A bill for an act
relating to labor and industry; making technical and policy changes to certain
workers' compensation hearing provisions; amending Minnesota Statutes 2022,
sections 176.011, subdivisions 1a, 2; 176.104, subdivision 1; 176.106, subdivision
4; 176.129, subdivision 10; 176.1292, subdivisions 2, 9; 176.155, subdivision 2;
176.231, subdivision 9a; 176.238, subdivisions 3, 4, 5, 6; 176.239, subdivisions
2, 3, 4, 5, 9, 10; 176.253, subdivision 2; 176.2611, subdivision 7; 176.271,
subdivision 1; 176.275, subdivision 1; 176.285, subdivisions 2, 2a, 2b; 176.305,
subdivision 1; 176.321, subdivision 3; 176.322; 176.341, subdivision 6; 176.361,
subdivisions 1, 4; 176.421, subdivision 7; Minnesota Statutes 2023 Supplement,
sections 176.081, subdivision 1; 176.101, subdivision 2a; 176.155, subdivision 1;
176.239, subdivisions 6, 7.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 176.011, subdivision 1a, is amended to read:


Subd. 1a.

Administrative conference.

An "administrative conference" is a meeting
conducted by a commissioner's designee new text begin or a compensation judge new text end where parties can discuss
on an expedited basis and in an informal setting their viewpoints concerning disputed issues
arising under section 176.102, 176.103, 176.135, 176.136, or 176.239. If the parties are
unable to resolve the dispute, the commissioner's designee new text begin or a compensation judge new text end shall
issue an administrative decision under section 176.106 or 176.239.

Sec. 2.

Minnesota Statutes 2022, section 176.011, subdivision 2, is amended to read:


Subd. 2.

Child.

"Child" includes a posthumous child, a child entitled by law to inherit
as a child of a deceased person, a child of a person adjudged by a court of competent
jurisdiction to be the deleted text begin fatherdeleted text end new text begin parent new text end of the child, and a stepchild, grandchild, or foster child
who was a member of the family of a deceased employee at the time of injury and dependent
upon the employee for support. A stepchild is a "child" within the meaning of section
176.041.

Sec. 3.

Minnesota Statutes 2023 Supplement, section 176.081, subdivision 1, is amended
to read:


Subdivision 1.

Limitation of fees.

(a) A fee for legal services of 20 percent of the first
$130,000 of compensation awarded to the employee is the maximum permissible fee and
does not require approval by the commissioner, compensation judge, or any other party.
All fees, including fees for obtaining medical or rehabilitation benefits, must be calculated
according to the formula under this subdivision, except as otherwise provided in clause (1)
or (2).

(1) The contingent attorney fee for recovery of monetary benefits according to the
formula in this section is presumed to be adequate to cover recovery of medical and
rehabilitation benefit or services concurrently in dispute. Attorney fees for recovery of
medical or rehabilitation benefits or services shall be assessed against the employer or
insurer only if the attorney establishes that the contingent fee is inadequate to reasonably
compensate the attorney for representing the employee in the medical or rehabilitation
dispute. In cases where the contingent fee is inadequate the employer or insurer is liable for
attorney fees based on the formula in this subdivision or in clause (2).

For the purposes of applying the formula where the employer or insurer is liable for
attorney fees, the amount of compensation awarded for obtaining disputed medical and
rehabilitation benefits under sections 176.102, 176.135, and 176.136 shall be the dollar
value of the medical or rehabilitation benefit awarded, where ascertainable.

(2) The maximum attorney fee for obtaining a change of doctor or qualified rehabilitation
consultant, or any other disputed medical or rehabilitation benefit for which a dollar value
is not reasonably ascertainable, is the amount charged in hourly fees for the representation
or $500, whichever is less, to be paid by the employer or insurer.

(3) The fees for obtaining disputed medical or rehabilitation benefits are included in the
$26,000 limit in paragraph (b). An attorney must concurrently file all outstanding disputed
issues. An attorney is not entitled to attorney fees for representation in any issue which
could reasonably have been addressed during the pendency of other issues for the same
injury.

(b) All fees for legal services related to the same injury are cumulative and may not
exceed $26,000. If multiple injuries are the subject of a dispute, the commissioner,
compensation judge, or court of appeals shall specify the attorney fee attributable to each
injury.

(c) If the employer or the insurer or the defendant is given written notice of claims for
legal services or disbursements, the claim shall be a lien against the amount paid or payable
as compensation. Subject to the foregoing maximum amount for attorney fees, up to 20
percent of the first $130,000 of periodic compensation awarded to the employee may be
withheld from the periodic payments for attorney fees or disbursements if the payor of the
funds clearly indicates on the check or draft issued to the employee for payment the purpose
of the withholding, the name of the attorney, the amount withheld, and the gross amount of
the compensation payment before withholding. In no case shall fees be calculated on the
basis of any undisputed portion of compensation awards. Allowable fees under this chapter
shall be available to an attorney who procures a benefit on behalf of the employee and be
based solely upon genuinely disputed claims or portions of claims, including disputes related
to the payment of rehabilitation benefits or to other aspects of a rehabilitation plan. The
existence of a dispute is dependent upon a disagreement after the employer or insurer has
had adequate time and information to take a position on liability. Neither the holding of a
hearing nor the filing of an application for a hearing alone may determine the existence of
a dispute. Except where the employee is represented by an attorney in other litigation pending
at the department or at the Office of Administrative Hearings, a fee may not be charged for
services with respect to a medical or rehabilitation issue arising under section 176.102,
176.135, or 176.136 performed before the attorney has filed with the commissioner and
served on the employer or insurer and the attorney representing the employer or insurer, if
any, a request for certification of dispute containing the name of the employer and its insurer,
the date of the injury, and a description of the benefits claimed, and the department certifies
that there is a dispute and that it has tried to resolve the dispute. If within 30 days of the
filing of the request the department has not issued a determination of whether a dispute
exists, the dispute shall be certified if all of the following apply:

(1) the insurer has not approved the requested benefit;

(2) the employee, the employee's attorney, or the employee's treating provider has
submitted any and all additional information requested by the insurer necessary to determine
whether the requested benefit is disputed or approved; and

(3) the insurer has had at least seven calendar days to review any additional information
submitted.

In cases of nonemergency surgery, if the employer or insurer has requested a second opinion
under section 176.135, subdivision 1a, or an examination under section 176.155, subdivision
1, a dispute shall be certified if 45 days have passed following a written request for an
examination or second opinion and the conditions in clauses (1) to (3) have been met.

(d) An attorney who is claiming legal fees for representing an employee in a workers'
compensation matter shall file a statement of attorney fees with the deleted text begin commissioner or
compensation judge before whom the matter was heard
deleted text end new text begin officenew text end . A copy of the signed retainer
agreement shall also be filed. The employee, employer or insurer, and the attorney
representing the employer or insurer, if any, shall receive a copy of the statement of attorney
fees. The statement shall be on a form prescribed by the commissioner and shall report the
number of hours spent on the case.

(e) Employers and insurers may not pay attorney fees or wages for legal services of
more than $26,000 per case.

(f) An attorney must file a statement of attorney fees within 12 months of the date the
attorney has submitted the written notice specified in paragraph (c). If the attorney has not
filed a statement of attorney fees within the 12 months, the attorney must send a renewed
notice of lien to the insurer. If 12 months have elapsed since the last notice of lien has been
received by the insurer and no statement of attorney fees has been filed, the insurer must
release the withheld money to the employee, except that before releasing the money to the
employee, the insurer must give the attorney 30 days' written notice of the pending release.
The insurer must not release the money if the attorney files a statement of attorney fees
within the 30 days.