Guide to North Dakota Workers’ Compensation Laws

North Dakota has one of the most distinctive workers’ compensation systems in the United States. Employers are generally required to provide workers’ compensation coverage for their employees, and that coverage can only be purchased through the state’s official program, Workforce Safety & Insurance (WSI). This guide explains who must carry coverage, how the system is structured, what benefits injured workers may receive, and how claims are handled under North Dakota law.

Overview of Workers’ Compensation in North Dakota

Workers’ compensation is a form of insurance that pays medical and wage-loss benefits to employees who suffer work-related injuries or illnesses. In exchange, employees generally give up the right to sue their employers for most workplace injuries. North Dakota law strongly enforces this social contract and sets detailed rules on who is covered, how premiums are calculated, and what benefits are owed.

Key features of North Dakota’s system include:

• Mandatory coverage for nearly all employers with workers in the state.
• Monopolistic state fund: employers must buy coverage directly from WSI; private insurers cannot sell workers’ compensation policies in North Dakota.
• Exclusive remedy protection: workers’ comp benefits usually replace the right to sue the employer for negligence, subject to limited exceptions.
• Regulated benefits for medical care, lost wages, permanent impairment, and death benefits.

Monopolistic State Fund and WSI’s Role

North Dakota is one of only a few states that operate a monopolistic state fund for workers’ compensation. This means the state itself, through WSI, is the sole provider of workers’ compensation insurance within North Dakota.

Under this arrangement:

• Employers cannot purchase workers’ compensation coverage from private insurance companies.
• Self-insurance by individual employers is not permitted for workers who perform services in North Dakota.
• All premiums are remitted to WSI, which administers claims, sets rates, and manages the fund.

This structure is designed to ensure consistent coverage, standardized benefits, and stable funding for work-related injuries and diseases. WSI also provides education, safety resources, and support services to help employers reduce workplace risks.

Who Must Provide Workers’ Compensation Coverage?

North Dakota law, with limited exceptions, requires all employers with employees working in the state to secure workers’ compensation coverage through WSI. This obligation extends to a wide range of employment relationships and business types.

Covered Employers and Employees

In general, coverage is required if an employer has any workers who perform services in North Dakota, including:

• Full-time employees
• Part-time employees
• Seasonal workers
• Occasional or temporary workers

Out-of-state employers may be required to obtain WSI coverage if a significant portion of their payroll or an employee’s earnings are tied to work performed in North Dakota. WSI guidance emphasizes coverage when:

• An employee earns or expects to earn at least 25% of their annual income from services rendered in North Dakota.
• At least 25% of the employer’s total payroll is paid for work performed in North Dakota.
• An employer hires an employee in North Dakota for work in the state.

Common Exemptions

Some categories of workers or business owners may be exempt from mandatory coverage under state law. While specific exemptions are defined by statute and WSI rules, typical examples in North Dakota include certain owners and family members, some agricultural labor, and individuals whose work is outside the scope of covered employment.

Important points about exemptions:

• Exempt employers and individuals may be allowed to purchase elective coverage through WSI.
• Even if a business is exempt, obtaining coverage can provide financial protection from unexpected medical and wage-loss claims.
• Misclassifying employees as exempt or independent contractors can expose an employer to penalties and retroactive premium assessments.

Securing Coverage Through Workforce Safety & Insurance

Employers are expected to obtain workers’ compensation coverage before they hire their first employee to perform services in North Dakota. The process is handled directly through WSI.

Steps to Apply for Coverage

To secure workers’ compensation insurance:

• Visit the WSI website and locate the Apply for Coverage or equivalent application process.
• Complete an Application for Insurance, providing information on business operations, estimated payroll, and job classifications.
• Submit the application electronically or by other approved methods and wait for WSI’s review and approval.
• Once approved, WSI issues a policy and will send billing statements for premiums.

Failing to secure coverage when required can lead to significant consequences, including:

• Liability for unpaid benefits if a worker is injured
• Potential civil penalties and assessments for past-due premiums
• Exposure to lawsuits where the exclusive remedy protections may not fully apply

What Workers’ Compensation Typically Covers

Workers’ compensation insurance in North Dakota is designed to address the financial impact of workplace injuries and occupational diseases. Coverage extends to a broad spectrum of medical and wage-related losses, subject to statutory limits and WSI regulations.

Medical Care Benefits

When an employee suffers a compensable injury, WSI-covered workers’ compensation generally pays for necessary medical treatment related to that injury. This can include:

• Emergency room or urgent care treatment
• Hospitalization and surgery
• Visits with physicians and specialists
• Prescriptions and medical supplies
• Physical and occupational therapy

Wage-Loss and Income Replacement

In addition to medical benefits, injured employees may receive wage-loss compensation when they are unable to work or can only return in a reduced capacity. North Dakota’s workers’ compensation system provides:

• Temporary disability benefits—partial replacement of lost wages during recovery.
• Permanent partial impairment benefits—compensation when an injury results in lasting functional loss, even if the worker can return to work in some capacity.

The amount of wage-loss benefits is generally based on a percentage of the worker’s average weekly wage before the injury, subject to maximums and statutory rules.

Additional Support Services

North Dakota’s workers’ compensation system also recognizes that recovery may involve more than medical care and wage replacement. Eligible injured workers may receive:

• Personal expense reimbursements for certain costs tied to treatment, such as travel to medical appointments.
• Return-to-work or vocational rehabilitation services to help workers safely resume employment, potentially in modified jobs or new roles.

Death and Survivor Benefits

When a work-related injury or illness results in an employee’s death, North Dakota law provides benefits to surviving dependents. These benefits typically include:

• Payment of funeral and burial expenses, up to a specified statutory maximum.
• Ongoing wage replacement for spouses and dependents, often calculated as a percentage of the deceased worker’s average weekly wage.
• One-time lump-sum payments or additional allowances for surviving spouses and dependent children.

How Injured Workers File a Claim

Timely reporting of injuries and prompt filing of claims are critical in North Dakota’s workers’ compensation system. Both employees and employers have responsibilities to ensure that WSI receives accurate information about work-related incidents.

Employee Reporting and Claim Deadlines

Employees who are injured on the job should notify their employer as soon as possible and seek medical attention when needed. To formally pursue workers’ compensation benefits, the worker must file a claim with WSI. North Dakota law requires that employees file a workers’ compensation claim within two years of the date the injury or work-related condition became apparent.

In practice, this usually involves submitting a First Report of Injury (FROI) to WSI, which can be done:

• Online through WSI’s secure portal
• By fax to WSI using the designated numbers
• By mail to WSI’s official mailing address

Employer Obligations When an Injury Occurs

Employers also play a central role in the claims process. When they learn of a workplace injury or incident, they must:

• Ensure the employee receives appropriate medical attention.
• Cooperate with the worker in completing the FROI or, if no immediate medical care is required, submit an incident report to document the event.
• Provide accurate payroll, job description, and injury details to WSI.

WSI guidance specifies that incident reports should typically be filed by midnight of the next business day following the injury date when medical treatment is not immediately sought.

Coordination With Other States and Multi-State Employers

Businesses that operate across state lines must pay particular attention to where their employees’ work is performed. WSI’s authority is limited to workers who perform services in North Dakota.

For multi-state employers:

• Workers performing services in North Dakota generally must be covered by WSI.
• Workers performing services outside North Dakota need coverage compliant with the laws of those other states; WSI cannot write coverage for non-North Dakota work.
• Separate policies may be necessary in multiple states, and employers should coordinate with WSI and other state agencies to avoid gaps or overlaps in coverage.

Practical Tips for Employers

To stay compliant and protect both workers and the business, employers in North Dakota can adopt several best practices:

• Apply for WSI coverage early: Do not wait until after hiring; obtain coverage before the first employee begins work.
• Maintain accurate payroll records: WSI uses payroll and job classifications to calculate premiums.
• Educate employees about injury reporting procedures and the availability of workers’ compensation benefits.
• Document all workplace incidents, even minor ones, using incident reports when medical treatment is not immediately required.
• Consult WSI when expanding operations into or out of North Dakota to ensure proper coverage.

Frequently Asked Questions (FAQs)

Is workers’ compensation insurance mandatory for all North Dakota employers?

With limited statutory exceptions, North Dakota requires employers to insure all employees, including full-time, part-time, seasonal, and occasional workers who perform services in the state. Employers must obtain coverage through WSI before hiring their first employee.

Can I purchase workers’ compensation coverage from a private insurance company in North Dakota?

No. North Dakota is a monopolistic state for workers’ compensation. Private insurers are not allowed to underwrite workers’ compensation policies for work performed in North Dakota; coverage must be obtained from WSI.

How long does an employee have to file a workers’ compensation claim?

Employees generally must file a workers’ compensation claim within two years from the date a reasonable person would recognize that a work-related injury or illness occurred. Filing promptly is recommended to avoid disputes and delays.

What if my business is based in North Dakota but my employees work in other states?

WSI cannot provide coverage for employees who do not work in North Dakota. If your workers are performing services in other states, you must obtain workers’ compensation insurance that complies with those states’ laws, in addition to maintaining WSI coverage for work within North Dakota.

Are agricultural workers and family members always exempt?

Some agricultural operations and certain owner or family-member roles may be exempt from mandatory coverage, but the rules are complex and depend on the specific nature of the work and business structure. Even exempt operations can often purchase elective coverage, which may be advisable to manage risk.

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medha deb

 

Medha Deb is an editor with a master's degree in Applied Linguistics from the University of Hyderabad. She believes that her qualification has helped her develop a deep understanding of language and its application in various contexts.

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