Workers' Compensation and No-Fault
Workers' compensation and no-fault tests two no-fault systems: Minnesota workers' compensation under chapter 176 and auto no-fault under chapter 65B. Expect questions on exclusive remedy, benefits, reporting, PIP priority, and the tort threshold.
Workers' compensation
Minnesota workers' compensation is a no-fault system. The employer pays medical, wage-loss, rehabilitation, and death benefits for work-related injury, and the exclusive remedy generally bars the employee's tort suit against the employer. The employee must report the injury within 180 days, and the claim is filed with the Department of Labor and Industry. Wage-loss benefits are based on a statutory percentage of the employee's wage, subject to a state maximum.
Auto no-fault
PIP pays medical expenses, income loss, essential services, and funeral expenses without regard to fault. PIP is primary over health insurance for auto-related medical bills in Minnesota, subject to policy coordination. The tort threshold permits noneconomic claims only if medical expenses exceed $4,000, disability lasts 60 days, or there is permanent injury or death.
Worked example
An employee is injured in a work-related auto accident. Workers' compensation pays medical and wage-loss benefits; the employee's PIP may also apply, but coordination and priority must be checked. If the employee sues the at-fault driver, the employer's workers' compensation subrogation interest may attach to the recovery.
Traps
Do not treat workers' compensation as fault-based; do not miss the 180-day reporting rule; and do not assume PIP pays pain and suffering.