Remote or Out-of-State Staff in MN: Comp?

If you have remote or out-of-state staff, whether they need Minnesota workers compensation usually turns on where they regularly perform the main duties of their job. Minnesota generally covers a worker whose primary duties are performed in the state, even if they are hurt while temporarily out of state, and it covers a worker hired in Minnesota by a Minnesota employer while they work temporarily elsewhere. A remote worker who mainly works in Minnesota generally needs Minnesota on the policy.

Who this is for: Minnesota employers with remote staff, workers who cross state lines, and out-of-state businesses that send people into Minnesota.

The short version

Coverage usually follows where the worker regularly performs the main duties of the job.
A worker whose primary duties are in Minnesota is generally covered even if hurt temporarily out of state.
A worker hired in Minnesota by a Minnesota employer is generally covered while temporarily working in another state.
An out-of-state employer sending workers regularly into Minnesota should list Minnesota on the policy.
A remote employee working from a Minnesota home is an employee like any other, so the first-employee rule applies.

Where the work happens usually decides

Minnesota's rules look at where the job is actually done. A worker who regularly performs the primary duties of employment within Minnesota is covered under Minnesota law even when an injury happens outside the state. A worker hired in Minnesota by a Minnesota employer is covered while temporarily working out of state. The reverse also matters: a worker who regularly performs the primary duties outside Minnesota but is hurt inside the state is covered under Minnesota law only if they give up other-state claims. Because a remote worker at a Minnesota home does their primary duties in Minnesota, they are covered here.

Situation	Minnesota coverage?	Notes
Remote worker at a Minnesota home	Yes	Primary duties are in Minnesota; the first-employee rule applies
Minnesota worker traveling out of state temporarily	Yes	Covered while temporarily working elsewhere
Out-of-state employer sending crews into Minnesota regularly	List Minnesota	Add Minnesota to the policy rather than rely on the home state alone
Worker mainly out of state, hurt while in Minnesota	Only if they forgo other-state claims	A narrow path under the statute

Out-of-state employers coming into Minnesota

If your business is based elsewhere but you regularly send workers into Minnesota, do not assume your home-state policy is enough. Minnesota generally expects Minnesota to be listed on the policy for workers who regularly perform their duties in the state, and relying only on an out-of-state policy can leave a gap and expose you to the uninsured penalties. Adding Minnesota to the policy, or writing a separate Minnesota policy, closes that gap. We can review where your people actually work and make sure the states listed on your policy match.

Getting the states right on the policy

The practical fix is to make sure the policy lists every state where your people regularly work. A worker splitting time across states, or a company hiring its first remote employee in Minnesota, is exactly where coverage gaps hide. Because Minnesota has no state fund, this is handled on a private policy, and getting the state listings right up front avoids a denied claim later.

A Minnesota tech example

Illustrative, not a quote. A software company headquartered in another state hires its first employee in Minnesota, a support engineer working from a home office in Eagan. Because that worker performs their primary duties in Minnesota, the company needs Minnesota listed on its workers comp policy, and its home-state policy alone may not answer a claim. We add Minnesota to the policy so the new hire is covered from day one, and we confirm the rest of the remote roster is listed correctly. See our workers comp for technology businesses page.

Real questions Minnesota owners ask

Do I need Minnesota workers comp for a remote employee?

Generally yes if they work from Minnesota. A remote worker whose primary duties are performed in Minnesota is an employee here, so the first-employee rule applies and you need coverage.

My worker is based in Minnesota but travels out of state. Are they covered?

Generally yes. Minnesota covers a worker whose primary duties are in Minnesota even when they are hurt while temporarily working out of state, and a worker hired in Minnesota while temporarily elsewhere.

I am an out-of-state employer sending crews into Minnesota. Do I need coverage here?

Usually yes. If workers regularly perform their duties in Minnesota, you should list Minnesota on the policy rather than rely on your home-state policy alone, or you risk a gap and penalties.

What decides which state covers a worker?

Minnesota looks at where the worker regularly performs the main duties of the job. That is usually the deciding factor, more than where the company is based or where the paycheck is issued.

A worker is mainly out of state but was hurt in Minnesota. Does Minnesota cover it?

Only in a narrow case. A worker whose primary duties are outside Minnesota but who is injured inside the state is covered under Minnesota law only if they give up their other-state claims.

Can one policy list more than one state?

Yes. A workers comp policy can list several states where your people work. Getting those state listings right is how you avoid a denied claim when a worker splits time across state lines.

Does hiring my first Minnesota remote worker trigger the requirement?

Yes. That first Minnesota-based employee triggers the coverage duty just like an in-person hire, so put Minnesota on the policy before they start work.

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.

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.