Other dispute resolution services offered at the Office of Administrative Hearings are settlement conferences, small claims court, special terms hearings, attorney fees and cost hearings, and formal hearings on workers’ compensation issues. Some decisions are appealable to the Workers’ Compensation Court of Appeals and the Minnesota Supreme Court. REDUCING WORKERS’ COMPENSATION COSTS Workers‘ compensation insurance rates are set within broad limitations by the insurance company. Rates are adjusted by payroll risk classifications and by the employer’s experience rating, which is the history of injuries in the business. It is difficult to control the payroll risk classification because it is determined by the nature of the business and the type of work employees do. However, there are a number of ways to control the cost of workers’ compensation premiums for the future. Employers who have accident prevention programs generally will have lower workers’ compensation costs. The employer can take an active role in lowering workers’ compensation costs by: • Developing wellness programs that incorporate physical fitness and health education. • Providing employee education on proper lifting techniques and appropriate body mechanics. • Initiating return-to-work policies that include reasonable accommodation. • Contacting Workplace Safety Consultation at the Minnesota Department of Labor and Industry, which provides a free, nonenforcement service to assist small private-sector employers in high hazard industries in their voluntary efforts to improve workplace safety and health. The Workplace Safety Consultation Division can be reached at the address and telephone number provided in the Resource Directory section of this Guide. Under state law, all high hazard employers and those with more than 25 employees must establish a joint labor-management safety committee to address workers’ compensation and workplace safety issues. The employer‘s insurance company or agent can provide more information about accident prevention, safety and health programs and return-to-work programs. BUYING WORKERS’ COMPENSATION INSURANCE There are several thousand licensed insurance agents who sell workers’ compensation insurance in Minnesota. It is best to contact several agents to review the business and to quote prices for the insurance. In Minnesota, workers’ compensation insurance is sold through open competition, which means insurance companies establish rates and compete for business. All workers’ compensation policies provide coverage mandated by law; therefore, only the price and quality of service varies, and shopping for insurance can save money. Other factors to consider in choosing a carrier are claims servicing, safety counseling, and the carrier’s reputation. Options other than insurance may be available to cover an employer’s workers’ compensation liability. For example, some large employers or groups of employers are approved by the Department of Commerce to self-insure, which allows them to directly manage their workers‘ compensation claims and contain their costs. Many large employers who are approved to self- insure their risk hire a claims administration company.
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