SF 1229

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 10:03am

A bill for an act
relating to unemployment compensation; modifying definition of suitable
employment related to staffing services; modifying payments that delay
benefits; modifying penalty relating to offers of suitable employment; amending
Minnesota Statutes 2010, sections 268.035, subdivision 23a; 268.085,
subdivisions 3, 13c.

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

Section 1.

Minnesota Statutes 2010, section 268.035, subdivision 23a, is amended to
read:

Subd. 23a.

Suitable employment.

(a) Suitable employment means employment in
the applicant's labor market area that is reasonably related to the applicant's qualifications.
In determining whether any employment is suitable for an applicant, the degree of risk
involved to the health and safety, physical fitness, prior training, experience, length
of unemployment, prospects for securing employment in the applicant's customary
occupation, and the distance of the employment from the applicant's residence is
considered.

(b) In determining what is suitable employment, primary consideration is given to the
temporary or permanent nature of the applicant's separation from employment and whether
the applicant has favorable prospects of finding employment in the applicant's usual or
customary occupation at the applicant's past wage level within a reasonable period of time.

If prospects are unfavorable, employment at lower skill or wage levels is suitable
if the applicant is reasonably suited for the employment considering the applicant's
education, training, work experience, and current physical and mental ability.

The total compensation must be considered, including the wage rate, hours of
employment, method of payment, overtime practices, bonuses, incentive payments, and
fringe benefits.

(c) When potential employment is at a rate of pay lower than the applicant's former
rate, consideration must be given to the length of the applicant's unemployment and the
proportion of difference in the rates. Employment that may not be suitable because of
lower wages during the early weeks of the applicant's unemployment may become suitable
as the duration of unemployment lengthens.

(d) For an applicant seasonally unemployed, suitable employment includes
temporary work in a lower skilled occupation that pays average gross weekly wages equal
to or more than 150 percent of the applicant's weekly unemployment benefit amount.

(e) If a majority of the applicant's weeks of employment in the base period includes
part-time employment, part-time employment in a position with comparable skills and
comparable hours that pays comparable wages is considered suitable employment.

Full-time employment is not considered suitable employment for an applicant if a
majority of the applicant's weeks of employment in the base period includes part-time
employment.

(f) To determine suitability of employment in terms of shifts, the arrangement of
hours in addition to the total number of hours is to be considered. Employment on a
second, third, rotating, or split shift is suitable employment if it is customary in the
occupation in the labor market area.

(g) Employment is not considered suitable if:

(1) the position offered is vacant because of a labor dispute;

(2) the wages, hours, or other conditions of employment are substantially less
favorable than those prevailing for similar employment in the labor market area; new text begin or
new text end

(3) as a condition of becoming employed, the applicant would be required to join a
company union or to resign from or refrain from joining any bona fide labor organization deleted text begin ;
or deleted text end new text begin .
new text end

deleted text begin (4) the employment is with a staffing service and less than 45 percent of the
applicant's wage credits are from a job assignment with the client of a staffing service.
deleted text end

deleted text begin (h) A job assignment with a staffing service is considered suitable only if 45
percent or more of the applicant's wage credits are from job assignments with clients of
a staffing service and the job assignment meets the definition of suitable employment
under paragraph (a).
deleted text end

Sec. 2.

Minnesota Statutes 2010, 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 deleted text begin paid upon temporary, indefinite, or seasonal separation deleted text end new text begin , sick pay,
or personal time off pay new text end . This clause does not apply to deleted text begin (i) vacation pay paid upon a
permanent separation from employment, or (ii) deleted text end vacation pay new text begin , sick pay, or personal time
off pay, new text end 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, deleted text begin sick pay, deleted text end 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; or

(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).

(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. 3.

Minnesota Statutes 2010, section 268.085, subdivision 13c, is amended to read:

Subd. 13c.

Offers of suitable employment.

(a) An applicant is ineligible for all
unemployment benefits for deleted text begin eight deleted text end new text begin 13 new text end calendar weeks if the applicant, without good cause:

(1) failed to apply for available, suitable employment of which the applicant was
advised by the commissioner or an employer;

(2) failed to accept suitable employment when offered; or

(3) avoided an offer of suitable employment.

(b) "Good cause" is a reason that would cause a reasonable individual who wants
suitable employment to fail to apply for, accept, or avoid suitable employment. Good
cause includes:

(1) the applicant is employed in other suitable employment;

(2) the applicant is in reemployment assistance training;

(3) the applicant formerly worked for the employer and the loss of employment
occurred prior to the commencement of a labor dispute, was permanent or for an indefinite
period, and the applicant failed to apply for or accept the employment because a labor
dispute was in progress at the establishment; or

(4) the applicant formerly worked for the employer and quit that employment
because of a good reason caused by the employer.

(c) This subdivision only applies to offers of suitable employment with a new or a
former employer and does not apply to any type of job transfers, position reassignments,
or changes in job duties or responsibilities during the course of employment with an
employer.

(d) The period of ineligibility under this subdivision begins the Sunday of the
week the applicant failed to apply for, failed to accept, or avoided suitable employment
without good cause.

(e) This subdivision applies to offers of suitable employment that occur before the
effective date of the benefit account and that occur during the benefit year.

(f) This subdivision only applies to offers of suitable employment that are considered
covered employment under section 268.035, subdivision 12.