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Updated: November 30, 2023
Under North Dakota law, most businesses are required to carry workers’ compensation insurance. But understanding the regulations and whether they apply to your business can take some time. In this guide, we’ll cover North Dakota’s workers’ compensation requirements, including which employers need to have a policy, what a policy typically covers, and how businesses in North Dakota purchase coverage.
In many cases, workers’ compensation can help shield employees from the financial burdens of on-the-job injuries and occupational illnesses. For instance, if an employee should experience a work-related injury or illness and need to spend time away from work, it can offer partial wage replacement and medical coverage.
On the flip side, workers’ compensation serves as a protective measure for employers. It can act as a safeguard against potential litigation or state-assessed penalties that may arise from injuries or illnesses that happen in the workplace.
Now that we better understand how workers’ comp benefits employers and employees, let’s find out which companies must carry it.
In a nutshell, any business that hires employees to work in North Dakota or has a business location in North Dakota is required to have workers’ compensation insurance. North Dakota law requires businesses to apply for workers’ compensation insurance before they hire their first employee. This also applies to out-of-state employers with at least 25% of their payroll paid to North Dakota workers.
There are some businesses that are exempt under North Dakota law, including the ones listed in the table below.
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There are some additional exceptions worth noting, particularly in agriculture. For example, companies that are based outside of North Dakota and enter the state to perform agricultural services are required to purchase workers’ compensation coverage, regardless of the number of days in operation.
Any business exempt from North Dakota workers’ compensation rules can opt to purchase elective coverage, which must be approved by North Dakota Workforce Safety & insurance (WSI).
North Dakota workers’ compensation provides a variety of benefits and services to employees, including the following:
North Dakota workers’ comp pays for all reasonable and necessary medical expenses prescribed by a physician that can be attributed to a work-related injury. This includes reimbursement for any personal expenses that may be incurred during the course of treatment including mileage payments, meal reimbursements, parking expenses, and any other expenses related to treatment.
North Dakota workers’ comp offers wage-loss benefits for the following:
Employees are eligible for wage-loss benefits if they miss 5 or more consecutive days of work. If an employee is determined to be temporarily or permanently disabled, they may receive additional benefits for each dependent child they currently support.
Wage loss benefits can be terminated if:
North Dakota offers a variety of services designed to help an employee get back to work. These benefits include a dedicated case manager, vocational services, retraining, and work search assistance.
Along with wage benefits, any employee declared permanently partially disabled is eligible to receive an additional monetary award based on the injury suffered.
If an employee dies from a work-related accident, WSI will pay for funeral expenses and survivor benefits. If there are no spouse or eligible children, will pay out a lump sum to a sibling or siblings, a parent, or grandparent.
Moving on, let’s find out how companies go about obtaining a workers’ comp policy in North Dakota.
North Dakota uses a monopolistic state fund, meaning all employers, no matter how risky the industry, are guaranteed coverage under North Dakota Workforce Safety & Insurance. We should point out that the state does not permit private insurers to write workers’ compensation policies.
An employer should have an account with WSI before hiring their first employee. To obtain workers’ compensation insurance, all prospective employers will first need to complete an application on the WSI website.
There can be some steep penalties for North Dakota employers who fail to obtain workers’ compensation insurance. Here are some things to keep in mind.
Depending on the injury suffered, an employee should seek medical care at the nearest emergency room. If the injury does not require emergency treatment, employees will need to notify their employer of the injury before seeking medical treatment.
WSI encourages an employer representative to accompany an employee when they seek treatment to better understand the level of injury and any restrictions that may be imposed by the treating physician. Employees are also required to provide employers with a Doctor’s Report of Injury (C3) form after the initial medical treatment, and after any subsequent treatment.
Immediately after an injury has been reported, an employer is required to complete the First Report of Injury form (FROI). The claim can be filed online, faxed to WSI at (701) 328-3820, or mailed to WSI headquarters.
Maybe. In many cases, an employer will have a list of Designated Medical Providers that employees can choose from. When choosing a medical provider, an employer can choose a single provider, a group of providers, and or any combination of providers that are able to treat occupational injuries.
If an employer does not have a designated medical provider or list of providers, an employee is free to use the physician of their choice.
For more information on North Dakota workers’ compensation requirements, employers can contact WSI at (800) 777-5033 or send an email directly from their website. Other resources available include the following:
Workers’ compensation insurance is more than just a requirement; it can be a “win-win” situation for both employees and employers. On the one hand, businesses are shielded from potentially costly litigation as well as state-imposed penalties for failing to have a policy. Employees get to have piece of mind that if an on-the-job injury occurs and they need to miss work, they’ll may be eligible for partial income protection and medical coverage. If you have any questions regarding workers’ compensation coverage, we can help guide you in the right direction.
Please note all material in this article is for educational purposes only and does not constitute tax, benefits or legal advice. You should always contact a qualified tax, legal or financial professional, in your area for comprehensive tax or legal advice.