HF 2443

as introduced - 87th Legislature (2011 - 2012) Posted on 02/22/2012 03:48pm

A bill for an act
relating to unemployment benefits; modifying benefit eligibility and duration;
providing wage support for persons with disabilities; providing exceptions for
certain persons who are starting a business; appropriating money; amending
Minnesota Statutes 2010, sections 268.07, subdivision 2a; 268.085, subdivisions
1, 5, 16; Minnesota Statutes 2011 Supplement, section 268.085, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 268.07, subdivision 2a, is amended to read:

Subd. 2a.

Weekly unemployment benefit amount and maximum amount of
unemployment benefits available.

(a) If an applicant has established a benefit account
under subdivision 2, the weekly unemployment benefit amount available during the
applicant's benefit year is the higher of:

(1) 50 percent of the applicant's average weekly wage during the base period, to a
maximum of 66-2/3 percent of the state's average weekly wage; or

(2) 50 percent of the applicant's average weekly wage during the high quarter, to a
maximum of 43 percent of the state's average weekly wage.

The applicant's average weekly wage under clause (1) is computed by dividing
the total wage credits by 52. The applicant's average weekly wage under clause (2) is
computed by dividing the high quarter wage credits by 13.

(b) The state's maximum weekly benefit amount, computed in accordance with
section 268.035, subdivision 23, applies to a benefit account established effective on or
after the last Sunday in October. Once established, an applicant's weekly unemployment
benefit amount is not affected by the last Sunday in October change in the state's maximum
weekly unemployment benefit amount.

(c) The maximum amount of unemployment benefits available on any benefit
account is the lower of:

(1) 33-1/3 percent of the applicant's total wage credits; or

(2) deleted text begin 26 deleted text end new text begin (i) four new text end times the applicant's weekly unemployment benefit amount new text begin if the
statewide unemployment rate is at least three percent;
new text end

new text begin (ii) ten times the applicant's weekly unemployment benefit amount if the statewide
unemployment rate is at least four percent;
new text end

new text begin (iii) 18 times the applicant's weekly unemployment benefit amount if the statewide
unemployment rate is at least five percent; or
new text end

new text begin (iv) 26 times the applicant's weekly unemployment benefit amount if the statewide
unemployment rate is at least six percent new text end .

new text begin (d) Benefits are available under paragraph (c), clause (2), items (ii), (iii), and (iv),
only if the applicant is eligible under section 268.085, subdivision 1, paragraph (b).
new text end

Sec. 2.

Minnesota Statutes 2010, section 268.085, subdivision 1, is amended to read:

Subdivision 1.

Eligibility conditions.

new text begin (a) new text end An applicant may be eligible to receive
unemployment benefits for any week if:

(1) the applicant has filed a continued request for unemployment benefits for that
week under section 268.0865;

(2) the week for which unemployment benefits are requested is in the applicant's
benefit year;

(3) the applicant was unemployed as defined in section 268.035, subdivision 26;

(4) the applicant was available for suitable employment as defined in subdivision
15. The applicant's weekly unemployment benefit amount is reduced one-fifth for each
day the applicant is unavailable for suitable employment. This clause does not apply to
an applicant who is in reemployment assistance training, or each day the applicant is on
jury duty or serving as an election judge;

(5) the applicant was actively seeking suitable employment as defined in subdivision
16. This clause does not apply to an applicant who is in reemployment assistance training
or who was on jury duty throughout the week;

(6) the applicant has served a nonpayable period of one week that the applicant is
otherwise entitled to some amount of unemployment benefits. This clause does not apply
if the applicant would have been entitled to federal disaster unemployment assistance
because of a disaster in Minnesota, but for the applicant's establishment of a benefit
account under section 268.07; and

(7) the applicant has been participating in reemployment assistance services, such
as job search and resume writing classes, if the applicant has been determined in need
of reemployment assistance services by the commissioner, unless the applicant has good
cause for failing to participate.

new text begin (b) An applicant may be eligible to receive unemployment benefits for any week
if, for the purpose of benefits under section 268.07, subdivision 2a, paragraph (c), clause
(2), items (ii), (iii), and (iv), the applicant is participating in an education, training, or
entrepreneurship program, or has earned income for the benefit week.
new text end

Sec. 3.

Minnesota Statutes 2011 Supplement, section 268.085, subdivision 3, is
amended to read:

Subd. 3.

Payments that delay unemployment benefits.

(a) An applicant is not
eligible to receive unemployment benefits for any week with respect to which the applicant
is receiving, has received, or has filed for payment, equal to or in excess of the applicant's
weekly unemployment benefit amount, in the form of:

(1) vacation pay, sick pay, or personal time off pay, also known as "PTO," paid
upon temporary, indefinite, or seasonal separation. This clause does not apply to (i)
vacation pay, sick pay, or personal time off pay, paid upon a permanent separation from
employment, or (ii) vacation pay, sick pay, or personal time off pay, paid from a vacation
fund administered by a union or a third party not under the control of the employer;

(2) severance pay, bonus pay, and any other payments, except earnings under
subdivision 5, and back pay under subdivision 6, paid by an employer because of, upon,
or after separation from employment, but only if the payment is considered wages at the
time of payment under section 268.035, subdivision 29; deleted text begin or
deleted text end

(3) pension, retirement, or annuity payments from any plan contributed to by a base
period employer including the United States government, except Social Security benefits
that are provided for in subdivision 4. The base period employer is considered to have
contributed to the plan if the contribution is excluded from the definition of wages under
section 268.035, subdivision 29, clause (1). If the pension, retirement, or annuity payment
is paid in a lump sum, an applicant is not considered to have received a payment if (i) the
applicant immediately deposits that payment in a qualified pension plan or account, or
(ii) that payment is an early distribution for which the applicant paid an early distribution
penalty under the Internal Revenue Code, United States Code, title 26, section 72(t)(1) new text begin ; or
new text end

new text begin (4) payments or benefits received under section 116L.17 for education or training new text end .

(b) This subdivision applies to all the weeks of payment. Payments under paragraph
(a), clause (1), are applied to the period immediately following the last day of employment.
The number of weeks of payment is determined as follows:

(1) if the payments are made periodically, the total of the payments to be received is
divided by the applicant's last level of regular weekly pay from the employer; or

(2) if the payment is made in a lump sum, that sum is divided by the applicant's last
level of regular weekly pay from the employer.

(c) If the payment is less than the applicant's weekly unemployment benefit amount,
unemployment benefits are reduced by the amount of the payment.

Sec. 4.

Minnesota Statutes 2010, section 268.085, subdivision 5, is amended to read:

Subd. 5.

Deductible earnings.

(a) If the applicant has earnings, including holiday
pay, with respect to any week, from employment, covered employment, noncovered
employment, self-employment, or volunteer work, equal to or in excess of new text begin 125 percent
of new text end the applicant's weekly unemployment benefit amount, the applicant is ineligible for
unemployment benefits for that week.

(b) If the applicant has earnings, with respect to any week, that is less than new text begin 125
percent of new text end the applicant's weekly unemployment benefit amount, from employment,
covered employment, noncovered employment, self-employment, or volunteer work, deleted text begin 55 deleted text end new text begin
50 new text end percent of the earnings are deducted from the weekly unemployment benefit amount.

(c) No deduction is made from an applicant's weekly unemployment benefit amount
for earnings from service in the National Guard or a United States military reserve unit or
from direct service as a volunteer firefighter or volunteer ambulance service personnel.
This exception to paragraphs (a) and (b) does not apply to on-call or standby pay provided
to a volunteer firefighter or volunteer ambulance service personnel. No deduction is made
for jury duty pay or for pay as an election judge.

(d) The applicant may report deductible earnings on continued requests for
unemployment benefits at the next lower whole dollar amount.

(e) Deductible earnings does not include any money considered a deductible
payment under subdivision 3, but includes all compensation considered wages under
section 268.035, subdivision 29, and any other compensation considered earned income
under state and federal law for income tax purposes.

Sec. 5.

Minnesota Statutes 2010, section 268.085, subdivision 16, is amended to read:

Subd. 16.

Actively seeking suitable employment defined.

(a) "Actively seeking
suitable employment" means those reasonable, diligent efforts an individual in similar
circumstances would make if genuinely interested in obtaining suitable employment under
the existing conditions in the labor market area. new text begin An applicant must document at least five
reasonable, diligent efforts to seek suitable employment for each week that an application
or continued request for unemployment benefits is made. new text end Limiting the search to positions
that are not available or are above the applicant's training, experience, and qualifications is
not "actively seeking suitable employment."

(b) To be considered "actively seeking suitable employment" an applicant must,
when reasonable, contact those employers from whom the applicant was laid off because
of lack of work and request suitable employment.

(c) If reasonable prospects of suitable employment in the applicant's usual or
customary occupation do not exist, the applicant must actively seek other suitable
employment to be considered "actively seeking suitable employment." This applies to an
applicant who is seasonally unemployed.

(d) Actively seeking a suitable job assignment or other employment with a staffing
service is considered actively seeking suitable employment.

(e) An applicant who is seeking employment only through a union is considered
actively seeking suitable employment if the applicant is in an occupation where hiring
in that locality is done through the union. If the applicant is a union member who is
restricted to obtaining employment among signatory contractors in the construction
industry, seeking employment only with those signatory contractors is considered actively
seeking employment. The applicant must be a union member in good standing, registered
with the union for employment, and in compliance with other union rules to be considered
"actively seeking suitable employment."

Sec. 6. new text begin SPECIAL WAGE SUPPORT FOR PERSONS WITH DISABILITIES;
APPROPRIATION.
new text end

new text begin Notwithstanding any other law to the contrary, $3,000,000 each year is appropriated
from the unemployment insurance contingent account under Minnesota Statutes, section
268.199, for wage supports for persons with disabilities under this section. For the
purposes of this section, "wage supports" means a payment to an employer that hires a
person with a disability. A wage support payment is equal to $3 per hour. For the purposes
of this section, "person with a disability" has the meaning given in Minnesota Statutes,
section 268A.01, subdivision 5. An employer must certify to the commissioner that the
person with a disability would not have been hired but for the wage support under this
section. Employment counselors and other support personnel under Minnesota Statutes,
chapter 268A, shall assist employers in applying for wage supports on behalf of persons
with disabilities under this section.
new text end

Sec. 7. new text begin ENTREPRENEURSHIP FOR DISLOCATED WORKERS.
new text end

new text begin (a) The commissioner is authorized to waive:
new text end

new text begin (1) the availability for suitable employment requirements under Minnesota Statutes,
section 268.085, subdivision 1, clause (5); and
new text end

new text begin (2) the 32 hours of work limitation under Minnesota Statutes, section 268.085,
subdivision 2, clause (6).
new text end

new text begin (b) The waiver in paragraph (a) is available to applicants eligible to receive benefits
under section 268.085, subdivision 1, who are starting a business.
new text end

new text begin For the purposes of this section, "starting a business" has the meaning used in the
administration of the Growing America Through Entrepreneurship Program under Laws
2009, chapter 78, article 3, section 16, as amended by Laws 2011, chapter 84, article
1, section 10.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013, and expires June 30,
2016.
new text end