also be served on the last attorney
of record.
    Subd. 10. Fines; violation. An employer who violates requirements set forth in this
section or section 176.239 is subject to a fine of up to $1,000 for each violation payable to the
commissioner for deposit in the assigned risk safety account.
    Subd. 11. Application of section. This section shall not apply to those employees who
have been adjudicated permanently totally disabled, or to those employees who have been
administratively determined pursuant to division rules to be permanently totally disabled.
History: 1987 c 332 s 65; 1995 c 231 art 2 s 90,91; 2001 c 123 s 22; 2005 c 90 s 18

DISCONTINUANCE OF BENEFITS

176.239 ADMINISTRATIVE DECISION CONCERNING DISCONTINUANCE OF
COMPENSATION.
    Subdivision 1. Purpose. The purpose of this section is to provide a procedure for parties to
obtain an expedited interim administrative decision in disputes over discontinuance of temporary
total, temporary partial, or permanent total compensation.
    Subd. 2. Request for administrative conference. If the employee disagrees with the notice
of discontinuance, the employee may request that the commissioner schedule an administrative
conference to be conducted pursuant to this section.
If temporary total, temporary partial, or permanent total compensation has been discontinued
because the employee has returned to work, and the employee believes benefits should be
reinstated due to occurrences during the initial 14 calendar days of the employee's return to work,
the employee's request must be received by the commissioner within 30 calendar days after the
employee has returned to work. If the employer has failed to properly serve and file the notice as
provided in section 176.238, the employee's time period to request an administrative conference is
extended up to and including the 40th calendar day subsequent to the return to work.
If temporary total, temporary partial, or permanent total compensation has been discontinued
for a reason other than a return to work, the employee's request must be received by the
commissioner within 12 calendar days after the notice of discontinuance is received by the
commissioner. If the employer discontinues compensation without giving notice as required
by section 176.238, the employee's time period for requesting an administrative conference is
extended up to and including the 40th calendar day after which the notice should have been
served and filed.
The commissioner may determine that an administrative conference is not necessary under
this section for reasons prescribed by rule and permit the employer to discontinue compensation,
subject to the employee's right to file an objection to discontinuance under section 176.238,
subdivision 4
.
In lieu of making a written request for an administrative conference with the commissioner,
an employee may make an in-person or telephone request for the administrative conference.
    Subd. 3. Payment through date of discontinuance conference. If a notice of discontinuance
has been served and filed due to the employee's return to work, and the employee requests a
conference, the employer is not obligated to reinstate or otherwise pay temporary total, temporary
partial, or permanent total compensation unless so ordered by the commissioner.
When an administrative conference is conducted under circumstances in which the employee
has not returned to work, compensation shall be paid through the date of the administrative
conference unless:
(a) the employee has returned to work since the notice was filed;
(b) the employee fails to appear at the scheduled administrative conference; or
(c) due to unusual circumstances or pursuant to the rules of the division, the commissioner
orders otherwise.
    Subd. 4. Scheduling of conference. If the employee timely requests an administrative
conference under this section, the commissioner shall schedule a conference within ten calendar
days after receiving the request.
    Subd. 5. Continuances. An employee or employer may request a continuance of a scheduled
administrative conference. If the commissioner determines there is good cause for a continuance,
the commissioner may grant the continuance for not more than 14 calendar days unless the parties
agree to a longer continuance. If compensation is payable through the day of the administrative
conference pursuant to subdivision 3, and the employee is granted a continuance, compensation
need not be paid during the period of continuance unless the commissioner orders otherwise.
If the employer is granted a continuance and compensation is payable through the day of the
administrative conference pursuant to subdivision 3, then compensation shall continue to be paid
during the continuance. The commissioner may grant an unlimited number of continuances
provided that payment of compensation during any continuance is subject to this subdivision.
    Subd. 6. Scope of the administrative decision. If benefits have been discontinued due to the
employee's return to work, the commissioner shall determine whether, as a result of occurrences
arising during the initial 14 calendar days after the return to work, the employee is entitled to
additional payment of temporary total, temporary partial, or permanent total compensation.
If periodic payment of temporary total, temporary partial, or permanent total compensation
has been discontinued for reasons other than a return to work, the commissioner shall determine
whether the employer has reasonable grounds to support the discontinuance. Only information
or reasons specified on the notice of discontinuance shall provide a basis for a discontinuance,
unless the parties agree otherwise.
    Subd. 7. Interim administrative decision. After considering the information provided by
the parties at the administrative conference, the commissioner shall issue to all interested parties a
written decision on payment of compensation. Administrative decisions under this section shall
be issued within five working days from the close of the conference. Disputed issues of fact shall
be determined by a preponderance of the evidence.
    Subd. 8. Disagreement with administrative decision. An employee who disagrees with the
commissioner's decision under this section may file an objection to discontinuance under section
176.238, subdivision 4. An employer who disagrees with the commissioner's decision under this
section may file a petition to discontinue under section 176.238, subdivision 5.
    Subd. 9. Administrative decision binding; effect of subsequent determinations. The
commissioner's decision under this section is binding upon the parties and the rights and
obligations of the parties are governed by the decision.
If an objection or a petition is filed under subdivision 8, the commissioner's administrative
decision remains in effect and the parties' obligations or rights to pay or receive compensation
are governed by the commissioner's administrative decision, pending a determination by a
compensation judge pursuant to section 176.238, subdivision 6.
If the commissioner has denied a discontinuance or otherwise ordered commencement
of benefits, the employer shall continue paying compensation until an order is issued by a
compensation judge, the court of appeals, or the Supreme Court, allowing compensation to be
discontinued, or unless, during the interim, occurrences arise justifying the filing of a notice under
section 176.238, subdivision 1 or 2, and the discontinuance is permitted by the commissioner or no
conference is requested. If a compensation judge, the court of appeals, or the Supreme Court later
rules that the discontinuance was proper or that benefits were otherwise not owing the employee,
payments made under the commissioner's administrative decision and order shall be treated as an
overpayment which the insurer may recover from the employee subject to section 176.179.
If the commissioner has permitted a discontinuance or otherwise not ordered commencement
of benefits, the service and filing of the administrative decision relieves the employer from further
liability for compensation subject to the right of review afforded by this chapter.
    Subd. 10. Application of section. This section is applicable to all cases in which the
employee's request for an administrative conference is received by the division after July 1, 1987,
even if the injury occurred prior to July 1, 1987. This section shall not apply to those employees
who have been adjudicated permanently totally disabled, or to those employees who have been
administratively determined pursuant to division rules to be permanently totally disabled.
History: 1987 c 332 s 66
176.24 [Repealed, 1953 c 755 s 83]
176.241 [Repealed, 1987 c 332 s 117]
176.242 [Repealed, 1987 c 332 s 117]
176.2421 [Repealed, 1987 c 332 s 117]
176.243 [Repealed, 1987 c 332 s 117]
176.244 [Repealed, 1987 c 332 s 117]

RECEIPTS

176.245 RECEIPTS FOR PAYMENT OF COMPENSATION, FILING.
An employer shall promptly file with the division receipts for payment of compensation as
may be required by the rules of the division.
The commissioner of the Department of Labor and Industry shall periodically check its
records in each case to determine whether these receipts have been promptly filed, and if not,
shall require the employer to do so.
History: 1953 c 755 s 35; 1973 c 388 s 80
176.25 [Repealed, 1953 c 755 s 83]

DUTIES

176.251 DUTIES OF COMMISSIONER OF DEPARTMENT OF LABOR AND
INDUSTRY.
The commissioner of the Department of Labor and Industry shall actually supervise and
require prompt and full compliance with all provisions of this chapter relating to the payment of
compensation.
History: 1953 c 755 s 36; 1973 c 388 s 81
176.253 INSURER, EMPLOYER; PERFORMANCE OF ACTS.
Where this chapter requires an employer to perform an act, the insurer of the employer may
perform that act. Where the insurer acts in behalf of the employer, the employer is responsible
for the authorized acts of the insurer and for any delay, failure, or refusal of the insurer to
perform the act.
This section does not relieve the employer from any penalty or forfeiture which this chapter
imposes on the employer.
History: 1953 c 755 s 37; 1986 c 444
176.255 [Repealed, 1953 c 755 s 83]
176.26 [Repealed, 1953 c 755 s 83]
176.261 EMPLOYEE OF COMMISSIONER OF DEPARTMENT OF LABOR AND
INDUSTRY MAY ACT FOR AND ADVISE A PARTY TO A PROCEEDING.
When requested by an employer or an employee or an employee's dependent, the
commissioner of the Department of Labor and Industry may designate one or more of the division
employees to advise that party of rights under this chapter, and as far as possible to assist in
adjusting differences between the parties. The person so designated may appear in person in any
proceedings under this chapter as the representative or adviser of the party. In such case, the party
need not be represented by an attorney at law.
Prior to advising an employee or employer to seek assistance outside of the department, the
department must refer employers and employees seeking advice or requesting assistance in
resolving a dispute to an attorney or other technical, paraprofessional, or professional Workers'
Compensation Division employee, whichever is appropriate.
The department must make efforts to settle problems of employees and employers by
contacting third parties, including attorneys, insurers, and health care providers, on behalf of
employers and employees and using the department's persuasion to settle issues quickly and
cooperatively. The obligation to make efforts to settle problems exists whether or not a formal
claim has been filed with the department.
History: 1953 c 755 s 38; Ex1967 c 1 s 6; 1973 c 388 s 82; 1986 c 444; 1992 c 510 art 3
s 29; 1995 c 231 art 2 s 92; 1996 c 374 s 7

SMALL CLAIMS

176.2615 SMALL CLAIMS COURT.
    Subdivision 1. Purpose. There is established in the Department of Labor and Industry a small
claims court, to be presided over by compensation judges for the purpose of settling small claims.
    Subd. 2. Eligibility. The claim is eligible for determination in the small claims court if all
parties agree to submit to its jurisdiction and:
(1) the claim is for rehabilitation benefits only under section 176.102 or medical benefits
only under section 176.135; or
(2) the claim in its total amount does not equal more than $5,000; or
(3) where the claim is for apportionment or for contribution or reimbursement, no
counterclaim in excess of $5,000 is asserted.
    Subd. 3. Testimony; exhibits. At the hearing a compensation judge shall hear the testimony
of the parties and consider any exhibits offered by them and may also hear any witnesses
introduced by either party.
    Subd. 4. Appearance of parties. A party may appear on the party's own behalf without an
attorney, or may retain and be represented by a duly admitted attorney who may participate
in the hearing to the extent and in the manner that the compensation judge considers helpful.
Attorney fees awarded under this subdivision are included in the overall limit allowed under
section 176.081, subdivision 1.
    Subd. 5. Evidence admissible. At the hearing the compensation judge shall receive evidence
admissible under the rules of evidence. In addition, in the interest of justice and summary
determination of issues before the court, the compensation judge may receive, in the judge's
discretion, evidence not otherwise admissible. The compensation judge, on the judge's own
motion, may receive into evidence any documents which have been filed with the department.
    Subd. 6. Settlement. A compensation judge may attempt to conciliate the parties. If the
parties agree on a settlement, the judge shall issue an order in accordance with that settlement.
    Subd. 7. Determination. If the parties do not agree to a settlement, the compensation judge
shall summarily hear and determine the issues and issue an order in accordance with section
176.305, subdivision 1a, except that there is no appeal or request for a formal de novo hearing
from the order. Any determination by a compensation judge shall be res judicata in subsequent
proceeding concerning issues determined under this section.
    Subd. 8. Costs. The prevailing party is entitled to costs and disbursements as in any other
workers' compensation case.
History: 1992 c 510 art 2 s 7; 1995 c 231 art 2 s 93; 1998 c 366 s 89
176.262 [Repealed, 1983 c 290 s 173]
176.265 [Repealed, 1986 c 461 s 37]
176.27 [Repealed, 1953 c 755 s 83]

PROCEDURE

176.271 INITIATION OF PROCEEDINGS.
    Subdivision 1. Written petition. Unless otherwise provided by this chapter or by the
commissioner, all proceedings under this chapter are initiated by the filing of a written petition
on a prescribed form with the commissioner at the commissioner's principal office. All claim
petitions shall include the information required by section 176.291.
    Subd. 2.[Repealed, 1987 c 332 s 117]
History: 1953 c 755 s 40; Ex1967 c 1 s 6; 1973 c 388 s 84; Ex1979 c 3 s 58; 1984 c 432 art
2 s 43; 1986 c 444; 1987 c 332 s 67
176.275 FILING OF PAPERS; PROOF OF SERVICE.
    Subdivision 1. Filing. If a document is required to be filed by this chapter or any rules
adopted pursuant to authority granted by this chapter, the filing shall be completed by the receipt
of the document at the division, department, office, or the court of appeals. The division,
department, office, and the court of appeals shall accept any document which has been delivered
to it for legal filing immediately upon its receipt, but may refuse to accept any form or document
that lacks the name of the injured employee, employer, or insurer, the date of injury, or the injured
employee's Social Security number. If the injured employee has fewer than three days of lost time
from work, the party submitting the required document must attach to it, at the time of filing,
a copy of the first report of injury.
A notice or other document required to be served or filed at either the department, the office,
or the court of appeals which is inadvertently served or filed at the wrong one of these agencies
shall be deemed to have been served or filed with the proper agency. The receiving agency shall
note the date of receipt of a document and shall forward the documents to the proper agency no
later than two working days following receipt.
    Subd. 2. Proof of service. Whenever a provision of this chapter or rules adopted pursuant
to authority granted by this chapter require either a proof of service or affidavit of service, the
requirement is satisfied by the inclusion of a proof of service on the document which has been
served, in a form acceptable by the state district courts or approved by the commissioner.
History: 1953 c 755 s 41; Ex1967 c 1 s 6; 1973 c 388 s 85; 1975 c 271 s 6; 1975 c 359 s 23;
1976 c 134 s 78; 1986 c 444; 1987 c 332 s 68; 1995 c 231 art 2 s 94
176.28 [Repealed, 1953 c 755 s 83]
176.281 ORDERS, DECISIONS, AND AWARDS; FILING; SERVICE.
When the commissioner or compensation judge or Office of Administrative Hearings or
the Workers' Compensation Court of Appeals has rendered a final order, decision, or award, or
amendment to an order, decision, or award, it shall be filed immediately with the commissioner.
If the commissioner, compensation judge, Office of Administrative Hearings, or Workers'
Compensation Court of Appeals has rendered a final order, decision, or award, or amendment
thereto, the commissioner or the Office of Administrative Hearings or the Workers' Compensation
Court of Appeals shall immediately serve a copy upon every party in interest, together with
a notification of the date the order was filed.
On all orders, decisions, awards, and other documents, the commissioner or compensation
judge or Office of Administrative Hearings or the Workers' Compensation Court of Appeals may
digitize the signatures of all officials, including judges, for the use of electronic data interchange
and clerical automation. These signatures shall have the same legal authority of an original
signature, provided that proper security is used to safeguard the use of the digitized signatures and
each digitized signature has been certified by the division, department, office, or court of appeals
before its use, in accordance with rules adopted by that agency or court.
History: 1953 c 755 s 42; 1969 c 276 s 2; 1973 c 388 s 86; 1975 c 271 s 6; 1975 c 359 s 23;
1976 c 134 s 78; 1982 c 405 s 1; 1983 c 290 s 142; 1995 c 231 art 2 s 95
176.285 SERVICE OF PAPERS AND NOTICES.
Service of papers and notices shall be by mail or otherwise as the commissioner or the chief
administrative law judge may by rule direct. Where service is by mail, service is effected at the
time mailed if properly addressed and stamped. If it is so mailed, it is presumed the paper or
notice reached the party to be served. However, a party may show by competent evidence that
that party did not receive it or that it had been delayed in transit for an unusual or unreasonable
period of time. In case of nonreceipt or delay, an allowance shall be made for the party's failure
to assert a right within the prescribed time.
Where service to the division, department, office, or court of appeals is by electronic filing,
digitized signatures may be used provided that the signature has been certified by the department
no later than five business days after filing. The department or court may adopt rules for the
certification of signatures.
When the electronic filing of a legal document with the department marks the beginning
of a prescribed time for another party to assert a right, the prescribed time for another party to
assert a right shall be lengthened by two calendar days when it can be shown that service to
the other party was by mail.
The commissioner and the chief administrative law judge shall ensure that proof of service of
all papers and notices served by their respective agencies is placed in the official file of the case.
History: 1953 c 755 s 43; 1973 c 388 s 87; 1983 c 290 s 143; 1984 c 640 s 32; 1995 c
231 art 2 s 96
176.29 [Repealed, 1953 c 755 s 83]
176.291 DISPUTES; PETITIONS; PROCEDURE.
Where there is a dispute as to a question of law or fact in connection with a claim for
compensation, a party may serve on all other parties and file a petition with the commissioner
stating the matter in dispute. The petition shall be on a form prescribed by the commissioner
and shall be signed by the petitioner.
The petition shall also state and include, where applicable:
(1) names and residence or business address of parties;
(2) facts relating to the employment at the time of injury, including amount of wages received;
(3) extent and character of injury;
(4) notice to or knowledge by employer of injury;
(5) copies of written medical reports or other information in support of the claim;
(6) names and addresses of all known witnesses intended to be called in support of the claim;
(7) the desired location of any hearing and estimated time needed to present evidence
at the hearing;
(8) any requests for a prehearing or settlement conference;
(9) a list of all known third parties, including the Departments of Human Services and
Employment and Economic Development, who may have paid any medical bills or other benefits
to the employee for the injuries or disease alleged in the petition or for the time the employee was
unable to work due to the injuries or disease, together with a listing of the amounts paid by each;
(10) the nature and extent of the claim; and
(11) a request for an expedited hearing which must include an attached affidavit of significant
financial hardship which complies with the requirements of section 176.341, subdivision 6.
Incomplete petitions may be stricken from the calendar as provided by section 176.305,
subdivision 4
. Within 30 days of a request by a party, an employee who has filed a claim petition
pursuant to section 176.271 or this section shall furnish a list of physicians and health care
providers from whom the employee has received treatment for the same or a similar condition
as well as authorizations to release relevant information, data, and records to the requester. The
petition may be stricken from the calendar upon motion of a party for failure to timely provide the
required list of health care providers or authorizations.
History: 1953 c 755 s 44; 1973 c 388 s 88; 1975 c 271 s 6; 1975 c 359 s 23; 1976 c 134 s
78; 1981 c 346 s 104; 1987 c 332 s 69; 1994 c 483 s 1; 1995 c 231 art 2 s 97; 2004 c 206 s 52
176.295 NONRESIDENT EMPLOYERS; FOREIGN CORPORATION.
    Subdivision 1. Affidavit of inability to obtain service. Where an employee or an employee's
dependent has filed a petition for compensation with the commissioner of the Department of
Labor and Industry, and is unable to make service of the petition and other notices on the
employer because the latter is a nonresident or a foreign corporation, the petitioner may file
an affidavit with the commissioner of the Department of Labor and Industry stating that the
petitioner is so unable to make service.
    Subd. 2. Action in district court. When the petitioner has filed the affidavit with the
commissioner of the Department of Labor and Industry, the petitioner may bring an action against
the employer in the district court located in the county in which the employee resided at the time
of the injury or death. The action shall be brought and conducted in the same manner as are other
civil actions in district court. The complaint shall state that a petition for compensation has been
filed with the commissioner of the Department of Labor and Industry, and shall be accompanied
by a verified copy of the affidavit. The complaint shall also state the facts upon which the right to
compensation or other relief is based.
    Subd. 3. Attachment, garnishment; service by publication. The remedies of attachment
and garnishment are available to the petitioner in the district court action. Service of summons
may be made by publication.
    Subd. 4. General appearances; security, bond. Where the employer makes a general
appearance in the district court action and files a bond or security approved by the commissioner
of the Department of Labor and Industry, or where an insurer appears generally in the action and
assumes liability for any award which may be rendered against the employer, the district court
shall dismiss the action.
History: 1953 c 755 s 45; Ex1967 c 1 s 6; 1973 c 388 s 89-91; 1986 c 444
176.30 [Repealed, 1953 c 755 s 83]
176.301 DETERMINATION OF ISSUES.
    Subdivision 1. Trial by court; reference to chief administrative law judge. When a
workers' compensation issue is present in the district court action, the court may try the action
itself without a jury, or refer the matter to the chief administrative law judge for assignment to a
compensation judge. The compensation judge shall report findings and decisions to the district
court. The court may approve or disapprove such decision in the same manner as it approves or
disapproves the report of a referee. The court shall enter judgment upon such decision.
    Subd. 2. Appeal from judgment of district court. An appeal lies from the judgment of
the district court as in other cases.
History: 1953 c 755 s 46; 1969 c 276 s 2; 1973 c 388 s 92; 1975 c 271 s 6; 1975 c 359 s 23;
1976 c 134 s 78; 1981 c 346 s 105; 1984 c 640 s 32; 1986 c 444; 1987 c 332 s 70
176.305 PETITIONS FILED WITH WORKERS' COMPENSATION DIVISION.
    Subdivision 1. Hearings on petitions. The petitioner shall serve a copy of the petition on
each adverse party personally or by first class mail. A clear copy suitable for imaging shall be
filed with the commissioner together with an appropriate affidavit of service. When any petition
has been filed with the Workers' Compensation Division, the commissioner shall, within ten days,
refer the matter presented by the petition for a settlement conference under this section, for an
administrative conference under section 176.106, or for hearing to the office.
    Subd. 1a. Settlement and pretrial conferences; summary decision. The commissioner
shall schedule a settlement conference, if appropriate, within 60 days after receiving the petition.
All parties must appear at the conference, either personally or by representative, must be prepared
to discuss settlement of all issues, and must be prepared to discuss or present the information
required by the joint rules of the division and the office. If a representative appears on behalf of a
party, the representative must have authority to fully settle the matter.
If settlement is not reached, the presiding officer may require the parties to present copies of
all documentary evidence not previously filed and a summary of the evidence they will present at
a formal hearing. If appropriate, a written summary decision shall be issued within ten days after
the conference stating the issues and a determination of each issue. If a party fails to appear at
the conference, all issues may be determined contrary to the absent party's interest, provided the
party in attendance presents a prima facie case.
The summary decision is final unless a written request for a formal hearing is served on all
parties and filed with the commissioner within 30 days after the date of service and filing of the
summary decision. Within ten days after receipt of the request, the commissioner shall certify the
matter to the office for a de novo hearing. In proceedings under section 176.2615, the summary
decision is final and not subject to appeal or de novo proceedings.
    Subd. 2. Copy of petition. The commissioner shall deliver the petition and answer,
after certification for a hearing, to the Office of Administrative Hearings for assignment to a
compensation judge.
    Subd. 3. Testimony. Where the chief administrative law judge has substituted a compensation
judge originally assigned to hear a matter, the testimony taken before the substitute compensation
judge shall be considered as though taken before the judge before whom it was originally assigned.
    Subd. 4. Striking from calendar. A compensation judge or the commissioner, after
receiving a properly served motion, may strike a case from the active trial calendar after the
employee has been given 30 days to correct the deficiency if it is shown that the information
on the petition or included with the petition is incomplete. Once a case is stricken, it may not
be reinstated until the missing information is provided to the adverse parties and filed with the
commissioner or compensation judge. If a case has been stricken from the calendar for one year
or more and no corrective action has been taken, the commissioner or a compensation judge may,
upon the commissioner's or judge's own motion or a motion of a party which is properly served on
all parties, dismiss the case. The petitioner must be given at least 30 days' advance notice of the
proposed dismissal before the dismissal is effective.
History: 1953 c 755 s 47; 1969 c 9 s 45; 1969 c 276 s 2; 1973 c 388 s 93-95; 1975 c 271 s 6;
1975 c 359 s 23; 1976 c 134 s 78; 1981 c 346 s 106; 1984 c 640 s 32; 1987 c 332 s 71-74; 1995
c 231 art 2 s 98; 1998 c 294 s 4,5
176.306 SCHEDULED HEARINGS.
    Subdivision 1. Chief administrative law judge. The chief administrative law judge shall
schedule workers' compensation hearings on as regular a schedule as may be practicable in no
fewer than six widely separated locations throughout the state, including at least four locations
outside of the seven-county metropolitan area and Duluth, for the purpose of providing a
convenient forum for parties to a compensation hearing and shall maintain a permanent office in
Duluth staffed by at least one compensation judge. Continuances of the scheduled hearing date
may be granted only under section 176.341, subdivision 4.
    Subd. 2. District administrators; clerks of court. The judicial district administrators or the
court administrators of the county or district courts nearest to the locations selected by the chief
administrative law judge pursuant to subdivision 1 shall provide suitable hearing rooms at the
times and places agreed upon for the purpose of conducting workers' compensation hearings.
    Subd. 3. Scheduling matters. A compensation judge may schedule a pretrial or settlement
conference, whether or not a party requests such a conference.
History: 1981 c 346 s 107; 1982 c 424 s 45; 1984 c 640 s 32; 1Sp1986 c 3 art 1 s 82;
1987 c 332 s 75,76
176.307 COMPENSATION JUDGES; BLOCK SYSTEM.
The chief administrative law judge must assign workers' compensation cases to compensation
judges using a block system type of assignment that, among other things, ensures that a case will
remain with the same judge from commencement to conclusion unless the judge is removed
from the case by exercise of a legal right of a party or by incapacity. The block system must be
the principal means of assigning cases, but it may be supplemented by other systems of case
assignment to ensure that cases are timely decided.
History: 1992 c 510 art 2 s 8
176.31 [Repealed, 1953 c 755 s 83]
176.311 REASSIGNMENT OF PETITION FOR HEARING.
Where a petition is heard before a compensation judge, at any time before an award or order
has been made in such proceeding, the chief administrative law judge may reassign the petition
for hearing before another compensation judge.
History: 1953 c 755 s 48; 1969 c 276 s 2; 1973 c 388 s 96; 1981 c 346 s 108; 1984 c 640 s 32
176.312 AFFIDAVITS OF PREJUDICE AND PETITIONS FOR REASSIGNMENT.
In accordance with rules adopted by the chief administrative law judge, an affidavit of
prejudice for cause may be filed by each party to the claim against a compensation judge assigned
to hear a case.
A petition for reassignment of a case to a different compensation judge for hearing may
be filed once, in any case, by each party to the claim within ten days after the filing party has
received notice of the assigned judge. Upon receipt of a timely petition for reassignment, the chief
administrative law judge shall assign the case to another judge.
An affidavit of prejudice or a petition for reassignment shall be filed with the chief
administrative law judge and shall not result in the continuance or delay of a hearing scheduled
under section 176.341.
This section does not apply to prehearing or settlement conferences.
History: 1983 c 290 s 144; 1987 c 332 s 77
176.32 [Repealed, 1953 c 755 s 83]
176.321 ANSWER TO PETITION.
    Subdivision 1. Filing, service. Within 20 days after service of the petition, an adverse
party shall serve and file an answer to the petition. The party shall serve a copy of the answer
on the petitioner or the petitioner's attorney.
    Subd. 2. Contents. The answer shall admit, deny, or affirmatively defend against the
substantial averments of the petition, and shall state the contention of the adverse party with
reference to the matter in dispute.
Each fact alleged by the petition or answer and not specifically denied by the answer or
reply is deemed admitted, but the failure to deny such a fact does not preclude the compensation
judge from requiring proof of the fact.
The answer shall include the names and addresses of all known witnesses; whether or not the
employer intends to schedule an adverse examination and, if known, the date, time, and place
of all adverse examinations; the desired location for a hearing; any request for a prehearing or
settlement conference; the estimated time needed to present evidence at a hearing; and, if an
affidavit of significant financial hardship and request for an expedited hearing are included with
the petition, any objection the employer may have to that request. If the date, time, and place of
all adverse examinations is unknown at the time the answer is filed, the employer must notify the
commissioner in writing of the date, time, and place of all adverse examinations within 50 days
of the filing of the claim petition.
    Subd. 3. Extension of time in which to file answer. Upon showing of cause, the
commissioner may extend the time in which to file an answer or reply for not more than 30
additional days. The time to file an answer or reply may also be extended upon agreement of
the petitioner, and provided that the commissioner must be notified in writing by the employer
no later than five days beyond the time required for the filing of the answer of the fact that an
agreement has been reached, including the length of the extension. Any case received by the office
that does not include an answer, written extension order, or written notification of the extension
agreement shall be immediately set for a hearing at the first available date under section 176.331.
History: 1953 c 755 s 49; 1969 c 276 s 2; 1973 c 388 s 97; 1975 c 271 s 6; 1975 c 359 s 23;
1976 c 134 s 78; 1981 c 346 s 109,110; 1983 c 290 s 145; 1987 c 332 s 78,79
176.322 DECISIONS BASED ON STIPULATED FACTS.
If the parties agree to a stipulated set of facts and only legal issues remain, the commissioner
or compensation judge may determine the matter without a hearing based upon the stipulated
facts and the determination is appealable to the Court of Appeals pursuant to sections 176.421 and
176.442. In any case where a stipulated set of facts has been submitted pursuant to this section,
upon receipt of the file or the stipulated set of facts the chief administrative law judge shall
immediately assign the case to a compensation judge for a determination. The judge shall issue a
determination within 60 days after receipt of the stipulated facts.
History: 1987 c 332 s 80
176.325 CERTIFIED QUESTION.
    Subdivision 1. When certified. The chief administrative law judge or commissioner may
certify a question of workers' compensation law to the Supreme Court as important and doubtful
under the following circumstances:
(1) all parties to the case have stipulated in writing to the facts; and
(2) the issue to be resolved is a question of workers' compensation law that has not been
resolved by the Minnesota Supreme Court.
    Subd. 2. Expedited decision. It is the legislature's intent that the Minnesota Supreme Court
resolve the certified question as expeditiously as possible, after compliance by the parties with
any requirements of the Minnesota Supreme Court regarding submission of legal memoranda,
oral argument, or other matters, and after the participation of amicus curiae, should the Workers'
Compensation Court of Appeals or Minnesota Supreme Court consider such participation
advisable.
    Subd. 3. Notice. The commissioner or chief administrative law judge shall notify all persons
who request to be notified of a certification under this section.
History: 1992 c 510 art 2 s 9
176.33 [Repealed, 1953 c 755 s 83]
176.331 PROCEEDINGS WHEN ANSWER NOT FILED.
Except in cases involving multiple employers or multiple insurers, if an adverse party fails
to file and serve an answer or obtain an extension from the commissioner or the petitioner as
required by section 176.321, subdivision 3, the commissioner shall refer the matter to the chief
administrative law judge for an immediate hearing and prompt award or other order. The adverse
party that failed to file an answer may appear at the hearing, present evidence and question
witnesses, but shall not be granted a continuance for any reason.
If an adverse party who fails to serve and file an answer is neither insured for workers'
compensation liability nor a licensed self-insured as required by section 176.181 and the special
compensation fund is a party to the proceeding, the commissioner or compensation judge may
enter an order awarding benefits to the petitioning party without a hearing if so requested by the
special compensation fund.
History: 1953 c 755 s 50; 1973 c 388 s 98; 1981 c 346 s 111; 1983 c 290 s 146; 1984 c
640 s 32; 1987 c 332 s 81
176.34 [Repealed, 1953 c 755 s 83]
176.341 HEARING ON PETITION.
    Subdivision 1. Time. Upon receipt of a matter from the commissioner, the chief
administrative law judge shall fix a time and place for hearing the petition. The hearing shall be
held as soon as practicable and at a time and place determined by the chief administrative law
judge to be the most convenient for the parties, keeping in mind the intent of chapter 176 and
the requirements of section 176.306.
    Subd. 2. Place. Unless otherwise ordered by the chief administrative law judge, the hearing
shall be held in the county where the injury or death occurred.
    Subd. 3. Notice mailed to each party. Unless subdivision 6 applies, at least 30 days prior to
the date of hearing, the chief administrative law judge shall mail a notice of the time and place of
hearing to each interested party. This subdivision does not apply to hearings which have been
continued from an earlier date. In those cases, the notice shall be given in a manner deemed
appropriate by the chief administrative law judge after considering the particular circumstances in
each case.
    Subd. 4. Continuances. Only the chief administrative law judge or designee, on a showing
of good cause, may grant a continuance of a hearing at the office. Except in cases of emergency or
other good cause shown, any request for a continuance must be signed by both the party and the
attorney seeking the continuance.
A continuance of a hearing will be granted only upon a showing of good cause. Good cause
is established when the underlying eventuality is unforeseen, is not due to lack of preparation, is
relevant, is brought to the chief administrative law judge's attention in a timely manner and does
not prejudice the adversary.
Continuances will not be granted for the reason that an attorney for one of the parties has
scheduled a vacation for the date set for the hearing unless the attorney has, prior to the setting of
the hearing date, notified the office of the unavailable dates.
Continuances which are requested during the course of a hearing are subject to the same
standards but may be granted or denied by the compensation judge assigned to the hearing.
Continuances of prehearing or settlement conferences at the department or at the office are subject
to the same standards but may be granted or denied by a compensation judge, the calendar judge,
or other presiding officer assigned to the prehearing or settlement conference.
    Subd. 5. Evidence. Absent a clear showing of surprise at the hearing or the unexpected
unavailability of a crucial witness, all evidence must be submitted at the time of the hearing.
Upon a showing of good cause, the compensation judge may grant an extension not to exceed
30 days following the hearing date.
    Subd. 6. Significant financial hardship; expedited hearings. An employee may file a
request for an expedited hearing which must be granted upon a showing of significant financial
hardship. In determining whether a significant financial hardship exists, consideration shall be
given to whether the employee is presently employed, the employee's income from all sources,
the nature and extent of the employee's expenses and debts, whether the employee is the sole
support of any dependents, whether either foreclosure of homestead property or repossession of
necessary personal property is imminent, and any other matters which have a direct bearing on the
employee's ability to provide food, clothing, and shelter for the employee and any dependents.
A request for an expedited hearing must be accompanied by a sworn affidavit of the
employee providing facts necessary to satisfy the criteria for a significant financial hardship.
The request may be made at the time a claim petition is filed or any time thereafter. Unless the
employer objects to the request in the answer to the claim petition or within 20 calendar days
of the filing of a request made subsequent to the filing of the claim petition, the affidavit is a
sufficient showing of significant financial hardship.
If a request for an expedited hearing has been served and filed, the commissioner or
compensation judge shall issue an order granting or denying the request, provided that where the
parties agree that significant financial hardship exists or no objection to the request is timely filed,
the request is automatically granted and the compensation judge or commissioner need not issue
an order. If it is denied, the matter will be returned to the regular calendar of cases and the request
for an expedited hearing may be renewed at a settlement conference. If no objection has been
timely filed or if the request is granted, the commissioner shall immediately refer the matter to the
office to commence prehearing procedures.
The calendar judge shall issue a prehearing order and notice of the date, time, and place
for a prehearing conference which shall be set for no later than 45 days following the filing of
the affidavit of significant financial hardship. The prehearing order shall require the parties to
serve and file prehearing statements no later than five working days prior to the date set for the
prehearing conference. The prehearing statements shall include those items listed in the joint rules
of the division and the office which the calendar judge deems appropriate.
Following any prehearing conference and absent an agreement or stipulation from the
parties, the commissioner or compensation judge shall issue an order establishing deadlines for
the parties to complete their preparation for hearing and, after consultation with the calendar
judge, establishing the date, time, and place for a hearing.
History: 1953 c 755 s 51; 1969 c 276 s 2; 1973 c 388 s 99-101; 1975 c 359 s 23; 1981 c 346
s 112; 1983 c 290 s 147; 1984 c 640 s 32; 1987 c 332 s 82-85; 1998 c 366 s 89
176.35 [Repealed, 1953 c 755 s 83]
176.351 TESTIMONIAL POWERS.
    Subdivision 1. Oaths. The compensation judge to whom a petition has been assigned for
hearing shall administer an oath to each witness. The commissioner may also administer an oath
when required in the performance of duties.
    Subd. 2. Subpoenas. Acting with or without the written request of an interested party, the
commissioner or compensation judge before whom a hearing is held may issue a subpoena for the
attendance of a witness or the production of such books, papers, records and documents as are
material in the cause and are designated in the subpoena. The commissioner may also issue a
subpoena for the attendance of a witness or the production of such books, papers, records, and
documents as are material in the cause pending and are designated in the subpoena.
    Subd. 2a. Subpoenas not permitted. A member of the Rehabilitation Review Panel or
Medical Services Board or an employee of the department who has conducted an administrative
or settlement conference or hearing under section 176.106 or 176.239, shall not be subpoenaed to
testify regarding the conference, hearing, or concerning a mediation session. A member of the
Rehabilitation Review Panel, Medical Services Board, or an employee of the department may be
required to answer written interrogatories limited to the following questions:
(a) Were all statutory and administrative procedural rules adhered to in reaching the decision?
(b) If the answer to question (a) is no, what deviations took place?
(c) Did the person making the decision consider all the information presented prior to
rendering a decision?
(d) Did the person making the decision rely on information outside of the information
presented at the conference or hearing in making the decision?
(e) If the answer to question (d) is yes, what other information was relied upon in making the
decision?
In addition, for a hearing with a compensation judge and with the consent of the
compensation judge, an employee of the department who conducted an administrative conference,
hearing, or mediation session, may be requested to answer written interrogatories relating to
statements made by a party at the prior proceeding. These interrogatories shall be limited to
affirming or denying that specific statements were made by a party.
    Subd. 3. Advancement of fees and costs. The person who applies for issuance of a
subpoena shall advance the required service and witness fees. The commissioner shall pay for the
attendance of witnesses who are subpoenaed by the commissioner. The chief administrative law
judge shall pay for the attendance of witnesses who are subpoenaed by a compensation judge. The
fees are the same as the service and witness fees in civil actions in district court.
    Subd. 4. Proceedings as for contempt of court. Where a person does not comply with
an order or subpoena, the commissioner or compensation judge concerned, may apply to the
district court in the county in which the petition is pending for issuance of an order compelling
obedience. Upon such an application, the district court shall compel obedience to the order or
subpoena by attachment proceedings as for contempt in the case of disobedience of a similar
order or subpoena issued by the district court.
History: 1953 c 755 s 52; Ex1967 c 1 s 6; 1969 c 276 s 2; 1973 c 388 s 102-105; 1975 c
271 s 6; 1975 c 359 s 23; 1976 c 134 s 78; 1981 c 346 s 113; 1984 c 432 art 2 s 44; 1984 c 640
s 32; 1986 c 444; 1987 c 332 s 86
176.36 [Repealed, 1953 c 755 s 83]
176.361 INTERVENTION.
    Subdivision 1. Right to intervene. A person who has an interest in any matter before the
Workers' Compensation Court of Appeals, or commissioner, or compensation judge such that the
person may either gain or lose by an order or decision may intervene in the proceeding by filing
an application or motion in writing stating the facts which show the interest. The commissioner is
considered to have an interest and shall be permitted to intervene at the appellate level when a
party relies in its claim or defense upon any statute or rule administered by the commissioner, or
upon any rule, order, requirement, or agreement issued or made under the statute or rule.
The commissioner may adopt rules, not inconsistent with this section to govern intervention.
The Workers' Compensation Court of Appeals shall adopt rules to govern the procedure for
intervention in matters before it.
If the Department of Human Services or the Department of Employment and Economic
Development seeks to intervene in any matter before the division, a compensation judge or the
Workers' Compensation Court of Appeals, a nonattorney employee of the department, acting
at the direction of the staff of the attorney general, may prepare, sign, serve and file motions
for intervention and related documents, appear at prehearing conferences, and participate in
matters before a compensation judge or the Workers' Compensation Court of Appeals. Any other
interested party may intervene using a nonattorney and may participate in any proceeding to
the same extent an attorney could. This activity shall not be considered to be the unauthorized
practice of law. An intervenor represented by a nonattorney shall be deemed to be represented by
an attorney for the purposes of the conclusive presumption of section 176.521, subdivision 2.
Subdivisions 3 to 6 do not apply to matters pending in the mediation or rehabilitation and
medical services sections.
    Subd. 2. Written application or motion. A person desiring to intervene in a workers'
compensation case as a party, including but not limited to a health care provider who has rendered
services to an employee or an insurer who has paid benefits under section 176.191, shall submit a
timely written application or motion to intervene to the commissioner, the office, or to the court
of appeals, whichever is applicable.
(a) The application or motion must be served on all parties either personally, by first class
mail, or registered mail, return receipt requested. An application or motion to intervene must be
served and filed within 60 days after a potential intervenor has been served with notice of a right
to intervene or within 30 days of notice of an administrative conference. Upon the filing of
a timely application or motion to intervene, the potential intervenor shall be granted intervenor
status without the need for an order. Objections to the intervention may be subsequently addressed
by a compensation judge. Where a motion to intervene is not timely filed under this section, the
potential intervenor interest shall be extinguished and the potential intervenor may not collect,
or attempt to collect, the extinguished interest from the employee, employer, insurer, or any
government program.
(b) The application or motion must show how the applicant's legal rights, duties, or
privileges may be determined or affected by the case; state the grounds and purposes for which
intervention is sought; and indicate the statutory right to intervene. The application or motion
must be accompanied by the following:
(1) an itemization of disability payments showing the period during which the payments
were or are being made; the weekly or monthly rate of the payments; and the amount of
reimbursement claimed;
(2) a summary of the medical or treatment payments, or rehabilitation services provided by
the Vocational Rehabilitation Unit, broken down by creditor, showing the total bill submitted, the
period of treatment or rehabilitation covered by that bill, the amount of payment on that bill, and
to whom the payment was made;
(3) copies of all medical or treatment bills on which some payment was made;
(4) copies of the work sheets or other information stating how the payments on medical
or treatment bills were calculated;
(5) a copy of the relevant policy or contract provisions upon which the claim for
reimbursement is based;
(6) the name and telephone number of the person representing the intervenor who has
authority to reach a settlement of the issues in dispute;
(7) proof of service or copy of the registered mail receipt;
(8) at the option of the intervenor, a proposed stipulation which states that all of the payments
for which reimbursement is claimed are related to the injury or condition in dispute in the case
and that, if the petitioner is successful in proving the compensability of the claim, it is agreed that
the sum be reimbursed to the intervenor; and
(9) if represented by an attorney, the name, address, telephone number, and Minnesota
Supreme Court license number of the attorney.
    Subd. 3. Stipulation. If the person submitting the application or motion for intervention has
included a proposed stipulation, all parties shall either execute and return the signed stipulation
to the intervenor who must file it with the division or judge or serve upon the intervenor and all
other parties and file with the division specific and detailed objections to any payments made
by the intervenor which are not conceded to be correct and related to the injury or condition
the petitioner has asserted is compensable. If a party has not returned the signed stipulation or
filed objections within 30 days of service of the application or motion, the intervenor's right to
reimbursement for the amount sought is deemed established provided that the petitioner's claim
is determined to be compensable.
    Subd. 4. Attendance by intervenor. Unless a stipulation has been signed and filed or the
intervenor's right to reimbursement has otherwise been established, the intervenor shall attend all
settlement or pretrial conferences, administrative conferences, and the hearing. Failure to appear
shall result in the denial of the claim for reimbursement.
    Subd. 5. Order. If an objection to intervention remains following settlement or pretrial
conferences, the issue shall be addressed at the hearing.
    Subd. 6. Presentation of evidence by intervenor. Unless a stipulation has been signed and
filed or the intervenor's right to reimbursement has otherwise been established, the intervenor
shall present evidence in support of the claim at the hearing unless otherwise ordered by the
compensation judge.
    Subd. 7. Effects of noncompliance. Except as provided in subdivisions 2 and 4, failure
to comply with this section shall not result in a denial of the claim for reimbursement unless
the compensation judge, or commissioner, determines that the noncompliance has materially
prejudiced the interests of the other parties.
History: 1953 c 755 s 53; 1969 c 276 s 2; 1973 c 388 s 106; 1975 c 271 s 6; 1975 c 359 s
23; 1976 c 134 s 78; 1983 c 290 s 148; 1984 c 432 art 2 s 45; 1984 c 654 art 5 s 58; 1Sp1985
c 14 art 9 s 75; 1986 c 461 s 30,31; 1987 c 332 s 87-89; 1992 c 464 art 1 s 5; 1994 c 483 s 1;
2002 c 262 s 21; 2004 c 206 s 52
176.37 [Repealed, 1953 c 755 s 83]
176.371 AWARD OR DISALLOWANCE OF COMPENSATION.
The compensation judge to whom a petition has been assigned for hearing, shall hear all
competent, relevant evidence produced at the hearing. All questions of fact and law submitted
to a compensation judge at the hearing shall be disposed of and the judge's decision shall be
filed with the commissioner, except where expedited procedures require a shorter time, within
60 days after the submission, unless sickness or casualty prevents a timely filing, or the chief
administrative law judge extends the time for good cause. The compensation judge's decision
shall include a determination of all contested issues of fact and law and an award or disallowance
of compensation or other order as the pleadings, evidence, this chapter and rule require. A
compensation judge's decision shall include a memorandum only if necessary to delineate
the reasons for the decision or to discuss the credibility of witnesses. A memorandum shall
not contain a recitation of the evidence presented at the hearing but shall be limited to the
compensation judge's basis for the decision.
No part of the salary of a compensation judge shall be paid unless the chief administrative
law judge determines that all decisions of that judge have been issued within the time limits
prescribed by this chapter.
History: 1953 c 755 s 54; 1969 c 276 s 2; 1975 c 271 s 6; 1975 c 359 s 23; 1976 c 134 s 78;
1981 c 346 s 114; 1983 c 290 s 149; 1984 c 640 s 32; 1987 c 332 s 90
176.38 [Repealed, 1953 c 755 s 83]
176.381 REFERENCE OF QUESTIONS OF FACT.
    Subdivision 1. Hearing before Workers' Compensation Court of Appeals. In the hearing
of any matter before the Workers' Compensation Court of Appeals, the chief judge of the Workers'
Compensation Court of Appeals may refer any question of fact to the chief administrative law
judge for assignment to a compensation judge either to hear evidence and report it to the Workers'
Compensation Court of Appeals or to hear evidence and make findings of fact and report them to
the Workers' Compensation Court of Appeals. The Workers' Compensation Court of Appeals shall
notify the commissioner of any matter referred to a compensation judge under this subdivision.
    Subd. 2. Hearing before compensation judge. In the hearing of any petition before a
compensation judge, the chief administrative law judge may refer any question of fact to another
compensation judge to hear evidence and report it to the original compensation judge.
History: 1953 c 755 s 55; Ex1967 c 1 s 6; 1969 c 276 s 2; 1973 c 388 s 107,108; 1975 c 271
s 6; 1975 c 359 s 23; 1976 c 134 s 78; 1981 c 346 s 115; 1984 c 640 s 32
176.39 [Repealed, 1953 c 755 s 83]
176.391 INVESTIGATIONS.
    Subdivision 1. Power to make. Before, during, or after any hearing, the commissioner or a
compensation judge may make an independent investigation of the facts alleged in the petition
or answer.
    Subd. 2. Appointment of physicians, surgeons, and other experts. The compensation
judge assigned to a matter, or the commissioner, may appoint one or more neutral physicians or
surgeons to examine the injury of the employee and report thereon except as provided otherwise
pursuant to section 176.1361. Where necessary to determine the facts, the services of other
experts may also be employed.
    Subd. 3. Reports. The report of a physician, surgeon, or other expert shall be filed with the
commissioner and the compensation judge assigned to the matter if any. The report shall be made
a part of the record of the case and be open to inspection as such.
    Subd. 4. Compensation. The commissioner or compensation judge shall fix the
compensation of a physician, surgeon, or other expert whose services are employed under
this chapter. This compensation shall be paid initially out of the funds appropriated for the
maintenance of the Workers' Compensation Division, but shall be taxed as costs to either party, or
both, or otherwise, as the commissioner or compensation judge directs.
Where a sum which has been taxed to a party has not been paid, it may be collected in the
same manner as are costs generally.
History: 1953 c 755 s 56; 1969 c 9 s 46; 1969 c 276 s 2; 1973 c 388 s 109-112; 1975 c 271 s
6; 1975 c 359 s 23; 1976 c 134 s 78; Ex1979 c 3 s 59; 1981 c 346 s 116; 2005 c 90 s 19
176.40 [Repealed, 1953 c 755 s 83]
176.401 HEARINGS PUBLIC.
All hearings before a compensation judge are public.
History: 1953 c 755 s 57; 1969 c 276 s 2; 1975 c 271 s 6; 1975 c 359 s 23; 1976 c 134 s
78; 1981 c 346 s 117
176.41 [Repealed, 1953 c 755 s 83]
176.411 RULES OF EVIDENCE, PLEADING, AND PROCEDURE.
    Subdivision 1. Conduct of hearings and investigations. Except as otherwise provided
by this chapter, when a compensation judge makes an investigation or conducts a hearing,
the compensation judge is bound neither by the common law or statutory rules of evidence
nor by technical or formal rules of pleading or procedure. Hearsay evidence which is reliable
is admissible. The investigation or hearing shall be conducted in a manner to ascertain the
substantial rights of the parties.
Findings of fact shall be based upon relevant and material evidence only, as presented by
competent witnesses, and shall comport with section 176.021.
    Subd. 2. Depositions. Except where a compensation judge orders otherwise, depositions may
be taken in the manner which the law provides for depositions in civil actions in district court.
    Subd. 3. Hospital records as evidence. A hospital record relating to medical or surgical
treatment given an employee is admissible as evidence of the medical and surgical matters stated
in the record, but it is not conclusive proof of such matters.
History: 1953 c 755 s 58; 1969 c 276 s 2; 1975 c 271 s 6; 1975 c 359 s 23; 1976 c 134 s
78; 1981 c 346 s 118,119; 1987 c 332 s 91
176.42 [Repealed, 1953 c 755 s 83]

APPEALS

176.421 APPEALS TO WORKERS' COMPENSATION COURT OF APPEALS.
    Subdivision 1. Time for taking; grounds. When a petition has been heard before a
compensation judge, within 30 days after a party in interest has been served with notice of an
award or disallowance of compensation, or other order affecting the merits of the case, the party
may appeal to the Workers' Compensation Court of Appeals on any of the following grounds:
(1) the order does not conform with this chapter; or
(2) the compensation judge committed an error of law; or
(3) the findings of fact and order were clearly erroneous and unsupported by substantial
evidence in view of the entire record as submitted; or
(4) the findings of fact and order were procured by fraud, or coercion, or other improper
conduct of a party in interest.
    Subd. 2. Extension of time. Where a party shows cause within the 30-day period referred to
in subdivision 1, the Workers' Compensation Court of Appeals may extend the time for taking the
appeal for not more than 30 additional days.
    Subd. 3. Notice of appeal. The appellant or the appellant's attorney shall prepare and sign a
written notice of appeal specifying:
(1) the order appealed from;
(2) that appellant appeals from the order to the Workers' Compensation Court of Appeals;
(3) the particular finding of fact or conclusion of law which the appellant claims was
unsupported by substantial evidence in view of the entire record as submitted or procured by
fraud, coercion, or other improper conduct; and
(4) any other ground upon which the appeal is taken.
An appeal initiates the preparation of a typewritten transcript of the entire record unless the
appeal is solely from an award of attorney's fees or an award of costs and disbursements or unless
otherwise ordered by the court of appeals. On appeals from an award of attorney's fees or an award
of costs and disbursements, the appellant must specifically delineate in the notice of appeal the
portions of the record to be transcribed in order for the Court of Appeals to consider the appeal.
    Subd. 3a. Cross-appeal. The respondent may cross-appeal within the 30-day period for
taking an appeal, or within 15 days after service of the notice of appeal on that respondent,
whichever is later.
    Subd. 4. Service and filing of notice; cost of transcript. Within the 30-day period for
taking an appeal, the appellant shall:
(1) serve a copy of the notice of appeal on each adverse party; and
(2) file the original notice, with proof of service by admission or affidavit, with the chief
administrative law judge and file a copy with the commissioner. Alternatively, the original
may be retained by the filing party and a copy of the original filed by facsimile with the chief
administrative law judge and the commissioner. Facsimile filings must be 15 pages or less in
length. A facsimile appeal received after 4:30 p.m. on a state business day is considered filed on
the next state business day.
In order to defray the cost of the preparation of the record of the proceedings appealed
from, each appellant and cross-appellant shall pay to the commissioner of finance, Office of
Administrative Hearings account the sum of $25. The filing fee must be received by the Office of
Administrative Hearings within ten business days after the end of the appeal period. If the filing
fee is not received within ten days after the appeal period, the appeal is not timely filed.
The first party to file an appeal is liable for the original cost of preparation of the transcript.
Cross-appellants or any other persons requesting a copy of the transcript are liable for the cost
of the copy. The chief administrative law judge may require payment for transcription costs
to be made in advance of the transcript preparation. The cost of a transcript prepared by a
nongovernmental source shall be paid directly to that source and shall not exceed the cost that the
source would be able to charge the state for the same service.
Upon a showing of cause, the chief administrative law judge may direct that a transcript be
prepared without expense to the party requesting its preparation, in which case the cost of the
transcript shall be paid by the Office of Administrative Hearings.
All fees received by the Office of Administrative Hearings for the preparation of the record
for submission to the Workers' Compensation Court of Appeals or for the cost of transcripts
prepared by the office shall be deposited in the Office of Administrative Hearings account in the
state treasury and shall be used solely for the purpose of keeping the record of hearings conducted
under this chapter and the preparation of transcripts of those hearings.
    Subd. 5. Transcript; certification of the record. When the notice of appeal has been filed
with the chief administrative law judge and the fee for the preparation of the record has been
paid, the chief administrative law judge shall immediately order the preparation of a typewritten
transcript of that part of the hearing delineated in the notice. The official reporter or other person
designated by the chief administrative law judge who transcribes the proceedings shall certify
to their correctness.
If the transcript is prepared by a person who is not an employee of the Office of
Administrative Hearings, upon completion of the transcript, the original shall be filed with the
chief administrative law judge.
When the transcript has been completed and is on file with the chief administrative law
judge, the chief judge shall certify the record to the Workers' Compensation Court of Appeals and
notify the commissioner of the certification.
    Subd. 6. Powers of Workers' Compensation Court of Appeals on appeal. On an appeal
taken under this section, the Workers' Compensation Court of Appeals' review is limited to the
issues raised by the parties in the notice of appeal or by a cross-appeal. In these cases, on those
issues raised by the appeal, the Workers' Compensation Court of Appeals may:
(1) grant an oral argument based on the record before the compensation judge;
(2) examine the record;
(3) substitute for the findings of fact made by the compensation judge findings based on the
total evidence;
(4) sustain, reverse, make or modify an award or disallowance of compensation or other
order based on the facts, findings, and law; and
(5) remand or make other appropriate order.
    Subd. 6a. Time limit for decision. The court shall issue a decision in each case within
90 days after certification of the record to the court by the chief administrative law judge, the
filing of a cross-appeal, oral argument, or a final submission of briefs or memoranda by the
parties, whichever is latest. For cases submitted without oral argument, a decision shall be issued
within 90 days after assignment of the case to the judges. The chief judge may waive the 90-day
limitation for any proceeding before the court for good cause shown. No part of the salary of a
Workers' Compensation Court of Appeals judge may be paid unless the judge, upon accepting the
payment, certifies that decisions in cases in which the judge has participated have been issued
within the time limits prescribed by this subdivision.
    Subd. 7. Record of proceedings. At the division's own expense, the commissioner shall
make a complete record of all proceedings before the commissioner and shall provide a
stenographer or an audio magnetic recording device to make the record of the proceedings.
The commissioner shall furnish a transcript of these proceedings to any person who
requests it and who pays a reasonable charge which shall be set by the commissioner. Upon a
showing of cause, the commissioner may direct that a transcript be prepared without expense
to the person requesting the transcript, in which case the cost of the transcript shall be paid
by the division. Transcript fees received under this subdivision shall be paid to the Workers'
Compensation Division account in the state treasury and shall be annually appropriated to the
division for the sole purpose of providing a record and transcripts as provided in this subdivision.
This subdivision does not apply to any administrative conference or other proceeding before the
commissioner which may be heard de novo in another proceeding including but not limited to
proceedings under section 176.106 or 176.239.
History: 1953 c 755 s 59; Ex1967 c 1 s 6; 1969 c 276 s 2; 1973 c 388 s 113-115; 1975 c 271
s 6; 1975 c 359 s 23; 1976 c 134 s 78; 1981 c 346 s 120-124; 3Sp1981 c 2 art 1 s 21-23; 1983 c
290 s 150-153; 1983 c 301 s 148-150; 1984 c 432 art 2 s 46; 1984 c 640 s 32; 1986 c 444; 1986 c
461 s 32; 1987 c 332 s 92,93; 1989 c 209 art 2 s 25; 1990 c 426 art 1 s 23; 1990 c 571 s 38; 1991
c 345 art 1 s 79; 1992 c 510 art 2 s 10; 2003 c 112 art 2 s 50; 2006 c 178 s 2
176.43 [Repealed, 1953 c 755 s 83]
176.431 [Repealed, 1986 c 461 s 37]
176.44 [Repealed, 1953 c 755 s 83]
    Subdivision 1.[Repealed, 1986 c 461 s 37]
    Subd. 2.[Repealed, 1981 c 346 s 145; 1986 c 461 s 37]
176.442 APPEALS FROM DECISIONS OF COMMISSIONER.
Except for a commissioner's decision which may be heard de novo in another proceeding
including but not limited to a decision from an administrative conference under section 176.102,
176.103, 176.106, 176.239, or a summary decision under section 176.305, any decision or
determination of the commissioner affecting a right, privilege, benefit, or duty which is imposed
or conferred under this chapter is subject to review by the Workers' Compensation Court of
Appeals. A person aggrieved by the determination may appeal to the Workers' Compensation
Court of Appeals by filing a notice of appeal with the commissioner in the same manner and
within the same time as if the appeal were from an order or decision of a compensation judge to
the Workers' Compensation Court of Appeals.
History: 1973 c 388 s 119; 1975 c 271 s 6; 1975 c 359 s 23; 1976 c 134 s 78; 1983 c 290 s
154; 1984 c 432 art 2 s 47; 1987 c 332 s 94; 1987 c 384 art 3 s 3
176.445 [Repealed, 2001 c 123 s 23]
176.45 [Repealed, 1953 c 755 s 83]
176.451 DEFAULTS.
    Subdivision 1. Application to district court for judgment. Where there has been a default
of more than 30 days in the payment of compensation due under an award, the employee, or the
employee's dependent, or other person entitled to the payment of money under the award, may
apply to the judge of any district court for the entry of judgment upon the award.
    Subd. 2. Certified copy of award; filing, notice. The application shall be made by filing a
certified copy of the award with the court administrator and by serving a ten days' notice upon
adverse parties. Service of the notice shall be made in the manner provided by court rule for
service of summons in district court.
    Subd. 3. Court administrator's fees. The court administrator shall charge $5 for the entire
service the court administrator performs under this section.
    Subd. 4. Matters for determination; judgment. When a judge hears the application for
judgment upon the award, the judge has authority to determine only the facts of the award and
the regularity of the proceedings upon which the award is based. The judge shall enter judgment
accordingly.
Judgment shall not be entered upon an award while an appeal is pending.
    Subd. 5. Effect of district court judgment. The judgment of the district court entered
upon an award has the same force and effect, and may be vacated, set aside, or satisfied as may
other judgments of the district court.
History: 1953 c 755 s 62; 1986 c 442 s 1; 1986 c 444; 1Sp1986 c 3 art 1 s 82
176.46 [Repealed, 1953 c 755 s 83]
176.461 SETTING ASIDE AWARD.
Except when a writ of certiorari has been issued by the Supreme Court and the matter is still
pending in that court or if as a matter of law the determination of the Supreme Court cannot be
subsequently modified, the Workers' Compensation Court of Appeals, for cause, at any time after
an award, upon application of either party and not less than five working days after written notice
to all interested parties, may set the award aside and grant a new hearing and refer the matter for a
determination on its merits to the chief administrative law judge for assignment to a compensation
judge, who shall make findings of fact, conclusions of law, and an order of award or disallowance
of compensation or other order based on the pleadings and the evidence produced and as required
by the provisions of this chapter or rules adopted under it.
As used in this section, the phrase "for cause" is limited to the following:
(1) a mutual mistake of fact;
(2) newly discovered evidence;
(3) fraud; or
(4) a substantial change in medical condition since the time of the award that was clearly not
anticipated and could not reasonably have been anticipated at the time of the award.
History: 1953 c 755 s 63; Ex1967 c 40 s 15; 1973 c 388 s 120; 1975 c 271 s 6; 1975 c 359 s
18,23; 1976 c 134 s 78; 1981 c 346 s 127; 1983 c 290 s 155; 1984 c 640 s 32; 1992 c 510 art 2 s 11
176.47 [Repealed, 1953 c 755 s 83]
176.471 REVIEW BY SUPREME COURT ON CERTIORARI.
    Subdivision 1. Time for seeking review; grounds. Where the Workers' Compensation Court
of Appeals has made an award or disallowance of compensation or other order, a party in interest
who acts within 30 days from the date the party was served with notice of the order may have the
order reviewed by the Supreme Court on certiorari upon one of the following grounds:
(1) the order does not conform with this chapter;
(2) the Workers' Compensation Court of Appeals committed any other error of law; or
(3) the findings of fact and order were unsupported by substantial evidence in view of the
entire record as submitted.
    Subd. 2. Extension of time for seeking review or for filing other papers. Where cause is
shown within the 30-day period referred to in subdivision 1, the Supreme Court may extend the
time for seeking review on certiorari. The Supreme Court may also extend the time for filing any
other paper which this chapter requires to be filed with that court.
    Subd. 3. Service of writ and bond; filing fee. To effect a review upon certiorari, the party
shall serve a writ of certiorari and a bond upon the administrator of the Workers' Compensation
Court of Appeals within the 30-day period referred to in subdivision 1. The party shall also at this
time pay to the administrator the fee prescribed by rule 103.01 of the Rules of Civil Appellate
Procedure which shall be disposed of in the manner provided by that rule.
    Subd. 4. Contents of writ. The writ of certiorari required by subdivision 3 shall show that a
review is to be had in the Supreme Court of the proceedings of the Workers' Compensation
Court of Appeals upon which the order is based.
    Subd. 5. Bond. The bond required by subdivision 3 shall be executed in such amount and
with such sureties as the Workers' Compensation Court of Appeals directs and approves. The
bond shall be conditioned to pay the cost of the review.
    Subd. 6. Transmittal of fee and return. When the writ of certiorari has been served upon
the administrator of the Workers' Compensation Court of Appeals, the bond has been filed, and the
filing fee has been paid, the administrator shall immediately transmit to the clerk of the appellate
courts that filing fee and the return to the writ of certiorari and bond.
    Subd. 7. Jurisdiction vested. Filing such return and payment of the filing fee referred to in
subdivision 6 vests the Supreme Court with jurisdiction of the case.
    Subd. 8. Return of proceedings transmitted to court. Within 30 days after the writ
of certiorari, bond, and filing fee have been filed with the administrator of the Workers'
Compensation Court of Appeals, the administrator shall transmit to the clerk of the appellate
courts a true and complete return of the proceedings of the Workers' Compensation Court of
Appeals under review, or the part of those proceedings necessary to allow the Supreme Court
to review properly the questions presented.
The Workers' Compensation Court of Appeals shall certify the return of the proceedings
under its seal. The petitioner or relator shall pay to the administrator of the Workers' Compensation
Court of Appeals the reasonable expense of preparing the return.
    Subd. 9. Application of rules governing appeals in civil actions. When the return of the
proceedings before the Workers' Compensation Court of Appeals has been filed with the clerk of
the appellate courts, the Supreme Court shall hear and dispose of the matter as in other civil cases.
    Subd. 10. Rules. The Supreme Court may adopt rules which are consistent with this chapter
and necessary or convenient to the impartial and speedy disposition of these cases.
History: 1953 c 755 s 64; 1971 c 686 s 1; 1973 c 388 s 121-124; 1975 c 271 s 6; 1975 c
359 s 23; 1976 c 134 s 78; 1976 c 239 s 37; 1981 c 346 s 128-131; 1983 c 247 s 72-74; 1983 c
301 s 152; 1986 c 444
176.48 [Repealed, 1953 c 755 s 83]
176.481 ORIGINAL JURISDICTION OF SUPREME COURT.
On review upon certiorari under this chapter, the Supreme Court has original jurisdiction. It
may reverse, affirm, or modify the order allowing or disallowing compensation and enter such
judgment as it deems just and proper. Where necessary the Supreme Court may remand the cause
to the Workers' Compensation Court of Appeals for a new hearing or for further proceedings
with such directions as the court deems proper.
History: 1953 c 755 s 65; 1975 c 271 s 6; 1975 c 359 s 23; 1976 c 134 s 78
176.49 [Repealed, 1953 c 755 s 83]
176.491 STAY OF PROCEEDINGS PENDING DISPOSITION OF CASE.
Where a writ of certiorari has been perfected under this chapter, it stays all proceedings
for the enforcement of the order being reviewed until the case has been finally disposed of
either in the Supreme Court or, where the cause has been remanded for a new hearing before a
compensation judge or further proceedings before the Workers' Compensation Court of Appeals.
History: 1953 c 755 s 66; 1973 c 388 s 125; 1975 c 271 s 6; 1975 c 359 s 23; 1976 c
134 s 78; 1981 c 346 s 132
176.50 [Repealed, 1953 c 755 s 83]
176.501 [Repealed, 1987 c 332 s 117]
176.51 [Repealed, 1953 c 755 s 83]

COSTS

176.511 COSTS.
    Subdivision 1. Parties not awarded costs. Except as provided otherwise by this chapter
and specifically by this section, in appeals before the Court of Appeals or proceedings before the
division or a compensation judge, costs shall not be awarded to any party.
    Subd. 2. Disbursements, taxation. The commissioner or compensation judge, or on appeal
the Workers' Compensation Court of Appeals, may award the prevailing party reimbursement
for actual and necessary disbursements. These disbursements shall be taxed upon five days'
written notice to adverse parties.
    Subd. 3. Attorney's fee, allowance. Where upon an appeal to the Workers' Compensation
Court of Appeals, an award of compensation is affirmed, or modified and affirmed, or an order
disallowing compensation is reversed, the Workers' Compensation Court of Appeals may include
in its award as an incident to its review on appeal an amount to cover a reasonable attorney's fee,
or it may allow the fee in a proceeding to tax disbursements.
If the employer or insurer files a notice of discontinuance of an employee's benefits and
an administrative conference is held to resolve the dispute, but the employer or insurer fails
to attend the administrative conference, the commissioner or compensation judge may order
the employer or insurer to pay the employee's attorney fees as a cost under this section if the
employee's benefits are continued.
    Subd. 4. Costs and disbursements on certiorari. On review by the Supreme Court upon
certiorari, costs and disbursements shall be taxed as they are upon appeals in civil actions.
    Subd. 5. Attorney's fee on certiorari. Where upon a review by the Supreme Court
upon certiorari, an award of compensation is affirmed, or modified and affirmed, or an order
disallowing compensation is reversed, the court may allow a reasonable attorney's fee incident
to the review. This allowance of an attorney's fee shall be made a part of the judgment order of
the Supreme Court.
History: 1953 c 755 s 68; 1969 c 276 s 2; 1973 c 388 s 126; 1975 c 271 s 6; 1975 c 359 s
19,23; 1976 c 134 s 78; 1977 c 342 s 22; 1981 c 346 s 133; 1985 c 234 s 16,17; 1987 c 332 s 95-97
176.52 [Repealed, 1953 c 755 s 83]

SETTLEMENTS

176.521 SETTLEMENT OF CLAIMS.
    Subdivision 1. Validity. An agreement between an employee or an employee's dependent
and the employer or insurer to settle any claim, which is not upon appeal before the court of
appeals, for compensation under this chapter is valid where it has been executed in writing and
signed by the parties and intervenors in the matter, and, where one or more of the parties is
not represented by an attorney, the commissioner or a compensation judge has approved the
settlement and made an award thereon. If the matter is upon appeal before the Court of Appeals or
district court, the court of appeals or district court is the approving body. An agreement to settle
any claim is not valid if a guardian or conservator is required under section 176.092 and an
employee or dependent has no guardian or conservator.
    Subd. 2. Approval. Settlements shall be approved only if the terms conform with this chapter.
The commissioner, a compensation judge, the court of appeals, and the district court shall
exercise discretion in approving or disapproving a proposed settlement.
The parties to the agreement of settlement have the burden of proving that the settlement
is reasonable, fair, and in conformity with this chapter. A settlement agreement where both the
employee or the employee's dependent and the employer or insurer are represented by an attorney
shall be conclusively presumed to be reasonable, fair, and in conformity with this chapter except
when the settlement purports to be a full, final, and complete settlement of an employee's right to
medical compensation under this chapter or rehabilitation under section 176.102. A settlement
which purports to do so must be approved by the commissioner, a compensation judge, or court
of appeals.
The conclusive presumption in this subdivision is not available in cases involving an
employee or dependent with a guardian or conservator.
The conclusive presumption in this subdivision applies to a settlement agreement entered
into on or after January 15, 1982, whether the injury to which the settlement applies occurred
prior to or on or after January 15, 1982.
    Subd. 2a. Settlements not subject to approval. When a settled case is not subject to
approval, upon receipt of the stipulation for settlement, the commissioner, a compensation judge,
or the court of appeals shall immediately sign the award and file it with the commissioner.
Payment pursuant to the award shall be made within 14 days after it is filed with the commissioner.
The commissioner may correct mathematical or clerical errors at any time.
    Subd. 3. Setting aside award upon settlement. Notwithstanding the provisions of
subdivision 1, 2, or 2a, or any provision in the agreement of settlement to the contrary, upon the
filing of a petition by any party to the settlement, the court of appeals may set aside an award made
upon a settlement, pursuant to this chapter. In appropriate cases, the court of appeals may refer the
matter to the chief administrative law judge for assignment to a compensation judge for hearing.
History: 1953 c 755 s 69; 1973 c 388 s 127,128; 1975 c 271 s 6; 1975 c 359 s 23; 1976 c
134 s 78; 1979 c 271 s 1; Ex1979 c 3 s 60; 1981 c 346 s 134,135; 3Sp1981 c 2 art 1 s 24-26; 1983
c 290 s 156-158; 1984 c 640 s 32; 1986 c 444; 1986 c 461 s 33; 1987 c 332 s 98; 1993 c 194 s 7,8
176.522 NOTICE TO EMPLOYER.
An employer shall be notified by the insurer 30 days after any final valid settlement is
approved or otherwise made final under any provision of this chapter. The notice shall include all
terms of the settlement including the total amount of money required to be reserved in order to
pay the claim.
History: 1983 c 290 s 159
176.53 [Repealed, 1953 c 755 s 83]

GOVERNMENT ISSUES

176.531 AWARD OF COMPENSATION AGAINST A POLITICAL SUBDIVISION OR
SCHOOL DISTRICT.
    Subdivision 1. Preferred claim. Where there has been an award of compensation under this
chapter to be paid by a political subdivision or a school district, the entitlement of a person to
payment under the award is a preferred claim against the subdivision or district. The award shall
be paid when and as ordered from the general fund of the subdivision or district, and from the
current tax apportionment received by the subdivision or district for the credit of the general fund.
    Subd. 2. Payment from general fund. When the political subdivision or school district
has issued an order or warrant for payment of compensation, and the order or warrant has not
been paid, it is a preferred claim which shall be paid from the general fund and from current
tax apportionments received for the credit of the general fund before any subsequent claim for
compensation is paid.
    Subd. 3. Prompt payment. It is the intent of this section that there be prompt payment of
compensation.
History: 1953 c 755 s 70; 1973 c 388 s 129; 1981 c 346 s 136
176.54 [Repealed, 1953 c 755 s 83]
176.540 [Renumbered 176.5401]
176.5401 TRANSFER OF STATE CLAIMS UNIT TO DEPARTMENT OF EMPLOYEE
RELATIONS.
The responsibilities of the commissioner of labor and industry relating to the administration
and payment of workers' compensation benefits to state employees under this chapter and the
administration of the peace officers benefits fund under chapter 176B, and the staff assigned to
administer these responsibilities, are hereby transferred to the Department of Employee Relations
under section 15.039. The complement positions to be transferred shall be determined by the
commissioner of administration in consultation with the commissioners of employee relations
and labor and industry.
History: 1987 c 332 s 99; 1987 c 332 s 99
176.541 STATE DEPARTMENTS.
    Subdivision 1. Application of chapter to state employees. This chapter applies to the
employees of any department of this state.
    Subd. 2. Defense of claim against state. When the commissioner of employee relations
believes that a claim against the state for compensation should be contested, the commissioner
shall defend the state claim.
    Subd. 3. Duties of attorney general. At any stage in such a compensation proceeding,
the attorney general may assume the duty of defending the state. When the commissioner of
employee relations or a department of this state requests the attorney general to assume the
defense, the attorney general shall do so.
    Subd. 4. Medical examination of employee; witnesses; conduct of defense. In conducting
a defense against a claim for compensation, the commissioner of the Department of Employee
Relations or the attorney general, as the case may be, may require that an employee submit to a
medical examination, procure the attendance of expert and other witnesses at a hearing, and do
any other act necessary to conduct a proper defense.
    Subd. 5. Expenses of conducting defense. The expenses of conducting a defense shall be
charged to the department which employs the employee involved. These expenses shall be paid
from the state compensation revolving fund.
    Subd. 6. Legal and clerical help. The commissioner of employee relations may employ such
legal and clerical help as authorized by the Department of Administration. The salaries of these
persons shall be paid from the state compensation revolving fund, but shall be apportioned among
the several departments of the state in relation to the amount of compensation paid to employees of
any department as against the total amount of compensation paid to employees of all departments.
    Subd. 7. Historical Society as state department. For the purposes of workers' compensation
as provided by this chapter, the Minnesota Historical Society is a state department and such
chapter applies to its employees the same as it applies to employees of any department of the
state government.
    Subd. 8. State may insure. The state of Minnesota may elect to insure its liability under
the workers' compensation law for persons employed under the federal Emergency Employment
Act of 1971, as amended, and the Comprehensive Employment and Training Act of 1973, as
amended, with an insurer properly licensed in Minnesota.
History: 1953 c 755 s 71; 1967 c 8 s 1; 1971 c 422 s 10; 1973 c 388 s 130-133; 1975 c 2 s 2;
1975 c 359 s 23; 1986 c 444; 1987 c 332 s 100-103
176.55 [Repealed, 1953 c 755 s 83]
176.551 REPORTS.
    Subdivision 1. Heads of state departments to report accidents to employees. Except as
provided in subdivision 2, the head of a department of the state shall report each accident which
occurs to an employee as and in the manner required by this chapter.
    Subd. 2. Contents. The report need not contain a statement relating to liability to pay
compensation as required by this chapter.
History: 1953 c 755 s 72
176.56 [Repealed, 1953 c 755 s 83]
176.561 WORKERS' COMPENSATION COURT OF APPEALS POWERS AND DUTIES
AS TO STATE EMPLOYEES; PROCEDURE FOR DETERMINING LIABILITY.
The division, a compensation judge and the Workers' Compensation Court of Appeals
have the same powers and duties in matters relating to state employees as they have in relation
to other employees.
Except as specifically provided otherwise in this chapter, the procedure for determining the
liability of the state for compensation is the same as that applicable in other cases.
History: 1953 c 755 s 73; 1973 c 388 s 134; 1975 c 271 s 6; 1975 c 359 s 23; 1976 c
134 s 78; 1983 c 290 s 160
176.57 [Repealed, 1953 c 755 s 83]
176.571 INVESTIGATIONS OF INJURIES TO STATE EMPLOYEES.
    Subdivision 1. Preliminary investigation. When the head of a department has filed a
report or the commissioner of employee relations has otherwise received information of the
occurrence of an injury to a state employee for which liability to pay compensation may exist,
the commissioner of employee relations shall make a preliminary investigation to determine
the question of probable liability.
In making this investigation, the commissioner of employee relations may require the
assistance of the head of any department or any employee of the state. The commissioner of
employee relations may require that all facts be furnished which appear in the records of any
state department bearing on the issue.
    Subd. 2. Determination by department. When the commissioner of the Department of
Employee Relations has completed an investigation, the commissioner shall inform the claimant,
the head of the employing department, and the commissioner of finance in writing of the action
taken.
    Subd. 3.[Repealed, 1987 c 332 s 117]
    Subd. 4.[Repealed, 1987 c 332 s 117]
    Subd. 5.[Repealed, 1987 c 332 s 117]
    Subd. 6.[Repealed, 1987 c 332 s 117]
    Subd. 7.[Repealed, 1987 c 332 s 117]
History: 1953 c 755 s 74; 1973 c 388 s 135-141; 1983 c 290 s 161; 1984 c 640 s 32; 1986 c
444; 1987 c 332 s 104,105
176.572 CONTRACT WITH INSURANCE CARRIERS.
The commissioner of employee relations may contract with group health insurance carriers
or health maintenance organizations to provide health care services and reimburse health care
payments for injured state employees entitled to benefits under this chapter.
History: 1983 c 290 s 162; 1987 c 332 s 106
176.58 [Repealed, 1953 c 755 s 83]
176.581 PAYMENT TO STATE EMPLOYEES.
Upon a warrant prepared by the commissioner of the Department of Employee Relations,
and in accordance with the terms of the order awarding compensation, the commissioner of
finance shall pay compensation to the employee or the employee's dependent. These payments
shall be made from money appropriated for this purpose.
History: 1953 c 755 s 75; 1973 c 388 s 142-144; 1973 c 492 s 14; 1986 c 444; 1987 c 332 s
107; 2003 c 112 art 2 s 26
176.59 [Repealed, 1953 c 755 s 83]
176.591 STATE COMPENSATION REVOLVING FUND.
    Subdivision 1. Establishment. To facilitate the discharge by the state of its obligations
under this chapter, there is established a revolving fund to be known as the state compensation
revolving fund.
This fund is comprised of the unexpended balance in the fund on July 1, 1935, and the sums
which the several departments of the state pay to the fund.
    Subd. 2. Commissioner of finance as custodian. The commissioner of finance is custodian
of this fund.
    Subd. 3. Compensation payments upon warrants. The commissioner of finance shall
make compensation payments from the fund only as authorized by this chapter upon warrants of
the commissioner of the Department of Employee Relations.
History: 1953 c 755 s 76; 1973 c 388 s 145; 1987 c 332 s 108; 2003 c 112 art 2 s 50
176.60 [Repealed, 1953 c 755 s 83]
176.601 [Repealed, 1974 c 355 s 30]
176.602 [Repealed, 1987 c 332 s 117]
176.603 COST OF ADMINISTERING CHAPTER, PAYMENT.
The annual cost to the commissioner of the Department of Employee Relations of
administering this chapter in relation to state employees and the necessary expenses which the
Department of Employee Relations or the attorney general incurs in investigating, administering,
and defending a claim against the state for compensation shall be paid from the state compensation
revolving fund.
History: 1974 c 355 s 32; 1986 c 461 s 34; 1987 c 332 s 109
176.61 [Repealed, 1953 c 755 s 83]
176.611 MAINTENANCE OF STATE COMPENSATION REVOLVING FUND.
    Subdivision 1. Generally. The state compensation revolving fund shall be maintained as
provided in the following subdivisions.
    Subd. 2. State departments. Every department of the state, including the University of
Minnesota, shall reimburse the fund for money paid for its claims and the costs of administering
the revolving fund at such times and in such amounts as the commissioner of employee relations
shall certify has been paid out of the fund on its behalf. The heads of the departments shall
anticipate these payments by including them in their budgets. In addition, the commissioner of
employee relations, with the approval of the commissioner of finance, may require an agency to
make advance payments to the fund sufficient to cover the agency's estimated obligation for a
period of at least 60 days. Reimbursements and other money received by the commissioner of
employee relations under this subdivision must be credited to the state compensation revolving
fund.
    Subd. 2a. Alternative cost allocation account. To reduce long-term costs, minimize
impairment to agency operations and budgets, and distribute risk of 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 legal, medical, indemnity, or other claim costs that might 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.
    Subd. 3.[Repealed, 1986 c 461 s 37]
    Subd. 3a. Loans. To maintain an ongoing balance sufficient to pay sums currently due for
benefits and administrative costs, the commissioner of finance, upon request of the commissioner
of employee relations, may transfer money from the general fund to the state compensation
revolving fund. Before requesting the transfer, the commissioner of employee relations must
decide there is not enough money in the fund for an immediate, necessary expenditure. The
amount necessary to make the transfer is appropriated from the general fund to the commissioner
of finance. The commissioner of employee relations shall make schedules to repay the transferred
money to the general fund. The repayment may not extend beyond five years.
    Subd. 4.[Repealed, 1986 c 461 s 37]
    Subd. 5.[Repealed, 1974 c 355 s 14]
    Subd. 6.[Repealed, 1974 c 355 s 14]
    Subd. 6a. Appropriations constituting fund. The revolving fund consists of $3,437,690
appropriated from the general fund and other funds, along with credited investment gains or losses
attributable to balances in the account. The State Board of Investment shall invest the fund's
assets according to section 11A.24.
History: 1953 c 755 s 78; 1955 c 744 s 1; 1957 c 656 s 1; 1963 c 551 s 1; 1965 c 57 s 1;
1969 c 399 s 49; 1971 c 907 s 1; 1973 c 388 s 147-149; 1974 c 355 s 15; 1975 c 204 s 77; 1976 c
166 s 7; 1979 c 50 s 19; 1986 c 461 s 35; 1987 c 404 s 151-153; 1988 c 667 s 24,25; 1994 c 632
art 3 s 52; 1997 c 202 art 2 s 41; 2000 c 447 s 22
176.62 [Repealed, 1953 c 755 s 83]
176.621 [Repealed, 1975 c 61 s 26]
176.63 [Repealed, 1953 c 755 s 83]
176.631 [Repealed, 1975 c 61 s 26]
176.64 [Repealed, 1953 c 755 s 83]

MISCELLANEOUS

176.641 ACCIDENTS OR INJURIES ARISING PRIOR TO EFFECTIVE DATE.
All rights and liabilities arising on account of accidents or injuries occurring prior to the
taking effect of this chapter shall be governed by the then existing law.
History: 1953 c 755 s 81
176.645 ADJUSTMENT OF BENEFITS.
    Subdivision 1. Amount. For injuries occurring after October 1, 1975 for which benefits are
payable under section 176.101, subdivisions 1, 2 and 4, and section 176.111, subdivision 5, the
total benefits due the employee or any dependents shall be adjusted in accordance with this section.
On October 1, 1981, and thereafter on the anniversary of the date of the employee's injury the total
benefits due shall be adjusted by multiplying the total benefits due prior to each adjustment by a
fraction, the denominator of which is the statewide average weekly wage for December 31, of the
year two years previous to the adjustment and the numerator of which is the statewide average
weekly wage for December 31, of the year previous to the adjustment. For injuries occurring after
October 1, 1975, all adjustments provided for in this section shall be included in computing any
benefit due under this section. Any limitations of amounts due for daily or weekly compensation
under this chapter shall not apply to adjustments made under this section. No adjustment increase
made on or after October 1, 1977, but prior to October 1, 1992, under this section shall exceed six
percent a year; in those instances where the adjustment under the formula of this section would
exceed this maximum, the increase shall be deemed to be six percent. No adjustment increase
made on or after October 1, 1992, under this section shall exceed four percent a year; in those
instances where the adjustment under the formula of this section would exceed this maximum, the
increase shall be deemed to be four percent. For injuries occurring on and after October 1, 1995,
no adjustment increase made on or after October 1, 1995, shall exceed two percent a year; in those
instances where the adjustment under the formula of this section would exceed this maximum, the
increase shall be deemed to be two percent. The Workers' Compensation Advisory Council may
consider adjustment or other further increases and make recommendations to the legislature.
    Subd. 2. Time of first adjustment. For injuries occurring on or after October 1, 1981, the
initial adjustment made pursuant to subdivision 1 is deferred until the first anniversary of the date
of the injury. For injuries occurring on or after October 1, 1992, the initial adjustment under
subdivision 1 is deferred until the second anniversary of the date of the injury. The adjustment
made at that time shall be that of the last year only. For injuries occurring on or after October 1,
1995, the initial adjustment under subdivision 1 is deferred until the fourth anniversary of the date
of injury. The adjustment at that time shall be that of the last year only.
History: 1975 c 359 s 20; 1977 c 342 s 23; 1981 c 346 s 137; 1992 c 510 art 1 s 12,13;
1995 c 231 art 1 s 28
176.65 [Repealed, 1953 c 755 s 83]
176.651 SEVERABILITY.
In case for any reason any paragraph or any provision of this chapter shall be questioned in
any court of last resort, and shall be held by such court to be unconstitutional or invalid, the same
shall not be held to affect any other paragraph or provision thereof.
History: 1953 c 755 s 82
176.66 OCCUPATIONAL DISEASES; HOW REGARDED.
    Subdivision 1. Disability, disablement. The disablement of an employee resulting from an
occupational disease shall be regarded as a personal injury within the meaning of the workers'
compensation law.
    Subd. 2.[Repealed, 1973 c 643 s 12]
    Subd. 3.[Repealed, 1973 c 643 s 12]
    Subd. 4.[Repealed, 1973 c 643 s 12]
    Subd. 5.[Repealed, 1973 c 643 s 12]
    Subd. 6.[Repealed, 1973 c 643 s 12]
    Subd. 7.[Repealed, 1973 c 643 s 12]
    Subd. 8.[Repealed, 1973 c 643 s 12]
    Subd. 9.[Repealed, 1973 c 643 s 12]
    Subd. 10. Multiple employers or insurers; liability. The employer liable for the
compensation for a personal injury under this chapter is the employer in whose employment the
employee was last exposed in a significant way to the hazard of the occupational disease. In the
event that the employer who is liable for the compensation had multiple insurers during the
employee's term of employment, the insurer who was on the risk during the employee's last
significant exposure to the hazard of the occupational disease is the liable party. Where there is a
dispute as to which employer is liable under this section, the employer in whose employment the
employee is last exposed to the hazard of the occupational disease shall pay benefits pursuant
to section 176.191, subdivision 1. If this last employer had coverage for workers' compensation
liability from more than one insurer during the employment the insurer on the risk during the
last period during which the employee was last exposed to the hazard of the occupational disease
shall pay benefits as provided under section 176.191, subdivision 1, whether or not this insurer
was on risk during the last significant exposure. The party making payments under this section
shall be reimbursed by the party who is subsequently determined to be liable for the occupational
disease, including interest at a rate of 12 percent a year. For purposes of this section, a self-insured
employer shall be considered to be an insurer and an employer.
    Subd. 11. Amount of compensation. The compensation for an occupational disease is
66-2/3 percent of the employee's weekly wage on the date of injury subject to a maximum
compensation equal to the maximum compensation in effect on the date of last exposure.
History: (4327) 1921 c 82 s 67; 1939 c 306; 1943 c 633 s 4; 1947 c 612 s 1; 1949 c 500 s
1-3; 1955 c 206 s 2; 1957 c 834 s 2; 1959 c 20 s 2; 1963 c 497 s 2; 1967 c 905 s 9; Ex1967 c 1
s 6; 1973 c 643 s 11; 1975 c 359 s 23; 1983 c 290 s 163,164; 1984 c 432 art 2 s 48,49; 1985
c 234 s 18; 1995 c 231 art 1 s 29
176.661 [Repealed, 1973 c 643 s 12; 1976 c 2 s 164]
176.662 [Repealed, 1973 c 643 s 12; 1976 c 2 s 164]
176.663 [Repealed, 1973 c 643 s 12; 1976 c 2 s 164]
176.664 [Repealed, 1973 c 643 s 12; 1976 c 2 s 164]
176.665 [Repealed, 1973 c 643 s 12; 1976 c 2 s 164]
176.666 [Repealed, 1973 c 643 s 12; 1976 c 2 s 164]
176.667 [Repealed, 1973 c 643 s 12; 1976 c 2 s 164]
176.668 [Repealed, 1973 c 643 s 12; 1976 c 2 s 164]
176.669 EXPENSES; RULES.
    Subdivision 1. Payment of expenses. Any expense incurred by the Department of Labor and
Industry in carrying out the purposes of Laws 1943, chapter 633, shall be paid out of the general
fund for the Department of Labor and Industry.
    Subd. 2. Making of rules. The department shall make such rules and orders with reference
to procedure as it deems necessary not inconsistent with Laws 1943, chapter 633.
History: 1943 c 633 s 15,16; 1969 c 9 s 49; 1973 c 388 s 164,165; 1985 c 248 s 70
176.67-176.79 [Repealed, 1953 c 755 s 83]
176.80 [Obsolete]
176.81 [Repealed, 1953 c 755 s 83]
176.82 ACTION FOR CIVIL DAMAGES FOR OBSTRUCTING EMPLOYEE SEEKING
BENEFITS.
    Subdivision 1. Retaliatory discharge. Any person discharging or threatening to discharge an
employee for seeking workers' compensation benefits or in any manner intentionally obstructing
an employee seeking workers' compensation benefits is liable in a civil action for damages
incurred by the employee including any diminution in workers' compensation benefits caused by a
violation of this section including costs and reasonable attorney fees, and for punitive damages
not to exceed three times the amount of any compensation benefit to which the employee is
entitled. Damages awarded under this section shall not be offset by any workers' compensation
benefits to which the employee is entitled.
    Subd. 2. Refusal to offer continued employment. An employer who, without reasonable
cause, refuses to offer continued employment to its employee when employment is available
within the employee's physical limitations shall be liable in a civil action for one year's wages.
The wages are payable from the date of the refusal to offer continued employment, and at
the same time and at the same rate as the employee's preinjury wage, to continue during the
period of the refusal up to a maximum of $15,000. These payments shall be in addition to any
other payments provided by this chapter. In determining the availability of employment, the
continuance in business of the employer shall be considered and written rules promulgated by the
employer with respect to seniority or the provisions or any collective bargaining agreement shall
govern. These payments shall not be covered by a contract of insurance. The employer shall be
served directly and be a party to the claim. This subdivision shall not apply to employers who
employ 15 or fewer full-time equivalent employees.
History: 1975 c 359 s 21,23; 1995 c 231 art 1 s 30

RULES

176.83 RULES.
    Subdivision 1. Generally. In addition to any other section under this chapter giving the
commissioner the authority to adopt rules, the commissioner may adopt, amend, or repeal rules
to implement the provisions of this chapter. The rules include but are not limited to the rules
listed in this section.
    Subd. 2. Rehabilitation. Rules necessary to implement and administer section 176.102,
including the establishment of qualifications necessary to be a qualified rehabilitation consultant
and the requirements to be an approved registered vendor of rehabilitation services.
The rules may also provide for penalties to be imposed by the commissioner against insurers
or self-insured employers who fail to provide rehabilitation consultation to employees pursuant to
section 176.102.
These rules may also establish criteria for determining "reasonable moving expenses" under
section 176.102.
The rules shall also establish criteria, guidelines, methods, or procedures to be met by an
employer or insurer in providing the initial rehabilitation consultation required under this chapter
which would permit the initial consultation to be provided by an individual other than a qualified
rehabilitation consultant. In the absence of rules regarding an initial consultation this consultation
shall be conducted pursuant to section 176.102.
    Subd. 3. Clinical consequences. Rules establishing standards for reviewing and evaluating
the clinical consequences of services provided by qualified rehabilitation consultants, approved
registered vendors of rehabilitation services, and services provided to an employee by health
care providers.
    Subd. 4. Excessive charges for medical services. Rules establishing standards and
procedures for determining whether or not charges for health services or rehabilitation services
rendered under this chapter are excessive. In this regard, the standards and procedures shall
be structured to determine what is necessary to encourage providers of health services and
rehabilitation services to develop and deliver services for the rehabilitation of injured employees.
The procedures shall include standards for evaluating hospital care, other health care and
rehabilitation services to insure that quality hospital, other health care, and rehabilitation is
available and is provided to injured employees.
    Subd. 5. Treatment standards for medical services. In consultation with the Medical
Services Review Board or the rehabilitation review panel, the commissioner shall adopt rules
establishing standards and procedures for health care provider treatment. The rules shall apply
uniformly to all providers including those providing managed care under section 176.1351. The
rules shall be used to determine whether a provider of health care services and rehabilitation
services, including a provider of medical, chiropractic, podiatric, surgical, hospital, or other
services, is performing procedures or providing services at a level or with a frequency that is
excessive, unnecessary, or inappropriate under section 176.135, subdivision 1, based upon
accepted medical standards for quality health care and accepted rehabilitation standards.
The rules shall include, but are not limited to, the following:
(1) criteria for diagnosis and treatment of the most common work-related injuries including,
but not limited to, low back injuries and upper extremity repetitive trauma injuries;
(2) criteria for surgical procedures including, but not limited to, diagnosis, prior conservative
treatment, supporting diagnostic imaging and testing, and anticipated outcome criteria;
(3) criteria for use of appliances, adaptive equipment, and use of health clubs or other
exercise facilities;
(4) criteria for diagnostic imaging procedures;
(5) criteria for inpatient hospitalization; and
(6) criteria for treatment of chronic pain.
If it is determined by the payer that the level, frequency or cost of a procedure or service of a
provider is excessive, unnecessary, or inappropriate according to the standards established by the
rules, the provider shall not be paid for the procedure, service, or cost by an insurer, self-insurer,
or group self-insurer, and the provider shall not be reimbursed or attempt to collect reimbursement
for the procedure, service, or cost from any other source, including the employee, another
insurer, the special compensation fund, or any government program unless the commissioner
or compensation judge determines at a hearing or administrative conference that the level,
frequency, or cost was not excessive under the rules in which case the insurer, self-insurer, or
group self-insurer shall make the payment deemed reasonable.
A rehabilitation provider who is determined by the Rehabilitation Review Panel Board, after
hearing, to be consistently performing procedures or providing services at an excessive level or
cost may be prohibited from receiving any further reimbursement for procedures or services
provided under this chapter. A prohibition imposed on a provider under this subdivision may
be grounds for revocation or suspension of the provider's license or certificate of registration
to provide health care or rehabilitation service in Minnesota by the appropriate licensing or
certifying body. The commissioner and Medical Services Review Board shall review excessive,
inappropriate, or unnecessary health care provider treatment under section 176.103.
    Subd. 5a. Reporting. Rules requiring insurers, self-insurers, and group self-insurers to report
medical and other data necessary to implement the procedures required by this chapter.
    Subd. 6. Certification of medical providers. Rules establishing procedures and standards
for the certification of physicians, chiropractors, podiatrists, and other health care providers in
order to assure the coordination of treatment, rehabilitation, and other services and requirements
of chapter 176 for carrying out the purposes and intent of this chapter.
    Subd. 7. Miscellaneous rules. Rules necessary for implementing and administering the
provisions of Minnesota Statutes 1990, section 176.131, Minnesota Statutes 1994, section
176.132, sections 176.238 and 176.239; sections 176.251, 176.66 to 176.669, and rules regarding
proper allocation of compensation under section 176.111. Under the rules adopted under section
176.111 a party may petition for a hearing before a compensation judge to determine the proper
allocation. In this case the compensation judge may order a different allocation than prescribed by
rule.
    Subd. 8. Change of provider. Rules establishing standards or criteria under which a
physician, podiatrist, or chiropractor is selected or under which a change of physician, podiatrist,
or chiropractor is allowed under section 176.135, subdivision 2.
    Subd. 9. Intervention. Rules to govern the procedure for intervention pursuant to section
176.361.
    Subd. 10. Joint rules. Joint rules with either or both the Workers' Compensation Court of
Appeals and the chief administrative law judge which may be necessary in order to provide for
the orderly processing of claims or petitions made or filed pursuant to this chapter.
    Subd. 11. Independent contractors. Rules establishing criteria to be used by the division,
compensation judge, and court of appeals to determine "independent contractor."
    Subd. 12. Compensation judge procedures. The chief administrative law judge shall adopt
rules relating to procedures in matters pending before a compensation judge in the Office of
Administrative Hearings.
    Subd. 13. Claims adjuster. The commissioner may adopt rules regarding requirements
which must be met by individuals who are employed by insurers or self-insurers or claims
servicing or adjusting agencies and who work as claims adjusters in the field of workers'
compensation insurance.
    Subd. 14.[Deleted, 1995 c 233 art 2 s 56]
    Subd. 15. Forms. The commissioner may prescribe forms and other reporting procedures to
be used by an employer, insurer, medical provider, qualified rehabilitation consultant, approved
vendor of rehabilitation services, attorney, employee, or other person subject to the provisions
of this chapter.
History: 1983 c 290 s 165; 1984 c 432 art 2 s 50; 1984 c 640 s 32; 1986 c 461 s 36; 1987
c 332 s 110-112; 1987 c 384 art 2 s 44; art 3 s 4; 1992 c 510 art 4 s 21,22; 1995 c 231 art 2 s
99; 1996 c 305 art 1 s 48; 1997 c 7 art 5 s 17

SPECIFICITY OF NOTICE

176.84 SPECIFICITY OF NOTICE OR STATEMENT.
    Subdivision 1. Specificity required. Notices of discontinuance and denials of liability shall
be sufficiently specific to convey clearly, without further inquiry, the basis upon which the party
issuing the notice or statement is acting. If the commissioner or compensation judge determines
that a notice or statement is not sufficiently specific to meet the standard under this section, the
notice or statement may be rejected as unacceptable and the party issuing it shall be informed of
this. The rejected notice or statement may be amended to meet the requirement of this section
or a new one may be filed.
    Subd. 2. Penalty. The commissioner or compensation judge may impose a penalty of $500
for each violation of subdivision 1. This penalty is payable to the commissioner for deposit
in the assigned risk safety account.
    Subd. 3. Effective date. This section shall not be effective until the commissioner adopts
rules which specify what is required to be contained in the notice of discontinuance and the
denial of liability.
History: 1983 c 290 s 166; 1987 c 332 s 113; 1995 c 231 art 2 s 100; 2002 c 262 s 22

PENALTIES

176.85 PENALTIES; APPEALS.
    Subdivision 1. Appeal procedure. If the commissioner has assessed a penalty against a party
subject to this chapter and the party believes the penalty is not warranted, the party may request
that a formal hearing be held on the matter. The request must be filed within 30 days of the date
that the penalty assessment is served on the party. Upon receipt of a timely request for a hearing
the commissioner shall refer the matter to the chief administrative law judge for assignment to a
compensation judge or administrative law judge.
The chief administrative law judge shall keep a record of the proceeding and provide a
record pursuant to section 176.421.
The decision of the compensation judge or administrative law judge shall be final and shall
be binding and enforceable. The decision may be appealed to the Workers' Compensation Court
of Appeals.
    Subd. 2. Exception. This section does not apply to penalties for which another appeal
procedure is provided, including but not limited to penalties imposed pursuant to section 176.102
or 176.103.
    Subd. 3. Hearing costs. For purposes of this section, a hearing before an administrative law
judge shall be treated in the same manner as a hearing before a compensation judge and no costs
may be charged to the commissioner for the hearing, regardless of who hears it.
History: 1983 c 290 s 167; 1984 c 432 art 2 s 51; 1984 c 640 s 32
176.86 [Repealed, 1995 c 231 art 1 s 36]

DISCLOSURE

176.861 DISCLOSURE OF INFORMATION.
    Subdivision 1. Insurance information. The commissioner may, in writing, require an
insurance company to release to the commissioner any or all relevant information or evidence
the commissioner deems important which the company may have in its possession relating to
a workers' compensation claim including material relating to the investigation of the claim,
statements of any person, and any other evidence relevant to the investigation. The writing
from the commissioner requiring release of the information shall contain a statement that the
commissioner has reason to believe a crime or civil fraud has been committed with respect to
an insurance claim, payment, or application.
    Subd. 2. Information released to authorized persons. If an insurance company has
evidence that a claim may be fraudulent, the company shall, in writing, notify the commissioner
and provide the commissioner with all relevant material related to the company's inquiry into
the claim.
    Subd. 3. Good faith immunity. An insurance company or its agent acting in its behalf and in
good faith who releases oral or written information under subdivisions 1 and 2 is immune from
civil or criminal liability that might otherwise be incurred or imposed.
    Subd. 4. Self-insurer; assigned risk plan. For the purposes of this section "insurance
company" includes a self-insurer and the assigned risk plan and their agents.
History: 1995 c 231 art 1 s 31
176.862 DISCLOSURE TO LAW ENFORCEMENT.
The commissioner must disclose the current address of an employee collected or maintained
under this chapter to law enforcement officers who provide the name of the employee and notify
the commissioner that the employee is a person required to register under section 243.166 and is
not residing at the address at which the employee is registered under section 243.166.
History: 2000 c 311 art 6 s 3