Senate passes workers' compensation bill targeting misuse of "zero exposure" policies

The Minnesota Senate on May 16, 2025, passed House File 3228, a bill adopting recommendations from the Workers' Compensation Advisory Council to add enforcement tools and clarify definitions in state workers' compensation law, the bill's sponsor said.

The bill was presented to the Senate as a package of changes aimed at combating workers' compensation fraud and the misuse of "0 exposure" policies, which sponsor Senator McEwen said have been used by some businesses to avoid providing required workers' compensation coverage. "The provisions included in the bill before us today ... are connected to combating workers' compensation fraud and the abuse of 0 exposure policies," Senator McEwen said.

The measure also includes technical and clarifying changes to definitions, including those affecting direct support services workers and the definition of a corporate executive officer for insurance purposes. McEwen told the chamber the provisions were first brought to the council by the North Central States Regional Council of Carpenters and developed in consultation with the Insurance Federation of Minnesota. She said the provisions were negotiated with industry representatives on the council and were strongly supported by employee representatives.

Senator Doornick praised the collaborative process. "This is a great example of working together to solve problems, in a bipartisan, way," Doornick said, thanking counsel members and legislative liaisons who worked on the bill.

The secretary called the roll on final passage. "There being 53 ayes and 12 nos, the bill is passed and is title agreed to," the clerk announced.

The bill was referred to the committee on finance after committee amendment recommendations and will proceed through the legislative process for placement and fiscal review.

Ending: The vote advances HF3228 toward enactment; further committee and finance actions listed on the Senate journal will determine any next steps for implementation or appropriations.