Updated 2026
Statutory Interest (Late Payments)
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.
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).
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.
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.
When to call
Use your result as a screen. Most claims that are on track do not need a lawyer; the ones that are off track usually do.
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 — good reason to call
Payments are significantly late or were denied without a clear basis. Penalties may apply — call.
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.