Minnesota Administrative Rules
Agency 151 - Labor and Industry Department
Chapter 5220 - REHABILITATION AND COMPENSATIO
WORKERS' COMPENSATION RULES OF PRACTICE
Part 5220.2720 - IMPROPER DISCONTINUANCES; PENALTY
Universal Citation: MN Rules 5220.2720
Current through Register Vol. 48, No. 39, March 25, 2024
Subpart 1. Basis.
A penalty assessment for improper discontinuance will be made by the division, if appropriate where:
A. benefits were discontinued without timely
notice to the employee and the employee's attorney as required under part
5220.2630 and Minnesota Statutes,
section
176.238;
B. the discontinuance occurred despite an
administrative determination denying a request to discontinue under part
5220.2640 and Minnesota Statutes,
section
176.239;
C. the discontinuance occurred without notice
despite a final decision of a compensation judge, the Workers' Compensation
Court of Appeals, or the Supreme Court requiring payment of ongoing
benefits;
D. an administrative
conference was requested and the request was not withdrawn, the discontinuance
occurred before the date of the administrative conference, except where allowed
by part
5220.2640, subpart
3; or
E. when a notice of intention to discontinue
benefits is required to be filed but the discontinuance is retroactive, taking
effect prior to the date that the notice of intention to discontinue benefits
is served and filed with the division or served on the employee, except as
allowed by part
5220.2630.
Subp. 2. Amount.
When the division makes a determination under subpart 1, notice will be given and fines assessed as follows:
A.
(1) If
an insurer has not had a penalty assessed in the one-year period before the
assessment for violation of a particular item in subpart
1,
the division will send a warning notice to the insurer that the division has
determined the discontinuance is improper. The warning notice will direct the
insurer to pay the improperly discontinued benefits and serve and file any
required notice of discontinuance within ten days of service of notice or a
penalty will be assessed.
(2) If
the improperly discontinued benefits are not paid and any proper discontinuance
filed within the following time periods after the warning notice is served, the
division will send notice that a penalty is imposed as follows:
(a) 11 to 20 days late, $200;
(b) 21 to 30 days late, $600;
(c) 31 to 60 days late, $800; and
(d) over 60 days late, $1,000.
B. If an insurer has
had a penalty assessed in the one-year period before the assessment for
violation of an item in subpart
1
and again violates the same item, the following penalties apply if the
improperly discontinued benefit is not paid and a discontinuance notice is not
filed when required:
(1) one to ten days
late, $400;
(2) 11 to 20 days late,
$600;
(3) 21 to 30 days late, $800;
and
(4) over 30 days late,
$1,000.
C.
Alternatively, a penalty may be assessed as provided in Minnesota Statutes,
section
176.221,
subdivision 3, payable to the commissioner for deposit in the assigned risk
safety account.
D. In addition to a
penalty payable to the commissioner for deposit in the assigned risk safety
account under this part, a penalty may be assessed under part
5220.2760.
Subp. 3. Payable to.
Penalties under this part are payable to the commissioner for deposit in the assigned risk safety account.
Statutory Authority: MS s 14.388; 175.17; 175.171; 176.129; 176.138; 176.221; 176.225; 176.231; 176.238; 176.83; 176.84
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