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. 

How Do I Know If My Employer Has Minnesota Workers’ Compensation Insurance?

If you are hurt on the job in Minnesota, in most cases, a workers' compensation insurance company pays your workers' compensation benefits. 

How Do I Know If My Employer Has Minnesota Workers’ Compensation Insurance? 

Employers in Minnesota are required by law to carry Minnesota workers’ compensation insurance to provide benefits to their employees in the event they are injured on the law. If you are injured on the job, your employer is required to complete and file a First Report of Injury. They are required to send this form to their insurance company. They should also provide you with the name and contact information for their insurance company. If your employer refuses to file a First Report of Injury, you can report the injury on your own, or a Minnesota workers’ compensation lawyer can help you file a First Report of Injury.

All Minnesota employers are also legally required to have a poster entitled “Minnesota Workers’ Compensation Employees Rights and Responsibilities,” posted in a conspicuous space. This poster includes a space for the name and phone number of their workers’ compensation insurance company. If your employer does not have a copy of this poster posted in a conspicuous space, you can download and print off a copy from the Minnesota Department of Labor and Industry.

If your employer won’t give you their workers’ compensation insurance information, you can verify if your employer has worker’s compensation insurance and find out the name and contact information for the insurance company using the Department of Labor and Industry’s insurance look-up tool. If you can’t find your employer’s insurance company using the search tool, you can contact the Department of Labor and Industry’s Claims Services and Investigations unit to request insurance coverage verification about any employer in the state at (651) 284-5170.

What If My Employer Doesn’t Have Minnesota Workers’ Compensation Insurance? 

If you suffer an injury on the job, and your employer has no insurance and is not self-insured, in Minnesota you may request that the Minnesota Special Compensation Fund pay you the appropriate benefits. The Special Compensation Fund will conduct an investigation into whether the employer had insurance coverage, and they will make a determination whether or not to cover your claim. If they determine that you have a compensable injury, you will be eligible for the same workers’ compensation benefits that you’d normally be entitled to, if your employer had insurance.

Often times in cases involving the Special Compensation Fund, there are disputes as to insurance coverage, whether the injured worker was an employee or independent contractor, and disputes as to the nature and extent of the injury. Disputes with the Special Compensation Fund regarding entitlement to workers’ compensation benefits are handled using the same procedures as disputes with workers’ compensation insurance companies.

If the Special Compensation Fund pays workers’ compensation benefits to an injured worker because the employer failed to carry workers’ compensation insurance, the Fund will usually pursue a claim against the uninsured employer for reimbursement of all workers’ compensation benefits paid, as well as a 65% penalty.

In addition, an uninsured employer may also be fined by the Department of Labor and Industry for failing to insure its employees, regardless of whether an injury has occurred. If you suspect your employer or another business is operating without workers’ compensation insurance in violation of Minnesota law, you can report the violation here or by calling (651) 284-5109, and your report will be investigated by the Claims Services and Investigations' Investigative Services Section of the Minnesota Department of Labor and Industry.

Unfortunately, there are many employers in Minnesota who do not carry legally required workers’ compensation insurance. If you’re hurt on the job while working for an uninsured employer, or if your employer won’t provide you with their workers’ compensation insurance information, a Minnesota workers’ compensation lawyer can help you protect your rights. For a free, no-obligation consultation to learn more about your workers’ compensation rights, call Meuser & Associate at 877-746-5680 or click here to send us an email. 

Construction Worker Injuries and Minnesota Injury Law

As the weather grows warmer here in Minnesota, demand for construction workers will increase. Unfortunately, as construction increases during the Spring and Summer months, so do construction injuries. Construction workers, including framers, siders, roofers, painters, electricians, plumbers, welders, installers, concrete workers, and steel workers are all at high risk for work-related injuries. Construction workers and skilled laborers and tradesman should be aware of their rights if they are injured while working on a construction job.

On any given day, nearly 6.5 million people work at approximately 252,000 construction sites. Unfortunately, the fatal injury rate in the construction industry is much higher than the national average for all other industries. In 2007, there were 441 work-related construction worker deaths, and there were 39 construction worker fatalities in Minnesota. Construction has about 8% of U.S. workers, but 22% of the fatalities - the largest number of fatalities reported for any of the industry sectors.

Common Hazards for Construction Workers

Some common potential hazards for workers in the construction industry include:

• Falls from ladders
• Falls from roofs
• Falls from scaffolding
• Scaffolding collapses
• Trench collapses
• Electric shocks
• Arc flashes/arc blasts
• Repetitive motion injuries
• Foreign objects in eyes
• Chemical exposure to the eyes or skin
• Injuries from falling objects
• Puncture wounds
• Hand and foot crush injuries
• Respiratory exposure to toxic fumes or chemicals
• Burns
• Lifting injuries
• Structural collapses
• Crane accidents
• Forklift accidents
• Backhoe accidents
• Frontloader accidents
• Elevator shaft falls
• Occupational hearing loss
• Heavy equipment accidents
• Motor vehicle accidents
• Power line accidents
• Compressed gas explosions
• Power tool accidents
• Lead poisoning
• Derrick accidents
• Falls through skylights and floor openings
• Boom collapses
• Hoist accidents
• Conveyor accidents
• Crane tip-overs
• Saw accidents
• Sander accidents
• Over-exertion injuries
• Polisher accidents
• Exposure to asphalt fumes
• Skid steer loader accidents
• Hoist accidents
• Falls from telecommunication towers
• Winch accidents
• Excavation cave-ins
• Grater accidents
• Carbon monoxide poisoning
• Scraper accidents
• Tractor accidents
• Silica dust exposure
• Bobcat accidents
• Bulldozer accidents
• Boiler accidents and explosions
• Gas explosions
• Foundation collapses
• Nail gun accidents
• Air compression accidents
  

Minnesota construction workers who are injured on the job are often entitled to workers’ compensation benefits, including medical expense benefits, wage loss benefits, permanency benefits, and rehabilitation or retraining benefits. If a construction worker is killed as the result of his or her construction work activities, his or her survivors may be entitled to death and dependency workers’ compensation benefits.

“Independent Contractors” or Employees?

Unfortunately, many construction workers incorrectly believe that they are “independent contractors” who are generally not entitled to Minnesota workers’ compensation benefits. In many, many cases, a construction worker who has been labeled as an “independent contractor” by his or her employer is actually an employee under Minnesota law. That means they are entitled to workers’ compensation benefits.

Effective January 2009, the Minnesota legislature passed a law requiring “independent contractors” to obtain an Independent Contractor Exemption Certificate, among other things. If a so-called “independent contractor” is injured on a construction job in Minnesota after January 2009, and does not have an Exemption Certificate, he or she is considered an employee for purposes of workers’ compensation. Even if a construction worker has obtained an Exemption Certificate, there are several other factors that must also be met in order for an employee to be considered an “independent contractor” for purposes of Minnesota workers’ compensation.
Even prior to 2009, for a construction worker to be considered an “independent contractor,” a series of several factors had to be satisfied. Otherwise, the injured worker was considered an employee for purposes of Minnesota workers’ compensation.

If you are a construction worker who was hurt on the job, and you’re unsure whether or not you’re an “independent contractor,” we are happy to provide a free, no-obligation consultation. Call Meuser & Associates at 877-746-5680 or click here to send us an email. Unfortunately, if there is any question as to whether you are an employee or an independent contractor, it is almost guaranteed that the workers’ compensation insurance company will deny your claim.

Uninsured Subcontractors

Generally, an employer is liable only for workers’ compensation benefits to its own employees. However, there is one major exception to this rule which is unique to the construction industry. Where a subcontractor fails to obtain workers’ compensation coverage, the general or intermediate contractor is liable for workers’ compensation benefits to an injured employee, if the subcontractor is working on the subject matter of the subcontract. What this means is that if you are an employee of a subcontractor, and your employer failed to carry workers’ compensation, the general contractor on the job may be responsible for workers’ compensation benefits if you are hurt on the job.

If you are hurt on the job, and your employer is a subcontractor that has no workers’ compensation insurance coverage, you may be covered by the general contractor’s workers’ comp. insurance. Unfortunately, it is almost guaranteed that the general contractor’s insurance company is not going to want to pay your claim. You will probably be in for a fight to get the workers’ compensation benefits you are entitled to. We’ve successfully represented many construction workers in situations like this. Call Meuser & Associates at 877-746-5680 or click here to send us an email to schedule a free, no-obligation consultation with one of our workers' compensation lawyers.

Uninsured Employers and Workers’ Compensation Benefits

Unfortunately, especially in this horrible economic climate, many small construction companies don’t carry workers’ compensation insurance, in an effort to cut costs. If you are a construction worker injured on the job and your employer has no insurance, you may still be entitled to workers’ compensation benefits, including medical expense benefits, wage loss benefits, permanency benefits, and rehabilitation and/or retraining benefits. The Minnesota Special Compensation Fund pays workers’ compensation benefits when an employee is injured on the job, but the employer has no workers’ compensation insurance. The uninsured employer does not get by for free in this situation, however. Employers are required by law to carry workers’ compensation insurance to cover their employees. If an employee is injured and the Special Compensation Fund has to pay for that employee’s benefits, the uninsured employer has to reimburse the Special Compensation Fund, and it may also be liable for fines and penalties.

Securing workers’ compensation benefits from the Minnesota Special Compensation Fund when the employer had no insurance is a relatively complex process. The Special Comp Fund treats claims just like a insurance company does, which means they may deny your claim just like a regular insurance company. If your employer had no insurance, you are well advised to contact an experienced workers’ compensation lawyer to help you secure work comp. benefits. Call Meuser & Associates at 877-746-5680 or click here to send us an email to schedule a free, no-obligation consultation with a workers' comp. lawyer.

Third-Party Liability Claims

In addition to workers’ compensation benefits, injured construction workers frequently have third-party liability claims against third parties. Often, injuries to construction workers and job site accidents are caused by the negligence or carelessness of third parties. In any case where a construction worker’s injuries are caused by a third party, other than the employer or a co-worker, there may be a civil case against the third party. Common examples include motor vehicle accidents, accidents caused by other subcontractors, and accidents caused by the negligence of a property manager or owner. While Minnesota workers’ compensation provides some wage loss benefits, some permanency benefits, and some other monetary benefits, generally, civil claims allow an injured person to claim much greater damages, such as greater wage loss, future medical expenses, pain and suffering, and loss of enjoyment of life.

A lawyer representing a construction worker injured on a construction site should always investigate the facts of a case to determine whether there is a potential civil claim against a third party. Unfortunately, some lawyers practice only workers’ compensation law, or only personal injury law. Lawyers who practice only personal injury law may not be able to effectively handle your workers’ compensation case. Conversely, lawyers who practice only workers’ compensation law may not recognize your civil case, and may not be able to effectively handle it. In that case, you might need two lawyers to deal with your one accident. The lawyers at Meuser & Associates practice both workers’ compensation and personal injury law, so we know how to do both, and we can handle both aspects of your case, eliminating the need to hire two different lawyers. Call us today at 877-746-5680 or click here to send us an email to schedule a free, no-obligation consultation.

Visit Minnesota Workers' Compensation and Personal Injury Law Firm, Meuser & Associates, P.A., at MeuserLaw.com

Work Injuries and Uninsured Employers: What If You are Hurt on the Job and Your Employer Has No Workers' Compensation Insurance?

In Minnesota, employers are required to purchase workers’ compensation insurance coverage or to obtain approval from the Minnesota Department of Commerce to self-insure for workers’ compensation. Employers are also required to post a poster in the workplace with the name and telephone number of the workers’ compensation insurance company. Not all employers comply with this requirement, however. Employers even occasionally refuse to tell employees who their insurance company is.

You can verify if your employer has workers’ compensation insurance coverage, and find out the name and contact information for the insurance company using the Department of Labor and Industry’s insurance look-up tool. If you can’t find your employer’s insurance company using the search tool, contact the Department of Labor and Industry’s Claims Services and Investigations unit to request insurance coverage verification about any employer in the state at (651) 284-5170.

What if you are hurt on the job and your employer doesn’t have insurance?

If you suffer an injury on the job, and your employer has no insurance and is not self-insured, you may request that the Minnesota Special Compensation Fund pay you the appropriate benefits. First, a compensation judge will have to determine whether the employer is liable for your injury, and then, if appropriate, order the Special Compensation Fund to pay you the appropriate benefits. The judge will also order the uninsured employer to reimburse the Special Compensation Fund along with a penalty in the amount of 65 percent of the benefits paid by the Fund. Alternatively, you may elect to sue the employer for the injury in a civil action. Generally, you would be entitled to a greater amount of compensation in a civil action against the employer than in a workers’ compensation action. If you opt to pursue a civil case against your employer, the employer may not defend the lawsuit by claiming the usual common law defenses, such as assumption of risk, unless the employer can prove that you were willfully negligent.

In addition, an uninsured employer may also be fined by the Department of Labor and Industry for failing to insure employees, regardless of whether an injury has occurred.

If you suspect your employer or another business is operating without workers’ compensation insurance in violation of Minnesota law, you can report the violation here or by calling (651) 284-5109, and your report will be investigated by the Claims Services and Investigations' Investigative Services Section of the Minnesota Department of Labor and Industry.

If your employer does not have insurance or won’t give you their workers’ compensation insurance information, you should probably consult with an experienced workers’ compensation attorney. We can help verify insurance coverage, and if there is no insurance company, we can assist you in obtaining benefits from the Special Compensation Fund or by making a civil claim against your employer. Meuser & Associates has successfully handled many cases where the employer failed to carry workers’ compensation insurance. To schedule a free, no-obligation consultation with a workers' compensation lawyer, call us at 877-746-5680 or click here to send us an email.

Visit Minnesota Workers' Compensation and Personal Injury Law Firm, Meuser & Associates, P.A., at MeuserLaw.com