Senate Labor Committee advances bipartisan workers' compensation bill adding rules for contractor‑controlled insurance programs

The Minnesota Senate Labor Committee on an unanimous voice vote adopted an amendment and passed Senate File 3407, a bipartisan bill from the workers' compensation advisory council that revises definitions and procedures in state workers' compensation law and establishes a new approval process for owner‑ or contractor‑controlled insurance programs for large construction projects.

The bill, introduced and described to the committee by Nicole Lisonbee, Commissioner of the Minnesota Department of Labor and Industry, includes nine sections of technical and substantive changes. Lisonbee said the council "voted to advance ... both technical and substantive proposals to improve the workers compensation process and system for business and businesses and injured workers." She told the committee the advisory council — made up of equal numbers of labor and business representatives — met earlier and passed the proposal unanimously.

Why it matters: The measure affects how some large construction projects obtain workers' compensation coverage, adds requirements intended to prevent premium fraud, and clarifies who qualifies as an employee in certain direct care programs. Advocates for the bill said the changes standardize applications and reporting requirements that affect contractors, subcontractors and injured workers, and create a formal review by the Department of Commerce for certain multi‑employer insurance arrangements.

Key provisions described to the committee…