Minnesota Workers' Comp Settlements

How Workers' Comp Works in Minnesota

Minnesota's no-fault workers' compensation system is administered by the Minnesota Department of Labor and Industry (DLI), Workers' Compensation Division. If you're hurt on the job, you're generally entitled to medical care, wage-replacement benefits while you recover, and — if the injury leaves a permanent impairment — a permanent partial disability award or a settlement. Below is what that looks like in plain terms, along with the figures that apply to recent injuries. Because several of these numbers reset every year, always confirm the current amount with DLI for your specific date of injury.

Temporary Total Disability: What You're Paid While You Heal

While you're unable to work, Minnesota pays temporary total disability (TTD) at two-thirds (66 2/3%) of your average weekly wage, subject to a state maximum and minimum that adjust each October 1. For injuries on or after Oct. 1, 2025, the maximum weekly benefit is $1,536.84 and the minimum is $307.37. That maximum equals 108% of the statewide average weekly wage (SAWW), which DLI set at $1,423 for the period beginning Oct. 1, 2025. TTD is generally limited in duration, so it's important to understand how long your benefits can run.

Permanent Disability and Settlements

If your doctor decides your condition has reached maximum medical improvement (MMI) and you're left with a lasting impairment, you may receive a permanent partial disability (PPD) award. In Minnesota, PPD is based on a "whole-body" impairment rating assigned under the state's disability schedule, and that percentage drives the dollar value of the award. Many Minnesota claims ultimately resolve through a negotiated settlement, generally documented in one of two ways:

• Full, final and complete settlement — a one-time lump sum that closes out most or all future claims, often including future wage-loss and sometimes future medical care.
• To-date or partial settlement — resolves benefits owed up to a point while leaving certain benefits (frequently future medical care) open.

Which structure makes sense depends on your impairment rating, your expected future medical needs, and whether the claim is disputed. A full and final settlement gives you cash now but can shift the risk of future treatment costs onto you. Settlements in Minnesota are typically reviewed and approved by a workers' compensation judge or DLI.

The Doctor Question in Minnesota

One way Minnesota differs from some states is that an injured worker generally has the right to choose their own treating doctor. The treating doctor's opinion still carries a lot of weight, because it shapes your work restrictions, your impairment rating, and ultimately the value of your claim. The main exception is when your employer participates in a certified managed care plan — in that case your care may be directed within the plan's network. It's worth confirming early which rules apply to your employer, because the medical record drives the money.

Deadlines You Can't Miss

Report your injury to your employer as soon as possible. Under Minnesota law, giving notice within 14 days protects your benefits; notice given after that but within 180 days may still be allowed in some situations, but waiting is risky and can cost you. For filing a formal claim, the deadline is generally three years after your employer files a First Report of Injury with the state. If no First Report of Injury is ever filed, you have six years from the date of injury to file a claim petition under Minnesota Statutes 176.151. Missing these deadlines can bar your claim entirely, so don't assume the clock isn't running.

Frequently Asked Questions