Update for Minnesota zero estimated exposure work comp policies

Minnesota’s 2025 legislative session resulted in a big change for small-business owners that provide building construction or improvement services.

Small-business owners with no employees often find themselves having to take out “zero estimated payroll” or “if any” policies. Starting Jan. 1, 2026, Minnesota business owners offering building construction or improvement services face additional requirements when applying for workers’ compensation coverage when they have no estimated payroll. Additional disclosure and record retention requirements were also introduced for entities doing business with these employers.

The legislative changes now codify the definition of a zero estimated payroll policy and attestation requirements for building construction or improvement service businesses.

“Zero estimated exposure policy” means a policy of insurance that an employer obtains to cover the employer’s liability to pay compensation under this chapter after reporting the employer’s total estimated exposure is zero.

Additionally, the legislative changes outline new requirements for these business owners as far as providing and retaining insurance documentation.

  • To the insurance carrier, a signed attestation is required to be submitted with their application for workers’ compensation insurance and annually at each policy renewal. These business owners must provide the insurance carrier written notice within 60 days of the employment of any employees.
  • To their contracting partners, these business owners must provide written notification to each entity they contract to perform building construction or improvement services. This notice must include confirmation of your zero estimated exposure and a copy of the policy.
  • Entities receiving this notification are required to retain both the written notice and the policy for three years from the date they were received.

Additional resources

SFM has integrated a Minnesota zero attestation form into our SAM online application portal and have published this form to our website. Reach out to your SFM underwriter with additional questions.

For further details, check out our CompTalk on the subject.

SFM promotes Amanda Aponte to Executive Vice President

Amanda Aponte
Amanda Aponte, SFM Executive Vice President

SFM has promoted Amanda Aponte to Executive Vice President, effective Sept. 8, 2025.

In her expanded role, Aponte will partner closely with CEO and President Terry Miller, broaden her leadership across the organization, and represent SFM with industry leaders and stakeholders. She will also continue serving as Chief Financial Officer (CFO) during the transition.

“I’m honored to step into this position,” Aponte said. “While my background is in analytics, my passion is leading people with kindness and empathy. I’m excited to help guide our teams through staffing and technological evolution as we strengthen our reputation as The Work Comp Experts.

Nearly 20 years of impact at SFM

Aponte’s journey with SFM began in 2007 as an Actuarial Intern. Over the years, she rose through the ranks as Actuary, Director of Analytics, Chief Risk Officer and CFO. Her fingerprints are on nearly every financial milestone the company has achieved – from enterprise risk management and reserving to investments and business intelligence.

“I love data storytelling – using data to explain where we’ve been and where we’re headed,” Aponte said. “It creates buy-in, drives better decisions and connects across every discipline.”

Her financial expertise has not only fueled SFM’s growth but also contributed to community impact, including her role on the Children’s Minnesota Hospital investment subcommittee.

Looking forward

“Amanda is a sterling example of what happens when we give people the space to fulfill their potential,” Miller said. “Her financial acumen and vision have been critical to SFM’s success, and her leadership will help position us for the future.”

Aponte is clear about SFM’s purpose: “SFM is mission-driven. We have a safety-first mindset and we’re there for employers and their workers when injuries happen. We strive to have the right employees that believe in and support that mission, people who have the highest service standards and principles. SFM continues to seek policyholders that embrace our expertise, and we will be around to fulfil the long-term promises we make.”

 

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Minnesota Paid Leave law and work comp

Effective Jan. 1, 2026, a new Minnesota Paid Leave law goes into effect.

The law is distinct from the state’s Earned Sick and Safe Time (ESST) law, which has been on the books since 2024. (See a comparison of the two laws in the chart below.)

Funding comes through premiums split between workers and employers, and employees are eligible for up to 12 weeks of family leave and 12 weeks of medical leave, though the total yearly amount cannot exceed 20 weeks. Job protections are also in place under the statute for employees who have had at least 90 days of employment. The benefits are paid by the state, unless an employer offers an approved equivalent plan.

Employees can apply for leave for a qualifying event, including:

  • A serious health condition
  • The birth, foster or adoption of a child
  • Caring for a loved one (broadly defined under the law)
  • Supporting a family member’s active duty or impending order
  • Safety concerns, such as domestic violence, sexual assault or stalking

Covered employees are those who work at least 50% of their time in Minnesota. However, there are exceptions for remote employees. Minnesota has an average weekly wage formula in place to determine benefits.

State officials have released an FAQ page to help employers navigate the legislation.

Workers’ compensation considerations

The Minnesota Department of Employment and Economic Development announced that employees cannot receive payments from the new paid leave law while also receiving some other types of benefits. These include:

  • Workers’ compensation
  • Unemployment insurance payments
  • Social Security disability benefits (in most circumstances)

Still, employers should carefully monitor when an employee uses ESST, paid leave or personal time off for a work-related injury.

Paid leave laws in other states

Of SFM’s core states, only Minnesota has passed paid leave laws. However, similar legislation has been introduced elsewhere in recent years, including:

Conclusion

Minnesota employers should monitor any additional information coming from state officials, as well as potential court cases that could further provide clarity between the paid leave law and workers’ compensation benefits.

It is strongly recommended that employers speak with their employment law counsel regarding administration of Minnesota Paid Leave.

Comparing ESST and Paid Leave

Minnesota paid leave and ESST comparison

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