Does My Employer Need To Have Workers’ Compensation Insurance In Minnesota?

Workers’ compensation provides financial assistance to employees who suffer an on the job injury, but it isn’t just something that is paid out by the state of Minnesota. Workers’ compensation is actually paid out by an insurance policy that your employer pays for, which begs the question, “Does my employer have workers’ compensation insurance?” In today’s blog, we take a closer look at which types of business are required to carry workers’ compensation insurance in Minnesota.

Who Needs Workers’ Compensation Insurance In Minnesota?

We’re going to write plenty of words on the subject, but before we do, we’ll simplify it a bit and just say that the vast majority of businesses in Minnesota are legally required to carry workers’ compensation insurance. If they are a business with at least one non-immediate family employee, they are likely required to own workers’ compensation insurance. We’ll touch on some exceptions below, but here’s what the Minnesota Department of Labor and Industry has to say about it:

“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.”

In other words, there are no employee minimums or loopholes for businesses with part-time employees. Regardless of whether you have 10,000 full-time employees or one part-time employee, Minnesota businesses are required to carry workers’ compensation insurance coverage.

Exceptions To Carrying Workers’ Compensation Insurance

As we alluded to above, there are some exceptions to law requiring businesses to carry workers’ compensation insurance. As you may have guessed, there aren’t many obvious situations where a standard business can legally avoid carrying injury insurance. Some of the allowed exceptions in Minnesota include:

Sole proprietors – If you are the sole employee at your business, you are not required to carry workers’ compensation insurance for yourself, your spouse, your parents or your children working at the business. Any other employees would require coverage.

Partnerships – Sole proprietors working as part of a partnership would not be required to get workers’ compensation insurance for themselves, and their partners would not be required to do so for themselves. For example, a three-partner law firm would not need workers’ compensation insurance if those three are the only employees.

Independent Contractors – Not all independent contractors are exempt from carrying workers’ compensation insurance. Learn more about independent contractor insurance requirements here.

Select Non-Profits – Non-profit companies that don’t pay more than $1,000 in salary or wages a year are not required to carry workers’ compensation insurance.

There are a number of other highly specialized exemptions to the insurance requirement, and you can read about them in the Minnesota statute that covers exemptions, but just know that the vast majority of businesses that have at least one non-owner employee on payroll will be required to carry workers’ compensation insurance.

And if you’re running into trouble filing a claim with your employer’s workers’ compensation provider or your employer isn’t carrying insurance when they are supposed to, reach out to Dean at the team at Margolis Law Firm to get the compensation you deserve. For more information, contact our team today at (952) 230-2700.