Eligibility

When a worker is injured in an accident that occurs during the course of their employment, the employer is required to pay compensation as provided by this law. The compensation is paid out of the accident fund managed by the board.

If a worker is unable to work on the day of the accident due to their injury, the employer must still pay them their wages and benefits for that day as if the accident hadn't happened.

Employers are not allowed to deduct sick pay entitlement or reduce the worker's usual benefits just because they have to make a payment for the day of the accident.

• If an employer fails to comply with the payment obligations mentioned above, the board may step in and pay the worker the amount owed, and the employer must reimburse the board.

Question of eligibility based on location:

If the employer's business is within the province, the worker's residence is within the province, the worker usually works within the province, and the accident happens while the worker is employed outside the province for less than six months, the worker or their dependents are entitled to compensation as if the accident had occurred within the province.

If the employer's business is within the province, the worker's residence and usual workplace are within the province, and the worker's employment outside the province lasts or is expected to last for six months or more, the employer can apply to be assessed based on the worker's earnings. If approved, if the worker is injured in an accident outside the province, they or their dependents are entitled to compensation as if the accident had happened within the province.

If the employer's business is within the province, the worker's residence is outside the province, but the worker usually works within the province, and an accident occurs while the worker is temporarily outside the province for work-related reasons, the worker or their dependents are entitled to compensation as if the accident had occurred within the province.

If an accident happens outside the province, the employer's place of business is located outside the province, and the worker is entitled to compensation under the laws of the place where the accident occurred, no compensation is payable to the worker or their dependents if their residence is inside or outside the province. However, if the worker's usual place of employment is within the province and they were outside the province for a casual or incidental purpose related to their employment at the time of the accident, they may be eligible for compensation as if the accident had occurred within the province.

Wage loss benefits

Wage loss benefits are payable to a worker for their loss of earning capacity resulting from the accident. However, if the worker's injury is solely due to serious and willful misconduct, wage loss benefits are not payable for three weeks.

When an injury is an occupational disease caused in part by employment and in part by other factors, the board can determine it as an accident arising out of and in the course of employment only if employment is the dominant cause.

Accidents arising out of employment

There are various presumptions in place, such as presuming that an accident arising out of employment occurred during the course of employment unless proven otherwise.

Compensation in respect to deceased worker

When a worker dies in an accident, compensation is payable to their estate or a designated person. The date of the accident is considered to be the date of death for calculating the compensation amount. The worker's net average earnings may be adjusted to estimate their potential earnings if the accident hadn't occurred.

In the case of a worker's death, the board will pay $9,310 to the worker's estate or a designated person. Additionally, the board may approve and cover the expenses of transporting the worker's body from the place of death to their usual place of residence if they died away from their usual residence within the province or if their usual residence is within the province but the death occurred outside the province.

Compensation is also payable to the worker's dependents, including:

• The spouse or common-law partner: They receive a lump sum of $45,500 and monthly payments equal to 90% of the worker's net average earnings before the accident, minus any amount paid to other dependents.

• Children under 18 years old: They receive a monthly payment of $250 each.

• Children aged 18 or older: They receive a monthly payment of $250 each if they are pursuing an acceptable course of study and have not completed a university degree or technical/vocational training.

• Orphaned children: If a child becomes an orphan within one year of the worker's death and is receiving compensation, they receive a monthly payment of $500.

• Other dependents: A reasonable monthly payment, determined by the board, is paid to other dependents, not exceeding $250 per dependant or $1,000 in total for all dependents.

The monthly payments mentioned above are reviewed and adjusted annually based on an indexing factor determined by the board.

The monthly payments to the spouse or common-law partner continue for 60 months after the worker's death, unless specific exceptions apply. If the spouse or partner is 60 years or older on the day of the worker's death, the payments continue until they turn 65. If they are 61 or older on the day of the worker's death, the payments are made for 48 months.

If a child under 18 years of age lives with the spouse or partner who has custody, the monthly payments to the spouse or partner may be extended until the youngest child turns 18 or until the spouse or partner reaches 71 years of age, whichever comes first.

In cases where the worker's death causes undue hardship to the spouse or partner who is 50 years or older or an invalid, they can choose to forego the lump sum and receive monthly payments until they turn 65.

Monthly payments to a child stop when the child turns 18, unless they are considered invalid. In that case, the payments continue until the child is no longer considered invalid or becomes eligible for old age security, whichever happens first.

Monthly payments made to a dependent continue as long as the board believes the worker would have reasonably contributed to the dependent's support if they were alive.

The lump sum payment to the spouse or partner can be converted into an annuity at their choice, which will be administered by the board.

Former Spouse or Partner:

If the compensation is payable to a former spouse or former common-law partner, the monthly amount cannot exceed the maintenance amount the worker was required to provide according to a separation agreement or court order.

Apportionment:

If there are multiple spouses or common-law partners entitled to compensation, the board will divide the compensation in a fair and reasonable manner based on the financial loss or loss of valuable services suffered by each spouse or partner.

Limits on Payments to Children: Compensation for children cannot exceed $1,000 per month.

Limits on Payments to Dependents: Compensation for all dependents cannot exceed $2,000 per month.

Apportioned Payments:

If the compensation payable to dependents exceeds the limits set, the board will distribute the compensation appropriately.

Adjustment of Dependent Payments:

When monthly payments to a dependent cease, the board may adjust the amount of monthly payments to the remaining dependents as if they were the only dependents at the time of the worker's death.

Commutation of Payments:

If the sole dependent of the worker is a spouse or common-law partner, upon their request, the board may convert the monthly payments into a lump sum settlement.

Academic or Vocational Assistance:

If the spouse or partner receiving monthly payments requires assistance to become employable or enhance their earning capacity, the board may provide necessary academic or vocational training or other assistance for a determined period.

Eligibility for Two Monthly Payments:

If the spouse or partner is receiving or entitled to monthly payments and becomes eligible for payments due to the death of another worker, they will receive only the larger of the two monthly payments.

Proof of Dependency:

The board has the authority to request proof of dependency for individuals, and they may withhold compensation until satisfactory proof is provided.

Impairment Compensation

Determination of Impairment: The board will assess the degree of impairment suffered by a worker and express it as a percentage of total impairment.

Calculation of Impairment Award: If the board determines that a worker has an impairment, they will pay a lump sum impairment award based on the following criteria:

• For impairments ranging from 1% to less than 30%, the award is $1,030 for each full 1% of impairment.

• For impairments of 30% or greater, the award is $30,900 plus $1,240 for each full 1% of impairment above 30%.

Reconsideration of Degree of Impairment

If a worker's medical condition significantly deteriorates after being determined to have an impairment, they can apply to the board for a reconsideration of their degree of impairment. If the reconsideration results in a change in the percentage of impairment, the board will treat it as an initial determination.

Re-application Period

A worker cannot apply for a reconsideration of their degree of impairment within 24 months of a decision made by the board or the appeal commission regarding their impairment.

Note: These provisions do not apply if a worker dies as a result of the accident before the board makes a determination of the degree of impairment.

Wage loss benefits

Payment of Wage Loss Benefits

If an injury to a worker results in a loss of earning capacity after the accident, wage loss benefits must be paid to the worker.

Duration of Wage Loss Benefits

Wage loss benefits are payable until either the loss of earning capacity ends as determined by the board or the worker reaches the age of 65.

Exception for Workers 61 Years or Older

If a worker is 61 years or older at the start of their loss of earning capacity, the board may pay wage loss benefits for a maximum of 48 months following the accident.

Periodic Payment of Wage Loss Benefits

Wage loss benefits are paid periodically at the times and in the manner determined by the board.

Limit on Wage Loss Benefits

The total wage loss benefits payable must not exceed 90% of the worker's loss of earning capacity. The board can consider factors like the length of time the worker receives benefits, tax implications, and adjust the loss of earning capacity accordingly.

Earnings at or Below the Minimum

If the worker's average earnings before the accident are equal to or less than the minimum annual earnings, the wage loss benefits are 100% of the loss of earning capacity.

Exception for Higher Earnings

If the worker's average earnings before the accident are greater than the minimum annual earnings, but the wage loss benefits at 90% of the loss of earning capacity are less than the benefits payable to a worker earning the minimum annual earnings, the worker receives the benefits equivalent to a worker earning the minimum annual earnings.

Payment of Wages by Employer for First 14 Days

The regulations may require the worker's employer at the time of the accident to provide an advance payment of up to 90% of the worker's net salary or wages for a period not exceeding 14 days after the accident.

Calculation of Loss of Earning Capacity

The loss of earning capacity is determined by the difference between the worker's net average earnings before the accident and the net average amount the board determines the worker is capable of earning after the accident.

Deductions for Net Average Earnings

The net average earnings of a worker are calculated by subtracting probable deductions such as income tax, Canada Pension Plan or Quebec Pension Plan premiums, Employment Insurance premiums, and other prescribed deductions.

Recurrence of Loss of Earning Capacity

If a worker returns to full employment after an accident but later experiences a loss of earning capacity due to the same accident, their net average earnings before the injury are based on the greater value between their average earnings before the accident adjusted for inflation or their net average earnings at the time of their most recent employment.

Worker's Return to Employment

A worker is considered to have returned to full employment when they have a significant attachment to the labour force, as determined by the board.

Transfer of Costs

If a worker experiences a recurrence of loss of earning capacity and is employed by a different class of employer compared to the time of the accident, the increased cost of the claim can be allocated to the relevant class or fund by the board.

Loss of earning capacity

Calculation of Loss of Earning Capacity:

The loss of earning capacity is determined by taking the difference between the worker's net average earnings before the accident and the net average amount that the board determines the worker is capable of earning after the accident. The resulting amount cannot be less than zero.

Calculation of Net Average Earnings

The net average earnings of a worker, for the purpose of this Act, are calculated by subtracting probable deductions from the worker's average earnings. These deductions include income tax, Canada Pension Plan or Quebec Pension Plan premiums, Employment Insurance premiums, and any other prescribed deductions.

Table of Net Average Earnings

The board establishes a schedule or procedure, typically on January 1 each year, to determine the probable deductions mentioned above for various income levels. This table is considered final and conclusive for the purpose of calculating net average earnings.

Recurrence of Loss of Earning Capacity

If a worker returns to full employment after an accident but later suffers a loss of earning capacity due to the same accident, their net average earnings before the injury are based on the greater value between their average earnings before the accident adjusted for inflation or their net average earnings at the time of their most recent employment.

Worker's Return to Employment

A worker is considered to have returned to full employment when the board determines that the worker has established a significant and meaningful attachment to the labor force.

Transfer of Costs

If a worker experiences a recurrence of loss of earning capacity and is employed by a different class of employer compared to the time of the accident, the increased cost of the claim can be allocated by the board to that class or any other available fund, based on what is considered fair and equitable.

MN Worker’s Compensation Act s.4, 5, 28, 29-35, 38-40