Does Minnesota require workers’ compensation insurance?
Yes. Minnesota requires workers' compensation from the first employee: Minnesota Statutes 176.181 makes every employer insure or get approval to self-insure, and the Department of Labor and Industry says there is no minimum number of employees, so one part-time worker generally counts. Sole proprietors, partners, and some 25% owner-officers of small corporations and LLCs are excluded by statute, and there is no owner waiver form to file.
Updated . Written by Andre Beukers, principal at Redoubt, a commercial insurance agency in Salt Lake City, not a government office.
How many employees before Minnesota requires workers' comp?
Minnesota Statutes 176.181, subd. 2 requires every employer to buy workers' compensation from an authorized carrier or get written approval from the Department of Commerce to self-insure. The Department of Labor and Industry (DLI) says there is no minimum head count: one part-time employee generally triggers it, and minors and non-citizens count.
Source: Minnesota DLI, Who needs workers' compensation coverage?, checked .
Which owners, officers, and family members are exempt in Minnesota?
Minnesota Statutes 176.041 takes these people out of the Act by law, with nothing to file: sole proprietors and partners, and their spouse, parents, and children; an executive officer who owns at least 25% of a closely held corporation with under 22,880 hours of payroll in the prior calendar year; and a manager who owns at least 25% of an LLC with ten or fewer members under the same payroll cap, plus those officers' and managers' spouse, parents, and children.
Independent contractors who meet the tests in Minnesota Statutes 176.043 and 181.723 are also outside the Act, but that exclusion does not reach the contractor's own employees. Anyone not on the 176.041 list, such as a minority owner, is an employee.
Source: Minn. Stat. 176.041, checked .
What happens to a Minnesota employer with no workers' comp?
DLI can order an uninsured employer to get coverage, to stop employing anyone until it does, and to pay a penalty of up to $1,000 per employee for each week without coverage, under Minnesota Statutes 176.181, subd. 3. The penalty becomes a lien on the employer's property, and "employer" includes owners and officers who direct the employees. Willfully failing to insure is a gross misdemeanor (subd. 4).
If an uninsured employer's worker is hurt, DLI's Special Compensation Fund pays the benefits, and a compensation judge orders the employer to repay them plus a penalty of 65% of the benefits, under Minnesota Statutes 176.183.
Source: Minn. Stat. 176.181, checked .
Who enforces workers' comp in Minnesota?
The Minnesota Department of Labor and Industry enforces the requirement. Its Special Compensation Fund unit investigates employers that may be uninsured, refers them for penalties, and pays benefits to injured workers of an uninsured employer. The Department of Commerce licenses carriers and approves self-insurance.
Source: Minnesota DLI, Who needs workers' compensation coverage?, checked .
Where do Minnesota employers buy coverage?
Minnesota has no state fund. DLI tells employers to buy through an insurance agent or directly from an insurer, and notes that Minnesota, unlike North Dakota, does not insure employers itself. An employer the voluntary market will not write can get coverage from the Minnesota Workers' Compensation Assigned Risk Plan, through an agent or by calling MWCIA, which handles underwriting and policy assignment for the plan.
Source: Minnesota DLI, How to obtain workers' compensation insurance, checked .
Who sets the class codes and rates in Minnesota?
Minnesota is not an NCCI state. The Minnesota Workers' Compensation Insurers Association (MWCIA), a nonprofit licensed by the Department of Commerce as the state's data service organization, collects carrier data, maintains Minnesota's classification codes, publishes the annual ratemaking report, and calculates experience modifications. Every insurer writing workers' comp in Minnesota must belong to a data service organization.
Source: MWCIA, Company Profile, checked .
Is there an exemption or waiver form in Minnesota?
No. Minnesota has no waiver or exemption certificate for owners: the 176.041 exclusions apply by statute, and DLI's workers' compensation forms list carries no waiver form. The filings that exist are elections. A qualifying closely held corporation or small LLC can exclude other relatives of the owner-officer or manager on DLI's Election to Exclude Relatives forms (SF0138 for corporations, SF0137 for LLCs), and an excluded owner can elect to be covered under 176.041, subd. 1a.
Because there is no waiver, an owner with no employees who is asked for proof of coverage usually buys a zero estimated exposure policy. DLI's guidance on 2025 Session Laws Chapter 27 says that from January 1, 2026, a building construction or improvement business with one of these policies must tell anyone it contracts with directly, in writing, and hand over a copy of the policy.
Source: Minnesota DLI, Workers' compensation forms, checked .
Sorting out Minnesota workers' comp for your business
Tell Redoubt what the business does, who works in it, and what the Minnesota requirement in front of you says. We will say whether a policy, a waiver, or an exclusion fits.
This is general insurance information, not legal advice or a coverage determination. Statutes, agency instructions, policy forms, and the facts of the business control.
Workers’ comp requirements in every state
Each state page gives the employee threshold, the owner and officer exemptions, the penalty for going without, the rating bureau, the market, the enforcing agency, and the exemption filing, each with its statute or agency source.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
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- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
The hub, and the Minnesota pages that go deeper
Minnesota workers’ comp FAQ
Do I need workers' comp in Minnesota with one part-time employee?+
Generally yes. DLI says Minnesota has no minimum number of employees, so one part-time employee usually triggers the requirement. Narrow carve-outs in 176.041 cover casual work outside the usual business, small household jobs, and family-farm workers.
Is an LLC owner in Minnesota exempt from workers' comp?+
Often, but not always. Under 176.041 a manager who owns at least 25% of an LLC with ten or fewer members and under 22,880 hours of payroll in the prior year is excluded, along with their spouse, parents, and children. A larger LLC's managers, or a minority owner, are employees unless another exclusion applies.
Can I get a workers' comp waiver in Minnesota?+
No. Minnesota has no owner waiver certificate; excluded owners are excluded by statute. When a general contractor or customer wants proof anyway, the usual answer is a zero estimated exposure policy, which construction businesses must now disclose in writing to the party they contract with directly.
What if no insurer will write my Minnesota business?+
Apply to the Minnesota Workers' Compensation Assigned Risk Plan, through an insurance agent or by calling MWCIA, which handles underwriting and policy assignment for the plan.