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Workers' compensation trends continue stability, long-term downward trajectories

August 20, 2026

Workers' compensation claim rates and benefits paid in Minnesota continue to be stable or follow their long-term downward trajectories, a new Department of Labor and Industry (DLI) report shows. The 2026 Minnesota Workers' Compensation System Report presents trend data from 2004 to the present regarding several aspects of Minnesota’s workers' compensation system, including claims, benefits and costs; vocational rehabilitation; and dispute resolution.

Significant findings

  • Relative to the number of full-time-equivalent (FTE) workers, the total number of paid claims dropped by 42%, indemnity claims by 32% and medical-only claims by 45% from 2004 to 2024. The total claim rate reached its lowest level in 2024 compared to any other reported year.

  • Between 2004 and 2024, indemnity benefits per $100 of payroll fell 41% and medical benefits per $100 of payroll fell 54%.

  • The estimated total cost of Minnesota’s workers’ compensation system was $1.70 billion for 2024, or $0.83 per $100 of payroll, indicating a long-term downward trend averaging 3.1% annually.

  • In 2024, on a current-payment basis, the three largest components of total workers’ compensation system cost were insurer expenses (33%), medical benefits (32%) and indemnity benefits other than vocational rehabilitation (30%).

  • Compared to 2004, the average amount of time an injured worker received total disability benefits was 33% longer in 2024. The average duration of temporary partial disability (TPD) fell 12.0% by 2024.

  • After adjusting for average wage growth, from 2004 to 2024, total disability benefits per paid indemnity claim increased 37%; TPD benefits per paid indemnity claim fell 27%; PPD benefits per paid indemnity claim fell 38%.

  • Participation in vocational rehabilitation rose from 20% of paid indemnity claims for injury-year 2004 to 25% for 2019, but decreased to 21.8% in 2024.

  • The denial rate for non-COVID-19 claims was 17.4% in 2024, about half a percentage point higher than 2023.

  • In 2025, 86% of scheduled mediations were completed, while 24% of scheduled medical conferences and 25% of scheduled rehabilitation conferences were completed.

View the complete report.