No. Dakota Approves Plan for Workers Comp in Minnesota

The North Dakota Workers Compensation (NDWC) announced that the Budget Section of the Legislature has given its approval to a proposal to allow the employers of North Dakota the flexibility to obtain workers’ compensation for employees working in Minnesota on a temporary or incidental basis.

Brent Edison, Executive Director and CEO of NDWC noted that the original authorization had been given 10 years ago, and that it had taken a long time to put the proposal into action.

“The new firm will allow North Dakota employers, who send their employees across the border to work in Minnesota, to obtain workers’ compensation coverage for their workers. ” It indicated that trucking firms and other companies located in the metropolitan centers of Fargo and Grand Forks are the most affected.

Minnesota has insisted on employers procuring coverage in that state, even for employees who are there only temporarily. “For years NDWC has attempted to enter into a reciprocal agreement with Minnesota without success,” said the bulletin.

It explained that in 1993 the Legislature, with bipartisan support, “passed HB 1222, codified as Chapter 65-08.1 of the Century Code, to address this problem with Minnesota. It authorized NDWC to establish a stock company to provide extraterritorial workers’ compensation insurance, other states’ insurance and employer’s liability insurance to North Dakota employers insured by NDWC.”

In July NDWC entered into a contract with the Hays Companies to formulate a business plan and complete the application process to write “other states” coverage in Minnesota. That approval has finally been given. Board Chairman Dave Ystebo stated that “This will ensure protection for North Dakota employers and employees conducting incidental operations in Minnesota.”

The company still needs to file incorporation papers, and to receive the necessary approvals from the North Dakota Insurance Commissioner’s office to operate as a stock insurance company. Following that, a certificate of authority must be obtained from the Minnesota Department of Commerce to operate in that state.

Topics Workers' Compensation Minnesota