MinnesotaHF 322894th Legislature, 2025-2026HouseWALLET

Workers' Compensation Advisory Council recommendations adopted.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 4 benefits, 1 costs, 1 mixed.

Injury coverage for direct support workers

Direct support workers in four Minnesota programs get workers’ compensation coverage unless another workers’ compensation exclusion applies. For personal care assistance under section 256B.0659, the provider agency must maintain coverage. Under section 256B.85, the employing agency or participant must maintain coverage. Under sections 256B.4911 and 256.476, the participant is the employer and must maintain coverage. The financial management services provider must require and verify that participant’s coverage.

More injury money protected from creditors

For injuries on or after October 1, 2025, workers’ compensation claims and awards receive greater protection from debt collection. Up to $10 million total per claim and subsequent award is protected from seizure or sale to pay debts. Earlier injuries retain the $1 million limit. The injury date controls, not the payment date.

Payment protection for family nursing caregivers

Employers must pay the reasonable value of family- or household-provided nursing care for employees with permanent total disability. The law does not set a payment rate. These caregivers keep their payment interest in the workers’ compensation case even when they file late to join it.

Fewer fund reporting duties for insurers

The law repeals a Special Compensation Fund rule covering assessment filing and payment deadlines and late penalties. The repeal also removes that rule’s continued reporting duties for certain former insurers and self-insured employers. It does not create a direct household payment.

Filing deadlines for injured workers’ claims

In general, injured workers must bring a compensation action within three years after a written injury report reaches Minnesota’s labor department. They must also act no later than six years after the accident. Disability-related incapacity extends the deadline to three years after the incapacity ends. Occupational disease and certain exposure claims use separate deadlines tied to knowledge of the cause or disability.

Coverage exclusions for some corporate officers

The law clarifies that executive officers include officers elected or appointed under corporate governing documents or Minnesota’s corporate law. Executive officers of family farm corporations are excluded from workers’ compensation coverage. A closely held corporation’s officer is excluded when owning at least 25% of its stock. That company must also have fewer than 22,880 payroll hours in the prior calendar year. These exclusions reduce employer coverage duties but leave affected officers outside workers’ compensation protection.

Sponsors & Cosponsors

Sponsor

Dave Baker
Republican • House

Cosponsors

Kaela Berg
Democratic • House
McEwen
Affiliation unavailable
Bianca Virnig
Democratic • House
Dan Wolgamott
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 321 • No: 12

House vote • 5/16/2025

Repassage, as amended by the Senate

Yes: 134 • No: 0

Senate vote • 5/16/2025

Third Reading

Yes: 53 • No: 12

House vote • 5/12/2025

Passage