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The Minnesota Legislature established penalties as a consequence for behavior that violates the workers' compensation law. Just as important, the Department of Labor and Industry (DLI) views the assessment of penalties as an educational tool that helps insurers to keep future claims on track. The following material explains the process DLI uses to determine if a penalty is warranted for a violation of the workers' compensation statutes and rules.

The types of penalties assessed are warnings and monetary fines payable to the employee and/or the Assigned Risk Safety Account (ARSA). The penalty amount is set by the statutes and rules. Many of these penalties may also be assessed by a compensation judge.

Penalties that may be accessed

Compliance penalty reference table

Assessment factors

Before a penalty is assessed, the following factors are taken into consideration.

  • Does DLI have sufficient factual evidence to support the penalty?

  • Does DLI have the statutory authority to assess the penalty?

  • Does DLI have clear support of this penalty in the rules of practice?

  • Is the penalty supported by department policy?

  • Has the violation occurred within the past two years? (See Minnesota Rules Part 5220.2710.)

What to do when you receive a penalty

  • Review the claim to determine if the penalty is valid. If you have no legal or factual basis to object to the penalty, pay the penalty within 30 days of the date is was served and filed. This date is stamped on the front of the penalty.

  • If you have questions about why the penalty was assessed, call the author of the penalty. If the Department of Labor and Industry can resolve any issues quickly, it will do so. Do not allow such conversations to keep you from filing an Objection to Penalty Assessment form in a timely manner.

  • If you have reason to believe the penalty is not appropriate, file an Objection to Penalty Assessment form within 30 days of the date the penalty was served and filed. The author of the penalty will contact you if any additional information is needed or if the penalty can be amended or rescinded.