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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  
    Laws of Minnesota 1993 

                        CHAPTER 67-H.F.No. 1423 
           An act relating to unemployment compensation; 
          modifying definitions; changing provisions relating to 
          eligibility for and administration of unemployment 
          compensation; amending Minnesota Statutes 1992, 
          sections 268.04, subdivisions 4 and 12; 268.08, 
          subdivisions 3 and 6; 268.09, subdivisions 1, 2, and 
          8; 268.10, subdivisions 2 and 6; 268.12, subdivision 
          12; 268.16, subdivision 4; and 268.161, subdivision 9. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1992, section 268.04, 
subdivision 4, is amended to read: 
    Subd. 4.  [BENEFIT YEAR.] "Benefit year" with respect to 
any individual means the period of 52 calendar weeks beginning 
with the first day of the first week with respect to which the 
individual files a valid claim for benefits.  For individuals 
with a claim effective January 1, April 1, July 1, or October 1, 
the benefit year will be a period of 53 weeks beginning with the 
first week with respect to which the individual files a valid 
claim for benefits.  A benefit year, once established, can be 
withdrawn if benefits have not been paid, and benefit credit has 
not been claimed, unless otherwise provided under federal law or 
regulation. 
    Sec. 2.  Minnesota Statutes 1992, section 268.04, 
subdivision 12, is amended to read: 
    Subd. 12.  [EMPLOYMENT.] "Employment" means:  (1) Any 
service performed, including service in interstate commerce, by; 
    (a) any officer of any corporation; 
    (b) any member of a limited liability company who owns less 
than ten percent of the governance rights of the limited 
liability company; 
    (c) any individual who performs services for remuneration 
for any person as an agent-driver or commission-driver engaged 
in distributing meat products, vegetable products, fruit 
products, bakery products, beverages, or laundry or dry-cleaning 
services, for a principal, or as a traveling or city 
salesperson, other than as an agent-driver or commission-driver, 
engaged upon a full-time basis in the solicitation on behalf of, 
and the transmission to, a principal (except for sideline sales 
activities on behalf of some other person) of orders from 
wholesalers, retailers, contractors, or operators of hotels, 
restaurants, or other similar establishments for merchandise for 
resale or supplies for use in their business operations; or 
    (c) (d) any individual who is a servant under the law of 
master and servant or who performs services for any employing 
unit, unless such services are performed by an independent 
contractor. 
    Provided, that for purposes of clause (1)(b) (1)(c), the 
term "employment" shall include services described above only if 
the contract of service contemplates that substantially all of 
the services are to be performed personally by such individual, 
the individual does not have a substantial investment in 
facilities used in connection with the performance of the 
services (other than in facilities for transportation), and the 
services are not in the nature of a single transaction that is 
not part of a continuing relationship with the person for whom 
the services are performed. 
      (2) The term "employment" shall include an individual's 
entire service, performed within or both within and without this 
state if (a) the service is localized in this state; or (b) the 
service is not localized in any state but some of the service is 
performed in this state and (1) the base of operations, or, if 
there is no base of operations, then the place from which such 
service is directed or controlled, is in this state; or (2) the 
base of operations or place from which such service is directed 
or controlled is not in any state in which some part of the 
service is performed, but the individual's residence is in this 
state. 
      (3) Service shall be deemed to be localized within a state 
if (a) the service is performed entirely within such state; or 
(b) the service is performed both within and without such state, 
but the service performed without such state is incidental to 
the individual's service within the state, for example, is 
temporary or transitory in nature or consists of isolated 
transactions. 
      (4) The term "employment" shall include an individual's 
service wherever performed within the United States or Canada, 
if 
     (a) such service is not covered under the unemployment 
compensation law of any other state or Canada, and 
     (b) the place from which the service is directed or 
controlled is in this state. 
     (5)(a) Service covered by an election pursuant to section 
268.11, subdivision 3; and 
     (b) service covered by an arrangement pursuant to section 
268.13 between the commissioner and the agency charged with the 
administration of any other state or federal employment security 
law, pursuant to which all service performed by an individual 
for an employing unit is deemed to be performed entirely within 
this state, shall be deemed to be employment if the commissioner 
has approved an election of the employing unit for which such 
service is performed, pursuant to which the entire service of 
such individual during the period covered by such election is 
deemed to be employment. 
     (6) Notwithstanding any inconsistent provisions of sections 
268.03 to 268.231, the term "employment" shall include any 
services which are performed by an individual with respect to 
which an employing unit is liable for any federal tax against 
which credit may be taken for contributions required to be paid 
into a state unemployment compensation fund or which as a 
condition for full tax credit against the tax imposed by the 
Federal Unemployment Tax Act is required to be covered under 
this law. 
     (7) Service performed by an individual in the employ of the 
state of Minnesota or any instrumentality which is wholly owned 
by the state of Minnesota or in the employ of this state and one 
or more other states or an instrumentality of this state and one 
or more of its political subdivisions or an instrumentality of 
this state and another state or an instrumentality of this state 
and one or more political subdivisions of another state if such 
service is excluded from "employment" as defined by section 
3306(c)(7) of the Federal Unemployment Tax Act and is not 
excluded from "employment" under clause (10). 
     (8) Service performed by an individual in the employ of any 
political subdivision of the state of Minnesota or 
instrumentality thereof or an instrumentality of two or more 
political subdivisions of this state or any instrumentality of a 
political subdivision of this state and another state or 
political subdivisions of another state if such service is 
excluded from "employment" as defined by section 3306(c)(7) of 
the Federal Unemployment Tax Act and is not excluded from 
"employment" under clause (10). 
     (9) Service performed by an individual in the employ of a 
religious, charitable, educational or other organization but 
only if the following conditions are met: 
     (a) the service is excluded from "employment" as defined in 
the Federal Unemployment Tax Act solely by reason of section 
3306(c)(8) of that act; and 
     (b) the organization had one or more individuals in 
employment for some portion of a day in each of 20 different 
weeks, whether or not such weeks were consecutive, within either 
the current or preceding calendar year, regardless of whether 
they were employed at the same moment of time. 
     (10) For the purposes of clauses (7), (8), and (9), the 
term "employment" does not apply to service performed 
     (a) in the employ of a church or convention or association 
of churches, or an organization which is operated primarily for 
religious purposes and which is operated, supervised, 
controlled, or principally supported by a church or convention 
or association of churches; or 
     (b) by a duly ordained, commissioned, 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 such 
order; or 
      (c) 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 remunerative work for individuals 
who because of an impaired physical or mental capacity cannot be 
readily absorbed in the competitive labor market, by an 
individual receiving the rehabilitation or remunerative work.  
This exclusion applies only to services performed in a facility 
which is certified by the Minnesota department of jobs and 
training, division of rehabilitative services or in day training 
and habilitation programs licensed by the department of human 
services, and is limited to the effective period of the 
certificate or license; or 
      (d) 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, 
by an individual receiving such work relief or work training.  
This exclusion shall not apply to programs that provide for and 
require unemployment insurance coverage for the participants; or 
      (e) by an inmate of a custodial or penal institution; or 
      (f) in the employ of governmental entities referred to in 
clauses (7) and (8) if such service is performed by an 
individual in the exercise of duties 
      (i) as an elected official, 
      (ii) as a member of a legislative body, or a member of the 
judiciary, 
      (iii) as a member of the Minnesota national guard or air 
national guard, 
      (iv) as an employee serving only on a temporary basis in 
case of fire, storm, snow, earthquake, flood or similar 
emergency, 
      (v)(a) in a position with the state of Minnesota which is a 
major nontenured policy making or advisory position in the 
unclassified service, or 
      (b) a policy making position with the state of Minnesota or 
a political subdivision the performance of the duties of which 
ordinarily does not require more than eight hours per week; or 
      (c) in a position with a political subdivision which is a 
major nontenured policy making or advisory position. 
      (11) The term "employment" shall include the service of an 
individual who is a citizen of the United States, performed 
outside the United States, except in Canada, in the employ of an 
American employer (other than service which is deemed 
"employment" under the provisions of clause (2), (3), or (4) or 
the parallel provisions of another state's law) if: 
      (a) The employer's principal place of business in the 
United States is located in this state; or 
      (b) The employer has no place of business in the United 
States, but the employer is an individual who is a resident of 
this state, or the employer is a corporation which is organized 
under the laws of this state, or the employer is a partnership 
or a trust and the number of partners or trustees who are 
residents of this state is greater than the number who are 
residents of any one other state; or 
      (c) None of the criteria of clauses (a) and (b) is met but 
the employer has elected coverage in this state, or the employer 
having failed to elect coverage in any state, the individual has 
filed a claim for benefits, based on such service, under the law 
of this state. 
      (d) An "American employer," for the purposes of this 
subdivision, means a person who is 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, or a corporation organized under the laws of the United 
States or of any state; 
      (e) As used in this subdivision, the term "United States" 
includes the states, the District of Columbia, the Commonwealth 
of Puerto Rico, and the Virgin Islands. 
      (12) Notwithstanding clause (2), all service performed by 
an officer or member of the crew of an American vessel on or in 
connection with such vessel, if the operating office, from which 
the operations of such vessel operating on navigable waters 
within, or within and without, the United States are ordinarily 
and regularly supervised, managed, directed, and controlled is 
within this state. 
     (13) Service performed by an individual in agricultural 
labor as defined in clause (15)(a) when: 
     (a) Such service is performed for a person who: 
     (i) during any calendar quarter in either the current or 
the preceding calendar year paid wages of $20,000 or more to 
individuals employed in agricultural labor, or 
     (ii) for some portion of a day in each of 20 different 
calendar weeks, whether or not such weeks were consecutive, in 
either the current or preceding calendar year employed in 
agricultural labor four or more individuals regardless of 
whether they were employed at the same time. 
     (b) For the purpose of this clause (13) any individual who 
is a member of a crew furnished by a crew leader to perform 
service in agricultural labor for any other person shall be 
treated as an employee of the crew leader: 
     (i) if the crew leader holds a valid certificate of 
registration under the Migrant and Seasonal Agricultural Worker 
Protection Act; or substantially all of the members of the crew 
operate or maintain tractors, mechanized harvesting or crop 
dusting equipment, or any other mechanized equipment, which is 
provided by the crew leader; and 
     (ii) if the individual is not an employee of another person 
as determined by clause (1). 
      (c) For the purpose of this clause (13) in the case of any 
individual who is furnished by a crew leader to perform service 
in agricultural labor for any other person and who is not 
treated as an employee of the crew leader under subclause 
(13)(b): 
      (i) such other person and not the crew leader shall be 
treated as the employer of such individual; and 
      (ii) such other person shall be treated as having paid 
wages to such individual in an amount equal to the amount of 
wages paid to such individual by the crew leader (either on the 
crew leader's behalf or on behalf of such other person) for the 
service in agricultural labor performed for such other person. 
      (d) For the purposes of this clause (13) the term "crew 
leader" means an individual who: 
      (i) furnishes individuals to perform service in 
agricultural labor for any other person, 
      (ii) pays (either on the crew leader's own behalf or on 
behalf of such other person) the individuals so furnished by the 
crew leader for the service in agricultural labor performed by 
them, and 
      (iii) has not entered into a written agreement with such 
other person under which such furnished individual is designated 
as an employee of such other person. 
      (e) For the purposes of this clause (13) services performed 
by an officer or shareholder of a family farm corporation shall 
be excluded from agricultural labor and employment unless said 
corporation is an employer as defined in section 3306(a)(2) of 
the Federal Unemployment Tax Act. 
      (f) For the purposes of this clause (13), services 
performed by an individual 16 years of age or under shall be 
excluded from agricultural labor and employment unless the 
employer is an employer as defined in section 3306(a)(2) of the 
Federal Unemployment Tax Act. 
      (14) Domestic service in a private home, local college 
club, or local chapter of a college fraternity or sorority 
performed for a person who paid wages of $1,000 or more in any 
calendar quarter in either the current or preceding calendar 
year to individuals employed in domestic service. 
      "Domestic service" includes all service for an individual 
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, occupation, profession, 
enterprise, or vocation. 
      (15) The term "employment" shall not include: 
      (a) Agricultural labor.  Service performed by an individual 
in agricultural labor, except as provided in clause (13).  The 
term "agricultural labor" includes all services performed: 
      (1) On a farm, in the employ of any person or family farm 
corporation, in connection with cultivating the soil, or in 
connection with raising or harvesting any agricultural or 
horticultural commodity, including the raising, shearing, 
feeding, caring for, training, and management of livestock, 
bees, poultry, fur-bearing animals and wildlife; 
      (2) In the employ of the owner or tenant or other operator 
of a farm, in connection with the operation, management, 
conservation, improvement, or maintenance of such farm and its 
tools and equipment, or in salvaging timber or clearing land of 
brush and other debris left by a tornadic-like storm, if the 
major part of such service is performed on a farm; 
      (3) In connection with the production or harvesting of any 
commodity defined as an agricultural commodity in section 15(g) 
of the Agricultural Marketing Act, as amended (46 Statutes 1550, 
section 3; United States Code, title 12, section 1141j) or in 
connection with the ginning of cotton, or in connection with the 
operation or maintenance of ditches, canals, reservoirs, or 
waterways, not owned or operated for profit, used exclusively 
for supplying and storing water for farming purposes; 
      (4) In the employ of the operator of a farm in handling, 
planting, drying, packing, packaging, processing, freezing, 
grading, storing, or delivering to storage or to market or to a 
carrier for transportation to market, in its unmanufactured 
state, any agricultural or horticultural commodity; but only if 
such operator produced more than one-half of the commodity with 
respect to which such service is performed, or in the employ of 
a group of operators of farms (or a cooperative organization of 
which such operators are members) in the performance of service 
described herein, but only if such operators produced more than 
one-half of the commodity with respect to which such service is 
performed; however, the provisions of this paragraph shall not 
be deemed to be applicable with respect to service performed in 
connection with commercial canning or commercial freezing or in 
connection with any agricultural or horticultural commodity 
after its delivery to a terminal market for distribution for 
consumption; or 
      (5) On a farm operated for profit if such service is not in 
the course of the employer's trade or business. 
      As used herein, the term "farm" includes stock, dairy, 
poultry, fruit, fur-bearing animal, and truck farms, 
plantations, ranches, nurseries, ranges, greenhouses or other 
similar structures used primarily for the raising of 
agricultural or horticultural commodities, and orchards. 
      (b) Casual labor not in the course of the employing unit's 
trade or business; 
      (c) Service performed on the navigable waters of the United 
States as to which this state is prohibited by the constitution 
and laws of the United States of America from requiring 
contributions of employers with respect to wages as provided in 
sections 268.03 to 268.231; 
      (d) Service performed by an individual in the employ of a 
son, daughter, or spouse, and service performed by a child under 
the age of 18 in the employ of the child's father or mother; 
      (e) Service performed in the employ of the United States 
government, or any instrumentality of the United States exempt 
under the constitution of the United States from the 
contributions imposed by sections 268.03 to 268.231, except that 
with respect to such service and to the extent that the congress 
of the United States shall permit states to require any 
instrumentalities of the United States to make payments into an 
unemployment compensation fund under a state unemployment 
compensation act; then, to the extent permitted by congress, and 
from and after the date as of which such permission becomes 
effective, all of the provisions of these sections shall be 
applicable to such instrumentalities and to services performed 
for such instrumentalities in the same manner, to the same 
extent, and on the same terms as to all other employers, 
employing units, individuals, and services; provided, that if 
this state shall not be certified for any year by the United 
States Department of Labor under section 3304(c) of the federal 
Internal Revenue Code, the payments required of such 
instrumentalities with respect to such year shall be refunded by 
the commissioner from the fund in the same manner and within the 
same period as is provided in section 268.16, subdivision 6, 
with respect to contributions erroneously collected; 
      (f) Service with respect to which unemployment compensation 
is payable under an unemployment compensation system established 
by an act of congress; 
      (g)(1) Service performed in any calendar quarter in the 
employ of any organization exempt from income tax under section 
501(a) (other than an organization described in section 401(a)) 
or section 521 of the federal Internal Revenue Code, if the 
remuneration for such service is less than $50; or 
      (2) Service performed in the employ of a school, college, 
or university, if such service is performed by a student who is 
enrolled and is regularly attending classes at such school, 
college, or university; or 
      (3) Service performed by an individual who is enrolled at a 
nonprofit or public educational institution which normally 
maintains a regular faculty and curriculum and normally has a 
regularly organized body of students in attendance at the place 
where its educational activities are carried on as a student in 
a full-time program, taken for credit at such institution, which 
combines academic instruction with work experience, if such 
service is an integral part of such program, and such 
institution has so certified to the employer, except that this 
paragraph shall not apply to service performed in a program 
established for or on behalf of an employer or group of 
employers; 
      (h) Service performed in the employ of a foreign government 
(including service as a consular or other officer or employee or 
a nondiplomatic representative); 
      (i) Service performed in the employ of an instrumentality 
wholly owned by a foreign government, if 
      (1) The service is of a character similar to that performed 
in foreign countries by employees of the United States 
government or of an instrumentality thereof; and 
      (2) The commissioner finds that the United States Secretary 
of State has certified to the United States Secretary of the 
Treasury that the foreign government, with respect to whose 
instrumentality exemption is claimed, grants an equivalent 
exemption with respect to similar service performed in the 
foreign country by employees of the United States government and 
of instrumentalities thereof. 
      (j) Service covered by an arrangement between the 
commissioner and the agency charged with the administration of 
any other state or federal employment security law pursuant to 
which all services performed by an individual for an employing 
unit during the period covered by such employing unit's duly 
approved election, are deemed to be performed entirely within 
such agency's state; 
      (k) Service performed in the employ of a hospital, if such 
service is performed by a patient of the hospital, as defined in 
clause (17); 
      (l) Service performed as a student nurse in the employ of a 
hospital or a nurses' training school by an individual who is 
enrolled and is regularly attending classes in a nurses' 
training school chartered and approved pursuant to state law; 
and service performed as an intern in the employ of a hospital 
by an individual who has completed a four years' course in a 
medical school chartered and approved pursuant to state law; 
     (m) Service performed by an individual other than a 
corporate officer, for a person as an insurance agent or as an 
insurance solicitor, if all such service performed by such 
individual for such person is performed for remuneration solely 
by way of commission (the word "insurance" as used in this 
subdivision shall include an annuity and an optional annuity); 
     (n) Service performed by 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; 
     (o) Service performed by an individual other than a 
corporate officer, for a person as a real estate salesperson, if 
all such service performed by such individual for such person is 
performed for remuneration solely by way of commission; 
     (p) If the service performed during one-half or more of any 
pay period by an individual for the person employing the 
individual constitutes employment, all the service of such 
individual for such period shall be deemed to be employment; but 
if the service performed during more than one-half of any such 
pay period by an individual for the person employing the 
individual does not constitute employment, then none of the 
service of such individual for such period shall be deemed to be 
employment.  As used in this subdivision, the term "pay period" 
means a period of not more than a calendar month for which a 
payment or remuneration is ordinarily made to the individual by 
the person employing the individual. 
     (q) Services performed for a state, other than the state of 
Minnesota, or an instrumentality wholly owned by such other 
state or political subdivision of such other state; 
     (r) Services performed as a direct seller as defined in 
United States Code, title 26, section 3508; 
    (s) Notwithstanding clauses (1)(a) and (15)(m), services 
performed as an officer of a township mutual insurance company 
or farmer's mutual insurance company operating pursuant to 
chapter 67A.  
     (16) "Institution of higher education," for the purposes of 
this chapter, means an educational institution which: 
     (a) Admits as regular students only individuals having a 
certificate of graduation from a high school, or the recognized 
equivalent of such a certificate; 
     (b) Is legally authorized in this state to provide a 
program of education beyond high school; 
     (c) Provides an educational program for which it awards a 
bachelor's or higher degree, or provides a program which is 
acceptable for credit toward such a degree, a program of 
postgraduate or postdoctoral studies, or a program of training 
to prepare students for gainful employment in a recognized 
occupation; and 
      (d) Is a public or other nonprofit institution. 
      (e) Notwithstanding any of the foregoing provisions of this 
clause, all colleges and universities in this state are 
institutions of higher education for purposes of this section. 
      (17) "Hospital" means an institution which has been 
licensed, certified or approved by the department of health as a 
hospital. 
    Sec. 3.  Minnesota Statutes 1992, section 268.08, 
subdivision 3, is amended to read: 
    Subd. 3.  [NOT ELIGIBLE.] An individual shall not be 
eligible to receive benefits for any week with respect to which 
the individual is receiving, has received, or has filed a claim 
for remuneration in an amount equal to or in excess of the 
individual's weekly benefit amount in the form of: 
    (1) termination, severance, or dismissal payment or wages 
in lieu of notice whether legally required or not; provided that 
if a termination, severance, or dismissal payment is made in a 
lump sum, the employer may allocate such lump sum payment shall 
be allocated over a period equal to the lump sum divided by the 
employee's regular pay while employed by such employer; provided 
any such payment shall be applied for a period immediately 
following the last day of work employment but not to exceed 28 
calendar days provided that 50 percent of the total of any such 
payments in excess of eight weeks shall be similarly allocated 
to the period immediately following the 28 days; or 
    (2) vacation allowance paid directly by the employer for a 
period of requested vacation, including vacation periods 
assigned by the employer under the provisions of a collective 
bargaining agreement, or uniform vacation shutdown; or 
    (3) compensation for loss of wages under the workers' 
compensation law of this state or any other state or under a 
similar law of the United States, or under other insurance or 
fund established and paid for by the employer except that this 
does not apply to an individual who is receiving temporary 
partial compensation pursuant to section 176.101, subdivision 
3k; or 
    (4) 50 percent of the pension payments from any fund, 
annuity or insurance maintained or contributed to by a base 
period employer including the armed forces of the United States 
if the employee contributed to the fund, annuity or insurance 
and all of the pension payments if the employee did not 
contribute to the fund, annuity or insurance; or 
     (5) 50 percent of a primary insurance benefit under title 
II of the Social Security Act, as amended, or similar old age 
benefits under any act of congress or this state or any other 
state. 
     Provided, that if such remuneration is less than the 
benefits which would otherwise be due under sections 268.03 to 
268.231, the individual shall be entitled to receive for such 
week, if otherwise eligible, benefits reduced by the amount of 
such remuneration; provided, further, that if the appropriate 
agency of such other state or the federal government finally 
determines that the individual is not entitled to such benefits, 
this provision shall not apply.  If the computation of reduced 
benefits, required by this subdivision, is not a whole dollar 
amount, it shall be rounded down to the next lower dollar amount.
    Sec. 4.  Minnesota Statutes 1992, section 268.08, 
subdivision 6, is amended to read: 
    Subd. 6.  [SERVICES PERFORMED FOR STATE, MUNICIPALITIES, OR 
CHARITABLE CORPORATION.] Benefits based on service in employment 
defined in section 268.04, subdivision 12, clauses (7), (8) and 
(9), are payable in the same amount, on the same terms and 
subject to the same conditions as benefits payable on the basis 
of other service subject to this chapter; except that 
     (a) Benefits based upon service performed in an 
instructional, research, or principal administrative capacity 
for an institution of higher education or a public school, or a 
nonpublic school, or the Minnesota state academy for the deaf or 
Minnesota state academy for the blind, or the Minnesota center 
for arts education, or in a public or nonpublic school for an 
educational cooperative service unit established under section 
123.58, or any other educational service agency as defined in 
section 3304(a)(6)(A)(IV) of the Federal Unemployment Tax Act, 
shall not be paid for any week of unemployment commencing during 
the period between two successive academic years or terms, or 
during a similar period between two regular but not successive 
terms, or during a period of paid sabbatical leave provided for 
in the individual's contract, to any individual if the 
individual performs the services in the first of the academic 
years or terms and if there is a contract or a reasonable 
assurance that the individual will perform services in any such 
capacity for any institution of higher education, public school, 
nonpublic school, Minnesota state academies for the deaf and 
blind, the Minnesota center for arts education, an educational 
cooperative service unit, or other educational service agency, 
in the second of the academic years or terms, and; 
    (b) With respect to service performed in any capacity other 
than those capacities described in clause (a) of this 
subdivision, for an educational institution of higher education, 
or a public school or nonpublic school, or the Minnesota state 
academy for the deaf or Minnesota state academy for the blind, 
or the Minnesota center for arts education, or in a public or 
nonpublic school or for an educational cooperative service unit 
established under section 123.58, or any other educational 
service agency as defined in section 3304(a)(6)(A)(IV) of the 
Federal Unemployment Tax Act, benefits shall not be paid on the 
basis of these services to any individual for any week which 
commences during a period between two successive academic years 
or terms if the individual performs the services in the first of 
the academic years or terms and there is a reasonable assurance 
that the individual will perform the services in the second of 
the academic years or terms.  If benefits are denied to any 
individual under this clause and the individual was not offered 
an opportunity to perform the services in the second of the 
academic years or term, the individual shall be entitled to a 
retroactive payment of benefits for each week in which the 
individual filed a timely claim for benefits, but the claim was 
denied solely because of this clause; and 
    (c) With respect to services described in clauses 
clause (a) or (b), benefits payable on the basis of the services 
shall not be paid to any individual for any week which commences 
during an established and customary vacation period or holiday 
recess if the individual performs the services in the period 
immediately before the vacation period or holiday recess, and 
there is a reasonable assurance that the individual will perform 
the services in the period immediately following the vacation 
period or holiday recess.; 
    (d) With respect to services described in clause (a) or 
(b), benefits shall not be payable on the basis of services in 
any capacity specified in clauses (a), (b), and (c) to any 
individual who performed those services in an educational 
institution while in the employ of an educational service 
agency.  For purposes of this clause, "educational service 
agency" means a governmental agency or governmental entity which 
is established and operated exclusively for the purpose of 
providing services to one or more educational institutions; and 
    (e) With respect to services to state and local government, 
or nonprofit organizations covered by section 501(c)(3) of the 
Internal Revenue Code of 1986, as amended through December 31, 
1992, if services are provided to or on behalf of an educational 
institution, benefits must be denied under the same 
circumstances as described in clauses (a) to (d). 
    Sec. 5.  Minnesota Statutes 1992, section 268.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DISQUALIFYING CONDITIONS.] An individual 
separated from any employment under paragraph (a), (b), or (d) 
shall be disqualified for waiting week credit and benefits.  For 
separations under paragraphs (a) and (b), the disqualification 
shall continue until four calendar weeks have elapsed following 
the individual's separation and the individual has earned eight 
times the individual's weekly benefit amount in insured work. 
    (a)  [VOLUNTARY LEAVE.] The individual voluntarily and 
without good cause attributable to the employer discontinued 
employment with such employer.  For the purpose of this 
paragraph, a separation from employment by reason of its 
temporary nature or for inability to pass a test or for 
inability to meet performance standards necessary for 
continuation of employment shall not be deemed voluntary.  
      A separation shall be for good cause attributable to the 
employer if it occurs as a consequence of sexual harassment.  
Sexual harassment means unwelcome sexual advances, requests for 
sexual favors, sexually motivated physical contact or other 
conduct or communication of a sexual nature when:  (1) the 
employee's submission to such conduct or communication is made a 
term or condition of the employment, (2) the employee's 
submission to or rejection of such conduct or communication is 
the basis for decisions affecting employment, or (3) such 
conduct or communication has the purpose or effect of 
substantially interfering with an individual's work performance 
or creating an intimidating, hostile, or offensive working 
environment and the employer knows or should know of the 
existence of the harassment and fails to take timely and 
appropriate action.  
     (b)  [DISCHARGE FOR MISCONDUCT.] The individual was 
discharged for misconduct, not amounting to gross misconduct 
connected with work or for misconduct which interferes with and 
adversely affects employment. 
     (c)  [EXCEPTIONS TO DISQUALIFICATION.] An individual shall 
not be disqualified under paragraphs (a) and (b) under any of 
the following conditions: 
     (1) the individual voluntarily discontinued employment to 
accept employment offering substantially better conditions or 
substantially higher wages or both; 
     (2) the individual is separated from employment due to 
personal, serious illness provided that such individual has made 
reasonable efforts to retain employment. 
     An individual who is separated from employment due to the 
individual's illness of chemical dependency which has been 
professionally diagnosed or for which the individual has 
voluntarily submitted to treatment and who fails to make 
consistent efforts to maintain the treatment the individual 
knows or has been professionally advised is necessary to control 
that illness has not made reasonable efforts to retain 
employment. 
       (3) the individual accepts work from a base period employer 
which involves a change in location of work so that said work 
would not have been deemed to be suitable work under the 
provisions of subdivision 2 and within a period of 13 weeks from 
the commencement of said work voluntarily discontinues 
employment due to reasons which would have caused the work to be 
unsuitable under the provision of said subdivision 2; 
       (4) the individual left employment because of reaching 
mandatory retirement age and was 65 years of age or older; 
       (5) the individual is terminated by the employer because 
the individual gave notice of intention to terminate employment 
within 30 days.  This exception shall be effective only through 
the calendar week which includes the date of intended 
termination, provided that this exception shall not result in 
the payment of benefits for any week for which the individual 
receives the individual's normal wage or salary which is equal 
to or greater than the weekly benefit amount; 
      (6) the individual is separated from employment due to the 
completion of an apprenticeship program, or segment thereof, 
approved pursuant to chapter 178; 
      (7) the individual voluntarily leaves part-time employment 
with a base period employer while continuing full-time 
employment if the individual attempted to return to part-time 
employment after being separated from the full-time employment, 
and if substantially the same part-time employment with the base 
period employer was not available for the individual; 
    (8) the individual is separated from employment based 
solely on a provision in a collective bargaining agreement by 
which an individual has vested discretionary authority in 
another to act on behalf of the individual; 
    (9) except as provided in paragraph (d), separations from 
part-time employment will not be disqualifying when the claim is 
based on sufficient full-time employment to establish a valid 
claim from which the claimant has been separated for 
nondisqualifying reasons.; or 
    (10) the individual accepts employment during the benefit 
year which represents a substantial departure from the 
individual's customary occupation and experience and would not 
be deemed suitable work as defined under subdivision 2, 
paragraphs (a) and (b), and within a period of 30 days from the 
commencement of that work voluntarily discontinues the 
employment due to reasons which would have caused the work to be 
unsuitable under the provisions of subdivision 2 or, if in 
commission sales, because of a failure to earn gross commissions 
averaging an amount equal to or in excess of the individual's 
weekly benefit amount.  Other provisions notwithstanding, 
applying this provision precludes the use of these wage credits 
to clear a disqualification. 
    (d)  [DISCHARGE FOR GROSS MISCONDUCT.] The individual was 
discharged for gross misconduct connected with work or gross 
misconduct which interferes with and adversely affects the 
individual's employment.  For a separation under this clause, 
the commissioner shall impose a total disqualification for the 
benefit year and cancel all of the wage credits from the last 
employer from whom the individual was discharged for gross 
misconduct connected with work. 
    For the purpose of this paragraph "gross misconduct" is 
defined as misconduct involving assault and battery or the 
malicious destruction of property or arson or sabotage or 
embezzlement or any other act, including theft, the commission 
of which amounts to a felony or gross misdemeanor.  For an 
employee of a health care facility, gross misconduct also 
includes misconduct involving an act of patient or resident 
abuse as defined in section 626.557, subdivision 2, clause (d).  
      If an individual is convicted of a felony or gross 
misdemeanor for the same act or acts of misconduct for which the 
individual was discharged, the misconduct is conclusively 
presumed to be gross misconduct if it was connected with the 
individual's work. 
     (e)  [LIMITED OR NO CHARGE OF BENEFITS.] Benefits paid 
subsequent to an individual's separation under any of the 
foregoing paragraphs, excepting paragraphs (c)(3), (c)(5), and 
(c)(8), shall not be used as a factor in determining the future 
contribution rate of the employer from whose employment such 
individual separated. 
    Benefits paid subsequent to an individual's failure, 
without good cause, to accept an offer of suitable reemployment 
or to accept reemployment which offered substantially the same 
or better hourly wages and conditions of work as were previously 
provided by that employer, but was deemed unsuitable under 
subdivision 2, shall not be used as a factor in determining the 
future contribution rate of the employer whose offer of 
reemployment was not accepted or whose offer of reemployment was 
refused solely due to the distance of the available work from 
the individual's residence, the individual's own serious 
illness, the individual's other employment at the time of the 
offer, or if the individual is in training with the approval of 
the commissioner. 
    (f)  [ACTS OR OMISSIONS.] An individual who was employed by 
an employer shall not be disqualified for benefits under this 
subdivision for any acts or omissions occurring after separation 
from employment with the employer.  
    (g)  [DISCIPLINARY SUSPENSIONS.] An individual shall be 
disqualified for waiting week credit and benefits for the 
duration of any disciplinary suspension of 30 days or less 
resulting from the individual's own misconduct.  Disciplinary 
suspensions of more than 30 days shall constitute a discharge 
from employment. 
    Sec. 6.  Minnesota Statutes 1992, section 268.09, 
subdivision 2, is amended to read: 
    Subd. 2.  [FAILURE TO APPLY FOR OR ACCEPT SUITABLE WORK OR 
REEMPLOYMENT.] An individual shall be disqualified for waiting 
week credit and benefits during the week of occurrence and until 
four calendar weeks have elapsed following the refusal or 
failure and the individual has earned eight times the 
individual's weekly benefit amount in insured work if the 
commissioner finds that the individual has failed, without good 
cause, either to apply for available, suitable work of which 
advised by an employer, the employment office, or the 
commissioner or to accept suitable work when offered, or to 
accept an offer of suitable reemployment from either a base 
period employer's offer of reemployment offering substantially 
the same or better hourly wages and conditions of work as were 
previously provided by that employer in the most recent period 
of employment employer or an employer who provided employment 
following the base period but prior to the claim date. 
    (a) In determining whether or not any work is suitable for 
an individual, the commissioner shall consider the degree of 
risk involved to health, safety, and morals, physical fitness 
and prior training, experience, length of unemployment and 
prospects of securing local work in the individual's customary 
occupation, and the distance of the available work from the 
individual's residence.  
    (b) Notwithstanding any other provisions of sections 268.03 
to 268.231, no work shall be deemed suitable, and benefits shall 
not be denied thereunder to any otherwise eligible individual 
for refusing to accept new work under any of the following 
conditions: 
    (1) if the position offered is vacant due directly to a 
strike, lockout, or other labor dispute; 
    (2) if the wages, hours, or other conditions of the work 
offered are substantially less favorable to the individual than 
those prevailing for similar work in the locality; 
    (3) if as a condition of being employed the individual 
would be required to join a company union or to resign from or 
refrain from joining any bona fide labor organization; 
     (4) if the individual is in training with the approval of 
the commissioner. 
    Sec. 7.  Minnesota Statutes 1992, section 268.09, 
subdivision 8, is amended to read: 
    Subd. 8.  [APPROVED TRAINING APPROVED UNDER TRADE ACT OF 
1974.] An individual shall not be disqualified for benefits 
under subdivision 1, paragraph (a), clause (1), if the 
individual left work which was not suitable employment to enter 
approved training or disqualified under subdivision 2, if the 
individual is in approved training.  For the purposes of this 
subdivision "suitable employment" is defined in and the criteria 
for approval of training are set forth in section 236 of the 
Trade Act of 1974, as amended as work of a substantially equal 
or higher skill level than the worker's past adversely affected 
employment, the wages for which are not less than 80 percent of 
the worker's average weekly wage in the adversely affected 
employment.  Benefits paid subsequent to a nondisqualifying 
separation under this subdivision may not be used as a factor in 
determining the future contribution rate of the employer from 
whose employment the individual voluntarily separated; except 
that if that employer provided employment during the base period 
or between the base period and the claim date the employer may 
be relieved of those charges only if the determination on the 
prior separation from employment also relieved the employer of 
charges.  
    Sec. 8.  Minnesota Statutes 1992, section 268.10, 
subdivision 2, is amended to read: 
    Subd. 2.  [EXAMINATION OF CLAIMS; DETERMINATION; APPEAL.] 
(1) An official, designated by the commissioner, shall promptly 
examine each claim for benefits filed to establish a benefit 
year pursuant to this section, and, on the basis of the facts 
found, shall determine whether or not such claims are valid, and 
if valid, the weekly benefit amount payable, the maximum benefit 
amount payable during the benefit year, and the date the benefit 
year terminates, and this determination shall be known as the 
determination of validity.  Notice of the determination of 
validity or any redetermination as provided for in clause (4) 
shall be promptly given the claimant and all other interested 
parties.  If within the time specified for the filing of a 
protest as provided in subdivision 1, the employer makes an 
allegation of disqualification or raises an issue of the 
chargeability to the employer's account of benefits that may be 
paid on such claim, if the claim is valid, the issue thereby 
raised shall be promptly determined by said official and a 
notification of the determination delivered or mailed to the 
claimant and the employer.  If an initial determination or a 
referee's decision or the commissioner's decision awards 
benefits, the benefits shall be paid promptly regardless of the 
pendency of any appeal period or any appeal or other proceeding 
which may thereafter be taken.  Except as provided in clause 
(6), if a referee's decision modifies or reverses an initial 
determination awarding benefits, or if a commissioner's decision 
modifies or reverses an appeal decision awarding benefits, any 
benefits paid under the award of such initial determination or 
referee's decision shall be deemed erroneous payments. 
     (2) At any time within 24 months from the date of the 
filing of a valid claim for benefits by an individual, an 
official of the department or any interested party or parties 
raises an issue of claimant's eligibility for benefits for any 
week or weeks in accordance with the requirements of the 
provisions of sections 268.03 to 268.231 or any official of the 
department or any interested party or parties or benefit year 
employer raises an issue of disqualification in accordance with 
the rules of the commissioner, a determination shall be made 
thereon and a written notice thereof shall be given to the 
claimant and such other interested party or parties or benefit 
year employer.  A determination issued under this clause which 
denies benefits for weeks for which the claimant has previously 
been paid benefits is an overpayment of those benefits subject 
to section 268.18.  
     (3) A determination issued pursuant to clauses (1) and (2) 
shall be final unless an appeal therefrom is filed by a claimant 
or employer within 15 days after the mailing of the notice of 
the determination to the last known address or personal delivery 
of the notice.  Every notice of determination shall contain a 
prominent statement indicating in clear language the method of 
appealing the determination, the time within which such an 
appeal must be made, and the consequences of not appealing the 
determination.  A timely appeal from a determination of validity 
in which the issue is whether an employing unit is an employer 
within the meaning of this chapter or whether services performed 
for an employer constitute employment within the meaning of this 
chapter shall be subject to the provisions of section 268.12, 
subdivision 13. 
    (4) At any time within 24 months from the date of the 
filing of a valid claim for benefits by an individual, the 
commissioner on the commissioner's own motion may reconsider a 
determination of validity made thereon and make a 
redetermination thereof on finding that an error in computation 
or identity or the crediting of wage credits has occurred in 
connection therewith or if the determination was made as a 
result of a nondisclosure or misrepresentation of a material 
fact.  A determination or redetermination issued under this 
clause which denies benefits for weeks for which the claimant 
has previously been paid benefits is an overpayment of those 
benefits subject to section 268.18.  
    (5) However, the commissioner may refer any disputed claims 
directly to a referee for hearing and determination in 
accordance with the procedure outlined in subdivision 3 and the 
effect and status of such determination in such a case shall be 
the same as though the matter had been determined upon an appeal 
to the tribunal from an initial determination. 
    (6) If a referee's decision affirms an initial 
determination awarding benefits or the commissioner affirms a 
referee's decision awarding benefits, the decision, if finally 
reversed, shall not result in a disqualification only for weeks 
following the week in which the commissioner's decision, or the 
court's decision, was issued and benefits paid for that week and 
previous weeks shall neither be deemed overpaid nor shall they 
be considered in determining any individual employer's future 
contribution rate under section 268.06. 
    Sec. 9.  Minnesota Statutes 1992, section 268.10, 
subdivision 6, is amended to read: 
    Subd. 6.  [COMMISSIONER.] The manner in which disputed 
claims are presented, the reports required from the claimant and 
from employers, and the conduct of hearings and appeals shall be 
in accordance with the rules adopted by the commissioner for 
determining the rights of the parties, whether or not the rules 
conform to common law or statutory rules of evidence and other 
technical rules of procedure.  A full and complete record shall 
be kept of all proceedings in connection with a disputed claim.  
     All testimony at any hearing conducted pursuant to 
subdivision 3 shall be recorded, but need not shall be 
transcribed unless only if the disputed claim is further 
appealed further and is requested by a party, or as directed by 
the commissioner or an authorized representative. 
    Sec. 10.  Minnesota Statutes 1992, section 268.12, 
subdivision 12, is amended to read: 
    Subd. 12.  [INFORMATION.] Except as hereinafter otherwise 
provided, data gathered from any employing unit or individual 
pursuant to the administration of sections 268.03 to 268.231, 
and from any determination as to the benefit rights of any 
individual are private data on individuals or nonpublic data not 
on individuals as defined in section 13.02, subdivisions 9 and 
12, and may not be disclosed except pursuant to this subdivision 
or a court order.  These data may be disseminated to and used by 
the following agencies without the consent of the subject of the 
data:  
      (a) state and federal agencies specifically authorized 
access to the data by state or federal law; 
      (b) any agency of this or any other state; or any federal 
agency charged with the administration of an employment security 
law or the maintenance of a system of public employment offices; 
      (c) local human rights groups within the state which have 
enforcement powers; 
      (d) the department of revenue shall have access to 
department of jobs and training private data on individuals and 
nonpublic data not on individuals only to the extent necessary 
for enforcement of Minnesota tax laws; 
      (e) public and private agencies responsible for 
administering publicly financed assistance programs for the 
purpose of monitoring the eligibility of the program's 
recipients; 
      (f) the department of labor and industry on an 
interchangeable basis with the department of jobs and training 
subject to the following limitations and notwithstanding any law 
to the contrary:  
      (1) the department of jobs and training shall have access 
to private data on individuals and nonpublic data not on 
individuals for uses consistent with the administration of its 
duties under sections 268.03 to 268.231; and 
      (2) the department of labor and industry shall have access 
to private data on individuals and nonpublic data not on 
individuals for uses consistent with the administration of its 
duties under state law; 
      (g) the department of trade and economic development may 
have access to private data on individual employing units and 
nonpublic data not on individual employing units for its 
internal use only; when received by the department of trade and 
economic development, the data remain private data on 
individuals or nonpublic data; 
      (h) local and state welfare agencies for monitoring the 
eligibility of the data subject for assistance programs, or for 
any employment or training program administered by those 
agencies, whether alone, in combination with another welfare 
agency, or in conjunction with the department of jobs and 
training; 
     (i) local, state, and federal law enforcement agencies for 
the sole purpose of ascertaining the last known address and 
employment location of the data subject, provided the data 
subject is the subject of a criminal investigation; and 
      (j) the department of health may have access to private 
data on individuals and nonpublic data not on individuals solely 
for the purposes of epidemiologic investigations.  
     Data on individuals and employing units which are 
collected, maintained, or used by the department in an 
investigation pursuant to section 268.18, subdivision 3, are 
confidential as to data on individuals and protected nonpublic 
data not on individuals as defined in section 13.02, 
subdivisions 3 and 13, and shall not be disclosed except 
pursuant to statute or court order or to a party named in a 
criminal proceeding, administrative or judicial, for preparation 
of a defense.  
     Tape recordings and transcripts of recordings of 
proceedings before a referee of the department and exhibits 
offered by parties other than the department and received into 
evidence at those proceedings are private data on individuals 
and nonpublic data not on individuals and shall be disclosed 
only pursuant to the administration of section 268.10, 
subdivisions 3 to 8, or pursuant to a court order.  
    Aggregate data about employers compiled from individual job 
orders placed with the department of jobs and training are 
private data on individuals and nonpublic data not on 
individuals as defined in section 13.02, subdivisions 9 and 12, 
if the commissioner determines that divulging the data would 
result in disclosure of the identity of the employer.  The 
general aptitude test battery and the nonverbal aptitude test 
battery as administered by the department are also classified as 
private data on individuals or nonpublic data.  
    Data on individuals collected, maintained, or created 
because an individual applies for benefits or services provided 
by the energy assistance and weatherization programs 
administered by the department of jobs and training is private 
data on individuals and shall not be disseminated except 
pursuant to section 13.05, subdivisions 3 and 4.  
    Data gathered by the department pursuant to the 
administration of sections 268.03 to 268.231 shall not be made 
the subject or the basis for any suit in any civil proceedings, 
administrative or judicial, unless the action is initiated by 
the department.  
    Testimony obtained under sections 268.10, subdivision 3, 
and 268.12, subdivision 13, may not be used or considered in any 
civil, administrative, or contractual proceeding, except by a 
local, state, or federal human rights group with enforcement 
powers, unless the proceeding is initiated by the department. 
    Sec. 11.  Minnesota Statutes 1992, section 268.16, 
subdivision 4, is amended to read: 
    Subd. 4.  [COMPROMISE AGREEMENTS.] The commissioner, or any 
officer or employee of the state department of jobs and training 
authorized in writing by the commissioner, is authorized to 
enter into an agreement in writing with any employer relating to 
the liability of such employer in respect to delinquent 
contributions, reimbursements, interest, penalties, and costs; 
provided that such agreement shall not be made in respect to 
liability for the principal sum of delinquent contributions or 
reimbursements unless the same has been delinquent for a period 
of at least four years prior to the making of such agreement.  
The commissioner may also enter into an agreement, with respect 
to liability for delinquent contributions, interest, penalties 
and costs, with any employer who has never paid any 
contributions to the fund and such failure to pay contributions 
was, in the opinion of the commissioner, due to an honest belief 
on the part of such employer that the employer was not covered 
by sections 268.03 to 268.231.  Any agreements made under this 
subdivision shall be subject to the approval of the attorney 
general. 
    If such agreements are approved by the commissioner and the 
attorney general, the same shall be final and conclusive; and, 
except upon a showing of fraud or malfeasance or 
misrepresentation of a material fact, the case shall not be 
reopened as to the matters agreed upon or the agreement modified 
by any officer, employee or agent of the state; and, in any 
suit, action or proceeding, such agreement, or any 
determination, assessment, collection, payment, abatement, 
refund, or credit made in accordance therewith, shall not be 
annulled, modified, set aside or destroyed. 
    Sec. 12.  Minnesota Statutes 1992, section 268.161, 
subdivision 9, is amended to read: 
    Subd. 9.  [PERSONAL LIABILITY.] Any officer, director, 
or any employee having 20 percent ownership interest of a 
corporation or any manager, governor, member, or employee of a 
limited liability company which is an employer under sections 
268.03 to 268.231, who has control of or supervision over the 
filing of and responsibility for filing contribution reports or 
of making payment of contributions under these sections, either 
individually or jointly with others, have or should have had 
control of, supervision over, or responsibility for the filing 
of the tax reports or the making of payments under this chapter, 
and who willfully fails to file the reports or to make payments 
as required, shall be personally liable for contributions or 
reimbursement, including interest, penalties, and costs in the 
event the corporation does not pay to the department those 
amounts for which the employer is liable. 
    For purposes of this subdivision, "willfulness" means that 
the facts demonstrate that the responsible party used or allowed 
the use of corporate or company assets to pay other creditors 
knowing that the payments required under this chapter were 
unpaid.  An evil motive or intent to defraud is not necessary to 
satisfy the willfulness requirement.  Any personal 
representative of the estate of a decedent or fiduciary who 
voluntarily distributes the assets filed therein without 
reserving a sufficient amount to pay the contributions, 
interest, and penalties due pursuant to this chapter shall be 
personally liable for the deficiency. 
    The personal liability of any person as provided herein 
shall survive dissolution, reorganization, bankruptcy, 
receivership, or assignment for the benefit of creditors.  For 
the purposes of this subdivision, all wages paid by the 
corporation shall be considered earned from the person 
determined to be personally liable. 
    An official designated by the commissioner shall make an 
initial determination as to the personal liability under this 
section.  The determination shall be final unless the person 
found to be personally liable shall within 30 days after mailing 
of notice of determination to the person's last known address 
file a written appeal.  Proceedings on the appeal shall be 
conducted in the same manner as an appeal from a determination 
of employer liability under section 268.12, subdivision 13 of an 
employer's contribution rate or benefits charged to an 
employer's account under section 268.06, subdivision 20. 
    Presented to the governor April 29, 1993 
    Signed by the governor April 30, 1993, 3:35 p.m.