Minnesota Law
Minnesota Workers' Compensation Law
Workers' Compensation Law: The Basics
Minnesota's workers' compensation system compensates workers for injuries that occur in the workplace. Without a workers' compensation system, workers injured on the job would have to prove that their employer's negligence led to the injury. Because the system does not require proving negligence, a worker injured on the job theoretically shall receive compensation without litigation. Instead of filing suit, a worker notifies his or her employer of the injury and the employer then contacts its insurance carrier, which handles payment of any medical bills and other claims made by the employee. All employers subject to the Minnesota Workers' Compensation Act must either carry workers' compensation insurance or demonstrate they have the financial resources to cover any reasonably anticipated claims.
The trade-off for this relatively easy route to compensation is a limit to the amount of money that can be awarded for a work-related injury. With few exceptions, employers or their insurers are only required to pay for medical expenses, permanent injuries and/or lost wages. An employer cannot be made to pay for emotional distress such as pain and suffering. If a third party is legally responsible for the employee's injury, the employee may collect workers' compensation from the employer and still sue the third party for common law damages.
When an Employer or Carrier Refuses Benefits
Often a worker contacts an attorney because the employer or its insurance carrier refuses to pay a worker's compensation claim, maintaining that either the injury was not work-related or that the benefits demanded exceed those justified for the injury. Sometimes a dispute arises after an employer stops making worker's compensation payments. When disputes arise, they can be presented to the Minnesota Department of Labor & Industry - Workers' Compensation Division for purposes of seeking resolution. Disputes are handled by administrative conferences, settlement conferences or by referral to the Office of Administrative Hearings to be set for a hearing before a workers' compensation judge.
Workers' Compensation Division conferences are presided over by rehabilitation and medical specialists or settlement judges and the nature of the dispute determines who will preside. These conferences are held informally, with an emphasis toward reaching a compromised resolution. In the event the parties cannot reach a compromised resolution following a conference, an administrative or settlement decision or order may be issued. The dispute may be further pursued by requesting a hearing before the Office of Administrative Hearings.
Hearings before an Office of Administrative Hearing's workers' compensation judge are similar to formal administrative hearings. A record is kept of the hearing and either party may be represented by an attorney. Most often, the employee and employer and insurer choose to be represented. In the event a party is dissatisfied with an Office of Administration Hearings judge's decision, it can be appealed to the Minnesota Workers' Compensation Court of Appeals and then the Minnesota Supreme Court.
Resources
An Employer's Guide to Employment Law Issues in Minnesota, 3d ed. 1993, Minnesota Small Business Assistance Office, 500 Metro Square Building, 121 Seventh Place East, St. Paul, MN 55101-2146, (612) 296-3871 or 1-800-657-3858. This is a free booklet.