If your only staff in Minnesota are part-time or seasonal, you still need workers compensation insurance. Minnesota attaches the requirement to your first employee and sets no minimum hours and no minimum headcount, so a single part-time or seasonal hire makes coverage mandatory. Keeping people part-time does not get you out of the rule.
Who this is for: Minnesota owners whose staff are all part-time, seasonal, or temporary, such as retail shops, cafes, and seasonal service businesses.
The short version
- Part-time, seasonal, and temporary workers all count as employees in Minnesota.
- Coverage is required from the first one, with no minimum hours and no headcount trigger.
- Minors count as employees too, which matters for shops that hire teenagers.
- The narrow carve-outs are casual work outside your trade and a household worker paid under 1,000 dollars in a three-month period.
- Your premium is based on actual payroll, so a small part-time crew usually means a smaller premium, not no policy.
Why part-time still counts
Minnesota's workers comp law does not scale the requirement to hours. An employee is an employee whether they work 40 hours a week or 4, so a part-time cashier or a seasonal helper is covered exactly like a full-timer, and minors count too. There is also no exception for a seasonal business that only operates a few months a year: during the months you have staff, you need coverage. The narrow exceptions are for casual work that is both casual and outside your regular business, and for a household worker in a private home paid under 1,000 dollars in cash in any three-month period.
| Worker | Counts toward the mandate? | Notes |
|---|---|---|
| Part-time employee | Yes | No minimum hours; covered from day one |
| Seasonal or holiday worker | Yes | Covered during the months they work |
| Minor or teenage worker | Yes | Counts as an employee under Chapter 176 |
| Household worker under 1,000 dollars in three months | No | Only exempt below that cash threshold, and only in a private home |
| Owner with no other staff | Depends on business type | Sole proprietors and partners are off by default; small-business officers and managers may be too |
What it costs for a small crew
The good news is that a part-time crew usually costs less to insure, not the same as a full staff. Workers comp is priced on your actual payroll, so a shop with three part-timers pays on that smaller payroll, and many carriers audit at year end and adjust if your hours ran lower than expected. That means the answer to a part-time business is almost never to skip coverage; it is to buy a policy sized to the payroll you actually run.
Why skipping it backfires
Treating part-timers as too small to insure is a costly bet. If a seasonal hire is hurt and you have no policy, Minnesota can fine you per employee for each week you were uninsured, the state's Special Compensation Fund can pay the worker and bill you plus a 65 percent penalty, and the worker can sue the business directly. For a small retailer or cafe, one uninsured injury can cost far more than a season of premium.
A Woodbury example
Illustrative, not a quote. A Woodbury gift shop runs on two part-time clerks for most of the year and adds three seasonal hires for the holidays, some of them teenagers. The owner assumed part-timers did not count, but in Minnesota they do from the first one, so she needs a policy year-round and simply adds the seasonal staff to it for the busy months. Her premium is based on the actual part-time and seasonal payroll, so it stays modest, and when a holiday hire slips on an icy step the claim is covered. See our workers comp for retail stores page.
Real questions Minnesota owners ask
Do I need workers comp if all my staff are part-time in Minnesota?
Yes. Minnesota counts part-time workers as employees from the first one, with no minimum hours and no headcount trigger, so a single part-time hire makes coverage mandatory.
Does a seasonal-only business need workers comp?
Yes, during the months you have staff. Minnesota has no exception for a business that operates only part of the year, so a seasonal crew must be covered while they work.
Do teenage or minor employees count?
Yes. Minnesota counts minors as employees under Chapter 176, so a shop that hires teenagers needs coverage for them the same as for any adult worker.
How few hours is too few to need coverage?
There is no hours floor for regular employees. A worker doing a few hours a week still counts. The only hours-based carve-out is a household worker in a private home paid under 1,000 dollars in a three-month period.
Will a small part-time crew cost a lot to insure?
Usually not. Workers comp is priced on actual payroll, so a small part-time crew means a smaller premium, and carriers often audit at year end and adjust if your hours ran lower than expected.
Is casual or one-off help exempt?
Only if it is both casual and outside your regular trade or business. A helper doing your normal work does not qualify, so most part-time help counts as an employee.
What happens if I skip coverage for part-timers?
Minnesota can fine you per employee for each week uninsured, pay an injured worker through the state's Special Compensation Fund and bill you plus a 65 percent penalty, and the worker can sue the business directly.
Why Minnesota owners choose Morrow
- We shop the right market for you. In Minnesota you buy workers' comp on the open, competitive market from any private insurer licensed in the state, because there is no state fund, and if no carrier will take you the assigned-risk plan (MWCARP) is the guaranteed backstop, so we can shop your rate freely and still have a fallback for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Minnesota guides
Every Minnesota business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Minnesota (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- What workers comp does not cover
- Minnesota retail workers comp
This guide is general information, not legal advice. Minnesota rules and penalty amounts can change, so verify current requirements with the Minnesota Department of Labor and Industry or a licensed advisor before you rely on them. Last updated: July 2026.