Minnesota workers comp requirements decide exactly when an employer must carry coverage, who counts toward the threshold, and the penalty for going without. This guide breaks down the Minnesota workers comp requirements in plain English. (Injured instead of hiring? See our Minnesota settlement and claim guides linked below.) All figures are from Minnesota sources, verified as of June 2026.
Minnesota at a Glance
| Required at | 1 employee(s) |
| Which workers count | Coverage is required from the first employee with no minimum threshold; full-time, part-time, and seasonal workers all count. There is no separate higher trigger for construction — the first-employee rule applies to virtually all industries. |
| Who is exempt | Sole proprietors and business partners are not counted as their own employees; a sole proprietor’s spouse, parents, and children are exempt regardless of pay; executive officers of closely held corporations (10 or fewer shareholders) who own at least 25 percent of stock, and their close family, are excluded; certain casual labor, some farm/agricultural operations below state size thresholds, and specified domestic workers may also be exempt under Minn. Stat. 176.041. |
| Penalty for going without | The Commissioner of Labor and Industry may order an uninsured employer to comply and pay a penalty of up to 1000 per employee per week for each week the employer was uninsured; a willful and intentional failure to insure is a gross misdemeanor; falsely reporting or failing to report coverage when obtaining/renewing a license or permit carries a 2000 penalty. Penalties are deposited in the assigned risk safety account, and the state can also recover benefits paid on behalf of an uninsured employer’s injured worker. |
| Monopolistic state? | No — private carriers |
In This Minnesota Guide:
Is Workers’ Comp Required in Minnesota?
Yes — Minnesota law requires nearly all employers to carry workers’ compensation insurance (or be approved to self-insure) from the very first employee, with no minimum number of employees required before coverage is mandatory.
Minnesota Workers’ Comp Requirements at a Glance
Here are the exact Minnesota workers comp requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | Coverage is required from the first employee with no minimum threshold; full-time, part-time, and seasonal workers all count. There is no separate higher trigger for construction — the first-employee rule applies to virtually all industries. |
| Who is exempt | Sole proprietors and business partners are not counted as their own employees; a sole proprietor’s spouse, parents, and children are exempt regardless of pay; executive officers of closely held corporations (10 or fewer shareholders) who own at least 25 percent of stock, and their close family, are excluded; certain casual labor, some farm/agricultural operations below state size thresholds, and specified domestic workers may also be exempt under Minn. Stat. 176.041. |
| Owners & officers | Yes. Sole proprietors and partners are excluded by default and may elect to cover themselves. Executive officers owning 25 percent or more of a closely held corporation (with fewer than 22,880 payroll hours in the prior year) and their spouse/parent/child are automatically excluded unless the business elects to cover them; more distantly related employees may opt out by filing a written request to be excluded. |
| Penalty for going without | The Commissioner of Labor and Industry may order an uninsured employer to comply and pay a penalty of up to 1000 per employee per week for each week the employer was uninsured; a willful and intentional failure to insure is a gross misdemeanor; falsely reporting or failing to report coverage when obtaining/renewing a license or permit carries a 2000 penalty. Penalties are deposited in the assigned risk safety account, and the state can also recover benefits paid on behalf of an uninsured employer’s injured worker. |
| Monopolistic state? | No — buy from private carriers |
| State fund | NONE — Minnesota has no state-run workers’ compensation fund; it relies on the private market plus a residual assigned-risk plan (the Minnesota Workers’ Compensation Assigned Risk Plan, MWCARP). |
How to Get Workers’ Comp Coverage in Minnesota
A Minnesota employer obtains coverage by buying a policy from any private insurer licensed in Minnesota, by qualifying as an approved self-insurer through the Minnesota Department of Commerce, or — if declined by the voluntary market within 90 days of the requested effective date — through the Minnesota Workers’ Compensation Assigned Risk Plan (MWCARP), administered via the Minnesota Workers’ Compensation Insurers Association (MWCIA).
Private market: YES
What Workers’ Comp Covers in Minnesota
Workers’ compensation is a no-fault system: an injured employee gets benefits without having to prove the employer did anything wrong, and in exchange gives up the right to sue for most workplace injuries. A typical Minnesota policy pays for medical treatment tied to a work injury, part of the wages lost while the worker recovers, longer-term disability benefits if the injury is permanent, and death benefits to a family.
It also includes employers-liability coverage, which protects the business if an injury still leads to a lawsuit.
Employees vs. Independent Contractors in Minnesota
The most common way employers get the Minnesota workers comp requirements wrong is by assuming a worker is an “independent contractor” who does not count. State agencies look at how the work is actually controlled, not the label on a 1099. If Minnesota decides a contractor was really an employee, the business can owe back premiums and penalties as if coverage should have been in place all along.
When you are close to the employee threshold, confirm each worker’s status with your state board before you decide you are exempt.
Other Minnesota workers’-comp rules: Effective January 1, 2026, employers who purchase a “zero estimated exposure” (zero estimated payroll) workers’ comp policy must give written notice of that zero-exposure status to anyone they directly contract with to provide building construction or improvement services. Closely held corporation officer exclusions hinge on a specific 22,880 prior-year payroll-hour limit.
Minnesota also runs a residual market (MWCARP) rather than a state fund to guarantee all employers can obtain required coverage.
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Understanding Minnesota Workers Comp Requirements
The Minnesota workers comp requirements exist so injured employees get care and lost wages without having to sue. For most employers, the Minnesota workers comp requirements come down to one number: the employee count that triggers the mandate, shown in the table above. Once you hit that count, Minnesota workers comp requirements apply whether you planned for them or not, and the penalty for going without is real.
If any part of the Minnesota workers comp requirements is unclear, your state board can confirm the threshold, the exemptions, and how to get covered.
Need to get covered? If you are an employer in Minnesota shopping for a policy, our sister site compares small-business insurance, including workers’ comp. Compare business insurance options →
Frequently Asked Questions
Is workers’ comp required in Minnesota?
Yes — Minnesota law requires nearly all employers to carry workers’ compensation insurance (or be approved to self-insure) from the very first employee, with no minimum number of employees required before coverage is mandatory.
What is the penalty for not having workers’ comp in Minnesota?
The Commissioner of Labor and Industry may order an uninsured employer to comply and pay a penalty of up to 1000 per employee per week for each week the employer was uninsured; a willful and intentional failure to insure is a gross misdemeanor; falsely reporting or failing to report coverage when obtaining/renewing a license or permit carries a 2000 penalty.
Penalties are deposited in the assigned risk safety account, and the state can also recover benefits paid on behalf of an uninsured employer’s injured worker.
Who is exempt from Minnesota workers’ comp?
Sole proprietors and business partners are not counted as their own employees; a sole proprietor’s spouse, parents, and children are exempt regardless of pay; executive officers of closely held corporations (10 or fewer shareholders) who own at least 25 percent of stock, and their close family, are excluded; certain casual labor, some farm/agricultural operations below state size thresholds, and specified domestic workers may also be exempt under Minn. Stat. 176.041.
Official Minnesota Sources & Resources
- Minnesota Minnesota Department of Labor and Industry (DLI), Workers’ Compensation Division: https://www.dli.mn.gov/business/workers-compensation
- Minnesota Workers’ Comp Statute: https://www.revisor.mn.gov/statutes/cite/176
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
These Minnesota workers comp requirements were last verified against official sources in June 2026. Rules and penalties change — confirm the current figure with your state workers’-comp board or a licensed agent.
More Minnesota Workers’ Comp Guides
- Minnesota Workers’ Comp Settlements
- How to File a Minnesota Workers’ Comp Claim
- Workers’ Comp Guides for All 50 States
Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.