North Dakota — Workplace Safety

North Dakota does not operate an OSHA-approved state plan. Federal OSHA has jurisdiction over most private sector employers and workers in the state. State and local government workers are not covered by federal OSHA and have no OSHA protection in North Dakota, since the state has not adopted a plan covering public-sector employees.

Source: OSHA State Plans

North Dakota operates an exclusive state workers' compensation fund administered by Workforce Safety & Insurance (WSI). North Dakota law requires nearly all employers operating in the state to secure coverage through WSI; private workers' compensation insurance is not available. This makes North Dakota one of four monopolistic state fund jurisdictions in the United States.

Covered employers

N.D.C.C. Chapter 65-01 establishes that the following categories of employers must carry WSI coverage:

• The state and all political subdivisions
• All public and quasi-public corporations in North Dakota
• The legal representative of any deceased employer
• Multidistrict special education units
• Area career and technology centers
• Regional education associations

An employer has mandatory coverage obligations when employment results in "significant contacts" with North Dakota. According to WSI guidance, significant contacts exist when any one of the following applies: (1) any employee earns or expects to earn 25% or more of the employee's gross annual wage or income from that employer for services rendered within North Dakota; (2) 25% or more of the employer's gross annual payroll is payable to employees for services rendered in North Dakota; or (3) an employer hires an employee in North Dakota for work in North Dakota. Out-of-state employers meeting any of these thresholds must secure WSI coverage and report all North Dakota payroll.

Covered employees

North Dakota law requires employers to insure "all employees" under N.D.C.C. Title 65, which WSI interprets to include full-time, part-time, seasonal, and occasional workers. Coverage becomes effective on the first day of employment. Employers bear the full cost of premiums; N.D.C.C. Chapter 65-04 prohibits employers from deducting any portion of workers' compensation premium from employee wages.

Exemptions and optional coverage

N.D.C.C. § 65-01-02 lists categories of workers not automatically covered under the mandatory system. These include:

• An employer (business owners)
• Managers of a limited liability company
• Agricultural or domestic service workers
• Employees of common carriers by railroad
• Athletes participating in a contact sport (defined as "a team or individual competitive athletic activity that includes significant physical contact between the athletes involved")
• Individuals engaged in an illegal enterprise or occupation

The statute permits employers to elect optional coverage for themselves, their spouse, children under age 22, and other workers otherwise exempt from mandatory coverage. Coverage for business owners, spouses, partners, and corporate officers requires execution of an optional coverage agreement with WSI. The statute makes coverage mandatory for an employer's children age 22 and older who are employees.

Federal employees, including USPS delivery carriers and railroad workers covered by separate federal workers' compensation programs, cannot elect to purchase coverage through WSI.

Proof of coverage and posting requirement

WSI does not issue a traditional insurance policy. Instead, WSI issues a Certificate of Payment upon receipt of premium payment, which serves as the employer's proof of coverage. According to WSI guidance, North Dakota law requires employers to post the Certificate of Premium Payment in a conspicuous place where employees will see it, along with the WSI Fraud and Safety Hotline number (1-800-243-3331). WSI guidance indicates that failure to post the Certificate subjects the employer to a $250 penalty, though the specific penalty provision was not confirmed in the statutes reviewed.

Out-of-state employers and reciprocal agreements

Out-of-state employers whose workers' compensation carrier from their home state extends coverage into North Dakota must provide proof of that coverage, unless the home state has a reciprocal agreement with WSI. According to WSI, reciprocal agreements exist with Idaho, Montana, Oregon, South Dakota, Utah, Washington, and Wyoming. However, even with a reciprocal agreement, if an out-of-state employer meets the 25% significant-contacts threshold described above, WSI coverage is required.

WSI's regulations permit limited coverage for North Dakota-based employees working outside the state for periods not exceeding 30 consecutive calendar days. For longer out-of-state assignments, employers must secure separate coverage, as WSI as a state agency cannot write coverage for exposure outside North Dakota.

Source: N.D.C.C. Title 65, Chapter 65-01 Source: N.D.C.C. Title 65, Chapter 65-04 Source: North Dakota Workforce Safety & Insurance FAQ