Law checked through 08/19/2026
Minnesota Workers' Comp Interest & Penalty Calculator
Enter the unpaid amount, the due date, and the paid date. The rate comes from Minn. Stat. § 549.09, subd. 1, which charges 10% a year above $50,000 and the annual announced rate at or below it, so you do not need to look it up. 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.” The calculator looks up each calendar year's rate automatically. The rate field below is only an optional override.
Inputs
This is the unpaid/late benefit amount (before interest).
Leave this blank and the rate comes from Minn. Stat. 549.09, subd. 1, which the workers' comp interest statute points to. Two rules live there: an award over $50,000 draws a flat 10% per year under subd. 1(c)(2), and an award of $50,000 or less draws the rate the State Court Administrator announces each December, which is a treasury yield with a 4% floor. That announced rate was 5% in 2023 and 2024 and 4% in 2025 and 2026, so a claim spanning those years uses more than one rate. Fill this in only to test a different assumption.
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.
Late Minnesota workers’ comp payments carry interest at the rate in Minn. Stat. § 549.09, subd. 1. An award over $50,000 draws a flat 10% per year. An award of $50,000 or less draws the rate the State Court Administrator announces each December, which was 5% in 2023 and 2024 and 4% in 2025 and 2026. Penalties for unreasonable delay are separate. (Minn. Stat. §§ 176.221, 176.225.)
Reviewed by Daniel C. Swenson, Minnesota workers' compensation attorney, Robert Wilson & Associates. Weekly benefit 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.
Minn. Stat. § 176.221, subd. 7 sets the interest rate by pointing at § 549.09, subd. 1, which holds two rules. An award over $50,000 draws ten percent a year until paid. An award of $50,000 or less draws a treasury-based rate announced each December, with a four percent floor.
The ten percent rate does not reach awards for or against the state or a political subdivision. Those stay on the annual rate.
Interest is simple, computed on a 365-day year between the due date and the payment or "as of" date. A span crossing a New Year uses each year’s own rate.
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 accrues about $198.36: 181 days at the 4% rate announced for 2025. Change one fact and the answer moves a lot. $75,000 due 1/1/2024 and still unpaid two years later is over the $50,000 line, so it draws 10% rather than the annual rate and accrues about $15,021 instead of about $6,742.
How serious is your situation?
Use your result as a screen. On track means the numbers line up. Act quickly means something is off and the dispute steps usually have firm deadlines.
May be on track
Payments are timely; no interest or penalty is expected. Save this.
Worth watching
Payments are slightly late or a political-subdivision rule may apply. Document the dates.
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
- What is the interest rate on late workers’ comp payments in Minnesota?
- It depends on the size of the award. Minn. Stat. § 176.221, subd. 7 applies the rate in § 549.09, subd. 1: ten percent a year for an award over $50,000, and for $50,000 or less the rate the State Court Administrator announces each December, which was 5% for 2023 and 2024 and 4% for 2025 and 2026. The ten percent rate does not apply to awards for or against the state or a political subdivision.
- Does the $50,000 threshold really double the interest?
- Close to it. On $75,000 unpaid for two years, ten percent produces about $15,021 while the 2024 and 2025 annual rates produce about $6,742. The threshold is measured against the award, and it applies to awards finally entered on or after August 1, 2009.
- How is the day count handled?
- Interest is simple and computed on a 365-day year, running from the due date to the payment or as-of date. A period that crosses a New Year is split so each calendar year uses the rate announced for it.
- Are penalties the same as interest?
- No. Interest compensates for delay; penalties are separate consequences for unreasonable or late conduct under the statute.
- When does interest on an unpaid workers’ comp benefit start?
- Interest generally runs from the date the compensation was due, not from the later date when a judge enters an award. Identifying the correct due date is therefore as important as selecting the rate.
- How much is a Minnesota workers’ comp penalty?
- There is no single percentage for every dispute. Minn. Stat. §§ 176.221 and 176.225 use different penalties for late payment and unreasonable delay or denial, and the facts determine which provision applies. This calculator keeps interest separate from any penalty estimate.
Sources
How we keep this math current, including our test suite and rate-change history: accuracy and source notes.