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North Dakota Workers Compensation Laws
Workers compensation policy information for the State of North Dakota
- State: North Dakota - a monopolistic state
- Authority/Rating Bureau: North Dakota maintains a monopoly state fund that provides workers compensation coverage to all employers in the state. Contact at:
- Workforce Safety & Insurance
- 1600 E Century Ave Ste 1
- PO Box 5585
- Bismarck ND 58506-5585
- Phone: (701) 328-3800
- Toll-free: 1-800-777-5033
- Fax: (701) 328-3820
- http://www.workforcesafety.com/
- Compulsory: Yes
- Private Insurance: Not Allowed
- Self-Insurance: Not Allowed
- State Fund: A monopolistic state fund. Contact the state fund at Workforce Safety & Insurance mentioned above or under the "regulated by" section below.
- Assigned Risk: Same as State Fund.
- Numerical Exceptions: None - North Dakota Law, with limited exceptions, requires all employers to secure workers’ compensation insurance to cover their full-time, part-time, seasonal, or occasional employees prior to hiring
- Individual Waivers Allowed: Not allowed
- Sole Proprietor: Excluded from coverage/may elect to be included - see special note below
- Partners: Excluded from coverage/may elect to be included - see special note below
- Corporate Officers: Excluded from coverage/may elect to be included - see special note below
- LLC Members: Excluded from coverage/may elect to be included - see special note below
- Contractors: Subcontractor arrangements - The principal contractor can be liable for occupational injuries to the uninsured subcontractor’s workers. If you are a principal contractor:
- Be sure you have a Certificate of Premium Payment verifying that your subcontractor has workers’ compensation insurance for their workers.
- If the subcontractor has provided proper coverage, the subcontractor’s payroll is not normally included in your payroll.
- If the subcontractor does not have coverage for their workers, you must include these workers and their wages in your payroll.
- It is the responsibility of the employer to provide a list of subcontractors at the request of WSI.
- Determining independent contractor status - WSI may establish a procedure to determine whether a person is an employer required to obtain workers' compensation coverage under this title and to require a person asserting independent contractor status to file a statement annually with the organization certifying that status. A determination under this section that a person is not required to be insured is effective for no more than one year from the date the person is notified of the determination. WSI retains continuing jurisdiction over determinations made under this section and may reconsider or revoke its decision at any ime. (Section §65-09-01) If any employer or an independent contractor wants to verify independent contractor status, they can contact WSI Customer Service who will provide them with an Independent Contractor Verification Application. This form can also be provided by the North Dakota Department of Labor.
- Special Notes: Workers’ compensation coverage is mandatory for most employment. There are certain exceptions:
- Licensed real estate brokers and agents with written agreements defining them as independent contractors.
- Farm and ranch labor, certain custom operations, household domestic workers, and employees engaged in the operation and maintenance of a place of worship.
- Independent contractors - to be considered an independent contractor, you may need to complete an Independent Contractor Verification Application provided by the North Dakota Workforce Safety & Insurance. Upon the approval, you would then be exempt under the workers’ compensation statutes.
- Federal and railroad employees.
- Children of the employer(s) who are under the age of 22 are not required to be covered. (Children aged 22 and older who are receiving compensation for employment must be reported as an employee.)
- Newspaper delivery personnel with written agreements between the individual and the publisher of the newspaper or shopping news that states the individual is an independent contractor.
Coverage for the owners, partners, or corporate officers of a business corporation is optional. An employer may elect to purchase optional coverage for them selves, their spouse, children under the age of 22, and for any workers otherwise exempt WSI. This coverage is not required by law. If you have any doubt about whether you should be insured, please contact WSI. Coverage becomes effective upon WSI’s approval of a completed and signed optional coverage contract.- Coverage for an owner, partner, corporate officer, or spouse will be charged an annual premium based upon the maximum taxable payroll cap.
- Coverage for the employer(s) children under the age of 22 is optional and based upon actual wages paid.
- Coverage for the employer(s) children aged 22 and older is mandatory and based upon actual wages paid.
- Qualifying for Experience Rating:
- Beginning with an employer’s fifth year of North Dakota operations, accounts are experience rated. To qualify for experience rating, an account must have a minimum aggregate premium of $25,000 over the five-year period. The experience rate will range from a 75% discount to a 75% surcharge.
- North Dakota Subrogation: North Dakota Statute 65-01-09 is where you will find the state code with specifics about workers compensation subrogation. Section 65-01-09 is called "Injury through negligence of third person - Option of employee - Organization subrogated when claim filed - Lien created." To view this statute online just use the link we've provided below. It is viewable in a PDF format and by clicking the link you will be taken directly to 65-01 where you just need to scroll down the PDF until you get to 65-01-09.
North Dakota Statute Of Subrogation
- North Dakota Workers Working In Other States; Other States Workers Working In North Dakota, Extraterritorial, Reciprocity and Non-Compliance: When North Dakota workers are working temporarily in another state, workers compensation coverage for that worker is then governed by the extraterritorial provisions found in North Dakota statutes. When or if allowed it's extraterritorial provisions that allow benefits for an injured worker to apply as if the worker was in their primary state. Not all states provide Extraterritorial Provisions so it's important that an employer or insurance professional be aware of how their state responds to out of state employment. It's reciprocity that governs how North Dakota workers compensation coverage responds for a worker from another state who is working temporarily in North Dakota.
A few special things about North Dakota:- For North Dakota, extraterritorial coverage will extend to temporary, incidental operations that last less than 30 days. But that depends on if the employer has no significant operation within that other state which do not require the employer to secure work comp coverage from that state.
- Employer must register with North Dakota to do business within their state.
- An employer who has significant operations within North Dakota must secure coverage from WSI.
- If any workers comp insurance company extends coverage within North Dakota from the employers home state they then must provide proof of coverage unless the home state has a reciprocal agreement with WSI.
- If any employee would earn 25% or more of their gross annual wage or if 25% or more of their gross annual wage is from that employer for services in North Dakota
Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. We've provided this general information about extraterritorial and reciprocity as a basic guide. Please contact your North Dakota state authority with your specific questions or applications concerning this topic!
- Extraterritorial:
- Provisions: Yes
- Duration: Applies up to 1 year under reciprocal filing
- Reciprocity:
- Allowed: Yes when within North Dakota wage restriction.
- Special Written Riciprocity Agreement: Oregon and North Dakota;
- Specific Statute: Section 65.08.01,Extraterritorial coverage - When and how furnished. ;
- For More Information Contact: North Dakota Workforce Safety and Insurance as shown below.
- Regulated By:
- Workforce Safety & Insurance
- 1600 E Century Ave Ste 1
- PO Box 5585
- Bismarck ND 58506-5585
- Phone: (701) 328-3800
- Toll-free: 1-800-777-5033
- Fax: (701) 328-3820
- http://www.workforcesafety.com/
- Workers Compensation Statute:
- http://www.legis.nd.gov/cencode/t65.html
- Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.
- Authority/Rating Bureau: North Dakota maintains a monopoly state fund that provides workers compensation coverage to all employers in the state. Contact at:
WORKERS COMPENSATION CONSULTANT
Voice: (931) 292-2633
Fax: (573) 447-4998
email: rks@workcompconsultant.com
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