65-01 General Provisions
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the state depends in a large measure upon the well-being of its wageworkers, and, hence, for
workers injured in hazardous employments, and for their families and dependents, sure and
certain relief is hereby provided regardless of questions of fault and to the exclusion of every
other remedy, proceeding, or compensation, except as otherwise provided in this title, and to that
end, all civil actions and civil claims for relief for those personal injuries and all jurisdiction of the
courts of the state over those causes are abolished except as is otherwise provided in this title. A
civil action or civil claim arising under this title, which is subject to judicial review, must be
reviewed solely on the merits of the action or claim. This title may not be construed liberally on
behalf of any party to the action or claim.65-01-01.1. Civil liability for intentional injuries. The sole exception to an employer'simmunity from civil liability under this title, except as provided in chapter 65-09, is an action for an
injury to an employee caused by an employer's intentional act done with the conscious purpose
of inflicting the injury.65-01-02. Definitions. In this title:1."Acute care" means a short course of intensive diagnostic and therapeutic services
provided immediately following a work injury with a rapid onset of pronounced
symptoms.2."Adopted" or "adoption" refers only to a legal adoption effected prior to the time of
the injury.3."Artificial members" includes a device that is a substitute for a natural part, organ,
limb, or other part of the body. The term includes a prescriptive device that is an aid
for a natural part, organ, limb, or other part of the body if the damage to the
prescriptive device is accompanied by an injury to the body. A prescriptive device
includes prescription eyeglasses, contact lenses, dental braces, and orthopedic
braces.4."Artificial replacements" means mechanical aids, including braces, belts, casts, or
crutches as may be reasonable and necessary due to compensable injury.5."Average weekly wage" means the weekly wages the employee was receiving from
all employments for which coverage is required or otherwise secured at the date of
first disability. The average weekly wage determined under this subsection must be
rounded to the nearest dollar. If the employee's wages are not fixed by the week,
they must be determined by using the first applicable formula from the schedule
below:a.For seasonal employment, during the first consecutive days of disability up to
twenty-eight days the average weekly wage is calculated pursuant to the first
applicable formula in subdivisions b through g, and after that are calculated as
one-fiftieth of the total wages from all occupations during the twelve months
preceding the date of first disability or during the tax year preceding the date of
first disability, or an average of the three tax years preceding the date of first
disability, whichever is highest and for which accurate, reliable, and complete
records are readily available.Page No. 1b.The "average weekly wage" of a self-employed employer is determined by the
following formula: one fifty-second of the average annual net self-employed
earnings reported the three preceding tax years or preceding fifty-two weeks
whichever is higher if accurate, reliable, and complete records for those
fifty-two weeks are readily available.c.Hourly or daily rate multiplied by number of hours or days worked per
seven-day week.d.Monthly rate multiplied by twelve months and divided by fifty-two weeks.e.Biweekly rate divided by two.f.The usual wage paid other employees engaged in similar occupations.g.A wage reasonably and fairly approximating the weekly wage lost by the
claimant during the period of disability.6."Average weekly wage in the state" means the determination made of the average
weekly wage in the state by job service North Dakota on or before July first of each
year, computed to the next highest dollar.7."Board" means the workforce safety and insurance board of directors.8."Brother" and "sister" include a stepbrother and a stepsister, a half brother and a half
sister, and a brother and sister by adoption. The terms do not include a married
brother or sister unless that person actually is dependent.9."Child", for determining eligibility for benefits under chapter 65-05, means a
legitimate child, a stepchild, adopted child, posthumous child, foster child, and
acknowledged illegitimate child who is under eighteen years of age and resides with
the employee; or is under eighteen years of age and does not reside with the
employee but a duty of support is substantiated by an appropriate court order; or is
between eighteen and twenty-two years of age and enrolled as a full-time student in
any accredited educational institution and dependent upon the employee for support;
or is eighteen years of age or over and is physically or mentally incapable of
self-support and is actually dependent upon the employee for support. A child does
not include a married child unless actually dependent on the employee as shown on
the preceding year's income tax returns.10."Compensable injury" means an injury by accident arising out of and in the course of
hazardous employment which must be established by medical evidence supported
by objective medical findings.a.The term includes:(1)Disease caused by a hazard to which an employee is subjected in the
course of employment. The disease must be incidental to the character
of the business and not independent of the relation of employer and
employee. Disease includes effects from radiation.(2)An injury to artificial members.(3)Injuries due to heart attack or other heart-related disease, stroke, and
physical injury caused by mental stimulus, but only when caused by the
employee's employment with reasonable medical certainty, and only
when it is determined with reasonable medical certainty that unusual
stress is at least fifty percent of the cause of the injury or disease as
compared with all other contributing causes combined. Unusual stressPage No. 2means stress greater than the highest level of stress normally
experienced or anticipated in that position or line of work.(4)Injuries arising out of employer-required or supplied travel to and from a
remote jobsite or activities performed at the direction or under the control
of the employer.(5)An injury caused by the willful act of a third person directed against an
employee because of the employee's employment.(6)A mental or psychological condition caused by a physical injury, but only
when the physical injury is determined with reasonable medical certainty
to be at least fifty percent of the cause of the condition as compared with
all other contributing causes combined, and only when the condition did
not preexist the work injury.b.The term does not include:(1)Ordinary diseases of life to which the general public outside of
employment is exposed or preventive treatment for communicable
diseases, except that the organization may pay for preventive treatment
for a health care provider as defined in section 23-07.5-01, firefighter,
peace officer, correctional officer, court officer, law enforcement officer,
emergency medical technician, or an individual trained and authorized by
law or rule to render emergency medical assistance or treatment who is
exposed to a bloodborne pathogen as defined in section 23-07.5-01
occurring in the course of employment and for exposure to rabies
occurring in the course of employment.(2)A willfully self-inflicted injury, including suicide or attempted suicide, or an
injury caused by the employee's willful intention to injure or kill another.(3)Any injury caused by the use of intoxicants or the illegal use of controlled
substances.(4)An injury that arises out of an altercation in which the injured employee is
an aggressor.This paragraph does not apply to public safetyemployees, including law enforcement officers or private security
personnel who are required to engage in altercations as part of their job
duties if the altercation arises out of the performance of those job duties.(5)An injury that arises out of an illegal act committed by the injured
employee.(6)An injury that arises out of an employee's voluntary nonpaid participation
in any recreational activity, including athletic events, parties, and picnics,
even though the employer pays some or all of the cost of the activity.(7)Injuries attributable to a preexisting injury, disease, or other condition,
including when the employment acts as a trigger to produce symptoms in
the preexisting injury, disease, or other condition unless the employment
substantially accelerates its progression or substantially worsens its
severity.(8)A nonemployment injury that, although acting upon a prior compensable
injury, is an independent intervening cause of injury.Page No. 3(9)A latent or asymptomatic degenerative condition, caused in substantial
part by employment duties, which is triggered or made active by a
subsequent injury.(10)A mental injury arising from mental stimulus.11."Date of first disability" means the first date the employee was unable to work
because of a compensable injury.12."Date of maximum medical improvement" or "date of maximum medical recovery"
means the date after which further recovery from, or lasting improvement to, an
injury or disease can no longer reasonably be anticipated based upon reasonable
medical probability.13."Director" means the director of the organization.14."Disability" means loss of earnings capacity and may be permanent total, temporary
total, or partial.15."Doctor" means doctor of medicine or osteopathy, chiropractor, dentist, optometrist,
podiatrist, or psychologist acting within the scope of the doctor's license.16."Employee" means a person who performs hazardous employment for another for
remuneration unless the person is an independent contractor under the common-law
test.a.The term includes:(1)All elective and appointed officials of this state and its political
subdivisions,includingmunicipalcorporationsandincludingthemembers of the legislative assembly, all elective officials of the several
counties of this state, and all elective peace officers of any city.(2)Aliens.(3)County general assistance workers, except those who are engaged in
repaying to counties moneys that the counties have been compelled by
statute to expend for county general assistance.(4)Minors, whether lawfully or unlawfully employed; a minor is deemed
sui juris for the purposes of this title, and no other person has any claim
for relief or right to claim workforce safety and insurance benefits for any
injury to a minor worker, but in the event of the award of a lump sum of
benefits to a minor employee, the lump sum may be paid only to the
legally appointed guardian of the minor.b.The term does not include:(1)Any person whose employment is both casual and not in the course of
the trade, business, profession, or occupation of that person's employer.(2)Any person who is engaged in an illegal enterprise or occupation.(3)The spouse of an employer or a child under the age of twenty-two of an
employer. For purposes of this paragraph and section 65-07-01, "child"
means any legitimate child, stepchild, adopted child, foster child, or
acknowledged illegitimate child.Page No. 4(4)Any real estate broker or real estate salesperson, provided the person
meets the following three requirements:(a)The salesperson or broker must be a licensed real estate agent
under section 43-23-05.(b)Substantially all of the salesperson's or broker's remuneration for
the services performed as a real estate agent must be directly
related to sales or other efforts rather than to the number of hours
worked.(c)A written agreement must exist between the salesperson or broker
and the person or firm for whom the salesperson or broker works,
which agreement must provide that the salesperson or broker will
not be treated as an employee but rather as an independent
contractor.(5)The members of the board of directors of a business corporation who are
not employed in any capacity by the corporation other than as members
of the board of directors.(6)Any individual delivering newspapers or shopping news, if substantially
all of the individual's remuneration is directly related to sales or other
efforts rather than to the number of hours worked and a written
agreement exists between the individual and the publisher of the
newspaper or shopping news which states that the individual is an
independent contractor.(7)An employer.c.Persons employed by a subcontractor, or by an independent contractor
operating under an agreement with the general contractor, for the purpose of
this chapter are deemed to be employees of the general contractor who is liable
and responsible for the payments of premium for the coverage of these
employees until the subcontractor or independent contractor has secured the
necessary coverage and paid the premium for the coverage. This subdivision
does not impose any liability upon a general contractor other than liability to the
organization for the payment of premiums which are not paid by a
subcontractor or independent contractor.17."Employer" means a person who engages or received the services of another for
remuneration unless the person performing the services is an independent
contractor under the common-law test. The term includes:a.The state and all political subdivisions thereof.b.All public and quasi-public corporations in this state.c.Every person, partnership, limited liability company, association, and private
corporation, including a public service corporation.d.The legal representative of any deceased employer.e.The receiver or trustee of any person, partnership, limited liability company,
association, or corporation having one or more employees as herein defined.f.The president, vice presidents, secretary, or treasurer of a business
corporation, but not members of the board of directors of a business
corporation who are not also officers of the corporation.Page No. 5g.The managers of a limited liability company.h.The president, vice presidents, secretary, treasurer, or board of directors of an
association or cooperative organized under chapter 6-06, 10-12, 10-13, 10-15,
36-08, or 49-21.i.The clerk, assessor, treasurer, or any member of the board of supervisors of an
organized township, if the person is not employed by the township in any other
capacity.j.A multidistrict special education unit.k.An area career and technology center.l.A regional education association.18."Fee schedule" means the payment formulas established in the organization
publication entitled "Medical and Hospital Fees".19."Fund" means the workforce safety and insurance fund.20."Hazardous employment" means any employment in which one or more employees
are employed regularly in the same business or in or about the establishment
except:a.Agricultural or domestic service.b.Any employment of a common carrier by railroad.c.Any employment for the transportation of property or persons by nonresidents,
where, in such transportation, the highways are not traveled more than seven
miles [11.27 kilometers] and return over the same route within the state of
North Dakota.d.All members of the clergy and employees of religious organizations engaged in
the operation, maintenance, and conduct of the place of worship.21."Health care provider" means a doctor or any recognized practitioner providing
skilled services pursuant to the prescription of, or under the supervision or direction
of, a doctor.22."Organization" means workforce safety and insurance, or the director, or any
department head, assistant, or employee of workforce safety and insurance
designated by the director, to act within the course and scope of that person's
employment in administering the policies, powers, and duties of this title.23."Parent" includes a stepparent and a parent by adoption.24."Permanent impairment" means the loss of or loss of use of a member of the body
existing after the date of maximum medical improvement and includes disfigurement
resulting from an injury.25."Permanent total disability" means disability that is the direct result of a
compensable injury that prevents an employee from performing any work and
results from any one of the following conditions:a.Total and permanent loss of sight of both eyes;b.Loss of both legs or loss of both feet at or above the ankle;Page No. 6c.Loss of both arms or loss of both hands at or above the wrist;d.Loss of any two of the members or faculties in subdivision a, b, or c;e.Permanent and complete paralysis of both legs or both arms or of one leg and
one arm;f.Third-degree burns that cover at least forty percent of the body and require
grafting;g.A medically documented traumatic brain injury affecting cognitive and mental
functioning which renders an employee unable to provide self-care and requires
supervision or assistance with a majority of the activities of daily living; orh.A compensable injury that results in a permanent partial impairment rating of
the whole body of at least twenty-five percent pursuant to section 65-05-12.2.If the employee has not reached maximum medical improvement within one
hundred four weeks, the employee may receive a permanent partial impairment
rating if a rating will assist the organization in assessing the employee's capabilities.
Entitlement to a rating is solely within the discretion of the organization.26."Rehabilitation services" means nonmedical services reasonably necessary to
restore a disabled employee to substantial gainful employment as defined by section
65-05.1-01 as near as possible.The term may include vocational evaluation,counseling, education, workplace modification, vocational retraining including
training for alternative employment with the same employer, and job placement
assistance.27."Seasonal employment" includes occupations that are not permanent or that do not
customarily operate throughout the entire year.Seasonal employment isdetermined by what is customary with respect to the employer at the time of injury.28."Spouse" includes only the decedent's husband or wife who was living with the
decedent or was dependent upon the decedent for support at the time of injury.29."Temporary total disability" means disability that results in the inability of an
employee to earn wages as a result of a compensable injury for which disability
benefits may not exceed a cumulative total of one hundred four weeks or the date
the employee reaches maximum medical improvement or maximum medical
recovery, whichever occurs first.30."Utilization review" means the initial and continuing evaluation of appropriateness in
terms of both the level and the quality of health care and health services provided a
patient, based on medically accepted standards.The evaluation must beaccomplished by means of a system that identifies the utilization of medical
services, based on medically accepted standards, and which refers instances of
possible inappropriate utilization to the organization to obtain opinions and
recommendations of expert medical consultants to review individual cases for which
administrative action may be deemed necessary.31."Wages" means an employee's remuneration from all employment reportable to the
internal revenue service as earned income for federal income tax purposes. For
purposes of chapter 65-04, "wages" means all gross earnings of all employees. The
term includes all pretax deductions for amounts allocated by the employee for
deferred compensation, medical reimbursement, retirement, or any similar program,
but may not include dismissal or severance pay.65-01-03. Individual performing service for remuneration presumed an employee.Page No. 71.Each individual who performs services for another for remuneration is presumed to
be an employee of the person for which the services are performed, unless it is
proven that the individual is an independent contractor under the common-law test.
The person that asserts that an individual is an independent contractor under the
common-law test, rather than an employee, has the burden of proving that fact.2.In the case of commercial motor vehicles whose gross vehicle weight rating is more
than twenty-six thousand pounds [11793.40 kilograms], with an individual operating
a licensed truck or licensed tractor for a motor carrier of property, the presumption in
subsection 1 is successfully rebutted if all of the following factors are present:a.The individual owns, leases, or enters a purchase agreement to purchase a
truck or tractor. The lease or purchase agreement must represent reasonably
the value of the lease or purchase of the truck or tractor.The lease orpurchase agreement may be with the carrier of property. An unreasonable
lease or purchase agreement with a third party, unaffiliated with the carrier,
does not affect this factor.b.The individual is responsible for the maintenance and repair of the truck or
tractor.c.The individual bears the principal burden of operating costs, including fuel,
supplies, vehicle insurance, and personal expenses.d.The individual is responsible for supplying the necessary personal services to
operate the truck or tractor.e.Income taxes are not withheld from the individual's compensation.f.The individual generally determines the details and means of performing the
services, in conformance with statutory or regulatory requirements, operating
procedures of the carrier, and specifications of the shipper.g.The individual enters a written agreement with the motor carrier outlining the
nature of the relationship.65-01-04. Computation of weekly wages in compensation matters. Repealed byS.L. 1969, ch. 558,