Minnesota law sets rules for workers’ compensation claims

The law uses listed dollar amounts and an impairment rating to calculate permanent partial disability payments. This applies to workers with permanent partial disability from injuries dated October 1, 2026, or later. The impairment rating follows rules adopted by the commissioner. Payment cannot exceed 100 percent of whole-body disability, even if more than one body part is affected. This provision applies to dates of injury on or after October 1, 2026.

The law sets out a maximum fee notice that a lawyer must give an employee hiring legal help for a workers’ compensation claim. This covers an employee who hires a lawyer for a workers’ compensation claim. The fee may be up to 20 percent of the first $275,000 awarded, with a total cap of $55,000 for fees related to the same injury. The lawyer must provide a signed retainer agreement with the required notice; no fee may be awarded without a signed agreement. This provision applies to dates of injury on or after October 1, 2024.

The law recognizes a PTSD diagnosis by a psychiatric mental health nurse practitioner when defining mental impairment. This definition applies to workers’ compensation claims involving mental impairment. The diagnosis must be made by a licensed psychiatrist, psychologist, or psychiatric mental health nurse practitioner. Other requirements for treating a mental impairment as an occupational disease still apply, including the listed limits for conditions tied to good-faith workplace actions. This provision applies to dates of injury on or after October 1, 2026.

The law sets rules for distributing excess surplus and assessing members and insured employers if a distribution leaves too little money to pay claims. The rules cover the Workers’ Compensation Reinsurance Association, its members, and employers insured by member insurers or the assigned risk plan. The board may declare a distribution, subject to approval by the commissioner of labor and industry; the commissioner of commerce reviews that order and cannot change the amount without agreement from the other commissioner. If a distribution leaves inadequate funds for claims, the commissioner of commerce orders an assessment, taking potential financial hardship to employers into account. Assessments apply prospectively. Distributions and assessments apply only prospectively. The association’s plan must explain how it will set rates, determine exposure, distribute surplus, and collect assessments.

The law allows an employee to have an unpaid witness present at an employer-requested medical exam. This applies to an employee asked to attend an employer’s medical exam for a workers’ compensation matter. The employee must attend an exam when the employer requests one. The employee may also ask to have a personal physician present, and each side pays for its own physician or witness. This provision takes effect the day after final enactment.