WHO PAYS WORKER'S COMPENSATION BENEFITS?

All employers are required by Minnesota Statutes, section 176.181, subdivision 2, to either purchase workers' compensation insurance to provide benefits to their employees for work-related injuries or to obtain approval from the Minnesota Department of Commerce permitting self-insurance upon proof of the employer's financial ability to do so.

Employers can be self insured. However, in most instances, employers purchase workers' compensation policies from insurance companies.

Benefits that are paid may include compensation to injured workers for wage-loss and permanent loss of use of body functions, medical and vocational rehabilitation costs, and out of pocket medical expenses such as mileage and prescriptions.

State law sets the benefit levels.

ARE INDEPENDENT CONTRACTORS COVERED BY WORKER'S COMPENSATION?

No. This issue comes up quite often in the context of construction law and in the IT industry where employees are contracted out to third party employers. Individuals who are independent contractors with no employees are not covered by workers' compensation insurance unless the entity contracting with the independent contractor elects to purchase insurance for that individual or the independent contractor chooses to purchase coverage for him or herself. The workers' compensation statute does not contain a definition of "independent contractor."

When a question arises as to whether a particular relationship is that of employer-employee or that of two entities contracting independently, a five-factor test has developed through case law that generally allows an employer or employee to make some judgments concerning the appropriate characterization. This test involves analyzing the following five factors:

1. the right to control the means and manner of performance;
2. the mode of payment;
3. the furnishing of tools and materials;
4. control over the premises where the work was done; and
5. the right of discharge. Guhlke v. Roberts Truck Lines, 128 N.W.2d 324 (1964)

HOW CAN WORKER PREPARE FOR A WORKER'S COMP. CLAIM?

• Save copies of all worker's compensation claim-related documents, letters, forms, benefit checks and medical bills, especially the First Report of Injury form.
• Keep track of your mileage and parking fees for medical visits, vocational rehabilitation services and job-search visits.
• Save notes of phone conversations.
• Put your name, Social Security number, date of injury, employer and insurance company on all papers and forms you send to the Workers’ Compensation Division.
• Keep your employer informed about your recovery and plans to return to work.

CAN A WORKER BE DENIED WORKERS' COMPENSATION BENEFITS?

IS A WORKER ENTITLED TO A WORKERS' COMPENSATION HEARING?

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Workman's Compensation

Summaries of the Workers' Compensation Court of Appeals and the Minnesota Supreme Court and Court of Appeals can be found in the department's quarterly publication Compact.