Minnesota Workers' Compensation law states all employers are required to purchase workers' compensation insurance or become self-insured. This is often referred to as "mandatory coverage." Employers are generally defined as those that hire another to perform services. Employees are generally defined as people performing services for another, for hire, including minors, part-time workers and workers who are not citizens. There are limited exceptions to mandatory coverage listed in Minnesota Statutes 176.041. If an employer does not see exception(s) stated in the statute for every employee of theirs, the employer needs workers' compensation insurance.
The Claims Services and Investigations unit investigates employers that may not have carried workers' compensation insurance coverage for employees. Results of these mandatory coverage investigations may be referred for civil penalty action (see Fines and penalties for failure to insure). The investigation establishes the time frame for the violation, the number of employees involved, the type of work performed and the associated payroll amounts.
If you have questions regarding the need to obtain workers' compensation coverage, contact DLI's Benefit Management and Resolution unit at (651) 284-5032 or 1-800-342-5354.
To report a business that does not have workers' compensation coverage, you do not need to give your name. You may complete an online form or contact DLI's Claims Services and Investigations unit by phone at (651) 284-5047 or by e-mail.