Subdivision 1. Uninsured and self-insured employers; special compensation fund. When any employee sustains an injury arising out of and in the course of employment while in the employ of an employer, other than the state or its political subdivisions, not insured or self-insured as provided for in this chapter, the employee or the employee's dependents shall nevertheless receive benefits as provided for in this chapter from the special compensation fund. The commissioner is not required to comply with the procedures in chapter 16C before purchasing, paying for, or reimbursing the employee for medical treatment, equipment, or supplies that are compensable under this chapter. As used in subdivision 1 or 2, "employer" includes any owners or officers of a corporation who direct and control the activities of employees. In any petition for benefits under this chapter, the naming of an employer corporation not insured or self-insured as provided for in this chapter, as a defendant, shall constitute without more the naming of the owners or officers as defendants, and service of notice of proceeding under this chapter on the corporation shall constitute service upon the owners or officers. An action to recover benefits paid shall be instituted unless the commissioner determines that no recovery is possible. There shall be no payment from the special compensation fund if there is liability for the injury under the provisions of section 176.215, by an insurer or self-insurer.
Subd. 1a. [Repealed, 1988 c 674 s 22]
Subd. 2. Special compensation fund; penalties. After a hearing on a petition for benefits and prior to issuing an order against the special compensation fund to pay compensation benefits to an employee, a compensation judge shall first make findings regarding the insurance status of the employer and its liability. The special compensation fund shall not be found liable in the absence of a finding of liability against the employer. Where the liable employer is found after the hearing to be not insured or self-insured as provided for in this chapter, the compensation judge shall assess and order the employer to pay all compensation benefits to which the employee is entitled, the amount for any actual and necessary disbursements expended by the special compensation fund, any actual and necessary disbursements of the employee paid or reimbursed by the special compensation fund, any attorney fees paid to the employee's attorney by the special compensation fund, and a penalty in the amount of 65 percent of all compensation benefits ordered to be paid. The award issued against an employer after the hearing shall constitute a lien for government services pursuant to section 514.67 on all property of the employer and shall be subject to the provisions of the Revenue Recapture Act in chapter 270A. The special compensation fund may enforce the terms of that award in the same manner as a district court judgment. The commissioner of labor and industry, in accordance with the terms of the order awarding compensation, shall pay compensation to the employee or the employee's dependent from the special compensation fund. The commissioner of labor and industry shall certify to the commissioner of management and budget and to the legislature annually the total amount of compensation paid from the special compensation fund under subdivision 1. Compensation paid under this section shall remain a liability of the special compensation fund and shall be financed by the percentage assessed under section 176.129.
Subd. 3. Commissioner-directed payments. (a) Notwithstanding subdivision 2, the commissioner may direct payment from the special compensation fund for compensation payable pursuant to subdivision 1, including benefits payable under sections 176.102 and 176.135, prior to issuance of an order of a compensation judge or the Workers' Compensation Court of Appeals directing payment or awarding compensation. Where payment is issued pursuant to a petition for a temporary order, the terms of any resulting order shall have the same status and be governed by the same provisions as an award issued pursuant to subdivision 2.
(b) The commissioner may suspend or terminate an order under paragraph (a) for good cause as determined by the commissioner.
Subd. 4. Notice by commissioner; rights of parties. (a) If the commissioner authorizes the special compensation fund to commence payment without the issuance of a temporary order, the commissioner shall serve by first class mail notice upon the employer and other interested parties of the intention to commence payment. This notice shall be served at least ten calendar days before commencing payment and shall be mailed to the last known address of the employer. The notice shall include a statement that failure of the employer to respond within ten calendar days of the date of service will be deemed acceptance by the employer of the proposed action by the special compensation fund and will be deemed a waiver of defenses the employer has to the special compensation fund's action to recover amounts specified under subdivision 2. At any time prior to final determination of liability, the employer may appear as a party and present defenses the employer has, whether or not an appearance by the employer has previously been made in the matter. The special compensation fund has a cause of action against the employer to recover amounts specified under subdivision 2.
(b) The commissioner shall notify the employer by first class mail if the special compensation fund intends to enter into a settlement agreement with the employee for the payment of benefits under this section. This notice shall be sent by first class mail to the last known address of the employer at least 15 calendar days before executing the settlement agreement, and shall include:
(1) a copy of the proposed settlement agreement;
(2) a statement that within 15 calendar days the employer must notify the special compensation fund in writing of its objection to the proposed settlement; and
(3) a statement that if the special compensation fund does not receive the employer's written objection within 15 calendar days, the employer must be deemed to have waived all defenses to the special compensation fund's claim for amounts specified under subdivision 2.
(c) If a settlement agreement is approved by the commissioner or compensation judge after the commissioner has provided notice to the employer under paragraph (b), and if the employer did not provide timely written notification to the special compensation fund of the employer's objection, then the employer must be deemed to have waived all defenses to the special compensation fund's claim for amounts specified under subdivision 2.
1967 c 330 s 1; 1969 c 372 s 1; 1969 c 399 s 49; 1973 c 388 s 50; 1973 c 750 s 1,2; 1974 c 355 s 22; 1977 c 403 s 6; 1981 c 356 s 328; 1983 c 290 s 115-118; 1983 c 301 s 147; 1984 c 432 art 2 s 27; 1986 c 444; 1987 c 332 s 48,49; 1988 c 674 s 19,20; 1992 c 510 art 3 s 20; 1992 c 513 art 3 s 39; 1995 c 231 art 2 s 73,74; 1998 c 294 s 1; 2008 c 250 s 10; 2009 c 75 s 12; 2009 c 101 art 2 s 109; 2013 c 70 art 1 s 5
Structure Minnesota Statutes
Chapters 175 - 186 — Labor, Industry
Chapter 176 — Workers' Compensation
Section 176.001 — Intent Of The Legislature.
Section 176.011 — Definitions.
Section 176.021 — Application To Employers And Employees.
Section 176.031 — Employer's Liability Exclusive.
Section 176.041 — Excluded Employments; Application, Exceptions, Election Of Coverage.
Section 176.043 — Trucking And Messenger/courier Industries; Independent Contractors.
Section 176.051 — Assumption Of Liability; Farm And Household Workers.
Section 176.061 — Third-party Liability.
Section 176.071 — Joint Employers; Contribution.
Section 176.081 — Legal Services Or Disbursements; Lien; Review.
Section 176.091 — Minor Employees.
Section 176.092 — Guardian; Conservator.
Section 176.095 — Legislative Findings.
Section 176.101 — Compensation Schedule.
Section 176.102 — Rehabilitation.
Section 176.103 — Medical Health Care Review.
Section 176.104 — Rehabilitation Prior To Determination Of Liability.
Section 176.105 — Commissioner To Establish Disability Schedules.
Section 176.106 — Administrative Conference.
Section 176.107 — Teleconferences.
Section 176.108 — Light-duty Work Pools.
Section 176.111 — Dependents, Allowances.
Section 176.121 — Commencement Of Compensation.
Section 176.129 — Creation Of Special Compensation Fund.
Section 176.1292 — Forbearance Of Amounts Owed To The Special Compensation Fund.
Section 176.130 — Targeted Industry Fund; Loggers.
Section 176.1321 — Effective Date Of Benefit Changes.
Section 176.1361 — Testimony Of Providers.
Section 176.1362 — Inpatient Hospital Payment.
Section 176.1363 — Ambulatory Surgical Center Payment.
Section 176.1364 — Workers' Compensation Hospital Outpatient Fee Schedule.
Section 176.1365 — Outpatient Billing, Payment, And Dispute Resolution.
Section 176.137 — Remodeling Of Residence; Disabled Employees.
Section 176.138 — Medical Data; Access.
Section 176.1812 — Collective Bargaining Agreements.
Section 176.182 — Business Licenses Or Permits; Coverage Required.
Section 176.184 — Inspections; Enforcement.
Section 176.185 — Policy Of Insurance.
Section 176.186 — Records From Other State Agencies.
Section 176.191 — Dispute Between Two Or More Employers Or Insurers Regarding Liability.
Section 176.192 — Bomb Disposal Unit Employees.
Section 176.645 — Adjustment Of Benefits.
Section 176.651 — Severability.
Section 176.66 — Occupational Diseases; How Regarded.
Section 176.82 — Action For Civil Damages For Obstructing Employee Seeking Benefits.
Section 176.135 — Treatment; Appliances; Supplies.
Section 176.1351 — Managed Care.
Section 176.136 — Medical Fee Review.
Section 176.139 — Notice Of Rights Posted.
Section 176.141 — Notice Of Injury.
Section 176.145 — Service Of Notice, Form.
Section 176.235 — Notice To Employers And Injured Employee Of Rights And Duties.
Section 176.238 — Notice Of Discontinuance Of Compensation.
Section 176.151 — Time Limitations.
Section 176.155 — Examinations.
Section 176.161 — Alien Dependents.
Section 176.165 — Lump-sum Payments.
Section 176.171 — Payment To Trustee.
Section 176.175 — Right To Compensation, Award.
Section 176.221 — Payment Of Compensation And Treatment Charges, Commencement.
Section 176.222 — Report On Collection And Assessment Of Fines And Penalties.
Section 176.223 — Prompt First Action Report.
Section 176.225 — Additional Award As Penalty.
Section 176.179 — Recovery Of Overpayments.
Section 176.194 — Prohibited Practices.
Section 176.195 — Revocation Of Insurer's License.
Section 176.201 — Discriminatory Rates.
Section 176.205 — Person Deemed Employer.
Section 176.211 — Acts Or Omissions Of Third Persons.
Section 176.215 — Subcontractor's Failure To Comply With Chapter.
Section 176.231 — Report Of Death Or Injury To Commissioner Of Department Of Labor And Industry.
Section 176.234 — Release Of Data For Epidemiologic Study.
Section 176.239 — Administrative Decision Concerning Discontinuance Of Compensation.
Section 176.245 — Receipts For Payment Of Compensation, Filing.
Section 176.251 — Duties Of Commissioner Of Department Of Labor And Industry.
Section 176.253 — Insurer, Employer, And Third-party Administrator; Performance Of Acts.
Section 176.2612 — Workers' Compensation Claims Access And Management Platform User System (campus).
Section 176.271 — Initiation Of Proceedings.
Section 176.275 — Filing Of Papers; Proof Of Service.
Section 176.281 — Orders, Decisions, And Awards; Filing; Service.
Section 176.285 — Service Of Papers And Notices; Electronic Filing.
Section 176.291 — Disputes; Petitions; Procedure.
Section 176.295 — Nonresident Employers; Foreign Corporation.
Section 176.301 — Determination Of Issues.
Section 176.305 — Petitions Filed With Workers' Compensation Division.
Section 176.306 — Scheduled Hearings.
Section 176.307 — Compensation Judges; Block System.
Section 176.311 — Reassignment Of Petition For Hearing.
Section 176.312 — Affidavits Of Prejudice And Petitions For Reassignment.
Section 176.321 — Answer To Petition.
Section 176.322 — Decisions Based On Stipulated Facts.
Section 176.325 — Certified Question.
Section 176.331 — Proceedings When Answer Not Filed.
Section 176.341 — Hearing On Petition.
Section 176.351 — Testimonial Powers.
Section 176.361 — Intervention.
Section 176.371 — Award Or Disallowance Of Compensation.
Section 176.381 — Reference Of Questions Of Fact.
Section 176.391 — Investigations.
Section 176.401 — Hearings Public.
Section 176.411 — Rules Of Evidence, Pleading, And Procedure.
Section 176.421 — Appeals To Workers' Compensation Court Of Appeals.
Section 176.442 — Appeals From Decisions Of Commissioner.
Section 176.461 — Setting Aside Award.
Section 176.471 — Review By Supreme Court On Certiorari.
Section 176.481 — Original Jurisdiction Of Supreme Court.
Section 176.491 — Stay Of Proceedings Pending Disposition Of Case.
Section 176.521 — Settlement Of Claims.
Section 176.522 — Notice To Employer.
Section 176.531 — Award Of Compensation Against A Political Subdivision Or School District.
Section 176.541 — State Departments.
Section 176.571 — Investigations Of Injuries To State Employees.
Section 176.572 — Contract With Insurance Carriers.
Section 176.581 — Payment To State Employees.
Section 176.591 — State Compensation Revolving Fund.
Section 176.603 — Cost Of Administering Chapter, Payment.
Section 176.611 — Maintenance Of State Compensation Revolving Fund.
Section 176.84 — Specificity Of Notice Or Statement.
Section 176.85 — Penalties; Appeals.