Enforcement Actions Against Uninsured Employers in Minnesota on the Rise

Employees who are injured on the job working for an employer who failed to carry mandatory workers’ compensation insurance may be eligible for workers’ compensation benefits through the Minnesota Special Compensation Fund. 

The Minnesota Special Compensation Fund of the Minnesota Department of Labor and Industry is also charged with enforcing mandatory workers’ compensation overage. Recently, improved technological access and staffing changes has allowed the Special Compensation Fund to increase its enforcement efforts against uninsured employers in the state of Minnesota.

Recently, there has been a 441% increase in the number of penalties issued to employers who failed to carry mandatory workers’ compensation insurance. The number of penalties assessed increased from 210 during fiscal year 2007 to 1,137 penalties in fiscal year 2011, and the amount of penalties collected increased from $711,941 in fiscal year 2007 to $1,684,982 in fiscal year 2011.

Penalties collected by the Special Compensation Fund go to the Assigned Risk Safety account, which provides safety grants to qualified employers for projects designed to reduce the risk of injury or illness to their employees, and to other related safety and health initiatives at the Department of Labor and Industry.

By increasing enforcement and awareness of workers’ compensation insurance coverage requirements, the Special Compensation Fund hopes to reduce the number of workers’ compensation claims involving uninsured employers, which will ultimately reduce costs to the state and taxpayers, and to employers throughout the state by lowering workers’ compensation premiums.

Meuser & Associate has represented many workers who sustained injuries on the job, only to learn that their employer failed to carry the required workers’ compensation insurance. Thankfully, through the Special Compensation Fund, the State of Minnesota provides workers’ compensation benefits to workers who are injured on the job, when their employers fail to carry workers’ compensation insurance.

All too often, however, employers who know they don’t carry the required insurance try to get their injured workers to lie about how their accident happened, or try to convince them not to make a claim. Some of these employers promise to pay the hospital bill, and some promise to pay your regular wages while you’re off work. Almost invariably, when that $3,000 emergency room bill comes, or when you need an MRI, that employer who made you promises to take care of you is nowhere to be found. Likewise, if you’re off work for more than a day or two, rest assured, after a couple days, that employer will stop returning your calls.

If you sustain a serious on-the-job injury in Minnesota, and your employer pressures you not to file a claim, there’s a good change they’re uninsured. Employers who fail to carry mandatory workers’ compensation insurance are subject to fines and penalties. If the Special Compensation Fund has to make payments to an injured worker, the uninsured employer may also be subject to a claim for reimbursement plus a significant penalty.

If your employer was cutting corners in the first place by not carrying workers’ compensation insurance, they’re almost certainly not going to be there for you if you sustain an on-the-job injury. Uninsured employers are looking out for their own interests, and if you’re injured on the job, you need to look out for your own interests. Report your work-related injury. 

For a free, no-obligation Minnesota workers’ compensation case evaluation, contact Meuser & Associate at 877-746-5680, or click here to send us an email to schedule an appointment with one of our attorneys. 

More TTD Means TPD More Likely: MN Workers’ Comp. Wage Loss

According to an analysis done by the MN Department of Labor and Industry, workers who receive Temporary Total Disability (TTD) benefits for an extended period are more likely to be eligible for Temporary Partial Disability (TPD) benefits once they return to work. 

Temporary Total Disability (TTD) benefits are available to injured workers if they are completely restricted from working, or if they are unable to return to their date-of-injury employer as a result of their injuries, and they are conducting a diligent job search. These benefits are currently available for a maximum of 130 weeks at a rate of 2/3 of the workers’ average weekly wage (AWW) at the time of the injury, capped at a maximum of $850.00 per week. If the employee has reached maximum medical improvement (MMI), entitlement to TTD ceases 90 days after reaching MMI.

Temporary Partial Disability (TPD) benefits are available to injured workers who are able to return to work at a reduced wage due to their work-related injury or illness. TPD benefits are available for a maximum of 225 weeks, but for no more than 450 weeks after the date of injury. TPD benefits are paid at a rate of 2/3 of the difference between the workers’ average weekly wage (AWW) and their reduced earnings.

The Department of Labor and Industry determined that the overall percentage of injured workers with wage loss benefits who receive TPD benefits has stayed at about 29 percent. For injuries between 2003 and 2008, the percentage of indemnity claims with TPD benefits increases with the duration of TTD benefits, leveling off at about 55 percent for claims with more than six month of TTD benefits.

In plain language, what this means it that the longer an injured worker receives temporary total disability (TTD) benefits, the more likely it is that he or she will be eligible for temporary partial disability (TPD) benefits. 

In our Minnesota workers' compensation practice, we see many claims where an injured worker with permanent restrictions returned to work, possibly with minimal or no wage loss, and then subsequently lost that job, or had to take a lower paying job due to his or her injuries. In many of these cases, the injured worker was never told they were eligible for additional TPD benefits.

For a free, no-obligation workers' compensation case evaluation, contact Meuser & Associate at 877-746-5680, or click here to send us an email to schedule an appointment with one of our attorneys. 

Minnesota Workers’ Compensation Help: Office of Workers' Compensation Ombudsman

There's no question that the Minnesota workers' compensation system is extremely complex. Trying to navigate the system on your own can be very stressful. For injured workers who are having difficulty navigating the process, now the Minnesota Department of Labor and Industry is offering free assistance. 

The Minnesota Department of Labor and Industry recently created the Office of Workers’ Compensation Ombudsman service to provide information and assistance to injured workers and small businesses having difficulty navigating the workers’ compensation system, and to help resolve problems these parties encounter in the system. The Office of Workers’ Compensation Ombudsman also makes recommendations for statutory or rule changes to improve the effectiveness of the workers’ compensation system.

For injured workers, the ombudsman provides assistance by:

• Providing advice and information and to help them protect their rights and to pursue a claim;
• Contacting claims adjusters and other parties to resolve disputes; 
• Assisting in preparing for settlement negotiations or mediations; and 
• Making appropriate referrals to other agencies or entities when further resources are necessary. 

For small businesses, the ombudsman provides assistance by:

• Providing information regarding what to do when an employee reports an injury; 
• Directing them to appropriate resources for assistance in obtaining and resolving issues regarding workers’ compensation insurance; and 
• Responding to questions pertaining to employers’ responsibilities under Minnesota workers’ compensation law. 

The Office of Workers’ Compensation Ombudsman can be contacted at (651) 284-5013, 1-800-DIAL-DLI (1-800-342-5354), TTY (651) 297-4198, or by email at dli.ombudsman@state.mn.us. 

This should be a great resource for both injured workers and small businesses that are confused by the Minnesota workers’ compensation system. In fact, I’m optimistic that the Ombudsman will help parties resolve minor issues or communication breakdowns before they turn into major disputes. A less complex, less contentious, and more efficient Minnesota workers’ compensation system is good for all interested parties. 

For a free, no-obligation consultation to learn more about your Minnesota workers’ compensation rights or for a free case evaluation, call Meuser & Associate at 877-746-5680, or click here to send us an email to schedule an appointment with one of our attorneys. 

Will I Have to Undergo an Independent Medical Examination (IME) for My MN Workers’ Compensation Injury?

In our practice, I’d estimate at least 2/3 of my Minnesota workers’ compensation clients are required to undergo an “Independent” Medical Examination (IME) at least once during the duration of their claim. IME’s on disputed claims are almost inevitable.

We refer to so-called “Independent” Medical Examinations (IME) as adverse exams. They are not independent. The doctor you see will not offer treatment recommendations or advice. The doctor is hired by and paid for by the workers’ compensation insurance company.

The purpose of an IME is to provide an “independent” and “expert” opinion report regarding the nature and cause of your injuries for the insurance company. As you might imagine, very, very few of these reports are favorable to the Employee. Generally speaking, the IME doctor will opine that you weren’t hurt, that your injuries were pre-existing or unrelated to your work, that if you did have an injury, you’re completely healed, that your medical care has been unreasonable or unnecessary, that you’re not disabled, or that you’re simply faking it all together. The workers’ compensation insurance company then uses this so-called “expert” opinion as a basis to deny your claim.

Unfortunately, you are generally required to attend if the workers’ compensation insurance company decides to send you to one.

I ran across an interesting report from the MN Dept. of Labor and Industry analyzing what types of workers’ compensation claims involved an Independent Medical Examination. Claims that were closed in 2001 were included in the analysis, and a total of 1,197 of claims were reviewed to determine whether an IME had been performed and filed with the Department of Labor and Industry. Not all IME’s that are conducted are filed with DOLI, so some claims with no IME on file may have still had one conducted. Some claims fell into multiple categories. Not surprisingly, the analysis shows that claims where there was a dispute, or where the Employee’s disability lasted for an extended period were very likely to involve an IME.

• IME’s were filed on 9% of all claims involving indemnity benefits.
• IME’s were filed on 16% cases where claimants received temporary total disability (TTD) benefits for more than four weeks.
• IME’s were filed on 28% cases where a vocational rehabilitation plan was filed.
• IME’s were filed on 31% cases involving a primary denial of liability as well as a claim for indemnity benefits.
• IME’s were filed on 37% cases where a Rehabilitation Request for Assistance was filed.
• IME’s were filed on 56% cases where a Medical Request for Assistance was filed.
• IME’s were filed on 52% cases involving an Administrative Hearing Request, dealing with objections to discontinuances of wage loss benefits.
• IME’s were filed on 54% cases where a Stipulation for Settlement was filed.
• IME’s were filed on 63% cases where a Claim Petition was filed.
• IME’s were filed on 84% cases where a formal Objection to Discontinuance or Petition to Discontinue was filed.

If you’ve been scheduled for an Independent Medical Examination (IME) by your workers’ compensation insurance company, now is the time to speak with a workers’ compensation lawyer. It means that the workers’ compensation insurance company is going to try to stop your workers’ compensation benefits, and they’re seeking a so-called “expert” opinion to justify their reason for stopping your benefits.

For a free, no-obligation consultation with one of our Minnesota workers’ compensation lawyers, call us at 877-746-5680, or click here to send us an email.

100th Anniversary of the Triangle Shirtwaist Factory Fire: March 25, 2011

The U.S. Department of Labor and Industry has established a new interactive website commemorating the 100th anniversary of the Triangle Shirtwaist Factory Fire.

The Triangle Shirtwaist Factory Fire which began on March 25, 1911 at the Triangle Shirtwaist Factory Fire in New York City took the lives of 146 garment workers in a matter of minutes. It was the single deadliest industrial disaster in the history of New York City, and one of the worst in United States history. Most of the victims were recent immigrant women aged sixteen to twenty-three.

The Triangle Waist Company factory occupied the eighth, ninth, and tenth floors of the Asch Building at the corner of Greene Street and Washington Place in New York City. Under the ownership of Max Blanck and Isaac Harris, the company produced women's blouses, known as “shirtwaist.” The factory normally employed about 500 workers who were mostly young immigrant women.

At the end of the work day on Saturday, March 25, 1911, a fire broke out on the eighth floor of the factory. Although the cause of the fire has never been conclusively proven, the Fire Marshal determined that the likely cause of the fire was the disposal of a cigarette or match in a scrap bin, which then started on fire.

A bookkeeper was able to alert employees on the tenth floor via telephone, but there was no alarm on the ninth floor. The ninth floor had three exits, including a freight elevator, a fire escape, and stairways down to the Greene Street and Washington Place. Tragically, these exits were useless to the trapped workers. Flames prevented employees from descending the Greene Street stairway, and a foreman had locked the door to the Washington Street stairway. The foreman who had the key had already escaped by another route. Many employees escaped by going up the Greene Street stairway to the roof of the building. Other employees were able to escape in the elevators while they were still functioning.

After three minutes, the Greene Street stairway was unusable in both directions. An exterior fire escape twisted and collapsed from an overload of escaping employees, dropping victims 100 feet to their deaths. The elevators became unusable when the heat of the fire warped the rails, and victims jumped down the elevator shaft, piling up on top of the elevator car. Sixty-two people jumped or fell to their deaths from the burning building.

The rest of the victims were overcome by smoke and fire waiting for rescue. While the fire department arrived quickly, there were no ladders available that would reach above the sixth floor, and firefighters were unable to extinguish the blaze to enter the building.

Six victims remained unidentified until 2011.

The owners of the company, Max Blanck and Isaac Harris, were indicted on charges of first and second degree manslaughter, and their trial began on December 4, 1911. The jury acquitted the two men, in part because the prosecution failed to prove the owners knew the exit doors were locked at the time of the fire. In a subsequent civil suit against Blanck and Harris by survivors and the families of the victims, a jury awarded $75 per casualty. Amazingly, in 1913, Blanck was again arrested for locking the doors of his factory during working hours, and was fined $20.

Public outcry after this preventable tragedy spurred on the efforts of the labor movement, and was the catalyst for many pieces of legislation protecting the rights, health, and welfare of workers. New York City and New York State, over the next few years, adopted the country's strongest worker safety protection laws. Initially addressing fire safety, these laws eventually became model legislation for the rest of the country and state after stated enacted much more strict worker safety laws.

The Minnesota Department of Labor and Industry was established as the Labor Statistics Bureau in 1887 to protect the rights of working people through the administration and enforcement of laws, rules, and regulations to foster safe and healthful working environments; to insure adequate compensation for work performed; to assist victims of occupational injury and illness; and to license and inspect establishments that use boilers and steam equipment. The department was known as the Labor, Industry and Commerce Bureau from 1907 to 1913 and then it became an official Minnesota state department and renamed the Labor and Industries Department. In 1913, Minnesota legislature passed the first workers’ compensation law. In 1925, the Labor and Industries Department became the Department of Labor and Industry.

If you’ve sustained a work-related injury in Minnesota, you may be entitled to workers’ compensation benefits. For a free, no-obligation consultation to learn about the workers’ compensation benefits you may be entitled to, contact Meuser & Associate at 877-746-5680 or click here to send us an email.

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Rehabilitation Assistance for Workers When Your Minnesota Workers’ Compensation Claim is Denied

If you have a work related injury in Minnesota, but the employer/insurer is denying your claim or disputing medical causation on your claim, and you need assistance returning to work, you may be eligible for the assistance of a Qualified Rehabilitation Consultant (QRC) through the Department of Labor and Industry’s Vocational Rehabilitation Unit (VRU).

In our Minnesota workers' compensation practice, we frequently see injured workers whose claims are denied struggling to return to work. In many instances, these folks benefit from rehabilitation services provided through the Department of Labor and Industry's Vocational Rehabilitation Unit (VRU).

VRU services are designed to help injured workers return to suitable employment as quickly as possible. This could mean a return to work with the pre-injury employer, in either the same job or another job, or to a new employer in the same or a different type of work.

Vocational rehabilitation services provided by the Minnesota Department of Labor and Industry's Vocational Rehabilitation Unit (VRU), include:

• Rehabilitation consultation
• Medical management
• Return-to-work services
• Job analysis
• Vocational counseling and evaluation
• Transferable skills analysis
• Job-seeking skills training
• Job development and job placement
• On-the-job training
• Retraining evaluation

These services are provided or coordinated by a VRU qualified rehabilitation consultant (QRC).

An injured worker does not have to pay for these services. Rehabilitation services are paid for by the workers’ compensation insurance company.

In order to eligible for rehabilitation assistance through the Minnesota Department of Labor and Industry, you must request a VRU QRC Consultation, and you or your attorney must initiate a claim by filing a Claim Petition or Objection to Discontinuance. Click here to download a copy of the request form.

Rehabilitation services are a valuable benefit for injured workers. To learn more about your right to rehabilitation services, contact us at Meuser & Associates for a free, no-obligation workers’ compensation consultation. Call us today at 877-746-5680 or click here to send us an email.

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