SF 3216

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 05/10/2016 08:31am

A bill for an act
relating to unemployment insurance; adopting recommendations of the
Unemployment Insurance Advisory Council; amending Minnesota Statutes 2014,
sections 268.035, subdivisions 12, 20, 23a, 29, by adding subdivisions; 268.051,
subdivision 5; 268.085, subdivisions 4, 5; 268.0865, subdivisions 3, 4; 268.095,
subdivisions 1, 2, 5; 268.101, subdivision 2; 268.18; 268.182, subdivision 2;
Minnesota Statutes 2015 Supplement, sections 268.07, subdivision 3b; 268.085,
subdivision 2; Laws 2015, First Special Session chapter 1, article 6, section 16.

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

ARTICLE 1

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL POLICY

Section 1.

Minnesota Statutes 2014, section 268.051, subdivision 5, is amended to read:

Subd. 5.

Tax rate for new employers.

deleted text begin (a) Each new taxpaying employer that does
not qualify for an experience rating under subdivision 3, except new employers in a high
experience rating industry, must be assigned, for a calendar year, a tax rate the higher of
(1) one percent, or (2) the tax rate computed, to the nearest 1/100 of a percent, by dividing
the total amount of unemployment benefits paid all applicants during the 48 calendar
months ending on June 30 of the prior calendar year by the total taxable wages of all
taxpaying employers during the same period, plus the applicable base tax rate and any
additional assessments under subdivision 2, paragraph (c).
deleted text end

deleted text begin (b) Each new taxpaying employer in a high experience rating industry that does not
qualify for an experience rating under subdivision 3, must be assigned, for a calendar year,
a tax rate the higher of (1) that assigned under paragraph (a), or (2) the tax rate, computed
to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits
paid to all applicants from high experience rating industry employers during the 48
calendar months ending on June 30 of the prior calendar year by the total taxable wages
of all high experience rating industry employers during the same period, to a maximum
provided for under subdivision 3, paragraph (b), plus the applicable base tax rate and any
additional assessments under subdivision 2, paragraph (c).
deleted text end

deleted text begin (c) An employer is considered to be in a high experience rating industry if:
deleted text end

deleted text begin (1) the employer is engaged in residential, commercial, or industrial construction,
including general contractors;
deleted text end

deleted text begin (2) the employer is engaged in sand, gravel, or limestone mining;
deleted text end

deleted text begin (3) the employer is engaged in the manufacturing of concrete, concrete products,
or asphalt; or
deleted text end

deleted text begin (4) the employer is engaged in road building, repair, or resurfacing, including bridge
and tunnels and residential and commercial driveways and parking lots.
deleted text end

new text begin (a) Each new taxpaying employer that does not qualify for an experience rating
under subdivision 3 must be assigned, for the calendar year, a tax rate equal to the average
experience rating for the employer's industry, plus the applicable base tax rate and any
additional assessments under subdivision 2, paragraph (c). The tax rate assigned may not
be less than one percent.
new text end

new text begin (b) The employer's industry, except for construction, is determined by the first two
digits of the North American Industrial Classification System (NAICS). The construction
industry is determined to five digits. For each calendar year the commissioner must
compute, in accordance with subdivision 3, the average industry experience rating for
the employer's industry.
new text end

deleted text begin (d) deleted text end new text begin (c) new text end Regardless of any law to the contrary, a taxpaying employer must be
assigned a tax rate under this subdivision if the employer had no taxable wages during the
experience rating period under subdivision 3.

deleted text begin (e) deleted text end new text begin (d) new text end The commissioner must send to the new employer, by mail or electronic
transmission, a determination of tax rate. An employer may appeal the determination of
tax rate in accordance with deleted text begin the procedures in deleted text end subdivision 6, paragraph (c).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2018, and applies to tax
rates assigned for the calendar year 2018 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2015 Supplement, section 268.07, subdivision 3b, is
amended to read:

Subd. 3b.

Limitations on applications and benefit accounts.

(a) An application for
unemployment benefits is effective the Sunday of the calendar week that the application
was filed. An application for unemployment benefits may be backdated one calendar week
before the Sunday of the week the application was actually filed if the applicant requests
the backdating deleted text begin at deleted text end new text begin within seven calendar days of new text end the deleted text begin time deleted text end new text begin date new text end the application is filed. An
application may be backdated only if the applicant was unemployed during the period of
the backdating. If an individual attempted to file an application for unemployment benefits,
but was prevented from filing an application by the department, the application is effective
the Sunday of the calendar week the individual first attempted to file an application.

(b) A benefit account established under subdivision 2 is effective the date the
application for unemployment benefits was effective.

(c) A benefit account, once established, may later be withdrawn only if:

(1) the applicant has not been paid any unemployment benefits on that benefit
account; and

(2) a new application for unemployment benefits is filed and a new benefit account is
established at the time of the withdrawal.

A determination or amended determination of eligibility or ineligibility issued under
section 268.101, that was sent before the withdrawal of the benefit account, remains in
effect and is not voided by the withdrawal of the benefit account.

(d) An application for unemployment benefits is not allowed before the Sunday
following the expiration of the benefit year on a prior benefit account. Except as allowed
under paragraph (c), an applicant may establish only one benefit account each 52 calendar
weeks. This paragraph applies to benefit accounts established under any federal law or
the law of any other state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 31, 2016, and applies to
applications for unemployment benefits filed after that date.
new text end

Sec. 3.

Minnesota Statutes 2014, section 268.095, subdivision 1, is amended to read:

Subdivision 1.

Quit.

An applicant who quit employment is ineligible for all
unemployment benefits according to subdivision 10 except when:

(1) the applicant quit the employment because of a good reason caused by the
employer as defined in subdivision 3;

(2) the applicant quit the employment to accept other covered employment that
provided deleted text begin substantially deleted text end new text begin equal to or new text end better terms and conditions of employment, but
the applicant did not work long enough at the second employment to have sufficient
subsequent deleted text begin earnings deleted text end new text begin wages paid new text end to satisfy the period of ineligibility that would otherwise
be imposed under subdivision 10 for quitting the first employment;

(3) the applicant quit the employment within 30 calendar days of beginning the
employment deleted text begin because deleted text end new text begin and new text end the employment was unsuitable deleted text begin for the applicant deleted text end ;

(4) the employment was unsuitable deleted text begin for the applicant deleted text end and the applicant quit to enter
reemployment assistance training;

(5) the employment was part time and the applicant also had full-time employment
in the base period, from which full-time employment the applicant separated because of
reasons for which the applicant deleted text begin was held deleted text end new text begin is new text end not deleted text begin to be deleted text end ineligible, and the wage credits from
the full-time employment are sufficient to meet the minimum requirements to establish a
benefit account under section 268.07;

(6) the applicant quit because the employer notified the applicant that the applicant
was going to be laid off because of lack of work within 30 calendar days. An applicant
who quit employment within 30 calendar days of a notified date of layoff because of lack
of work is ineligible for unemployment benefits through the end of the week that includes
the scheduled date of layoff;

(7) the applicant quit the employment (i) because the applicant's serious illness or
injury made it medically necessary that the applicant quit; or (ii) in order to provide
necessary care because of the illness, injury, or disability of an immediate family member
of the applicant. This exception only applies if the applicant informs the employer of
the medical problem and requests accommodation and no reasonable accommodation
is made available.

If the applicant's serious illness is chemical dependency, this exception does not
apply if the applicant was previously diagnosed as chemically dependent or had treatment
for chemical dependency, and since that diagnosis or treatment has failed to make
consistent efforts to control the chemical dependency.

This exception raises an issue of the applicant's being available for suitable
employment under section 268.085, subdivision 1, that the commissioner must determine;

(8) the applicant's loss of child care for the applicant's minor child caused the
applicant to quit the employment, provided the applicant made reasonable effort to obtain
other child care and requested time off or other accommodation from the employer and no
reasonable accommodation is available.

This exception raises an issue of the applicant's being available for suitable
employment under section 268.085, subdivision 1, that the commissioner must determine;

(9) the applicant quit because domestic abuse, sexual assault, or stalking of the
applicant or an immediate family member of the applicant, necessitated the applicant's
quitting the employment.

For purposes of this subdivision:

(i) "domestic abuse" has the meaning given in section 518B.01;

(ii) "sexual assault" means an act that would constitute a violation of sections
609.342 to 609.3453 or 609.352; and

(iii) "stalking" means an act that would constitute a violation of section 609.749; or

(10) the applicant quit in order to relocate to accompany a spouse new text begin : new text end

new text begin (1) who is in the military; or
new text end

new text begin (2) new text end whose job new text begin was transferred by the spouse's employer to a new new text end location deleted text begin changed
deleted text end making it impractical for the applicant to commute.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 31, 2016, and applies to all
matters pending a determination or a decision by an unemployment law judge.
new text end

Sec. 4.

Minnesota Statutes 2014, section 268.101, subdivision 2, is amended to read:

Subd. 2.

Determination.

(a) The commissioner must determine any issue of
ineligibility raised by information required from an applicant under subdivision 1,
paragraph (a) or (c), and send to the applicant and any involved employer, by mail or
electronic transmission, a document titled a determination of eligibility or a determination
of ineligibility, as is appropriate. The determination on an issue of ineligibility as a result
of a quit or a discharge of the applicant must state the effect on the employer under section
268.047. A determination must be made in accordance with this paragraph even if a
notified employer has not raised the issue of ineligibility.

(b) The commissioner must determine any issue of ineligibility raised by an
employer and send to the applicant and that employer, by mail or electronic transmission,
a document titled a determination of eligibility or a determination of ineligibility as is
appropriate. The determination on an issue of ineligibility as a result of a quit or discharge
of the applicant must state the effect on the employer under section 268.047.

If a base period employer:

(1) was not the applicant's most recent employer before the application for
unemployment benefits;

(2) did not employ the applicant during the six calendar months before the
application for unemployment benefits; and

(3) did not raise an issue of ineligibility as a result of a quit or discharge of the
applicant within ten calendar days of notification under subdivision 1, paragraph (b);

then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two
weeks following the week that the issue of ineligibility as a result of a quit or discharge of
the applicant was raised by the employer.

A communication from an employer must specifically set out why the applicant
should be determined ineligible for unemployment benefits for that communication to be
considered to have raised an issue of ineligibility for purposes of this section. A statement
of "protest" or a similar term without more information does not constitute raising an issue
of ineligibility for purposes of this section.

(c) Subject to section 268.031, an issue of ineligibility is determined based upon
that information required of an applicant, any information that may be obtained from an
applicant or employer, and information from any other source.

(d) Regardless of the requirements of this subdivision, the commissioner is not
required to send to an applicant a copy of the determination where the applicant has
satisfied a period of ineligibility because of a quit or a discharge under section 268.095,
subdivision 10.

(e) The commissioner may issue a determination on an issue of ineligibility deleted text begin at any
time deleted text end within 24 months from the establishment of a benefit account based upon information
from any source, even if the issue of ineligibility was not raised by the applicant or an
employer. deleted text begin This paragraph does not prevent the imposition of a penalty on
deleted text end

new text begin If new text end an applicant new text begin obtained unemployment benefits through fraud new text end under section 268.18,
subdivision 2, deleted text begin or 268.182 deleted text end new text begin a determination of ineligibility may be issued within 48 months
of the establishment of the benefit account new text end .

(f) A determination of eligibility or determination of ineligibility is final unless an
appeal is filed by the applicant or deleted text begin notified deleted text end employer within 20 calendar days after sending.
The determination must contain a prominent statement indicating the consequences of not
appealing. Proceedings on the appeal are conducted in accordance with section 268.105.

(g) An issue of ineligibility required to be determined under this section includes
any question regarding the denial or allowing of unemployment benefits under this chapter
except for issues under section 268.07. An issue of ineligibility for purposes of this section
includes any question of effect on an employer under section 268.047.

deleted text begin (h) Except for issues of ineligibility as a result of a quit or discharge of the applicant,
the employer will be (1) sent a copy of the determination of eligibility or a determination
of ineligibility, or (2) considered an involved employer for purposes of an appeal under
section 268.105, only if the employer raised the issue of ineligibility.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 31, 2016, and applies to all
matters pending a determination.
new text end

Sec. 5.

Minnesota Statutes 2014, section 268.182, subdivision 2, is amended to read:

Subd. 2.

Administrative penalties.

new text begin (a) new text end Any applicant who knowingly makes a false
statement or representation, who knowingly fails to disclose a material fact, or who makes
a false statement or representation without a good faith belief as to the correctness of the
statement or representation, in order to obtain or in an attempt to obtain unemployment
benefits may be assessed, in addition to any other penalties, an administrative penalty of
being ineligible for unemployment benefits for 13 to 104 weeks.

new text begin (b) new text end A determination of ineligibility setting out the weeks the applicant is ineligible
must be sent to the applicant by mail or electronic transmission. new text begin A determination of
ineligibility under this subdivision may be issued within 48 months of the establishment of
the benefit account upon which the unemployment benefits were obtained, or attempted to
be obtained. new text end Unless an appeal is filed within 20 calendar days of sending, the determination
is final. Proceedings on the appeal are conducted in accordance with section 268.105.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 31, 2016 and applies to all
matters pending a determination.
new text end

ARTICLE 2

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL HOUSEKEEPING

Section 1.

Minnesota Statutes 2014, section 268.035, subdivision 12, is amended to read:

Subd. 12.

Covered employment.

(a) "Covered employment" means the following
unless excluded as "noncovered employment" under subdivision 20:

(1) an employee's entire employment during the calendar quarter if:

(i) the employment during the quarter is performed primarily in Minnesota;

(ii) the employment during the quarter is not performed primarily in Minnesota or
any other state but some of the employment is performed in Minnesota and the base
of operations or the place from which the employment is directed or controlled is in
Minnesota; or

(iii) the employment during the quarter is not performed primarily in Minnesota
or any other state and the base of operations or place from which the employment is
directed or controlled is not in any state where part of the employment is performed, but
the employee's residence is in Minnesota;

(2) an employee's entire employment during the calendar quarter performed within
the United States or Canada, if:

(i) the employment is not deleted text begin considered deleted text end covered employment under the unemployment
insurance program of any other state, federal law, or the law of Canada; and

(ii) the place from which the employment is directed or controlled is in Minnesota;

(3) the employment during the calendar quarter, performed entirely outside deleted text begin of deleted text end the
United States and Canada, by an employee who is a United States citizen in the employ of
an American employer if the employer's principal place of business in the United States is
located in Minnesota. An "American employer," for the purposes of this clause, means a
corporation organized under the laws of any state, an individual who is a resident of the
United States, or a partnership if two-thirds or more of the partners are residents of the
United States, or a trust, if all of the trustees are residents of the United States; and

(4) all employment during the calendar quarter performed by an officer or member
of the crew of an American vessel on or in connection with the vessel, if the operating
office from which the operations of the vessel operating on navigable waters within, or
within and without, the United States are ordinarily and regularly supervised, managed,
directed, and controlled is in Minnesota.

(b) "Covered employment" includes covered agricultural employment under
subdivision 11.

(c) For the purposes of deleted text begin satisfying the period of ineligibility under deleted text end section 268.095,
deleted text begin subdivision 10, deleted text end "covered employment" includes deleted text begin covered deleted text end employment new text begin covered new text end under an
unemployment insurance program:

(1) of any other state; or

(2) established by an act of Congress.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 31, 2016, and applies to all
matters pending a determination or a decision by an unemployment law judge
new text end

Sec. 2.

Minnesota Statutes 2014, section 268.035, subdivision 29, is amended to read:

Subd. 29.

Wages.

(a) "Wages" means all compensation for employment, including
commissions; bonuses, awards, and prizes; severance payments; standby pay; vacation and
holiday pay; back pay as of the date of payment; tips and gratuities paid to an employee by
a customer of an employer and accounted for by the employee to the employer; sickness
and accident disability payments, except as otherwise provided in this subdivision; and
the cash value of housing, utilities, meals, exchanges of services, and any other goods
and services provided to compensate an employee, except:

(1) the amount of any payment made to, or on behalf of, an employee under a plan
established by an employer that makes provision for employees generally or for a class or
classes of employees, including any amount paid by an employer for insurance or annuities,
or into a plan, to provide for a payment, on account of (i) retirement or (ii) medical and
hospitalization expenses in connection with sickness or accident disability, or (iii) death;

(2) the payment by an employer of the tax imposed upon an employee under United
States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect
to compensation paid to an employee for domestic employment in a private household of
the employer or for agricultural employment;

(3) any payment made to, or on behalf of, an employee or beneficiary (i) from or
to a trust described in United States Code, title 26, section 401(a) of the federal Internal
Revenue Code, that is exempt from tax under section 501(a) at the time of the payment
unless the payment is made to an employee of the trust as compensation for services as an
employee and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at
the time of the payment, is a plan described in section 403(a);

(4) the value of any special discount or markdown allowed to an employee on goods
purchased from or services supplied by the employer where the purchases are optional and
do not constitute regular or systematic payment for services;

(5) customary and reasonable directors' fees paid to individuals who are not
otherwise employed by the corporation of which they are directors;

(6) the payment to employees for reimbursement of meal expenses when employees
are required to perform work after their regular hours;

(7) the payment into a trust or plan for purposes of providing legal or dental services
if provided for all employees generally or for a class or classes of employees;

(8) the value of parking facilities provided or paid for by an employer, in whole or in
part, if provided for all employees generally or for a class or classes of employees;

(9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral,
or other right;

(10) advances or reimbursements for traveling or other bona fide ordinary and
necessary expenses incurred or reasonably expected to be incurred in the business of the
employer. Traveling and other reimbursed expenses must be identified either by making
separate payments or by specifically indicating the separate amounts where both wages
and expense allowances are combined in a single payment;

(11) residual payments to radio, television, and similar artists that accrue after
the production of television commercials, musical jingles, spot announcements, radio
transcriptions, film sound tracks, and similar activities;

(12) the income to a former employee resulting from the exercise of a nonqualified
stock option;

(13) deleted text begin payments made to supplement deleted text end new text begin supplemental new text end unemployment deleted text begin benefits deleted text end new text begin benefit
payments new text end under a plan established by an employer, deleted text begin that makes provisions for employees
generally or for a class or classes of employees under the written terms of an agreement,
contract, trust arrangement, or other instrument deleted text end new text begin if the payment is not wages under the
Federal Unemployment Tax Act new text end . The deleted text begin plan must provide supplemental deleted text end payments new text begin are
wages unless made new text end solely for the supplementing of weekly state or federal unemployment
benefits. deleted text begin The plan must provide supplemental payments only for those weeks the applicant
has been paid regular, extended, or additional unemployment benefits. The supplemental
payments, when combined with the applicant's weekly unemployment benefits paid, may
not exceed the applicant's regular weekly pay. The plan must not allow the assignment
of deleted text end Supplemental new text begin unemployment benefit new text end payments deleted text begin or provide for any type of additional
payment. The plan must not require deleted text end new text begin may not be assigned, nor may new text end any consideration new text begin be
required new text end from the applicant, other than a release of claims deleted text begin , and must not be designed for
the purpose of avoiding the payment of Social Security obligations, or unemployment
taxes on money disbursed from the plan deleted text end new text begin in order to be excluded from wages new text end ;

(14) sickness or accident disability payments made by the employer after the
expiration of six calendar months following the last calendar month that the individual
worked for the employer;

(15) disability payments made under the provisions of any workers' compensation
law;

(16) sickness or accident disability payments made by a third-party payer such as
an insurance company; or

(17) payments made into a trust fund, or for the purchase of insurance or an annuity,
to provide for sickness or accident disability payments to employees under a plan or
system established by the employer that provides for the employer's employees generally
or for a class or classes of employees.

(b) Nothing in this subdivision excludes from the term "wages" any payment
made under any type of salary reduction agreement, including payments made under a
cash or deferred arrangement and cafeteria plan, as defined in United States Code, title
26, sections 401(k) and 125 of the federal Internal Revenue Code, to the extent that the
employee has the option to receive the payment in cash.

(c) Wages includes the total payment to the operator and supplier of a vehicle or
other equipment where the payment combines compensation for personal services as well
as compensation for the cost of operating and hiring the equipment in a single payment.
This paragraph does not apply if:

(1) there is a preexisting written agreement providing for allocation of specific
amounts; or

(2) at the time of each payment there is a written deleted text begin acknowledgement deleted text end new text begin acknowledgment
new text end indicating the separate allocated amounts.

(d) Wages includes payments made for services as a caretaker. Unless there is a
contract or other proof to the contrary, compensation is considered as being equally
received by a married couple where the employer makes payment to only one spouse, or
by all tenants of a household who perform services where two or more individuals share
the same dwelling and the employer makes payment to only one individual.

(e) Wages includes payments made for services by a migrant family. Where services
are performed by a married couple or a family and an employer makes payment to only
one individual, each worker is considered as having received an equal share of the
compensation unless there is a contract or other proof to the contrary.

(f) Wages includes advances or draws against future earnings, when paid, unless
the payments are designated as a loan or return of capital on the books of the employer
at the time of payment.

(g) Wages includes payments made by a subchapter "S" corporation, as organized
under the Internal Revenue Code, to or on behalf of officers and shareholders that are
reasonable compensation for services performed for the corporation.

For a subchapter "S" corporation, wages does not include:

(1) a loan for business purposes to an officer or shareholder evidenced by a
promissory note signed by an officer before the payment of the loan proceeds and recorded
on the books and records of the corporation as a loan to an officer or shareholder;

(2) a repayment of a loan or payment of interest on a loan made by an officer to the
corporation and recorded on the books and records of the corporation as a liability;

(3) a reimbursement of reasonable corporation expenses incurred by an officer and
documented by a written expense voucher and recorded on the books and records of
the corporation as corporate expenses; and

(4) a reasonable lease or rental payment to an officer who owns property that is
leased or rented to the corporation.

Sec. 3.

Minnesota Statutes 2015 Supplement, section 268.085, subdivision 2, is
amended to read:

Subd. 2.

Not eligible.

An applicant is ineligible for unemployment benefits for
any week:

(1) that occurs before the effective date of a benefit account;

(2) that the applicant, at deleted text begin the beginning of deleted text end new text begin any time during new text end the week, has an
outstanding fraud overpayment balance under section 268.18, subdivision 2, including
any penalties and interest;

(3) that occurs in a period when the applicant is a student in attendance at, or on
vacation from a secondary school including the period between academic years or terms;

(4) that the applicant is incarcerated or performing court-ordered community service.
The applicant's weekly unemployment benefit amount is reduced by one-fifth for each day
the applicant is incarcerated or performing court-ordered community service;

(5) that the applicant fails or refuses to provide information on an issue of
ineligibility required under section 268.101;

(6) that the applicant is performing services 32 hours or more, in employment,
covered employment, noncovered employment, volunteer work, or self-employment
regardless of the amount of any earnings; or

(7) with respect to which the applicant has filed an application for unemployment
benefits under any federal law or the law of any other state. If the appropriate agency
finally determines that the applicant is not entitled to establish a benefit account under
federal law or the law of any other state, this clause does not apply.

Sec. 4.

Minnesota Statutes 2014, section 268.0865, subdivision 3, is amended to read:

Subd. 3.

Continued request for unemployment benefits by electronic
transmission.

(a) A continued request for unemployment benefits by electronic
transmission must be filed to that electronic mail address, telephone number, or Internet
address prescribed by the commissioner for that applicant. In order to constitute a
continued request, all information asked for, including information authenticating that the
applicant is sending the transmission, must be provided in the format required. If all of the
information asked for is not provided, the communication does not constitute a continued
request for unemployment benefits.

(b) The new text begin continued request by new text end electronic transmission deleted text begin communication deleted text end must be filed
new text begin within four calendar weeks following the week for which payment is requested new text end on the
deleted text begin date deleted text end new text begin day of the week new text end and during the time of day designated for the applicant deleted text begin for filing a
continued request by electronic transmission deleted text end .

(c) deleted text begin If the electronic transmission continued request is not filed as required under
paragraph (b), a continued request by electronic transmission must be accepted if the
applicant files the continued request by electronic transmission within three calendar
weeks following the week for which payment is requested. deleted text end If the continued request by
electronic transmission is not filed within deleted text begin three deleted text end new text begin four new text end calendar weeks following the week
for which payment is requested, the electronic continued request will not be accepted
and the applicant is ineligible for unemployment benefits for the period covered by the
continued request, unless the applicant shows good cause for failing to file the continued
request by electronic transmission within the time period required.

Sec. 5.

Minnesota Statutes 2014, section 268.0865, subdivision 4, is amended to read:

Subd. 4.

Continued request for unemployment benefits by mail.

(a) A
continued request for unemployment benefits by mail must be on a form prescribed by
the commissioner. The form, in order to constitute a continued request, must be totally
completed and signed by the applicant. The form must be filed by mail, in an envelope
with postage prepaid, and sent to the address designated deleted text begin during the week following the
week for which payment is requested.
deleted text end

deleted text begin (b) If the mail continued request for unemployment benefits is not filed as required
under paragraph (a), a continued request must be accepted if the form is filed by mail
deleted text end within deleted text begin three deleted text end new text begin four new text end calendar weeks following the week for which payment is requested.

new text begin (b) new text end If the new text begin continued request new text end form is not filed within deleted text begin three deleted text end new text begin four new text end calendar weeks
following the week for which payment is requested, the form will not be accepted and the
applicant is ineligible for unemployment benefits deleted text begin for the period covered by the continued
request for unemployment benefits, deleted text end unless the applicant shows good cause for failing to
file the form by mail within the time period required.

(c) If the applicant has been designated to file a continued request for unemployment
benefits by mail, an applicant may submit the form by facsimile transmission within
deleted text begin three deleted text end new text begin four new text end calendar weeks following the week for which payment is requested. A form
submitted by facsimile transmission must be sent only to the telephone number assigned
for that purpose.

(d) An applicant who has been designated to file a continued request by mail may
personally deliver a continued request form only to the location to which the form was
otherwise designated to be mailed.

Sec. 6.

Minnesota Statutes 2014, section 268.095, subdivision 2, is amended to read:

Subd. 2.

Quit defined.

(a) A quit from employment occurs when the decision to end
the employment was, at the time the employment ended, the employee's.

new text begin (b) When determining if an applicant quit, the theory of a constructive quit does
not apply.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end An employee who has been notified that the employee will be discharged in
the future, who chooses to end the employment while employment in any capacity is still
available, deleted text begin is considered to have deleted text end new text begin has new text end quit the employment.

deleted text begin (c) deleted text end new text begin (d) new text end An employee who seeks to withdraw a previously submitted notice of quitting
deleted text begin is considered to have deleted text end new text begin has new text end quit the employment, as of the intended date of quitting, if the
employer does not agree that the notice may be withdrawn.

deleted text begin (d) deleted text end new text begin (e) new text end An applicant deleted text begin who deleted text end new text begin has quit employment with a staffing service if new text end , within
five calendar days after completion of a suitable job assignment from a staffing service new text begin ,
the applicant:
new text end

(1) fails without good cause to affirmatively request an additional suitable job
assignment deleted text begin , deleted text end new text begin ;
new text end

(2) refuses without good cause an additional suitable job assignment offered deleted text begin , deleted text end new text begin ; new text end or

(3) accepts employment with the client of the staffing service deleted text begin , is considered to have
quit employment with the staffing service deleted text end . Accepting employment with the client of the
staffing service meets the requirements of the exception to ineligibility under subdivision
1, clause (2).

This paragraph applies only if, at the time of beginning of employment with the
staffing service, the applicant signed and was provided a copy of a separate document
written in clear and concise language that informed the applicant of this paragraph and
that unemployment benefits may be affected.

For purposes of this paragraph, "good cause" is a reason that deleted text begin is significant and deleted text end would
compel an average, reasonable worker, who would otherwise want an additional suitable
job assignment with the staffing service (1) to fail to contact the staffing service, or (2)
to refuse an offered assignment.

Sec. 7.

Minnesota Statutes 2014, section 268.095, subdivision 5, is amended to read:

Subd. 5.

Discharge defined.

(a) A discharge from employment occurs when any
words or actions by an employer would lead a reasonable employee to believe that the
employer will no longer allow the employee to work for the employer in any capacity. A
layoff because of lack of work is deleted text begin considered deleted text end a discharge. A suspension from employment
without pay of more than 30 calendar days is deleted text begin considered deleted text end a discharge.

new text begin (b) When determining if an applicant was discharged, the theory of a constructive
discharge does not apply.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end An employee who gives notice of intention to quit the employment and is not
allowed by the employer to work the entire notice period is deleted text begin considered deleted text end discharged from
the employment as of the date the employer will no longer allow the employee to work. If
the discharge occurs within 30 calendar days before the intended date of quitting, then,
as of the intended date of quitting, the separation from employment is deleted text begin considered deleted text end a quit
from employment subject to subdivision 1.

deleted text begin (c) deleted text end new text begin (d) new text end The end of a job assignment with the client of a staffing service is deleted text begin considered
deleted text end a discharge from employment with the staffing service unless subdivision 2, paragraph
(d), applies.

Sec. 8.

Minnesota Statutes 2014, section 268.18, is amended to read:

268.18 UNEMPLOYMENT BENEFIT OVERPAYMENTS.

Subdivision 1.

deleted text begin Nonfraud deleted text end new text begin Repaying an new text end overpayment.

(a) Any applicant who (1)
because of a determination or amended determination issued under section 268.07 or
268.101, or any other section of this chapter, or (2) because of an unemployment law
judge's decision under section 268.105, has received any unemployment benefits that the
applicant was held not entitled to, new text begin is overpaid the benefits, and new text end must promptly repay the
deleted text begin unemployment deleted text end benefits to the trust fund.

(b) If the applicant fails to repay the unemployment benefits overpaid, deleted text begin the
commissioner may offset from any future unemployment benefits otherwise payable the
amount of the overpayment. Except when the overpayment resulted because the applicant
failed to report deductible earnings or deductible or benefit delaying payments, no single
offset may exceed 50 percent of the amount of the payment from which the offset is made.
The overpayment may also deleted text end new text begin including any penalty and interest assessed under subdivisions
2 and 2a, the total due may new text end be collected by the methods allowed under state and federal law.

deleted text begin (c) If an applicant has been overpaid unemployment benefits under the law of
another state, because of a reason other than fraud, and that state certifies that the applicant
is liable under its law to repay the unemployment benefits and requests the commissioner
to recover the overpayment, the commissioner may offset from future unemployment
benefits otherwise payable the amount of overpayment, except that no single offset may
exceed 50 percent of the amount of the payment from which the offset is made.
deleted text end

Subd. 2.

Overpayment because of fraud.

(a) deleted text begin Any deleted text end new text begin An new text end applicant deleted text begin who receives deleted text end new text begin has
committed fraud if the applicant is overpaid new text end unemployment benefits by new text begin :
new text end

new text begin (1) new text end knowingly misrepresenting, misstating, or failing to disclose any material fact deleted text begin , deleted text end new text begin ;
new text end or deleted text begin who makes
deleted text end

new text begin (2) making new text end a false statement or representation without a good faith belief as to the
correctness of the statement or representation deleted text begin , has committed fraud deleted text end .

After the discovery of facts indicating fraud, the commissioner must deleted text begin make deleted text end new text begin issue new text end a
determination deleted text begin that the applicant obtained unemployment benefits by fraud and that the
applicant must promptly repay the unemployment benefits to the trust fund. In addition, the
commissioner must assess deleted text end new text begin of overpayment penalty assessing new text end a penalty equal to 40 percent
of the amount deleted text begin fraudulently obtained deleted text end new text begin overpaid new text end . This penalty is in addition to penalties under
section 268.182. deleted text begin The determination is effective the Sunday of the week that it was issued.
deleted text end

(b) Unless the applicant files an appeal within 20 calendar days after the sending of
deleted text begin the deleted text end new text begin a new text end determination of overpayment deleted text begin by fraud deleted text end new text begin penalty new text end to the applicant by mail or electronic
transmission, the determination is final. Proceedings on the appeal are conducted in
accordance with section 268.105.

(c) deleted text begin If the applicant fails to repay the unemployment benefits, penalty, and interest
assessed, the total due may be collected by the methods allowed under state and federal
law. deleted text end A determination of overpayment deleted text begin by fraud deleted text end new text begin penalty new text end must state the methods of collection
the commissioner may use to recover the overpayment new text begin , penalty, and interest assessed new text end .
Money received in repayment of deleted text begin fraudulently obtained deleted text end new text begin overpaid new text end unemployment benefits,
penalties, and interest is first applied to the deleted text begin unemployment deleted text end benefits overpaid, then to the
penalty amount due, then to any interest due. 62.5 percent of the payments made toward the
penalty are credited to the contingent account and 37.5 percent credited to the trust fund.

deleted text begin (d) If an applicant has been overpaid unemployment benefits under the law of
another state because of fraud and that state certifies that the applicant is liable to repay
the unemployment benefits and requests the commissioner to recover the overpayment,
the commissioner may offset from future unemployment benefits otherwise payable the
amount of overpayment.
deleted text end

deleted text begin (e) Regardless of the limitations in section 268.101, subdivision 2, paragraph (e),
unemployment benefits paid for weeks more than four years before the date of deleted text end new text begin (d) new text end A
determination of overpayment deleted text begin by fraud issued deleted text end new text begin penalty new text end under this subdivision deleted text begin are not
considered overpaid unemployment benefits deleted text end new text begin may be issued within 48 months of the
establishment of the benefit account upon which the unemployment benefits were obtained
though fraud new text end .

Subd. 2b.

Interest.

On any unemployment benefits fraudulently obtained, and any
penalty amounts assessed under subdivision 2, the commissioner must assess interest at the
rate of one percent per month on any amount that remains unpaid beginning 30 calendar
days after the date of deleted text begin the deleted text end new text begin a new text end determination of overpayment deleted text begin by fraud deleted text end new text begin penalty new text end . A determination
of overpayment deleted text begin by fraud deleted text end new text begin penalty new text end must state that interest will be assessed. Interest is
assessed in the same manner as on employer debt under section 268.057, subdivision 5.
Interest payments collected under this subdivision are credited to the trust fund.

Subd. 3a.

Offset of deleted text begin federal deleted text end unemployment benefits.

deleted text begin The commissioner is
authorized to enter into reciprocal agreements with the United States Secretary of Labor,
whereby, deleted text end new text begin (a) The commissioner may offset from any future unemployment benefits
otherwise payable the amount of a nonfraud overpayment. Except when the nonfraud
overpayment resulted because the applicant failed to report deductible earnings or
deductible or benefit delaying payments, no single offset may exceed 50 percent of the
amount of the payment from which the offset is made.
new text end

new text begin (b) new text end Overpayments of unemployment benefits deleted text begin as determined deleted text end under new text begin a new text end federal deleted text begin law
deleted text end new text begin program new text end , may be recovered by offset from deleted text begin unemployment deleted text end new text begin future new text end benefits otherwise
payable deleted text begin and deleted text end new text begin .
new text end

new text begin (c) If an applicant has been overpaid unemployment benefits under the law of
another state, the commissioner may offset from future benefits otherwise payable the
amount of overpayment.
new text end

new text begin (d) Nonfraud new text end unemployment benefit overpayments deleted text begin under subdivisions 1 and 2
deleted text end may be recovered by offset from deleted text begin unemployment deleted text end new text begin future new text end benefits otherwise payable under
a federal program.

Subd. 4.

Cancellation of overpayments.

(a) If unemployment benefits overpaid
deleted text begin under subdivision 1 deleted text end new text begin for reasons other than fraud new text end are not repaid or offset from subsequent
deleted text begin unemployment deleted text end benefits deleted text begin as provided for in subdivision 1 deleted text end within six years after the date
of the determination or decision holding the applicant overpaid, the commissioner must
cancel the overpayment balance, and no administrative or legal proceedings may be used
to enforce collection of those amounts.

(b) If unemployment benefits deleted text begin determined deleted text end overpaid deleted text begin under subdivision 2 deleted text end new text begin because of
fraud new text end including penalties and interest are not repaid within ten years after the date of
the determination of overpayment deleted text begin by fraud deleted text end new text begin penalty new text end , the commissioner must cancel the
overpayment balance and any penalties and interest due, and no administrative or legal
proceeding may be used to enforce collection of those amounts.

(c) The commissioner may cancel at any time any overpayment, including penalties
and interest, that the commissioner determines is uncollectible because of death or
bankruptcy.

Subd. 4a.

Court fees; collection fees.

(a) If the deleted text begin commissioner deleted text end new text begin department
new text end is required to pay any court fees in an attempt to enforce collection of overpaid
unemployment benefits, penalties, or interest, deleted text begin the commissioner may add deleted text end the amount of
the court fees new text begin may be added new text end to the total amount due.

(b) If an applicant who has been deleted text begin determined deleted text end overpaid unemployment benefits
because of fraud seeks to have any portion of the debt discharged under the federal
bankruptcy code, and the deleted text begin commissioner deleted text end new text begin department new text end files an objection in bankruptcy court
to the discharge, the deleted text begin commissioner may add the commissioner's deleted text end cost of any court fees new text begin may
be added new text end to the debt if the bankruptcy court does not discharge the debt.

(c) If the Internal Revenue Service assesses the deleted text begin commissioner deleted text end new text begin department new text end a fee for
offsetting from a federal tax refund the amount of any overpayment, including penalties
and interest, the amount of the fee may be added to the total amount due. The offset
amount must be put in the trust fund and that amount credited to the total amount due
from the applicant.

Subd. 5.

Remedies.

(a) Any method undertaken to recover an overpayment of
unemployment benefits, including any penalties and interest, is not considered an election
of a method of recovery.

(b) Intervention or lack thereof, in whole or in part, in a workers' compensation
matter under section 176.361 is not considered an election of a remedy and does not
prevent the commissioner from determining any unemployment benefits overpaid under
subdivision 1 or 2 or taking action under section 268.182.

Subd. 6.

Collection of overpayments.

(a) The commissioner may not compromise
the amount deleted text begin that has been determined deleted text end new text begin of any new text end overpaid deleted text begin under this section deleted text end new text begin unemployment
benefits new text end including penalties and interest.

(b) The commissioner has discretion regarding the recovery of any overpayment
deleted text begin under subdivision 1 deleted text end new text begin for reasons other than fraud new text end . Regardless of any law to the contrary, the
commissioner is not required to refer any deleted text begin amount determined overpaid under subdivision
1 deleted text end new text begin overpayment for reasons other than fraud new text end to a public or private collection agency,
including agencies of this state.

(c) Amounts deleted text begin determined deleted text end overpaid deleted text begin under subdivision 1 deleted text end new text begin for reasons other than fraud
new text end are not considered a "debt" to the state of Minnesota for purposes of any reporting
requirements to the commissioner of management and budget.

(d) A pending appeal under section 268.105 does not suspend the assessment of
interest, penalties, or collection of an overpayment deleted text begin under this section deleted text end .

(e) Section 16A.626 applies to the repayment by an applicant of any overpayment,
penalty, or interest deleted text begin under this section deleted text end .

Sec. 9.

Laws 2015, First Special Session chapter 1, article 6, section 16, the effective
date, is amended to read:

EFFECTIVE DATE.

This section is effective the day following final enactment and
is retroactive to March 1, 2015. This section expires on deleted text begin June 1, 2016 deleted text end new text begin December 1, 2016 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies retroactively to March 1, 2015.
new text end

Sec. 10. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 31, 2016, unless indicated otherwise.
new text end

ARTICLE 3

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL TECHNICAL

Section 1.

Minnesota Statutes 2014, section 268.035, is amended by adding a
subdivision to read:

new text begin Subd. 12e. new text end

new text begin Earnings. new text end

new text begin "Earnings" means all compensation to which the applicant has
a legal claim and is earned income under state and federal law for income tax purposes.
new text end

Sec. 2.

Minnesota Statutes 2014, section 268.035, subdivision 20, is amended to read:

Subd. 20.

Noncovered employment.

"Noncovered employment" means:

(1) employment for the United States government or an instrumentality thereof,
including military service;

(2) employment for a state, other than Minnesota, or a political subdivision or
instrumentality thereof;

(3) employment for a foreign government deleted text begin ;
deleted text end

deleted text begin (4) employment for an instrumentality wholly owned by a foreign government,
if the employment is of a character similar to that performed in foreign countries by
employees of the United States government or an instrumentality thereof and the United
States Secretary of State has certified that the foreign government grants an equivalent
exemption to similar employment performed in the foreign country by employees of the
United States government and instrumentalities thereof;
deleted text end

deleted text begin (5) deleted text end new text begin (4) new text end employment covered under deleted text begin United States Code, title 45, section 351, deleted text end the
new text begin federal new text end Railroad Unemployment Insurance Act;

deleted text begin (6) employment covered by a reciprocal arrangement between the commissioner and
another state or the federal government that provides that all employment performed by an
individual for an employer during the period covered by the reciprocal arrangement is
considered performed entirely within another state;
deleted text end

deleted text begin (7) deleted text end new text begin (5) new text end employment for a church or convention or association of churches, or deleted text begin an
deleted text end new text begin a nonprofit new text end organization operated primarily for religious purposes that is operated,
supervised, controlled, or principally supported by a church or convention or association
of churches deleted text begin described in United States Code, title 26, section 501(c)(3) of the federal
Internal Revenue Code and exempt from income tax under section 501(a) deleted text end ;

deleted text begin (8) deleted text end new text begin (6) new text end employment new text begin for Minnesota or a political subdivision, or a nonprofit
organization, new text end of a duly ordained or licensed minister of a church in the exercise of a
ministry or by a member of a religious order in the exercise of duties required by the order,
deleted text begin for Minnesota or a political subdivision or an organization described in United States
Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from
income tax under section 501(a) deleted text end ;

deleted text begin (9) deleted text end new text begin (7) new text end employment new text begin for Minnesota or a political subdivision, or a nonprofit
organization, new text end of an individual receiving rehabilitation of "sheltered" work in a facility
conducted for the purpose of carrying out a program of rehabilitation for individuals
whose earning capacity is impaired by age or physical or mental deficiency or injury or a
program providing "sheltered" work for individuals who because of an impaired physical
or mental capacity cannot be readily absorbed in the competitive labor market. This
clause applies only to services performed deleted text begin for Minnesota or a political subdivision or an
organization described in United States Code, title 26, section 501(c)(3) of the federal
Internal Revenue Code and exempt from income tax under section 501(a) deleted text end in a facility
certified by the Rehabilitation Services Branch of the department or in a day training or
habilitation program licensed by the Department of Human Services;

deleted text begin (10) deleted text end new text begin (8) new text end employment new text begin for Minnesota or a political subdivision, or a nonprofit
organization, new text end of an individual receiving work relief or work training as part of an
unemployment work relief or work training program assisted or financed in whole or
in part by any federal agency or an agency of a state or political subdivision thereof.
deleted text begin This clause applies only to employment for Minnesota or a political subdivision or an
organization described in United States Code, title 26, section 501(c)(3) of the federal
Internal Revenue Code and exempt from income tax under section 501(a). deleted text end This clause does
not apply to programs that require unemployment benefit coverage for the participants;

deleted text begin (11) deleted text end new text begin (9) new text end employment for Minnesota or a political subdivision new text begin , new text end as an elected official, a
member of a legislative body, or a member of the judiciary;

deleted text begin (12) deleted text end new text begin (10) new text end employment as a member of the Minnesota National Guard or Air National
Guard;

deleted text begin (13) deleted text end new text begin (11) new text end employment for Minnesota deleted text begin , deleted text end new text begin or new text end a political subdivision, or instrumentality
thereof, deleted text begin as an employee deleted text end new text begin of an individual new text end serving deleted text begin only deleted text end on a temporary basis in case of
fire, flood, tornado, or similar emergency;

deleted text begin (14) deleted text end new text begin (12) new text end employment as an election official or election worker for Minnesota or
a political subdivision, deleted text begin but only deleted text end if the compensation for that employment was less than
$1,000 in a calendar year;

deleted text begin (15) deleted text end new text begin (13) new text end employment for Minnesota that is a major policy-making or advisory
position in the unclassified service;

deleted text begin (16) deleted text end new text begin (14) new text end employment for Minnesota in an unclassified position established under
section 43A.08, subdivision 1a;

deleted text begin (17) deleted text end new text begin (15) new text end employment for a political subdivision of Minnesota that is a nontenured
major policy making or advisory position;

deleted text begin (18) deleted text end new text begin (16) new text end domestic employment in a private household, local college club, or local
chapter of a college fraternity or sorority deleted text begin performed for a person, only deleted text end new text begin , new text end if the wages paid
in any calendar quarter in either the current or prior calendar year to all individuals in
domestic employment totaled less than $1,000.

"Domestic employment" includes all service in the operation and maintenance of a
private household, for a local college club, or local chapter of a college fraternity or
sorority as distinguished from service as an employee in the pursuit of an employer's
trade or business;

deleted text begin (19) deleted text end new text begin (17) new text end employment of an individual by a son, daughter, or spouse, and
employment of a child under the age of 18 by the child's father or mother;

deleted text begin (20) deleted text end new text begin (18) new text end employment of an inmate of a custodial or penal institution;

deleted text begin (21) deleted text end new text begin (19) new text end employment for a school, college, or university new text begin , new text end by a student who is
enrolled and whose primary relation to the school, college, or university is as a student.
This does not include an individual whose primary relation to the school, college, or
university is as an employee who also takes courses;

deleted text begin (22) deleted text end new text begin (20) new text end employment of an individual who is enrolled as a student in a full-time
program at a nonprofit or public educational institution that maintains a regular faculty
and curriculum and has a regularly organized body of students in attendance at the place
where its educational activities are carried on, taken for credit at the institution, that
combines academic instruction with work experience, if the employment is an integral
part of the program, and the institution has so certified to the employer, except that this
clause does not apply to employment in a program established for or on behalf of an
employer or group of employers;

deleted text begin (23) deleted text end new text begin (21) new text end employment of university, college, or professional school students in an
internship or other training program with the city of St. Paul or the city of Minneapolis
under Laws 1990, chapter 570, article 6, section 3;

deleted text begin (24) deleted text end new text begin (22) new text end employment for a hospital by a patient of the hospital. "Hospital" means
an institution that has been licensed by the Department of Health as a hospital;

deleted text begin (25) deleted text end new text begin (23) new text end employment as a student nurse for a hospital or a nurses' training school by
an individual who is enrolled and is regularly attending classes in an accredited nurses'
training school;

deleted text begin (26) deleted text end new text begin (24) new text end employment as an intern for a hospital by an individual who has completed
a four-year course in an accredited medical school;

deleted text begin (27) deleted text end new text begin (25) new text end employment as an insurance salesperson, by other than a corporate
officer, if all the wages from the employment is solely by way of commission. The word
"insurance" includes an annuity and an optional annuity;

deleted text begin (28) deleted text end new text begin (26) new text end employment as an officer of a township mutual insurance company or
farmer's mutual insurance company deleted text begin operating deleted text end under chapter 67A;

deleted text begin (29) deleted text end new text begin (27) new text end employment of a corporate officer, if the officer directly or indirectly,
including through a subsidiary or holding company, owns 25 percent or more of the
employer corporation, and employment of a member of a limited liability company, if the
member directly or indirectly, including through a subsidiary or holding company, owns
25 percent or more of the employer limited liability company;

deleted text begin (30) deleted text end new text begin (28) new text end employment as a real estate salesperson, deleted text begin by deleted text end other than a corporate officer,
if all the wages from the employment is solely by way of commission;

deleted text begin (31) deleted text end new text begin (29) new text end employment as a direct seller as defined in United States Code, title 26,
section 3508;

deleted text begin (32) deleted text end new text begin (30) new text end employment of an individual under the age of 18 in the delivery or
distribution of newspapers or shopping news, not including delivery or distribution to any
point for subsequent delivery or distribution;

deleted text begin (33) deleted text end new text begin (31) new text end casual employment performed for an individual, other than domestic
employment under clause deleted text begin (18) deleted text end new text begin (16) new text end , that does not promote or advance that employer's
trade or business;

deleted text begin (34) deleted text end new text begin (32) new text end employment in "agricultural employment" unless deleted text begin considered deleted text end new text begin it is new text end "covered
agricultural employment" under subdivision 11; or

deleted text begin (35) deleted text end new text begin (33) new text end if employment during one-half or more of any pay period was covered
employment, all the employment for the pay period is deleted text begin considered deleted text end covered employment;
but if during more than one-half of any pay period the employment was noncovered
employment, then all of the employment for the pay period is deleted text begin considered deleted text end noncovered
employment. "Pay period" means a period of not more than a calendar month for which a
payment or compensation is ordinarily made to the employee by the employer.

Sec. 3.

Minnesota Statutes 2014, section 268.035, is amended by adding a subdivision
to read:

new text begin Subd. 20b. new text end

new text begin Nonprofit organization. new text end

new text begin "Nonprofit organization" means an
organization described in United States Code, title 26, section 501(c)(3), and is exempt
from income tax under section 501(a).
new text end

Sec. 4.

Minnesota Statutes 2014, 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 deleted text begin considered deleted text end suitable employment.

Full-time employment is not deleted text begin considered deleted text end 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 deleted text begin considered deleted text end suitable if:

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

(2) the wages, hours, or other conditions of employment are deleted text begin substantially deleted text end 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

deleted text begin (4) the employment is with a staffing service and less than 25 percent of the
applicant's wage credits are from a job assignment with the client of a staffing service deleted text end .

(h) A job assignment with a staffing service is deleted text begin considered deleted text end suitable only if 25
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).

Sec. 5.

Minnesota Statutes 2014, section 268.085, subdivision 4, is amended to read:

Subd. 4.

Social Security old age insurance benefits.

(a) Any applicant aged 62 or
over is required to state when filing an application for unemployment benefits and when
filing continued requests for unemployment benefits if the applicant is receiving, has filed
for, or intends to file for, primary Social Security old age benefits.

new text begin (b) new text end Unless paragraph deleted text begin (b) deleted text end new text begin (c) new text end applies, 50 percent of the weekly equivalent of the
primary Social Security old age benefit the applicant has received, has filed for, or
intends to file for, with respect to that week must be deducted from an applicant's weekly
unemployment benefit amount.

deleted text begin (b) deleted text end new text begin (c) new text end If all of the applicant's wage credits were earned while the applicant was
claiming Social Security old age benefits, there is no deduction new text begin of the Social Security
benefits new text end from the applicant's weekly unemployment benefit amount.

deleted text begin (c) deleted text end new text begin (d) new text end Information from the Social Security Administration is deleted text begin considered deleted text end conclusive,
absent specific evidence showing that the information was erroneous.

deleted text begin (d) deleted text end new text begin (e) new text end This subdivision does not apply to Social Security survivor benefits.

Sec. 6.

Minnesota Statutes 2014, 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 the applicant's
weekly unemployment benefit amount, the applicant is ineligible for unemployment
benefits for that week.

(b) If the applicant has earnings, including holiday pay, with respect to any week,
that is less than the applicant's weekly unemployment benefit amount, from employment,
covered employment, noncovered employment, self-employment, or volunteer work, 50
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 deleted text begin considered deleted text end new text begin that is new text end a deductible
payment under subdivision 3 deleted text begin , 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 deleted text end .

Sec. 7. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin (a) The revisor of statutes shall change "liability" to "liability for damages" in
Minnesota Rules, part 3315.0555, subpart 1.
new text end

new text begin (b) The revisor of statutes shall change "entitled to" to "eligible for" in Minnesota
Statutes, section 268.085, subdivision 1, clause (6).
new text end

new text begin (c) The revisor of statutes shall change "shall calculate" to "must calculate" in
Minnesota Statutes, section 268.035, subdivision 23.
new text end

new text begin (d) The revisor of statutes shall renumber Minnesota Statutes, section 268.035,
subdivision 12d, to subdivision 12f.
new text end

new text begin (e) The revisor of statutes shall reletter the paragraphs in Minnesota Statutes, section
268.085, subdivision 4, as follows:
new text end

new text begin (1) paragraph (a) shall be relettered paragraph (c); and
new text end

new text begin (2) paragraph (c) shall be relettered paragraph (a).
new text end

new text begin (f) The revisor of statutes shall renumber the reference to "clause (29)" to "clause
(27)" in Minnesota Statutes, section 268.046, subdivision 1.
new text end

new text begin (g) The revisor of statutes shall renumber the reference to "clause (10)" to "clause
(8)" in Minnesota Statutes, section 383C.19.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 31, 2016, and applies to all matters pending a
determination or a decision by an unemployment law judge.
new text end