Restaurant Workers' Comp in Minnesota
What Minnesota requires of restaurants and bars for workers' compensation — when it kicks in, who's exempt, and what it costs.
Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated .
Yes. Minnesota requires essentially all employers to carry workers' compensation or obtain approved self-insurance; there is no minimum employee count, so even one part-time employee triggers the requirement. Owners, partners, and certain corporate officers may exclude themselves, but their employees must still be insured. Uninsured employers face penalties up to $1,000 per employee weekly.
- Required?
- Yes
- Kicks in at
- Any employee (1+). Minn. Stat. 176.181 requires all employers to insure; there is no minimum number of employees, so an employer with even a single part-time employee generally must provide coverage.
- Restaurant rate
- Minnesota uses NCCI-style class codes administered by the Minnesota Workers' Compensation Insurers Association (MWCIA); restaurants fall under 9082 (Restaurant NOC) and 9083 (fast food), with rates near the national averages of roughly $1.03–$1.06 per $100, varying by insurer and experience. Approximate, industry tier.
- Market
- Competitive private market — about 494 licensed insurers write most coverage — backstopped by the state-created Minnesota Workers' Compensation Assigned Risk Plan (MWCARP), the insurer of last resort; there is no monopolistic state fund.
Is workers’ comp required for a restaurant in Minnesota?
Minnesota requires workers' compensation once you reach Any employee (1+). Minn. Stat. 176.181 requires all employers to insure; there is no minimum number of employees, so an employer with even a single part-time employee generally must provide coverage.. Sole proprietors, business partners, LLC members/managers, and certain closely held corporation executive officers are not required to cover themselves as owners. Some family employment and specific categories in Minn. Stat. 176.041 are excluded, but non-owner employees must always be covered.
What restaurant workers’ comp costs in Minnesota
The restaurant class-code rate in Minnesota is Minnesota uses NCCI-style class codes administered by the Minnesota Workers' Compensation Insurers Association (MWCIA); restaurants fall under 9082 (Restaurant NOC) and 9083 (fast food), with rates near the national averages of roughly $1.03–$1.06 per $100, varying by insurer and experience. Approximate, industry tier.. Your premium is that rate applied per $100 of payroll and adjusted by your experience modifier, so it scales with how many people you employ and your claims history. Competitive private market — about 494 licensed insurers write most coverage — backstopped by the state-created Minnesota Workers' Compensation Assigned Risk Plan (MWCARP), the insurer of last resort; there is no monopolistic state fund.
What owners in Minnesota miss
- Uninsured employers can be ordered to pay a penalty of up to $1,000 for each employee for each week the employee was not insured, regardless of whether any injury occurred.
- If an uninsured worker is injured, the state Special Compensation Fund may pay benefits and the employer must reimburse the Fund plus a penalty equal to 65 percent of those benefits.
- Minnesota provides no numeric threshold at all — coverage is required from the very first employee, including part-time and minor workers — so a two-person restaurant is already obligated.
- The Minnesota Workers' Compensation Assigned Risk Plan (MWCARP), overseen by the Department of Commerce, guarantees coverage for restaurants that private insurers decline.
Sources
- Minnesota Department of Labor and Industry: Work comp: Who needs workers' compensation coverage?primaryretrieved 2026-07-27
- Minnesota Department of Labor and Industry: Work comp: Fines and penalties for employers' failure to insureprimaryretrieved 2026-07-27
- Minnesota Revisor's Office: Minn. Stat. 176.041 (Excluded employments)primaryretrieved 2026-07-27
Cost examples are illustrative national figures gathered from public filings and industry surveys. They are not quotes. Your actual premium depends on your state, carrier, revenue, payroll, location, and coverage selections. Restaurant Insurance Authority is an insurance marketing and referral service, not an insurer or licensed agency. We connect business owners with licensed independent commercial-lines agents who specialize in food and beverage. Questions? Call (855) 480-1410.
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