Is My Employer Required To Carry Workers’ Compensation Insurance?

Employers in Minnesota are mandated to carry workers’ compensation insurance for their employees under Minnesota Statute §176.181, subdivision 2. The legislature wants to ensure that injured workers have access to recovery if he or she suffers an injury on the job. Employees are generally defined as a person who performs services for another for hire. Employees include minors, part-time workers and non-U.S. citizens. The Minnesota Department of Labor and Industry is responsible for work comp insurance in Minnesota.

Under Minnesota Statute §176.041 in certain circumstances some types of employers are not required to carry work comp insurance. These types of employers include but are not limited to:

• Family farm employees (if paid less than $8,000 in cash wages over the last year)
• Independent contractors
• Household workers
• LLC or limited liability companies
• Closely held corporations
• Nonprofit associations

However, these types of employers may still elect to carry work comp insurance coverage and many do, so if you work for one do not assume they do not carry work comp insurance. You may check on the Minnesota Department of Labor and Industry’s website at http://www.inslookup.doli.state.mn.us/ to search whether your employer carries a policy. Employers are also required to post a Minnesota Workers’ Compensation Employee Rights and Responsibilities poster in a conspicuous location for its employees. The poster must show the employer’s insurance carrier information, including a name and phone number.

If you believe that a business does not have workers’ compensation coverage you may report that company to the Department of Labor and Industry’s Special Compensation Fund by email or by phone at 651-284-5453.

If the employer is required to carry work comp insurance and fails to do so, injured employees may still receive benefits from the Minnesota Special Compensation Fund under Minnesota Statute §176.129. The Minnesota Special Compensation Fund may then receive reimbursement from the employer for benefits paid to the injured worker plus monetary penalties. The Minnesota Special Compensation Fund also administers Supplementary Benefits, which are a complicated specific type of wage loss benefit that may affect an injured worker who was injured before 1990. The Special Compensation fund also investigates whether the employer has coverage and steps in the place of the employer, if the employer failed to maintain coverage.

Some employers are self-insured as well, and thus responsible for paying out workers’ compensation claims. Generally large public entities are self-insured, such as the State of Minnesota or the City of St. Paul. The Minnesota Commerce Department must issue its approval for an employer to be self-insured for the purposes of workers’ compensation. The employer must prove its financial capability to be self-insured.

If you have sustained an injury in the course and scope of your employment in the State of Minnesota, contact Meuser Law Office, P.A. for a free no-obligation case consultation. Don’t wait to get an attorney involved if you have a Minnesota workers’ compensation claim. The process can be complex, but the knowledgeable attorneys at Meuser Law Office, P.A. keep our clients informed of the process as well as what to expect each step of the way. We take the time with each client to help determine which benefits under the Minnesota Workers’ Compensation Act you are entitled. Call us today at 1-877-746-5680.

by Mary Beth
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PERA Police and Fire Plan 18 Month Filing Deadline: Do Not Miss It!

There are several important deadlines that Minnesota police officers and firefighters need to be aware of when filing a PERA disability benefits claim, including the 18-month post-termination filing deadline.

Applications for Public Employees Retirement Association (PERA) Police and Fire Plan Duty or Regular Disability Benefits MUST be filed within 18 months after the person’s termination from public service. If an application is not filed within 18 months, an otherwise eligible disabled police officer or firefighter is barred from filing for PERA disability benefits. Missing this deadline can cost a disabled police officer or firefighter hundreds of thousands of dollars.

We have seen this issue come up several times. If a disabled police officer or firefighter has missed the 18-month deadline, no matter how strong his or her claim for PERA Duty Disability benefits and no matter how much we want to help, there is nothing the attorney can do.

Unfortunately, the attorneys at Meuser Law Office, P.A. see this issue come up occasionally. For example:

• An attorney in our office was contacted by a police officer who was involved in an on-duty shooting incident. The officer developed some mental health issues as a result and went on a medical leave for a short period of time. At the officer’s request, the officer’s doctor cleared her to return to full duty, even though she was still having mental health issues. After a short time back on the job, she realized things weren’t going well and she knew she couldn’t continue. She resigned from her job and didn’t pursue anything even though she was suffering from serious post-traumatic stress disorder (PTSD) as a result of the on-duty shooting incident. Thankfully, a former colleague of hers suggested she call Meuser Law Office, P.A. to see if she was eligible for any benefits. We got her application in just shy of the 18-month deadline, and this officer was awarded PERA Duty Disability benefits, 299A.465 Continuation of Health Insurance benefits, and workers’ compensation benefits. 

• An officer contacted us to evaluate his potential PERA Duty Disability claim. He was referred to Meuser Law Office, P.A. by his workers’ compensation lawyer, having just settled his workers’ compensation claim. This Minnesota police officer had suffered a low back injury while wrestling with a suspect which required surgery. After his physical restrictions due to his low back injury were deemed permanent, his employer terminated him based on his inability to perform his full duty job. Over the next two years, he collected various workers’ compensation benefits, and his work comp lawyer ultimately settled his workers’ compensation case. Unfortunately, his workers’ compensation lawyer also instructed him not to file for PERA Duty Disability benefits during that time. By the time he met with an attorney in our office, his PERA claim was barred because he had failed to file within 18 months of his termination. There was nothing that we could do to help him. Because this officer’s workers’ compensation lawyer didn’t know the rules associated with PERA, he gave the officer bad advice that cost him several hundred thousand dollars.

• An attorney in our office met with a Minnesota police officer who had terminated from his employment over two years prior to our meeting. He had resigned as a police officer when he started to struggle with some mental health issues. Unfortunately, he didn’t seek help for his symptoms and he wasn’t diagnosed with post-traumatic stress disorder until more than two years after he terminated. Because he didn’t seek help and tried to manage it on his own, this officer didn’t even know he had PTSD until two years after he resigned. This gentleman didn’t receive a diagnosis until after the 18-month deadline had passed, but currently PERA does not have an exception for latent conditions that are not diagnosed until much later in time, such as cancer or post-traumatic stress disorder.

For Minnesota’s police officers and firefighters who suffer significant on-duty injuries, it is imperative to have the right lawyer from the beginning. At Meuser Law Office, P.A., the first time we meet with a client, our knowledgeable and experienced attorneys evaluate every potential claim, including but not limited to, Minnesota workers’ compensation, PERA/MSRS disability, Continuation of Health Insurance claims, and third-party claims. Our attorneys develop a timeline and a plan to ensure every possible resource for benefits is explored, which includes the coordination of claims every step of the way. Experience matters. For a free, no-obligation consultation, contact Meuser Law Office, P.A. Call us today at 1-877-746-5680.

by Jen Yackley
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The Adjuster Refuses to Pay My Benefits. Am I Eligible for Penalties?

In rare circumstances employers and insurers may be subject to monetary penalties for violating the Minnesota Workers’ Compensation Act. Penalties serve as a deterrent to employers and insurers from flagrant disregard of the rules. Some penalties are payable to the State of Minnesota and some are payable to the employee.

1. Frivolous Liability Denial

When an adjuster for an insurance company denies an injured worker’s claim, the adjuster must demonstrate a good-faith effort to investigate the claim. The adjuster may also not use clearly inaccurate statements of fact or applicable law under the Minnesota Workers’ Compensation Act. If a judge finds that an adjuster has violated Minnesota Statute §176.221, subdivision 1 and 176.225, subdivision 1, then the judge may issue a penalty against the insurance company payable to the State and the employee. An employee may be entitled to 30% of the amount of the delayed benefits.

At Meuser Law Office, P.A. we have recently brought a claim for penalties for the failure of an insurer and public employer to pay temporary total disability benefits and temporary partial disability benefits after the law enforcement officer separated from the date of injury employer in order to receive PERA Duty Disability benefits. The insurer and employer admitted liability for the injury and is in agreement with the Independent Medical Examiner and treating physician’s restrictions for the employee. The employer and insurer refuses to pay despite the definitive case law on this issue under Boutto v. U.S. Steel Corp. (July 18, 2007 WC06-288).

2. Non-specific Denial of Liability

Similar to penalties for frivolous denial of liability, under Minnesota Statute 176.84 insurers must issue specific and clear reasons that the adjuster is denying the injury. The penalty for a non-specific denial of liability is $500 each violation.

3. Late Payments of Benefits

Insurers and employers are also required to make timely payment of benefits under Minnesota Statute § 176.221, subdivision 1. An employee’s first temporary total disability payment must be issued the 14th day after the first day of an employee’s disability or the date the employer received notice, whichever is later. The employee may be awarded 25% of the delayed benefits.

4. Obstructing an Employee’s Minnesota Work Comp Benefits

Under Minnesota Statute §176.82, subdivision 1, an insurer or an employer who fires or threatens to fire an employee for making a claim for workers’ compensation benefits is liable for civil damages in addition to workers’ compensation benefits owed. This violation also includes costs and reasonable attorney fees in addition to punitive damages three times the amount of any compensation benefits to which an employee is owed.

This violation may be difficult to prove but if an employee is able to offer concrete evidence, for example text messages, letter, or a saved voicemail with the employer threatening to fire the employee for filing a work comp claim, may be persuasive.

5. Refusing to Offer Continued Employment

Under Minnesota Statute §176.82, subdivision 2, an employer who has work available with the employee’s physical restrictions must offer continued employment. If an employer does not have reasonable cause to continue to offer suitable employment is liable for one year of the employee’s wages in a civil lawsuit. Employers with less than 15 full-time employees are exempt from this statute.

6. Failure to Ensure

An uninsured employer may also be fined by the Department of Labor and Industry for failure to insure employees for workers’ compensation injuries, regardless if any employee has been injured. An employer may be required to pay a penalty up to $1,000 per employee per week for the time period the employee was not insured.

7. Failure to Pay Settlement Award

After the parties agree to a settlement and the settlement is set forth in the stipulation for settlement, a workers’ compensation judge must review and then issue an award on stipulation, which is a court-order dictating what the employer and insurer must pay. The employer and insurer must issue payment within 14 days of the award or be subject to fines.

If you believe you may be entitled to penalties under the Minnesota Workers’ Compensation Act or have a workers’ compensation claim, contact the knowledgeable attorneys at Meuser Law Office, P.A. for a free no-obligation case evaluation. Call us today at 877-746-5680.

by Mary Beth
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