Minnesota Statutes
Chapter 176 — Workers' Compensation
Section 176.194 — Prohibited Practices.

Subdivision 1. Application. This section applies to insurers, self-insurers, group self-insurers, political subdivisions of the state, and the administrator of state employees' claims.
This section also applies to adjusters and third-party administrators who act on behalf of an insurer, self-insurer, group self-insurer, the assigned risk plan, the Minnesota Insurance Guaranty Association, a political subdivision, or any other entity.
This section shall be enforceable only by the commissioner of labor and industry. Evidence of violations under this section shall not be admissible in any civil action.
Subd. 2. Purpose. This section is not intended to replace existing requirements of this chapter which govern the same or similar conduct; these requirements and penalties are in addition to any others provided by this chapter.
Subd. 3. Prohibited conduct. The following conduct is prohibited:
(1) failing to reply, within 30 calendar days after receipt, to all written communication about a claim from a claimant that requests a response;
(2) failing, within 45 calendar days after receipt of a written request, to commence benefits or to advise the claimant of the acceptance or denial of the claim by the insurer;
(3) failing to pay or deny medical bills within 45 days after the receipt of all information requested from medical providers that is necessary to make a payment determination;
(4) filing a denial of liability for workers' compensation benefits without conducting an investigation;
(5) failing to regularly pay weekly benefits in a timely manner as prescribed by rules adopted by the commissioner once weekly benefits have begun. Failure to regularly pay weekly benefits means failure to pay an employee on more than three occasions in any 12-month period within three business days of when payment was due;
(6) failing to respond to the department within 30 calendar days after receipt of a written inquiry from the department about a matter related to benefits. Responses must be substantive and address the question;
(7) failing to pay pursuant to an order of the department, compensation judge, court of appeals, or the supreme court, within 45 days from the filing of the order unless the order is under appeal;
(8) advising a claimant not to obtain the services of an attorney or representing that payment will be delayed if an attorney is retained by the claimant;
(9) altering information on a document to be filed with the department without the notice and consent of any person who previously signed the document and who would be adversely affected by the alteration;
(10) providing fraudulent written information to the department or an employee pertaining to a workers' compensation matter; or
(11) failing to pay a claim, or otherwise correct behavior on a claim, for which a penalty assessed has been paid or has become a final order.
Subd. 4. Penalties. The penalties for violations of subdivision 3, clauses (1) to (6), are as follows:
For violations of subdivision 3, clauses (7) to (11), the penalties are:
The penalties under this section may be imposed in addition to other penalties under this chapter that might apply for the same violation. The penalties under this section are assessed by the commissioner and are payable to the commissioner for deposit in the assigned risk safety account. A party may object to the penalty and request a formal hearing under section 176.85. If an entity has more than 30 violations within any 12-month period, in addition to the monetary penalties provided, the commissioner may refer the matter to the commissioner of commerce with recommendation for suspension or revocation of the entity's (a) license to write workers' compensation insurance; (b) license to administer claims on behalf of a self-insured, the assigned risk plan, or the Minnesota Insurance Guaranty Association; (c) authority to self-insure; or (d) license to adjust claims. The commissioner of commerce shall follow the procedures specified in section 176.195.
Subd. 5. Rules. The commissioner may, by rules adopted in accordance with chapter 14, specify additional illegal, misleading, deceptive, fraudulent practices or conduct which are subject to the penalties under this section.
1987 c 332 s 54; 1992 c 510 art 3 s 22,23; 1995 c 231 art 2 s 80; 2001 c 123 s 14; 2002 c 262 s 19,20; 2021 c 12 s 8,9

Structure Minnesota Statutes

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 176.183 — Uninsured And Self-insured Employers; Benefits To Employees And Dependents; Liability Of Employer.

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 176.178 — Fraud.

Section 176.179 — Recovery Of Overpayments.

Section 176.181 — Insurance.

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 176.261 — Employee Of Commissioner Of Department Of Labor And Industry May Act For And Advise A Party To A Proceeding.

Section 176.2611 — Coordination Of The Office Of Administrative Hearings' Case Management System And The Workers' Compensation Imaging System.

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 176.451 — Defaults.

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 176.511 — Costs.

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 176.551 — Reports.

Section 176.561 — Workers' Compensation Court Of Appeals Powers And Duties As To State Employees; Procedure For Determining Liability.

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 176.83 — Rules.

Section 176.84 — Specificity Of Notice Or Statement.

Section 176.85 — Penalties; Appeals.

Section 176.861 — Disclosure Of Information.

Section 176.862 — Disclosure To Law Enforcement.