Updated 06/28/2026
Minnesota Workers' Comp Interest & Penalty Calculator
Enter the unpaid amount, due date, paid date, and the applicable annual rate. We'll estimate statutory interest under Minn. Stat. § 176.221, subd. 7, then check which commissioner penalty tier applies below.
Verification notice
This tool estimates statutory interest only. Under Minn. Stat. § 176.221, subd. 7, late workers' comp payments bear interest “from the due date to the date the payment is made at the rate set by Minn. Stat. § 549.09, subd. 1.” That rate is set annually; this calculator asks you to enter the correct annual rate for the year the payment became due.
Inputs
This is the unpaid/late benefit amount (before interest).
The rate comes from Minn. Stat. § 549.09, subd. 1 (treasury-yield based; minimum 4%).
Minn. Stat. § 549.09, subd. 1 treats awards “for or against the state or a political subdivision” under the treasury-yield rate (not the higher 10% rate used in some other civil judgments).
Late-payment penalty tiers
Separate from interest, the commissioner may assess a penalty when payments start late (Minn. Stat. § 176.221, subd. 3). Enter how late the payment is to see which tier applies.
Penalty tiers and dollar caps are from Minn. Stat. § 176.221, subd. 3. These penalties are assessed by the Commissioner of DLI, not automatically added to your check; this tool shows which tier applies so you know what to ask for.
How late is the payment?
Note
Commissioner penalties are tiered by how many days late the payment is (1–15, 16–30, 31–60, 61+). The tier is determined automatically from the days late you enter above.
Commissioner penalty tiers: Minn. Stat. § 176.221, subd. 3
1–15 days late: 30% of total compensation due, up to $500
16–30 days late: 55% of total compensation due, up to $1,500
31–60 days late: 80% of total compensation due, up to $3,500
61+ days late: 105% of total compensation due, up to $5,000
These are commissioner-assessed penalties against the insurer, not automatic additions to the employee's check. A compensation judge may also assess up to 30% for inexcusable delay under Minn. Stat. § 176.225.
Interest: Accrues at the rate set by Minn. Stat. § 549.09, subd. 1 (variable, published annually by the State Court Administrator). This is not a fixed 10%. Check the current rate at the Minnesota Courts website.
This is an informational tool, not legal advice. Results depend entirely on the information you enter and may not reflect all statutory exceptions or fact-specific rules. Verify against the underlying statute and consult an attorney for case-specific decisions.
Unpaid Minnesota workers’ comp benefits accrue statutory interest, and late or unreasonably delayed payments can add penalties; for example, $10,000 paid about six months late at 4% accrues roughly $198 in interest, on top of any penalty. (Minn. Stat. §§ 176.221, 176.225.)
Reviewed by Daniel C. Swenson, Minnesota workers' compensation attorney, Robert Wilson & Associates. Rates verified through 2025-10-01. General information, not legal advice.
How late-payment interest and penalties are estimated
When compensation is paid late, interest accrues on the unpaid amount, and separate penalties can apply for unreasonable delay.
Interest uses a day-count between the due date and the payment (or "as of") date; periods that cross calendar years may be split.
Penalties for late or denied payments are tiered by how late the payment is.
Worked example
$10,000 due 1/1/2025 and paid 7/1/2025 at 4% simple interest accrues about $198.36 (181 days ÷ 365). A payment made before it is due produces no interest.
How serious is your situation?
Use your result as a screen. Green means the numbers line up; red means something is off and the dispute steps usually have firm deadlines.
Green: may be on track
Payments are timely; no interest or penalty is expected. Save this.
Yellow: worth watching
Payments are slightly late or a political-subdivision rule may apply. Document the dates.
Red: act quickly
Payments are significantly late or were denied without a clear basis. Penalties may apply: file a penalty request with DLI and keep records of every late payment.
Frequently asked questions
- How is the day count handled?
- Interest is computed on the days between the due date and the payment or as-of date. Periods spanning calendar years can be split or flagged.
- Are penalties the same as interest?
- No. Interest compensates for delay; penalties are separate consequences for unreasonable or late conduct under the statute.
Sources
How we keep this math current, including our test suite and rate-change history: accuracy and source notes.