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Minnesota Session Laws - 1998, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 265-S.F.No. 2621
An act relating to economic security; making technical
changes in the department of economic security;
amending Minnesota Statutes 1996, sections 248.07,
subdivision 15; 268.0122, subdivision 2; 268.08, as
amended; 268.101, as amended; 268.13, subdivision 4;
and 268.18, as amended; Minnesota Statutes 1997
Supplement, sections 268.03; 268.042, subdivisions 1
and 3; 268.043; 268.044, subdivision 1; 268.045;
268.047, subdivisions 2, 3, and 5; 268.051; 268.057,
subdivisions 1, 5, 6, and 7; 268.059; 268.063;
268.064, subdivision 2; 268.066; 268.067; 268.07;
268.09, subdivisions 1a, 10, 13, 16, and 17; 268.105,
subdivision 3a; 268.125; 268.13, subdivisions 1 and 2;
268.182; 268.184; 268.192, subdivision 1; 268.194,
subdivisions 2, 3, and 6; and 268.196, subdivision 2;
proposing coding for new law in Minnesota Statutes,
chapter 268; repealing Minnesota Statutes 1996,
sections 268.04, as amended; 268.08, subdivision 5a;
268.13, subdivisions 3 and 5; and 268.25; Minnesota
Statutes 1997 Supplement, sections 268.042,
subdivision 2; and 268.054.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1996, section 248.07,
subdivision 15, is amended to read:
Subd. 15. [APPEALS FROM AGENCY ACTION.] An applicant for
or recipient of rehabilitation service who is dissatisfied with
an agency's action with regard to the furnishing or denial of
services may file a request for administrative review and fair
hearing in accordance with the Code of Federal Regulations,
title 34, section 361.48, and rules adopted under subdivision
14a.
Sec. 2. Minnesota Statutes 1996, section 268.0122,
subdivision 2, is amended to read:
Subd. 2. [SPECIFIC POWERS.] The commissioner of economic
security shall:
(1) administer and supervise all forms of
unemployment reemployment insurance provided for under federal
and state laws that are vested in the commissioner;, including
make investigations and audits, secure and transmit information,
and make available services and facilities as the commissioner
considers necessary or appropriate to facilitate the
administration of any other states, or the federal economic
security law, and accept and use information, services, and
facilities made available by other states or the federal
government;
(2) administer and supervise all employment and training
services assigned to the department of economic security under
federal or state law;
(3) review and comment on local service unit plans and
community investment program plans and approve or disapprove the
plans;
(4) establish and maintain administrative units necessary
to perform administrative functions common to all divisions of
the department;
(5) supervise the county boards of commissioners, local
service units, and any other units of government designated in
federal or state law as responsible for employment and training
programs;
(6) establish administrative standards and payment
conditions for providers of employment and training services;
(7) act as the agent of, and cooperate with, the federal
government in matters of mutual concern, including the
administration of any federal funds granted to the state to aid
in the performance of functions of the commissioner;
(8) obtain reports from local service units and service
providers for the purpose of evaluating the performance of
employment and training services; and
(9) review and comment on plans for Indian tribe employment
and training services and approve or disapprove the plans.
Sec. 3. Minnesota Statutes 1997 Supplement, section
268.03, is amended to read:
268.03 [DECLARATION OF PUBLIC POLICY.]
Subdivision 1. [STATEMENT.] As a guide to the
interpretation and application of sections 268.03 to 268.30, The
public policy of this state underlying sections 268.03 to 268.23
is declared to be as follows: Economic insecurity due to
involuntary unemployment is a serious menace threat to the
health, morals, and welfare well-being of the people of this
state Minnesota. Involuntary unemployment is therefore a
subject of general interest and concern which that requires
appropriate action by the legislature to prevent its spread and
to lighten its burdens. This can be provided by encouraging
employers to provide more stable employment and by the
systematic accumulation of funds during periods of employment to
provide benefits for periods of unemployment, thus maintaining
purchasing power and limiting the serious social consequences of
poor relief assistance. The legislature, therefore, declares
that in its considered judgment The public good and the general
welfare well-being of the citizens of this state Minnesota will
be promoted by providing, under the police taxing powers of the
state for the compulsory setting aside of unemployment reserves
to be used for the benefit of persons individuals unemployed
through no fault of their own. In recognition of its focus
on returning providing a temporary partial wage replacement to
assist the unemployed worker to gainful employment become
reemployed, this program will be known in Minnesota as
"reemployment insurance."
Subd. 2. [STANDARD OF PROOF.] All issues of fact under
sections 268.03 to 268.23 shall be determined by a preponderance
of the evidence. Preponderance of the evidence means evidence
in substantiation of a fact that, when weighed against the
evidence opposing the fact, is more convincing and has a greater
probability of truth.
Sec. 4. [268.035] [DEFINITIONS.]
Subdivision 1. [SCOPE.] Unless the language or context
clearly indicates that a different meaning is intended, the
words, terms, and phrases in this section shall, for the
purposes of sections 268.03 to 268.23, have the meaning stated.
Subd. 2. [AGRICULTURAL EMPLOYMENT.] "Agricultural
employment" means services:
(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 the farm and its
tools and equipment, or in salvaging timber or clearing land of
brush and other debris left by a tornado-like storm, if the
major part of the employment is performed on a farm;
(3) in connection with the production or harvesting of any
commodity defined as an agricultural product in United States
Code, title 7, section 1626 of the Agricultural Marketing Act,
or in connection with cotton ginning, 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
the operator produced more than one-half of the commodity with
respect to which the employment is performed, or in the employ
of a group of operators of farms or a cooperative organization
of which the operators are members, but only if the operators
produced more than one-half of the commodity with respect to
which the employment is performed; however, this clause shall
not be applicable to employment 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 the employment is not
in the course of the employer's trade or business.
For purposes of this subdivision, the term "farm" includes
stock, dairy, poultry, fruit, fur-bearing animals, and truck
farms, plantations, ranches, nurseries, orchards, ranges,
greenhouses, or other similar structures used primarily for the
raising of agricultural or horticultural commodities.
Subd. 3. [BACK PAY.] "Back pay" means a retroactive
payment of money by an employer to an employee or former
employee for lost wages because of the employer's noncompliance
with a state or federal law or a collective bargaining agreement
as determined by an arbitration award, administrative or
judicial decision, or negotiated settlement. The payment shall
be applied to the period immediately following the last day of
employment or as specified in the award, decision, or settlement.
Subd. 4. [BASE PERIOD.] "Base period" means:
(1) the first four of the last five completed calendar
quarters immediately prior to the effective date of a claimant's
reemployment insurance account;
(2) if during the base period under clause (1) a claimant
received workers' compensation for temporary disability under
chapter 176 or a similar law of the United States, or if a
claimant whose own serious illness caused a loss of work for
which the claimant received compensation for loss of wages from
some other source, the claimant may request that the base period
be extended as follows:
(i) if a claimant was compensated for a loss of work of
seven to 13 weeks, the original base period shall be extended to
include the one calendar quarter prior to the original base
period;
(ii) if a claimant was compensated for a loss of work of 14
to 26 weeks, the original base period shall be extended to
include the two calendar quarters prior to the original base
period;
(iii) if a claimant was compensated for a loss of work of
27 to 39 weeks, the original base period shall be extended to
include the three calendar quarters prior to the original base
period; and
(iv) if a claimant was compensated for a loss of work of 40
to 52 weeks, the original base period shall be extended to
include the four quarters prior to the original base period;
(3) if the claimant qualifies for an extended base period
under clause (2), but has insufficient wage credits to establish
a reemployment insurance account, the claimant may request an
alternate base period of the last four completed calendar
quarters prior to the date the claimant's reemployment insurance
account is effective. This alternate base period may be used
only once during any five-calendar-year period; and
(4) no base period under clause (1), extended base period
under clause (2), or alternate base period under clause (3)
shall include wage credits upon which a prior reemployment
insurance account was established.
Subd. 5. [BENEFITS.] "Benefits" means the money payments
payable to a claimant, as provided in sections 268.03 to 268.23,
with respect to the claimant's unemployment.
Subd. 6. [BENEFIT YEAR.] "Benefit year" means the period
of 52 calendar weeks beginning the date a reemployment insurance
account is effective. For a reemployment insurance account
established effective January 1, April 1, July 1, or October 1,
the benefit year will be a period of 53 calendar weeks.
Subd. 7. [CALENDAR QUARTER.] "Calendar quarter" means the
period of three consecutive calendar months ending on March 31,
June 30, September 30, or December 31.
Subd. 8. [CLAIMANT.] "Claimant" means an individual who
has made an application for a reemployment insurance account and
has established or is actively pursuing the establishment of a
reemployment insurance account.
Subd. 9. [CONSTRUCTION/INDEPENDENT CONTRACTOR.] A worker
doing commercial or residential building construction or
improvement, in the public or private sector, performing
services in the course of the trade, business, profession, or
occupation of the employer, shall be considered an employee and
not an "independent contractor" unless the worker meets all the
following conditions:
(1) maintains a separate business with the independent
contractor's own office, equipment, materials, and other
facilities;
(2) holds or has applied for a federal employer
identification number;
(3) operates under contracts to perform specific services
or work for specific amounts of money under which the
independent contractor controls the means of performing the
services or work;
(4) incurs the main expenses related to the service or work
that the independent contractor performs under contract;
(5) is responsible for the satisfactory completion of work
or services that the independent contractor contracts to perform
and is liable for a failure to complete the work or service;
(6) receives compensation for work or service performed
under a contract on a commission or per job or competitive bid
basis and not on any other basis;
(7) may realize a profit or suffer a loss under contracts
to perform work or service;
(8) has continuing or recurring business liabilities or
obligations; and
(9) the success or failure of the independent contractor's
business depends on the relationship of business receipts to
expenditures.
Subd. 10. [CORPORATION.] "Corporation" includes
associations, joint-stock companies, and insurance companies.
This definition shall not be exclusive.
Subd. 11. [COVERED AGRICULTURAL EMPLOYMENT.] "Covered
agricultural employment" means agricultural employment where:
(1) The employment is performed for a person who:
(i) during any calendar quarter in either the current or
the prior calendar year paid wages of $20,000 or more to
employees in agricultural employment; or
(ii) for some portion of a day in each of 20 different
calendar weeks, whether or not the weeks were consecutive, in
either the current or prior calendar year employed in
agricultural employment four or more employees, regardless of
whether they were employed at the same time.
(2) Any employee who is a member of a crew furnished by a
crew leader to be employed in agricultural employment 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 United States Code, title 29, section 1802,
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, that is provided by the crew
leader; and
(ii) if the employee is not an employee of another person.
(3) Any employee who is furnished by a crew leader to be
employed in agricultural employment for any other person and who
is not treated as an employee of the crew leader under clause
(2):
(i) the other person and not the crew leader shall be
treated as the employer of the employee; and
(ii) the other person shall be treated as having paid wages
to the employee in an amount equal to the amount of wages paid
to the employee by the crew leader (either on the crew leader's
behalf or on behalf of the other person) for the agricultural
employment performed for the other person.
(4) The term "crew leader" means an individual who:
(i) furnishes employees to be employed in agricultural
employment for any other person;
(ii) pays (either on the crew leader's own behalf or on
behalf of the other person) the employees furnished by the crew
leader for the agricultural employment performed by them; and
(iii) has not entered into a written agreement with the
other person under which the furnished employee is designated as
an employee of the other person.
(5) Employment of an officer or shareholder of a family
farm corporation shall be excluded from covered agricultural
employment unless the corporation is an employer under United
States Code, title 26, section 3306(a)(2) of the Federal
Unemployment Tax Act.
(6) Employment of an individual 16 years of age or under
shall be excluded from covered agricultural employment unless
the employer is an employer under United States Codes, title 26,
section 3306(a)(2) of the Federal Unemployment Tax Act.
Subd. 12. [COVERED EMPLOYMENT.] "Covered employment" means
the following unless defined as "noncovered employment" under
subdivision 20:
(1) an employee's entire employment if:
(i) the employment is performed entirely in Minnesota;
(ii) the employment is performed primarily in Minnesota,
and the employment performed outside Minnesota is incidental to
the employment in Minnesota; or
(iii) the employment is not performed primarily in any one
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 the base of
operations or place from which the employment is directed or
controlled is not in any state in which part of the employment
is performed, but the employee's residence is in Minnesota;
(2) an employee's employment wherever performed within the
United States or Canada, if:
(i) the employment is not covered under the reemployment
insurance law of any other state or Canada; and
(ii) the place from which the employment is directed or
controlled is in Minnesota;
(3) the employment of an employee who is a citizen of the
United States, performed outside the United States, except in
Canada, in the employ of an American employer if:
(i) the employer's principal place of business in the
United States is located in Minnesota;
(ii) the employer has no place of business in the United
States, but the employer is an individual who is a resident of
Minnesota, or the employer is a corporation that is organized
under the laws of Minnesota, or the employer is a partnership or
a trust and the number of partners or trustees who are residents
of Minnesota is greater than the number who are residents of any
one other state;
(iii) none of the criteria of subclauses (i) and (ii) is
met but the employer has elected coverage in Minnesota, or the
employer having failed to elect coverage in any state, a
claimant has made an application for benefits under section
268.07, based on the employment;
(iv) an "American employer," for the purposes of this
subdivision, means 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;
or
(v) 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;
(4) all employment 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;
(5) for the purposes of satisfying disqualifications under
section 268.095, subdivision 10, "covered employment" shall
include covered employment under a similar law of any other
state or employment covered under a reemployment insurance
system established by an act of Congress; and
(6) periods for which an individual receives back pay are
periods of "covered employment," except for the satisfying of
disqualifications under section 268.095, subdivision 10.
Subd. 13. [EMPLOYEE.] "Employee" means every individual,
who is performing, or has performed services for an employer in
employment.
Subd. 14. [EMPLOYER.] "Employer" means any of the
following which has had one or more employees during the current
or the prior calendar year:
(1) any individual or type of organization, resident or
nonresident, for profit or nonprofit, religious, charitable, or
educational, including any partnership, limited liability
company, trust, estate, or corporation, domestic or foreign, or
the receiver, trustee in bankruptcy, trustee or successor of any
of the foregoing, or the legal representative of a deceased
person;
(2) any government entity, state or federal, foreign or
domestic, Indian tribe, including any subdivision thereof and
any instrumentality thereof owned wholly or in part;
(3) any organization or person that is considered an
employer under United States Code, title 26, section 3306(a) of
the Federal Unemployment Tax Act;
(4) any organization or person that has elected, under
section 268.042, to be subject to sections 268.03 to 268.23;
(5) a joint venture composed of one or more employers;
(6) any private or nonprofit organization or government
agency providing or authorizing the hiring of homeworkers,
personal care attendants, or other individuals performing
similar services in a private home is the employer of the
homeworker, attendant, or similar worker whether the agency pays
the employee directly or provides funds to the recipient of the
services to pay for the services. This clause does not apply to
the state of Minnesota or any county that provides federal,
state, or local funds to a child care provider either directly
or indirectly through a parent who is a child care assistance
recipient; or
(7) each individual employed to perform or assist in
performing the work of any agent or employee shall be considered
to be employed by that employer whether the individual was hired
or paid directly by that employer or by the agent or employee,
provided the employer had actual or constructive knowledge of
the work.
Subd. 15. [EMPLOYMENT.] "Employment" means service
performed by:
(1) an individual who is considered an employee under the
common law of employer-employee and not considered an
independent contractor;
(2) an officer of a corporation;
(3) a member of a limited liability company who is
considered an employee under the common law of
employer-employee;
(4) an individual who performs services for compensation,
as:
(i) an agent-driver or commission-driver engaged in
distributing meat products, vegetable products, fruit products,
beverages, or laundry or dry cleaning services, for a principal;
or
(ii) 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.
This clause shall apply only if the contract of service
provides that substantially all of the services are to be
performed personally by the individual, and the services are
part of a continuing relationship with the person for whom the
services are performed, and the individual does not have a
substantial investment in facilities used in connection with the
performance of the services (other than facilities for
transportation); or
(5) an individual whose service is considered employment
under United States Code, title 26, section 3306(c), of the
Federal Unemployment Tax Act.
Subd. 16. [FAMILY FARM CORPORATION.] "Family farm
corporation" has the meaning given to it in section 500.24,
subdivision 2.
Subd. 17. [FILING; FILED.] "Filing" or "filed" means the
delivery of any document to the commissioner or any of the
commissioner's agents, or the depositing of the document in the
United States mail properly addressed to the department with
postage prepaid, in which case the document shall be considered
filed on the day indicated by the cancellation mark of the
United States Postal Service.
If, where allowed, an application, protest, appeal, or
other required action is made by telephone or electronic
transmission, it shall be considered filed on the day received
by the department.
Subd. 18. [FUND.] "Fund" means the Minnesota reemployment
insurance fund established by section 268.194.
Subd. 19. [HIGH QUARTER.] "High quarter" means the
calendar quarter in a claimant's base period with the highest
amount of wage credits.
Subd. 20. [NONCOVERED EMPLOYMENT.] "Noncovered employment"
means:
(1) employment for the United States government or an
instrumentality thereof;
(2) employment for an Indian, an Indian-controlled
employer, and Indian tribe, or any wholly controlled
subsidiaries or subdivisions, if the employment is performed on
an Indian reservation or Indian Trust Land;
(3) employment for a state, other than Minnesota, or a
political subdivision or instrumentality thereof;
(4) employment for a foreign government;
(5) 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;
(6) employment with respect to which reemployment insurance
benefits are payable under a system established by an act of
Congress;
(7) employment covered by a reciprocal arrangement between
the commissioner and another state or the federal government
pursuant to which all employment performed by an individual for
an employer during the period covered by the reciprocal
arrangement is considered performed entirely within another
state;
(8) employment for a religious, charitable, education, or
other 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), but only if the
organization did not have 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
the prior calendar year, regardless of whether they were
employed at the same time;
(9) employment for a church or convention or association of
churches, or an organization operated primarily for religious
purposes that is operated, supervised, controlled, or
principally supported by a church or convention or association
of churches 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);
(10) employment of 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 the order, 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);
(11) employment 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 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) 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;
(12) employment 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. 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). This clause shall not apply to programs that require
reemployment insurance coverage for the participants;
(13) employment in any calendar quarter for any
organization exempt from income tax under United States Code,
title 26, section 501(a) or 521 of the federal Internal Revenue
Code except a trust described in section 401(a), if the
compensation for the employment is less than $50;
(14) employment for Minnesota or a political subdivision if
the service is as an elected official, a member of a legislative
body, or a member of the judiciary;
(15) employment as a member of the Minnesota national guard
or air national guard;
(16) employment for Minnesota, a political subdivision, or
instrumentality thereof, as an employee serving only on a
temporary basis in case of fire, storm, snow, earthquake, flood,
or similar emergency;
(17) employment as an election official or election worker
for Minnesota or a political subdivision, but only if the
compensation for that employment was less than $1,000 in a
calendar year;
(18) employment for Minnesota that is a major nontenured
policy making or advisory position in the unclassified service;
(19) employment in a policy making position for Minnesota
or a political subdivision, the performance of the duties that
ordinarily does not require more than eight hours per week;
(20) employment for a political subdivision of Minnesota
that is a major nontenured policy making or advisory position;
(21) domestic service in a private household, local college
club, or local chapter of a college fraternity or sorority
performed for a person, only if the wages paid in any calendar
quarter in either the current or preceding calendar year to all
individuals employed in domestic service totaled less than
$1,000.
"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;
(22) 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;
(23) employment of an inmate of a custodial or penal
institution;
(24) employment for a school, college, or university by a
student who is enrolled and is regularly attending classes at
the school, college, or university;
(25) employment of an individual who is enrolled as a
student in a full-time program at a nonprofit or public
educational institution that 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, 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 shall not apply to employment in a
program established for or on behalf of an employer or group of
employers;
(26) 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 pursuant to Laws
1990, chapter 570, article 6, section 3;
(27) employment for a hospital by a patient of the hospital.
"Hospital" means an institution that has been licensed,
certified, or approved by the department of health as a
hospital;
(28) 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 a nurses' training school
chartered and approved pursuant to state law;
(29) employment as an intern for a hospital by an
individual who has completed a four-year course in a medical
school chartered and approved pursuant to state law;
(30) employment as an insurance agent or as an insurance
solicitor, by other than a corporate officer, if all the
compensation for the employment is solely by way of commission.
The word "insurance" shall include an annuity and an optional
annuity;
(31) employment as an officer of a township mutual
insurance company or farmer's mutual insurance company operating
pursuant to chapter 67A;
(32) employment as a real estate salesperson, by other than
a corporate officer, if all the compensation for the employment
is solely by way of commission;
(33) employment as a direct seller as defined in United
States Code, title 26, section 3508;
(34) 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;
(35) casual labor not in the course of the employer's trade
or business;
(36) employment in "agricultural employment" unless
considered "covered agricultural employment" under subdivision
11; or
(37) if the employment during one-half or more of any pay
period constitutes covered employment, all the employment for
the period shall be considered covered employment; but if the
employment performed during more than one-half of any pay period
does not constitute covered employment, then none of the
employment for the period shall be considered covered
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.
Subd. 21. [PERSON.] "Person" means an individual, trust or
estate, a partnership or a corporation.
Subd. 22. [STATE.] "State" includes, in addition to the
states of the United States, the Commonwealth of Puerto Rico,
the District of Columbia, and the Virgin Islands.
Subd. 23. [STATE'S AVERAGE ANNUAL AND AVERAGE WEEKLY
WAGE.] (a) On or before June 30 of each year, the commissioner
shall calculate the state's average annual wage and the state's
average weekly wage in the following manner:
(1) The sum of the total monthly covered employment
reported by all employers for the prior calendar year shall be
divided by 12 to calculate the average monthly covered
employment.
(2) The sum of the total wages paid for all covered
employment reported by all employers for the prior calendar year
shall be divided by the average monthly covered employment to
calculate the state's average annual wage.
(3) The state's average annual wage shall be divided by 52
to calculate the state's average weekly wage.
(b) For purposes of calculating the amount of taxable
wages, the state's average annual wage shall apply to the
calendar year following the calculation.
(c) For purposes of calculating the state's maximum weekly
benefit amount payable on any reemployment insurance account,
the state's average weekly wage shall apply to the 12-month
period beginning August 1 of the calendar year of the
calculation.
Subd. 24. [TAXABLE WAGES.] (a) "Taxable wages" means those
wages paid to an employee in covered employment each calendar
year up to an amount equal to 60 percent of the state's average
annual wage, rounded to the nearest $100.
(b) Taxable wages includes the amount of wages paid for
covered employment by the employer's predecessor in this state
or under the reemployment insurance law of any other state. Any
credit given for amounts reported under the reemployment
insurance law of another state shall be limited to that state's
taxable wage base.
Subd. 25. [TAXES.] "Taxes" means the money payments
required by sections 268.03 to 268.23 to be paid into the fund
by an employer on account of paying wages to employees in
covered employment.
Subd. 26. [UNEMPLOYED.] A claimant shall be considered
"unemployed," (1) in any week that the claimant performs no
service in employment, covered employment, noncovered
employment, self-employment, or volunteer work, and with respect
to which the claimant has no earnings; or (2) in any week of
less than 32 hours of service in employment, covered employment,
noncovered employment, self-employment, or volunteer work if the
earnings with respect to that week are less than the claimant's
weekly benefit amount.
Subd. 27. [WAGE CREDITS.] "Wage credits" mean the amount
of wages paid within a claimant's base period for covered
employment.
Subd. 28. [WAGE DETAIL REPORT.] "Wage detail report" means
the report of wages paid and hours worked by each employee in
covered employment on a calendar quarter basis. An auxiliary
report broken down by business locations, when required by the
commissioner, shall contain the number of employees in covered
employment for each month, and the quarterly total wages for
each location. The auxiliary report may be made part of the
wage detail report, the tax report, or filed separately, as
required by the commissioner.
Subd. 29. [WAGES.] "Wages" means all compensation for
services, including commissions; bonuses; severance payments;
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 all
compensation in any medium other than cash, 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 service 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) 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;
(5) disability payments made under the provisions of any
workers' compensation law;
(6) sickness or accident disability payments made by a
third party payer such as an insurance company;
(7) payments made into a fund, or for the purchase of
insurance or an annuity, to provide for sickness or accident
disability payments to employees pursuant to a plan or system
established by the employer that provides for the employer's
employees generally or for a class or classes of employees; or
(8) nothing in this subdivision shall exclude 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.
Subd. 30. [WAGES PAID.] "Wages paid" means the amount of
wages which have been actually paid or which have been credited
to or set apart for the employee so that payment and disposition
is under the control of the employee. Wage payments delayed
beyond their regularly scheduled pay date are considered
"actually paid" on the missed pay date. Any wages earned but
not paid with no scheduled date of payment shall be considered
"actually paid" on the last day services are performed in
employment before separation.
Wages paid shall not include wages earned but not paid
except as provided for in this subdivision.
Subd. 31. [WEEK.] "Week" means calendar week, ending at
midnight Saturday.
Subd. 32. [WEEKLY BENEFIT AMOUNT.] "Weekly benefit amount"
means the amount of benefits computed under section 268.07, that
a claimant would be entitled to receive for a week, if totally
unemployed and eligible.
Sec. 5. Minnesota Statutes 1997 Supplement, section
268.042, subdivision 1, is amended to read:
Subdivision 1. [EMPLOYER FOR PART OF YEAR.] Except as
provided in subdivisions 2 and subdivision 3, any employing unit
which organization or person that is or becomes an employer
subject to sections 268.03 to 268.23 within any calendar year
shall be deemed considered to be an employer during the whole of
such entire calendar year.
Sec. 6. Minnesota Statutes 1997 Supplement, section
268.042, subdivision 3, is amended to read:
Subd. 3. [ELECTION AGREEMENTS; TERMINATION POWERS OF
COMMISSIONER.] (1) (a) An employing unit organization or person,
not defined as an employer under this chapter, that files with
the commissioner a written election to become an employer,
shall, with the written approval of the commissioner, become an
employer for not less than two calendar years to the same extent
as all other employers, as of the date stated in the approval.
The employing unit organization or person shall cease to be an
employer as of the first day of January of any calendar year,
only, if at least 30 calendar days prior to the first day of
January, the employing unit organization or person has filed
with the commissioner a written notice to that effect.
(2) (b) Any employing unit employer that has services
performed for it that do not constitute employment and covered
employment, may file with the commissioner a written election
that all such service, in one or more distinct establishments or
places of business, shall be deemed to constitute considered
covered employment for purposes of this chapter for not less
than two calendar years. Upon the written approval of the
commissioner, the services shall be deemed to constitute covered
employment from and after the date stated in the approval. The
services shall cease to be deemed considered covered employment
as of the first day of January of any calendar year only if at
least 30 calendar days prior to the first day of January
the employing unit employer has filed with the commissioner a
written notice to that effect.
(3) (c) The commissioner must terminate any election
agreement under this subdivision upon 30 calendar days notice to
the employing unit, if the employing unit employer fails to pay
all contributions taxes due or payments in lieu of contributions
taxes due the reemployment insurance fund.
Sec. 7. Minnesota Statutes 1997 Supplement, section
268.043, is amended to read:
268.043 [DETERMINATIONS OF COVERAGE.]
An official, designated by (a) The commissioner, upon the
commissioner's own motion or upon application of an employing
unit organization or person, shall determine if an employing
unit that organization or person is an employer within the
meaning of this chapter or as to whether services performed for
it constitute employment within the meaning of this chapter and
covered employment, or whether the remuneration compensation for
services constitutes wages as defined in section 268.04,
subdivision 25, and shall notify the employing unit organization
or person of the determination. The determination shall be
final unless the employing unit organization or person, within
30 calendar days after the mailing sending of notice of the
determination to the employing unit's last known address by mail
or electronic transmission, files a written an appeal from it.
Proceedings on the appeal shall be conducted in accordance with
section 268.105.
(b) The commissioner may at any time upon the
commissioner's own motion correct any error of the department
resulting in an erroneous determination under this section,
except for those matters that have been appealed to the court of
appeals and heard on the merits. The commissioner shall issue a
redetermination which A corrected determination shall be final
unless the employing unit, within 30 calendar days after the
mailing sending of notice of the redetermination corrected
determination to the employing unit's last known
address organization or person by mail or electronic
transmission, files a written an appeal from it is filed.
Proceedings on the appeal shall be conducted in accordance with
section 268.105.
(c) No organization or person shall be initially determined
an employer, or that services performed for it were in
employment or covered employment, for periods more than four
years prior to the year in which the determination is made,
unless the commissioner finds that there was fraudulent action
to avoid liability under this chapter.
Sec. 8. Minnesota Statutes 1997 Supplement, section
268.044, subdivision 1, is amended to read:
Subdivision 1. [WAGE DETAIL REPORT.] (a) Each employer
that has employees in covered employment shall provide the
commissioner with a quarterly wage detail report that. The
report shall include for each employee in covered employment,
the employee's name, social security number, the total wages
paid to the employee, and total number of paid hours worked.
For employees exempt from the definition of employee in section
177.23, subdivision 7, clause (6), the employer shall report 40
hours worked for each week any duties were performed by a
full-time employee and shall report a reasonable estimate of the
hours worked for each week duties were performed by a part-time
employee. The report is due and must be filed on or before the
last day of the month following the end of the calendar quarter.
(b) The employer may report the wages paid to the nearest
whole dollar amount.
(c) An employer need not include the name of the employee
or other required information on the wage detail report if
disclosure is specifically exempted by federal law.
Sec. 9. Minnesota Statutes 1997 Supplement, section
268.045, is amended to read:
268.045 [EMPLOYER ACCOUNTS.]
(a) The commissioner shall maintain a separate account for
each employer that has employees in covered employment in the
current or the prior calendar year, except as provided in this
section, and shall charge the account for any benefits
determined chargeable to the employer under section 268.047 and
shall credit the account with all the contributions taxes paid,
or if the employer is liable for payments in lieu
of contributions taxes, the payments made.
(b) Two or more related corporations concurrently employing
the same employees and compensating those employees through a
common paymaster which that is one of the corporations may apply
to the commissioner to establish a common paymaster account that
shall be the account of the common paymaster corporation. If
approved, the separate accounts shall be maintained, but the
employees compensated through the common paymaster shall be
reported as employees of the common paymaster corporation. The
corporations using the common paymaster account shall be jointly
and severally liable for any unpaid contributions taxes,
penalties, and interest owing from the common paymaster
account. The commissioner may prescribe rules for the
establishment, maintenance and termination of common paymaster
accounts.
(c) Two or more employing units employers having 50 percent
or more common ownership and compensating employees through a
single payee payer that is one of the employing units employers
may apply to the commissioner for a merging of the experience
rating records of the employing units employers into a single
joint account.
If approved, the joint account shall be effective on that
date assigned by the commissioner and shall remain in effect for
not less than two calendar years, and continuing unless written
notice terminating the joint account is filed with the
commissioner. The termination shall be effective on January 1
next following the filing of the written notice of termination.
The employing units employers in the joint account shall be
jointly and severally liable for any unpaid contributions taxes,
penalties, and interest owing from the joint account.
(d) Two or more employers that are liable for payments in
lieu of contributions taxes may apply to the commissioner for
the establishment of a group account for the purpose of sharing
the cost of benefits charged based upon wage credits from all
employers in the group. The application shall identify and
authorize a group representative to act as the group's agent for
the purposes of the account. If approved, the commissioner
shall establish a group account for the employers effective as
of the beginning of the calendar year that the application is
received. The account shall remain in effect for not less than
two calendar years and thereafter until terminated at the
discretion of the commissioner or upon application by the group
at least 30 calendar days prior to the end of the two year
period or 30 calendar days prior to January 1 of any following
calendar year subsequent. Each employer in the group shall be
jointly and severally liable for payments in lieu
of contributions taxes for all benefits paid based upon wage
credits from all employers in the group during the period the
group account was in effect. The commissioner may prescribe
rules for the establishment, maintenance and termination of
group accounts.
Sec. 10. Minnesota Statutes 1997 Supplement, section
268.047, subdivision 2, is amended to read:
Subd. 2. [EXCEPTIONS TO CHARGES FOR ALL EMPLOYERS.]
Benefits paid to a claimant shall not be charged to the account
of a contributing taxpaying base period employer or to the
account of a base period employer that is liable for payments in
lieu of contributions taxes under the following conditions:
(a) (1) the claimant was discharged from the employment
because of gross misconduct as determined under section 268.09,
subdivision 10, clause (2) 268.095. This paragraph clause shall
apply only to benefits paid for weeks occurring subsequent to
after the claimant's discharge from employment; or
(b) (2) a claimant's discharge from that employment was
required by a law mandating a background check, or the
claimant's discharge from that employment was required by law
because of a criminal conviction; or
(c) (3) the employer:
(1) (i) provided regularly scheduled part-time employment
to the claimant during the claimant's base period;
(2) (ii) during the claimant's benefit year, continues to
provide the claimant with regularly scheduled employment
approximating 90 percent of the employment provided the claimant
by that employer in the base period, or, for a fire department
or firefighting corporation or operator of a life-support
transportation service, continues to provide employment for a
volunteer firefighter or a volunteer ambulance service personnel
on the same basis that employment was provided in the base
period; and
(3) (iii) is an involved employer because of the claimant's
loss of other employment. The exception to charges shall
terminate effective the first week in the claimant's benefit
year that the employer fails to meet the provisions of clause
(2) subclause (ii);
This clause shall apply to educational institution
employers without consideration of the period between academic
years or terms; or
(d) (4) the claimant's unemployment:
(1) from this employer was directly caused by a major
natural disaster declared by the president pursuant to Section
102(2) of the Disaster Relief Act of 1974, United States Code,
title 42, section 5122(2), if the claimant would have been
eligible for federal disaster unemployment assistance with
respect to that unemployment but for the claimant's receipt of
reemployment insurance benefits; or
(2) (5) the claimant's unemployment from this employer was
directly caused by the condemnation of property by a
governmental agency, a fire, flood, or act of God where 70
percent or more of the employees employed in the affected
location became unemployed as a result and the employer
substantially reopens its operations in that same area within 18
months. Benefits shall be charged to the employer where the
unemployment is caused by the willful act of the employer or a
person acting on behalf of the employer; or
(e) (6) the benefits were paid by another state as a result
of the transferring of wage credits under a federally combined
wage agreement arrangement provided for in section
268.13 268.131; or
(f) (7) on a second reemployment insurance account
established pursuant to section 268.07, subdivision 3, where the
employer provided 90 percent or more of the wage credits in the
claimant's preceding prior base period and the claimant did not
perform services for the employer during the subsequent second
base period; or
(g) (8) the claimant left or partially or totally lost
employment because of a strike or other labor dispute at the
claimant's primary place of employment if the employer was not a
party to the particular strike or labor dispute; or
(h) (9) the benefits were determined overpaid benefits
under section 268.18.
Sec. 11. Minnesota Statutes 1997 Supplement, section
268.047, subdivision 3, is amended to read:
Subd. 3. [EXCEPTIONS TO CHARGES FOR CONTRIBUTING TAXPAYING
EMPLOYERS.] Benefits paid to a claimant shall not be charged to
the account of a contributing taxpaying base period employer
under the following conditions:
(a) (1) the claimant's wage credits from that employer are
less than $500;
(b) (2) the claimant quit the employment, unless it was
determined under section 268.09, subdivisions 1a and 9 268.095,
to have been because of a good reason caused by the employer.
This paragraph clause shall apply only to benefits paid for
periods occurring subsequent to after the claimant's quitting
the employment;
(c) (3) the employer discharged the claimant from
employment because of misconduct as determined pursuant to under
section 268.09, subdivisions 10 and 12 268.095. This paragraph
clause shall apply only to benefits paid for periods occurring
subsequent to after the claimant's discharge from employment;
(d) (4) the employer discharged the claimant from
employment because of reasons resulting directly from the
claimant's serious illness, that was determined not misconduct
under section 268.095, provided the employer made a reasonable
effort to retain the claimant in employment in spite of the
claimant's serious illness; or
(e) (5) the claimant avoided or failed to accept an offer
from the employer of suitable reemployment, as determined under
section 268.095, or avoided or failed to accept an offer of
reemployment that offered with substantially the same or better
hourly wages or and conditions of employment, or both, as were
previously provided by that employer. This paragraph clause
shall only apply to benefits paid for weeks occurring periods
after the claimant's refusal or avoidance.
(6) the claimant was held not disqualified from benefits
under section 268.095 solely because of the application of
section 268.105, subdivision 3a, paragraph (d).
Sec. 12. Minnesota Statutes 1997 Supplement, section
268.047, subdivision 5, is amended to read:
Subd. 5. [NOTICE OF BENEFITS CHARGED.] (a) The
commissioner shall mail to the last known address of notify each
employer a quarterly notice by mail or electronic transmission
of the benefits that have been charged to the employer's
account. Unless a written protest is filed in a manner
prescribed by the commissioner within 30 calendar days from the
date of mailing sending of the notice, the charges set forth in
the notice shall be final and shall not be subject to collateral
attack by way of review of a contribution tax rate notice,
application for a credit adjustment or refund, or otherwise.
(b) Upon receipt of a protest, the commissioner shall
review the charges on the notice and determine whether there has
been an error in the charging of the employer's account. The
commissioner shall either affirm or make a redetermination of
the charges, and a notice of affirmation or redetermination
shall be mailed sent to the employer by mail or electronic
transmission.
(c) The affirmation or redetermination shall be final
unless the employer files a written an appeal within 30 calendar
days after the date of mailing the affirmation or
redetermination was sent. Proceedings on the appeal shall be
conducted in accordance with section 268.105.
(d) An employer may not collaterally attack, by way of a
protest to a notice of benefits charged, any prior determination
or decision holding that benefits shall be charged to the
employer's account, that has become final.
(e) The commissioner may at any time upon the
commissioner's own motion correct a clerical error that resulted
in charges to an employer's account.
Sec. 13. Minnesota Statutes 1997 Supplement, section
268.051, is amended to read:
268.051 [EMPLOYERS CONTRIBUTIONS TAXES.]
Subdivision 1. [PAYMENTS.] (a) Contributions Taxes shall
accrue and become payable by each employer for each calendar
year that the employer is subject to this chapter paid wages to
employees in covered employment, except for:
(1) nonprofit corporations as provided in section 268.053;
and
(2) the state of Minnesota and political subdivisions as
provided in section 268.052.
Each employer shall pay contributions taxes quarterly, at the
employer's assigned contribution tax rate, on the taxable wages
paid to each employee. The contributions taxes shall be paid to
the Minnesota reemployment insurance fund on or before the last
day of the month following the end of the calendar quarter.
(b) The contribution tax may be paid in an amount to the
nearest whole dollar.
(c) When the contribution tax for any calendar quarter is
less than $1, the contribution tax shall be disregarded.
Subd. 1a. [TAX REPORTS.] (a) Every employer, except those
making payments in lieu of taxes, shall submit a tax report on a
form, or in a manner, prescribed by the commissioner on or
before the last day of the month following the end of the
calendar quarter, unless the employer meets the requirements for
submitting tax reports annually under section 268.0511. An
employer that fails to submit a tax report when due, or submits
an incorrect tax report, shall be subject to section 268.057,
subdivision 1.
(b) Each tax report shall include the total wages paid and
the taxable wages paid that quarter, the amount of tax due, and
any other information required by the commissioner.
(c) A tax report must be submitted for each calendar
quarter even though no wages were paid or no tax is due.
Subd. 2. [COMPUTATION OF CONTRIBUTION TAX RATES.] (a) For
each calendar year the commissioner shall compute the
contribution tax rate of each employer that qualifies for an
experience rating by adding the minimum contribution tax rate to
the employer's experience rating.
(b) The minimum contribution tax rate shall be six-tenths
of one percent if the amount in the reemployment insurance fund
is less than $200,000,000 on June 30 of the preceding prior
calendar year; or five-tenths of one percent if the fund is more
than $200,000,000 but less than $225,000,000; or four-tenths of
one percent if the fund is more than $225,000,000 but less than
$250,000,000; or three-tenths of one percent if the fund is more
than $250,000,000 but less than $275,000,000; or two-tenths of
one percent if the fund is $275,000,000 but less than
$300,000,000; or one-tenth of one percent if the fund is
$300,000,000 or more.
(c) The maximum contribution rate shall be 9.0 percent.
(d) For the purposes of this subdivision the reemployment
insurance fund shall not include any money advanced from the
federal unemployment trust fund.
Subd. 3. [COMPUTATION OF EACH AN EMPLOYER'S EXPERIENCE
RATING.] (a) For each calendar year, the commissioner shall
compute an experience rating for each an employer who has been
subject to this chapter for at least the 15 consecutive 12
calendar months immediately preceding prior to July 1 of
the preceding prior calendar year. The experience rating shall
be the ratio obtained by dividing 1-1/4 times the total benefits
charged to the employer's account during the period the employer
has been subject to this chapter but not less than the 15 12 or
more than the 60 consecutive calendar months ending on June 30
of the preceding prior calendar year by the employer's total
taxable payroll for the same period on which all contributions
due have been paid on or before October 31 of the preceding
calendar year.
(b) For purposes of paragraph (a), only that taxable
payroll upon which taxes have been paid on or before September
30 of the prior calendar year may be used in computing an
employer's experience rating.
(c) The experience rating shall be computed to the nearest
one-tenth of a percent, to a maximum of 8.9 percent.
Subd. 4. [EXPERIENCE RATING RECORD TRANSFER.] (a) When
an employing unit succeeds to or employer acquires the
organization, trade or business or substantially all the assets
of another employing unit that at the time of the acquisition
was an employer subject to this law, and continues the
organization, trade or business employer, and there is 25
percent or more common ownership, directly or indirectly,
between the predecessor and successor, the experience rating
record of the predecessor employer shall be transferred as of
the date of acquisition to the successor employer for the
purpose of computation of computing a contribution tax rate.
(b) When an employing unit succeeds to or employer acquires
a distinct severable portion of the organization, trade,
business, or assets that is less than substantially all of the
employing enterprises of another employing unit employer, and
there is 25 percent or more common ownership, directly or
indirectly, between the predecessor and successor, the successor
employing unit employer shall acquire the experience rating
record attributable to the portion to which it has succeeded
acquired, and the predecessor employing unit employer shall
retain the experience rating record attributable to the portion
that it has retained, if (1) the successor continues the
organization, trade, or business of the portion acquired, (2)
the successor makes a written request to file an
application apply for the transfer of the experience rating
record for attributable to the severable portion acquired from
the predecessor (3) and within 90 180 calendar days from the
date of mailing the application to the successor the successor
and predecessor jointly sign and file acquisition and (2) files
an application as within the time and in the manner prescribed
by the commissioner that furnishes sufficient information to
substantiate the severable portion and to assign the appropriate
total and taxable wages and benefit charges to the successor for
experience rating purposes.
(c) The term "common ownership" for purposes of this
subdivision includes ownership by a spouse, parent, child,
brother, sister, aunt, uncle, or first cousin, by birth or by
marriage.
(d) If the successor employer under paragraphs (a) and (b)
had an experience rating record at the time of the acquisition,
the transferred record of the predecessor shall be combined with
the successor's record for purposes of computation of computing
a contribution tax rate.
(d) (e) If there has been a transfer of an experience
rating record under paragraph (a) or (b), employment with a
predecessor employer shall not be deemed considered to have been
terminated if similar employment is offered by the successor
employer and accepted by the employee.
(e) (f) The commissioner, upon the commissioner's own
motion or upon application of an employing unit employer shall
determine if an employing unit employer is a successor within
the meaning of this subdivision and shall mail send the
determination to the last known address of the employing
unit employer by mail or electronic transmission. The
determination shall be final unless a written an appeal is filed
by the employing unit employer within 30 calendar days
after mailing of the sending of the determination. Proceedings
on the appeal shall be conducted in accordance with section
268.105.
(f) (g) The commissioner shall may, as the result of any
determination or decision regarding succession or nonsuccession,
recompute the contribution tax rate of all employers affected by
the determination or decision for any year, including the year
of the acquisition or succession and subsequent years, that is
affected by the transfer or nontransfer of part or all of the
experience rating record under this subdivision. This paragraph
does not apply to rates that have become final prior to before
the filing of a written request to file an application apply for
the transfer of a severable portion of the experience rating
record as provided in under paragraph (b).
(g) (h) The experience rating record for purposes of this
subdivision shall consist of those factors which make up an
experience rating, without the 15-month 12-month minimum
required under subdivision 3.
(i) If the commissioner finds that a transaction was done,
in whole or in part, to avoid an experience rating record or the
transfer of an experience rating record, the commissioner may
transfer the experience rating record to an employer
notwithstanding the requirements of paragraph (a).
Subd. 5. [TAX RATE FOR NEW EMPLOYERS.] (a) Each employer
that does not qualify for an experience rating, except employers
in the construction industry, shall be assigned a contribution
tax rate the higher of (1) one percent, or (2) the state's
benefit average cost rate; to a maximum of 5-4/10 percent. For
purposes of this paragraph, the state's benefit average cost
rate shall be computed annually and shall be derived by dividing
the total dollar amount of benefits paid during the 60
consecutive calendar months immediately preceding prior to July
1 of each year by the total taxable wages of all contributing
taxpaying employers during the same period. This rate shall be
applicable for the calendar year next succeeding following the
computation date.
(b) Each employer in the construction industry that does
not qualify for an experience rating shall be assigned a
contribution tax rate, the higher of (1) one percent, or (2) the
state's benefit average cost rate for construction employers to
a maximum of 9.0 8.9 percent, plus the applicable minimum tax
rate. For purposes of this paragraph, the state's benefit
average cost rate shall be computed annually and shall be
derived by dividing the total dollar amount of benefits paid to
claimants of construction industry employers during the 60
consecutive calendar months immediately preceding prior to July
1 of each year by the total taxable wages of construction
industry employers during the same period. This rate shall be
applicable for the calendar year next succeeding following the
computation date.
For purposes of this subdivision An employer is considered
in the construction industry if the employer is within division
C of the Standard Industrial Classification Manual issued by the
United States Office of Management and Budget, except as
excluded by rules adopted by the commissioner.
Subd. 6. [NOTICE OF CONTRIBUTION TAX RATE.] (a) The
commissioner shall mail to the last known address of notify each
employer notice by mail or electronic transmission of the
employer's contribution tax rate as determined for any calendar
year. The notice shall contain the contribution tax rate and
the factors used in determining the employer's experience
rating. Unless a protest of the rate is made, the assigned rate
shall be final except for fraud and shall be the rate upon at
which contributions taxes shall be paid for the calendar year
for which the rate was assigned. The contribution tax rate
shall not be subject to collateral attack by way of claim for a
credit adjustment or refund, or otherwise.
(b) If the legislature, subsequent to the mailing sending
of the contribution tax rate, changes any of the factors used to
determine the rate, the earlier notice shall be void. A
new contribution tax rate based on the new factors shall be
computed and mailed sent to the employer.
(c) A review of an employer's contribution tax rate may be
obtained by the employer filing with, in a manner prescribed by
the commissioner, a written protest within 30 calendar days from
the date of the mailing of the contribution tax rate notice was
sent to the employer. Upon receipt of the protest, the
commissioner shall review the contribution tax rate to determine
whether or not there has been any clerical error or error in
computation. The commissioner shall either affirm or make a
redetermination of the rate and a notice of the affirmation or
redetermination shall be mailed sent to the employer by mail or
electronic transmission. The affirmation or redetermination
shall be final unless the employer files a written an appeal
within 30 calendar days after the date of mailing the
affirmation or redetermination was sent. Proceedings on the
appeal shall be conducted in accordance with section 268.105.
(d) The commissioner may at any time upon the
commissioner's own motion correct any error in the computation
or the assignment of an employer's contribution tax rate.
Subd. 7. [CONTRIBUTION TAX RATE BUYDOWN.] (a) Any employer
who has been assigned a contribution tax rate based upon an
experience rating may, upon the voluntary payment of an amount
equivalent to any portion or all of the benefits charged to the
employer's account, plus a surcharge of 25 percent, obtain a
cancellation of benefits charged to the account equal to the
payment made, less the surcharge. Upon the payment, the
commissioner shall compute a new experience rating for the
employer, and determine a new contribution tax rate.
(b) Voluntary payments may be made only during the 30
calendar day period immediately following the date of
mailing sending of the notice of contribution tax rate. This
period may be extended, upon a showing of good cause, but in no
event shall a voluntary payment be allowed after 120 calendar
days immediately following from the beginning of the calendar
year for which the contribution tax rate is effective.
(c) Voluntary payments made within the time required will
not be refunded unless a request is made in writing within 30
calendar days after mailing sending of the notice of the new
contribution tax rate.
Subd. 8. [SOLVENCY ASSESSMENT.] (a) If the fund balance is
greater than $75,000,000 but less than $150,000,000 on June 30
of any year, a solvency assessment on taxpaying employers will
be in effect for the following calendar year. Each The employer
, except those making payments in lieu of contributions shall
pay a quarterly a solvency assessment of ten percent multiplied
by of the contributions paid or taxes due and payable for each
calendar quarter in that year. Quarterly contributions and the
solvency assessment payments shall be combined and will be
computed notwithstanding the maximum contribution rate, by
multiplying the quarterly taxable payroll by the assigned
contribution rate multiplied by 1.10.
(b) If the fund balance is less than $75,000,000 on June 30
of any year, a solvency assessment will be in effect for the
following calendar year. Each employer, except those making
payments in lieu of contributions, shall pay a quarterly
solvency assessment of 15 percent multiplied by the
contributions paid or due and payable for each calendar quarter
in that year. Quarterly contributions and the solvency
assessment payments shall be combined and will be computed
notwithstanding the maximum contribution rate, by multiplying
the quarterly taxable payroll by the assigned contribution rate
multiplied by 1.15 rounded to the nearest one-hundredth of a
percent.
(b) The solvency assessment shall be placed into a special
account from which the commissioner shall pay any interest
accruing on any advance from the federal unemployment trust fund
provided for under section 268.194, subdivision 6. If the
commissioner determines that the balance in this special account
is more than is necessary to pay the interest on any advance,
the commissioner shall pay to the fund the amount in excess of
that necessary to pay interest on any advance.
Sec. 14. Minnesota Statutes 1997 Supplement, section
268.057, subdivision 1, is amended to read:
Subdivision 1. [REPORTS; DELINQUENCIES; PENALTIES.] (a)
Any employer who knowingly fails to make and submit to the
commissioner any contribution tax report at the time the report
is required under section 268.051, subdivision 1a, or 268.0511
shall pay to the department a penalty of up to $25 or an amount
of 1-1/2 percent of contributions taxes accrued for each month
from and after the due date until the tax report is properly
made and submitted, whichever is greater.
(b) If any employer required to make and submit
contribution tax reports fails to do so within the time
required, or makes submits, willfully or otherwise, an
incorrect, or false, or fraudulent contribution tax report, the
employer shall, on the written demand of the commissioner sent
by mail or electronic transmission, make submit the contribution
tax report, or corrected report, within ten days after the
mailing of the written demand and at the same time pay the whole
contribution, or any additional contribution, tax due. If the
employer fails within that time to make submit the tax report,
or corrected report and pay any tax due, the commissioner shall
make a report, or corrected report, an estimated tax report from
the commissioner's own knowledge and from information the
commissioner may obtain and assess a contribution tax on that
basis, which contribution. That assessed tax, plus any
penalties and interest shall be paid within ten days after the
commissioner has mailed to the employer a written notice of the
amount due and demand for payment has been sent by mail or
electronic transmission. Any contribution report or assessment
made by the commissioner on account assessed tax because of the
failure of the employer to make submit a tax report or corrected
tax report shall be prima facie correct and valid, and the
employer shall have the burden of establishing its incorrectness
or invalidity in any subsequent action or proceeding. Whenever
the delinquent employer files a tax report or corrected tax
report, the commissioner may, on finding it substantially
correct, substitute it for the commissioner's accept that report.
(c) If the commissioner finds that any part of any
employer's contribution tax deficiency is due to fraud with
intent to avoid payment of contributions taxes to the fund, 50
percent of the total amount of the deficiency or $500, whichever
is greater, shall be assessed as a penalty against the employer
and collected in addition to the deficiency.
(d) Any employing unit that fails to make and submit to the
commissioner any report, other than a contribution report or
wage detail report, as and when required by rule, shall be
subject to a penalty of $50.
(e) The penalties provided for in paragraphs (a), (c), and
(d) (c) are in addition to interest and any other penalties and
shall be paid to the department and credited to the contingent
account.
(f) (e) An employer or officer or agent of an employer is
guilty of a gross misdemeanor, unless the contribution tax or
other payment involved exceeds $500, in which case the person is
guilty of a felony, if the individual:
(1) in order to avoid becoming or remaining a subject
employer or to avoid or reduce any contribution tax or other
payment required under this chapter:
(i) makes a false statement or representation knowing it to
be false; or
(ii) knowingly fails to disclose a material fact; or
(2) willfully fails or refuses to make pay any
contributions taxes or other payment at the time required.
Sec. 15. Minnesota Statutes 1997 Supplement, section
268.057, subdivision 5, is amended to read:
Subd. 5. [INTEREST ON PAST DUE CONTRIBUTIONS TAXES.] If
contributions taxes or reimbursements payments in lieu of taxes
to the unemployment fund are not paid on the date on which they
are due the unpaid balance thereof shall bear interest at the
rate of one and one-half percent per month or any part thereof.
Contributions Taxes or reimbursements payments in lieu of taxes
received by mail postmarked on a day following the date on which
the law requires contributions to be paid due shall be deemed
considered to have been paid on the due date if there is
substantial evidence tending to prove that the
contribution payment was actually deposited in the United States
mails properly addressed to the department with postage prepaid
thereon on or before the due date. Interest collected pursuant
to this subdivision shall be paid into credited to the
contingent account. Interest on contributions due under this
subdivision may be waived in accordance with by rules as
adopted by the commissioner may adopt.
Sec. 16. Minnesota Statutes 1997 Supplement, section
268.057, subdivision 6, is amended to read:
Subd. 6. [INTEREST ON JUDGMENTS.] Notwithstanding section
549.09, if judgment is or has been entered upon any past
due contribution tax or reimbursement which has not been paid
within the time specified by law for payment in lieu of taxes,
the unpaid judgment shall bear interest at the rate specified in
subdivision 1 5 until the date of payment. The rate will be
effective after July 1, 1987, on any unpaid judgment balances
and all new judgments docketed after that date.
Sec. 17. Minnesota Statutes 1997 Supplement, section
268.057, subdivision 7, is amended to read:
Subd. 7. [CREDIT ADJUSTMENTS, REFUNDS.] (a) If an employer
makes an application for an a credit adjustment of any amount
paid as contributions taxes or interest thereon, to be applied
against subsequent contribution payments, or for a refund
thereof because such adjustment cannot be made, and the payment
was made within four years prior to of the year in which that
the application is payment was made, and if the commissioner
shall determine determines that the payment of such
contributions or interest or any portion thereof was erroneous,
the commissioner shall allow such employer to make an adjustment
thereof, and issue a credit without interest, in connection with
subsequent contribution payments by the employer, or. If such
adjustment a credit cannot be made used, the commissioner shall
refund from the fund to which such payment has been credited,
without interest, the amount erroneously paid. For like cause
and within the same period, The commissioner, on the
commissioner's own motion, may make a credit adjustment or
refund may be so made on the commissioner's own initiative under
this subdivision.
In the event that any application for (b) If a credit
adjustment or refund is denied in whole or in part, a written
notice of such denial shall be mailed sent to the applicant
employer by mail or electronic transmission. Within 30 calendar
days after the mailing sending of such the notice of denial to
the applicant's last known address, the applicant employer may
request, in writing, that the commissioner grant a hearing for
the purpose of reconsidering the facts submitted and to consider
any additional information appeal. Proceedings on the appeal
shall be conducted in accordance with section 268.105.
Sec. 18. Minnesota Statutes 1997 Supplement, section
268.059, is amended to read:
268.059 [GARNISHMENT FOR DELINQUENT TAXES AND BENEFIT
OVERPAYMENTS.]
(a) The commissioner or a delegated representative may,
within six years after the date of assessment of the tax, or
payment in lieu of contribution, or determination of benefit
overpayment, or if a lien has been filed, within the statutory
period for enforcement of the lien, give notice to any employer
that an employee of that employer owes delinquent reemployment
insurance taxes or, payments in lieu of contributions taxes,
or overpaid benefits, including penalties, interest, and costs,
or has an unpaid benefit overpayment and that the obligation to
the department should be withheld from the employee's wages.
The commissioner can may proceed under this section only if the
tax, payment in lieu of contributions taxes, or benefit
overpayment is uncontested or if the time for any appeal has
expired. The commissioner shall not proceed under this section
until the expiration of 30 calendar days after mailing to the
debtor employee, at the debtor's last known address, a written
notice of garnishment intent to garnish wages and exemption
notice. The That notice shall list:
(1) the amount of taxes, payments in lieu of contributions
taxes, overpaid benefits, interest, penalties, or costs, or
benefit overpayment due from the debtor;
(2) demand for immediate payment; and
(3) the commissioner's intention to serve a garnishment
notice on the debtor's employer pursuant to this section.
The effect of the notice shall expire 180 calendar days
after it has been mailed to the debtor provided that the notice
may be renewed by mailing a new notice which that is in
accordance with this section. The renewed notice shall have the
effect of reinstating the priority of the original claim notice.
The exemption notice to the debtor shall be in substantially the
same form as that provided in section 571.72. The notice shall
further inform the debtor of the wage right to claim exemptions
contained in section 550.37, subdivision 14. If no statement
written claim of exemption is received by the commissioner
within 30 calendar days from the after mailing of the notice,
the commissioner may proceed under this section with the
garnishment. The notice to the debtor's employer may be served
by mail or by delivery by an employee of the commissioner and
shall be in substantially the same form as provided in section
571.75. Upon receipt of the garnishment notice, the employer
shall retain withhold from the earnings due or to become due to
the employee, the total amount shown by on the notice plus
accrued interest, subject to the provisions of section 571.922.
The employer shall continue to retain withhold each pay period
the amount shown on the notice plus accrued interest until the
garnishment notice is released by the commissioner. Upon
receipt of notice by the employer, the claim of the commissioner
shall have priority over any subsequent garnishments or wage
assignments. The commissioner may arrange between the employer
and employee for retaining withholding a portion of the total
amount due the employee each pay period, until the total amount
shown by on the notice plus accrued interest has been retained
withheld.
The "earnings due" any employee is as defined in accordance
with section 571.921. The maximum garnishment allowed under
this section for any one pay period shall be decreased by any
amounts payable pursuant to a any other garnishment action with
respect to which the employer was served prior to being served
with the garnishment notice of delinquency, and any amounts
covered by any irrevocable and previously effective assignment
of wages; the employer shall give notice to the commissioner of
the amounts and the facts relating to the assignment within ten
days after the service of the garnishment notice of delinquency
on the form provided by the commissioner as noted in this
section.
(b) If the employee ceases to be employed by the employer
before the full amount set forth in a on the garnishment notice
of garnishment plus accrued interest has been retained withheld,
the employer shall immediately notify the commissioner in
writing of the termination date of the employee and the total
amount retained withheld. No employer may discharge or
otherwise discipline any employee by the reason of the fact that
because the commissioner has proceeded under this section. If
an employer discharges an employee in violation of
this provision section, the employee shall have the same remedy
as provided in section 571.927, subdivision 2.
(c) Within ten calendar days after the expiration of the
pay period, the employer shall remit to the commissioner, on a
form and in the manner prescribed by the commissioner, the
amount retained withheld during each pay period under this
section.
(d) Paragraphs (a) to (c), except provisions imposing a
liability on the employer for failure to retain or remit, shall
apply to cases in which if the employer is the United States or
any instrumentality thereof or this state of Minnesota or any
political subdivision thereof.
(e) The commissioner shall refund to the employee any
excess amounts retained withheld from the employee under this
section. If any excess results from payments by the employer
because of willful failure to retain or remit as prescribed in
paragraph (c), the excess attributable to the employer's payment
shall be refunded to the employer.
(f) Employers required to retain delinquent amounts under
this section shall not be required to compute any additional
interest, costs, or other charges to be retained.
(g) (f) An employer that fails or refuses to comply with
the requirements of this section shall be liable as provided in
section 268.058, subdivision 3, paragraph (i).
Sec. 19. Minnesota Statutes 1997 Supplement, section
268.063, is amended to read:
268.063 [PERSONAL LIABILITY.]
(a) Any officer, director, or employee of a corporation or
any manager, governor, member, or employee of a limited
liability company which is an employer under sections 268.03 to
268.23, who
(1) 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
paying the amounts due under this chapter, and
(2) willfully fails to file the tax reports or to make
payments as required pay the amounts due, shall be personally
liable for contributions taxes or reimbursement payments in lieu
of taxes, including interest, penalties, and costs in the event
the employer does not pay to the department those amounts for
which the employer is liable.
For purposes of this subdivision section, "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 amounts due under
this chapter were unpaid. An evil motive or intent to defraud
is not necessary to satisfy the willfulness requirement.
(b) Any partner of a limited liability partnership, or
professional limited liability partnership, shall be jointly and
severally liable for contributions taxes or
reimbursement payments in lieu of taxes, including interest,
penalties, and costs in the event the employer does not pay to
the department those amounts for which the employer is liable.
(c) 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 taxes, payments in lieu of taxes, interest, and
penalties due pursuant to this chapter shall be personally
liable for the deficiency.
(d) The personal liability of any person as provided herein
individual shall survive dissolution, reorganization,
receivership, or assignment for the benefit of creditors. For
the purposes of this subdivision section, all wages paid by the
employer shall be considered earned from the person individual
determined to be personally liable.
An official designated by (e) The commissioner shall make
an initial determination as to the personal liability under this
section. The determination shall be final unless the person
individual found to be personally liable shall within 30
calendar days after mailing of notice of determination to
the person's individual's last known address file files a
written protest. Upon receipt of the protest, the
official commissioner shall reexamine the personal liability
determination and either affirm or redetermine the assessment of
personal liability and a notice of the affirmation or
redetermination shall be mailed to the person's individual's
last known address. The affirmation or redetermination shall
become final unless a written an appeal is filed within 30
calendar days of after the date of mailing. Proceedings on the
appeal shall be conducted in accordance with section 268.105.
Sec. 20. Minnesota Statutes 1997 Supplement, section
268.064, subdivision 2, is amended to read:
Subd. 2. [REASONABLE VALUE.] An official, designated by
The commissioner, upon the official's commissioner's own motion
or upon application of the potential successor, shall determine
the reasonable value of the organization, trade, or business or
assets acquired by the successor based on available
information. The determination shall be final unless the
successor, within 30 calendar days after the mailing sending of
notice of the determination to the successor's last known
address successor by mail or electronic transmission, files a
written an appeal from it. Proceedings on the appeal shall be
conducted in accordance with section 268.105.
Sec. 21. Minnesota Statutes 1997 Supplement, section
268.066, is amended to read:
268.066 [CANCELLATION OF DELINQUENT CONTRIBUTIONS TAXES.]
(a) The commissioner may shall cancel as uncollectible any
contributions taxes, reimbursements payments in lieu of taxes,
penalties, or the interest or costs thereon, which remain unpaid
six years after the amounts have been first determined by the
commissioner to be due and payable. This section does not
prohibit the commissioner from collecting any, except where the
delinquent amounts are secured by a notice of lien or, a
judgment which are older than six years, are in the process of
garnishment, or are under a payment plan.
(b) The commissioner may cancel at any time as
uncollectible any taxes, payments in lieu of taxes, penalties,
or the interest or costs thereon, that the commissioner
determines are uncollectible due to death or bankruptcy.
Sec. 22. Minnesota Statutes 1997 Supplement, section
268.067, is amended to read:
268.067 [COMPROMISE AGREEMENTS.]
(a) The commissioner, or an authorized representative, may
compromise in whole or in part any action, determination, or
decision which that affects an employer and which that has
become final during the preceding prior 24 months.
(b) The commissioner, or an authorized representative, may
at any time compromise delinquent employer contributions taxes,
reimbursements payments in lieu of taxes, interest, penalties,
and costs under this section.
(c) Any compromise under paragraphs (a) and (b) shall be by
written agreement signed by the employing unit employer and the
commissioner or authorized representative.
The department commissioner shall enter into a compromise
agreement only if it is in the best interest of the state of
Minnesota. The written agreement must set forth the reason and
all the terms of the agreement. Any agreements under this
section The agreement must be approved by an attorney who is a
regularly salaried employee of the department and who has been
designated by the commissioner for that purpose.
Sec. 23. Minnesota Statutes 1997 Supplement, section
268.07, is amended to read:
268.07 [REEMPLOYMENT INSURANCE ACCOUNT.]
Subdivision 1. [APPLICATION; DETERMINATION.] (a) An
application for reemployment insurance benefits may be made in
person, by mail, by telephone, or by electronic transmission as
the commissioner shall require. The commissioner may by rule
adopt other requirements for an application.
(b) An official, designated by The commissioner, shall
promptly examine each application for benefits to determine the
base period, the benefit year, the weekly benefit amount
payable, if any, and the maximum benefit amount of benefits
payable, if any. The determination shall be known as the
determination of reemployment insurance account. A written
determination of reemployment insurance account must be promptly
mailed sent to the claimant and all base period employers, by
mail or electronic transmission.
(c) If a base period employer failed to provide wage
information for the claimant as required in section 268.044, the
commissioner shall accept a claimant certification as to wage
credits, based upon the claimant's records, and issue a
determination of reemployment insurance account.
(d)(1) The commissioner may, at any time within 24 months
from the establishment of a reemployment insurance account,
reconsider any determination of reemployment insurance account
and make a redetermination if the commissioner finds that the
determination was incorrect for any reason. A written
redetermination of reemployment insurance account shall be
promptly mailed sent to the claimant and all base period
employers, by mail or electronic transmission.
(2) If a redetermination of reemployment insurance account
reduces the weekly benefit amount or maximum benefit amount of
benefits payable, any benefits paid greater than the claimant
was entitled is an overpayment of those benefits subject to
section 268.18, except when, in the absence of fraud, a
redetermination is due to an error or omission by an employer in
providing wage information as required in section 268.044.
Subd. 2. [WEEKLY BENEFIT AMOUNT AND DURATION MAXIMUM
AMOUNT OF BENEFITS.] (a) To establish a reemployment insurance
account, a claimant must have:
(1) wage credits in two or more calendar quarters of the
claimant's base period;
(2) minimum total wage credits equal to or greater than the
high quarter wage credits multiplied by 1.25;
(3) high quarter wage credits of not less than $1,000.
(b) If the commissioner finds that a claimant has
established a reemployment insurance account, the weekly benefit
amount payable to the claimant during the claimant's benefit
year shall be equal to 1/26 of the claimant's high quarter wage
credits, rounded to the next lower whole dollar. the higher of:
(1) 50 percent of the claimant's average weekly wage during
the claimant's base period, to a maximum of 66-2/3 percent of
the state's average weekly wage; or
(2) 50 percent of the claimant's average weekly wage during
the high quarter to a maximum of 50 percent of the state's
average weekly wage, or $331, whichever is higher.
The claimant's average weekly wage under clause (1) shall
be computed by dividing the claimant's total wage credits by
52. The claimant's average weekly wage under clause (2) shall
be computed by dividing the claimant's high quarter wage credits
by 13.
(c) Notwithstanding paragraph (b), the maximum weekly
benefit amount for any reemployment insurance account
established during the 12-month period subsequent to June 30 of
any year shall be determined on the basis of the reemployment
insurance fund balance on December 31 of the preceding year. If
the fund balance is less than $70,000,000 on that date, the
maximum weekly benefit amount shall be 66-2/3 percent of the
state's average weekly wage; if the fund balance is more than
$70,000,000 but less than $100,000,000, the maximum weekly
benefit amount is 66 percent of the state's average weekly wage;
if the fund balance is more than $100,000,000 but less than
$150,000,000, the maximum weekly benefit amount is 65 percent of
the state's average weekly wage; if the fund balance is more
than $150,000,000 but less than $200,000,000, the maximum weekly
benefit amount is 64 percent of the state's average weekly wage;
if the fund balance is more than $200,000,000 but less than
$250,000,000, the maximum weekly benefit amount is 63 percent of
the state's average weekly wage; if the fund balance is more
than $250,000,000 but less than $300,000,000, the maximum weekly
benefit amount is 62 percent of the state's average weekly wage;
if the fund balance is more than $300,000,000 but less than
$350,000,000, the maximum weekly benefit amount is 61 percent of
the state's average weekly wage; if the fund balance is more
than $350,000,000, the maximum weekly benefit amount is 60
percent.
(c) The state's maximum weekly benefit amount and the
claimant's weekly benefit amount shall be computed to the
nearest whole dollar.
(d) The maximum benefit amount of benefits payable on any
reemployment insurance account shall equal one-third of the
claimant's total wage credits rounded to the next lower dollar,
not to exceed 26 times the claimant's weekly benefit amount.
Subd. 3. [SECOND ACCOUNT REQUIREMENTS.] To establish a
second reemployment insurance account following the expiration
of a benefit year on a preceding prior reemployment insurance
account, a claimant must have sufficient wage credits to
establish a reemployment insurance account under the provisions
of subdivision 2 and must have performed services in covered
employment after the establishment effective date of the
preceding prior reemployment insurance account. The wages paid
for those services that employment must equal not less than
eight times the weekly benefit amount of the preceding prior
reemployment insurance account. A reemployment insurance
account established sufficiently in advance of anticipated
unemployment to make the limitations of this
paragraph subdivision ineffective shall not be allowed. It is
The purpose of this provision subdivision is to prevent a
claimant from establishing more than one reemployment insurance
account as a result of one separation from employment.
Subd. 3a. [RIGHT OF APPEAL.] (a) A determination or
redetermination of a reemployment insurance account shall be
final unless a claimant or base period employer within 15 30
calendar days after the mailing sending of the determination or
redetermination to the last known address files a written an
appeal. Every determination or redetermination of a
reemployment insurance account shall contain a prominent
statement indicating in clear language the method of appealing,
the time within which the appeal must be made, and the
consequences of not appealing. Proceedings on the appeal shall
be conducted in accordance with section 268.105.
(b) Any claimant or base period employer may appeal from a
determination or redetermination of a reemployment insurance
account on the issue of whether an employing unit is an employer
within the meaning of this chapter or whether services performed
constitute employment within the meaning of this chapter and
covered employment. Proceedings on the appeal shall be
conducted in accordance with section 268.105.
Subd. 3b. [LIMITATIONS.] (a) A reemployment insurance
account shall be established the Sunday of the calendar week in
which that the application for reemployment insurance benefits
was made. If an individual attempted to make an application for
a reemployment insurance account, but was prevented from making
an application by the department, the reemployment insurance
account shall be established the Sunday of the calendar week the
individual first attempted to make an application.
(b) A reemployment insurance account, once established, may
be withdrawn and a new account established only if the claimant
has not been credited with a waiting week under section
268.08 268.085, subdivision 1, clause (3). A determination or
amended determination pursuant to section 268.101, that was
issued before the withdrawal of the reemployment insurance
account, shall remain in effect and shall not be voided by the
withdrawal of the reemployment insurance account. A
determination of disqualification requiring subsequent earnings
to satisfy the disqualification shall apply to the weekly
benefit amount on the new account.
(c) A reemployment insurance account shall not be
established prior to the Sunday following the expiration of the
benefit year on a preceding prior reemployment insurance account.
(d) All benefits shall be payable from the Minnesota
reemployment insurance fund only for weeks occurring during the
benefit year.
Sec. 24. Minnesota Statutes 1996, section 268.08, as
amended by Laws 1997, chapter 66, sections 36, 37, 38, 39, 40,
41, and 42, is amended to read:
268.08 [PERSONS ELIGIBLE TO RECEIVE BENEFITS.]
Subdivision 1. [ELIGIBILITY CONDITIONS.] A claimant shall
be eligible to receive benefits for any week in the claimant's
benefit year only if:
(1) the claimant has made a continued claim for benefits in
person, by mail, by telephone, or by electronic transmission as
the commissioner shall require. The commissioner may by rule
adopt other requirements for a continued claim;
(2) the claimant was able to work and was available for
employment, and was actively seeking employment. The claimant's
weekly benefit amount shall be reduced one-fifth for each day
the claimant is unable to work or is unavailable for employment.
Benefits shall not be denied by application of this clause
to a claimant who is in training with the approval of the
commissioner, is a dislocated worker as defined in section
268.975, subdivision 3, in training approved by the
commissioner, or in training approved pursuant to section 236 of
the Trade Act of 1974, as amended.
A claimant serving as a juror shall be considered as
available for employment and actively seeking employment on each
day the claimant is on jury duty;
(3) the claimant has been unemployed for served a waiting
period of one week during which that the claimant is otherwise
entitled to benefits. This clause shall not apply if the
claimant would have been entitled to federal disaster
unemployment assistance because of a disaster in Minnesota, but
for the claimant's establishment of a reemployment insurance
account under section 268.07; and
(4) the claimant has been participating in reemployment
services, such as job search assistance services, if the
claimant has been determined likely to exhaust benefits and in
need of reemployment services pursuant to a profiling system
established by the commissioner, unless there is justifiable
cause for the claimant's failure to participate.
Subd. 1a. [BENEFITS DUE DECEASED PERSONS.] Upon the death
of any claimant for benefits, and in the event it is found by
the commissioner that If benefits have accrued and are due and
payable to that claimant and remain wholly or partially unpaid
at the time of the a claimant's death, or in the event there
have been issued and unpaid one or more benefit checks, those
checks benefits may, upon application therefor, be paid to
the duly qualified administrator or executor personal
representative of the estate of the deceased claimant. In the
event that no administrator or executor personal representative
is appointed to administer the estate of the deceased, if any,
the benefits may, upon the order and direction of the
commissioner application be paid to any person designated by the
commissioner in the following order: (1) the surviving spouse,
(2) the surviving child or children, or (3) the surviving parent
or parents.
A person An individual seeking payment under this
subdivision shall complete an affidavit on a form application
prescribed by the department commissioner and the payment of
benefits to a person pursuant to an affidavit under this
subdivision shall discharge the obligations of the department to
the claimant to the extent of the payment, and no other person
individual shall claim or assert any right with respect
thereto to those benefits.
Subd. 2. [NOT ELIGIBLE.] A claimant shall not be eligible
to receive benefits for any week:
(1) unless it that occurs subsequent to before the
establishment of a reemployment insurance account;
(2) which that occurs in a period when the claimant is a
full-time student in attendance at, or on vacation from an
established a secondary school, college, or university unless a
majority of the claimant's wages paid during the 52 weeks
preceding the establishment of a reemployment insurance account
were for services performed during weeks that the claimant was
attending school as a full-time student;
(3) in which that the claimant is incarcerated. The
claimant's weekly benefit amount shall be reduced by one-fifth
for each day the claimant is incarcerated;
(4) in which that the claimant is on a voluntary leave of
absence. A claimant unemployed as a result of a uniform
vacation shutdown shall not be considered on a voluntary leave
of absence;
(5) in which that the claimant is performing services on a
full-time basis 32 hours or more, in employment, covered
employment, noncovered employment, self-employment, or volunteer
work regardless of the amount of any earnings; or
(6) with respect to which the claimant is receiving, has
received, or has filed a claim for reemployment insurance
benefits under any law of any other state, or the federal
government, but not including any federal or state benefits that
are merely supplementary to those provided for under this
chapter; provided that if the appropriate agency finally
determines that the claimant is not entitled to the benefits,
this clause shall not apply.
Subd. 2a. [SUSPENSION FROM EMPLOYMENT.] (a) A claimant who
has been suspended from employment for 30 calendar days or less,
as a result of misconduct as defined under section 268.09
268.095, subdivision 12 6, shall be ineligible for
benefits commencing beginning the Sunday of the week in which
that the claimant was suspended and continuing for the duration
of the suspension.
(b) A suspension from employment for more than 30 calendar
days shall be considered a discharge from employment under
section 268.09 268.095, subdivision 11 5.
Subd. 3. [DEDUCTIBLE PAYMENTS.] A claimant shall not be
eligible to receive benefits for any week with respect to which
the claimant is receiving, has received, or has filed a claim
for payment in an amount equal to or in excess of the claimant'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. This clause
shall apply to the first four weeks of payment and to one-half
of the total number of any additional weeks of payment. This
clause shall be applied to the period immediately following the
last day of employment. The number of weeks of payment shall be
determined as follows:
(i) if the payments are made periodically, the total of the
payments to be received shall be divided by the claimant's last
level of regular weekly pay from the employer; or
(ii) if the payment is made in a lump sum, that sum shall
be divided by the claimant's last level of regular weekly pay
from the employer;
(2) vacation allowance paid directly by the employer for a
period of requested vacation, including vacation periods
assigned by the employer under 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; or
(4) 50 percent of the pension, retirement, or annuity
payments from any fund, annuity or insurance maintained or plan
contributed to by a base period employer including the armed
forces of the United States if the claimant contributed to the
fund, annuity or insurance and all of the pension payments if
the claimant 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 benefits
under any act of Congress or this state or any other
state. government, except social security benefits as provided
for in subdivision 4. The base period employer contributed to
the plan if the contribution is excluded from the definition of
wages under section 268.035, subdivision 29, clause (1), or
United States Code, title 26, section 3121, clause (2), of the
Federal Insurance Contribution Act.
Provided, that If the payment under this subdivision is
less than the claimant's weekly benefit amount, the claimant
shall be entitled to receive for that week, if otherwise
eligible, benefits reduced by the amount of the payment;
provided, further, that if the appropriate agency of this state
or any other state or the federal government finally determines
that the claimant is not entitled to payments, this subdivision
shall not apply. If the computation of reduced benefits is not
a whole dollar, it shall be rounded down to the next lower
dollar.
Subd. 3a. [DEDUCTIBLE EARNINGS.] (a) If the claimant 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
claimant's weekly benefit amount, the claimant shall be
ineligible for benefits for that week.
(b) If the claimant has earnings, including holiday pay,
with respect to any week, from employment, covered employment,
noncovered employment, self-employment, or volunteer work, that
is less than the claimant's weekly benefit amount, the following
shall be deducted from the claimant's weekly benefit amount:
(1) that amount in excess of $50 if the claimant's earnings
were $200 or less, and that amount in excess of 25 percent of
the claimant's earnings if those earnings were more than $200;
and
(2) that amount in excess of $200 for earnings from service
in the National Guard or a United States military reserve unit.
The resulting benefit, if not a whole dollar, shall be
rounded to the next lower dollar.
(c) No deduction shall be made from a claimant's weekly
benefit amount for earnings from service as a volunteer
firefighter or volunteer ambulance service personnel. No
deduction shall be made for jury duty pay.
(d) The claimant may report deductible earnings on
continued claims for benefits at the nearest whole dollar amount.
Subd. 3b. [RECEIPT OF BACK PAY.] Back pay received by a
claimant with respect to any weeks occurring in the 104 weeks
immediately preceding prior to the payment of the back pay shall
be deducted from benefits paid for those weeks.
The amount deducted shall not reduce the benefits that the
claimant is otherwise eligible for that week below zero. If the
amount of benefits after the deduction of back pay is not a
whole dollar amount, it shall be rounded to the next lower
dollar.
If the back pay awarded the claimant is reduced by benefits
paid, the amounts withheld shall be: (a) paid by the employer
into the fund within 30 days of the award and are subject to the
same collection procedures that apply to past due
contributions taxes under this chapter; (b) applied to benefit
overpayments resulting from the payment of the back pay; (c)
credited to the claimant's maximum amount of benefits payable in
a benefit year that includes the weeks for which back pay was
deducted. Benefit charges for those weeks shall be removed from
the employer's account as of the calendar quarter in which that
the fund receives payment.
Payments to the fund under this subdivision shall be
considered as made by the claimant.
Subd. 4. [SOCIAL SECURITY AMOUNT DEDUCTED FROM BENEFITS.]
(a) Any claimant aged 62 or over who has not established a
reemployment insurance account based on employment subsequent to
the first receipt of primary insurance benefits under Title II
of the federal social security act, as amended, or similar old
age benefits under any act of Congress or this state or any
other state shall be required to state in writing at the time of
establishing making an application for a reemployment insurance
account and when making continued claims whether the claimant is
receiving, has filed for, or intends to seek Title II file for,
primary social security old age or disability benefits for any
week during which the claimant will receive unemployment
benefits the benefit year, and if the claimant so intends there
shall be withheld deducted from the claimant's
weekly unemployment benefits an benefit amount sufficient to
cover the otherwise payable for that week, 50 percent of the
weekly equivalent of the social security benefit.
(b) In addition to paragraph (a), a claimant shall be
ineligible for benefits for any week with respect to which the
claimant is receiving, has received, or has filed a claim for
primary social security disability benefits, unless the social
security administration has approved the payment of disability
benefits while the claimant was employed.
(c) Any claimant disclaiming such intention but who
nevertheless receives such social security benefits, that would
cause the claimant to be ineligible under this subdivision, for
weeks for which that the claimant previously received
unemployment reemployment insurance benefits shall be liable for
repayment of such unemployment considered overpaid reemployment
insurance benefits and otherwise subject to the provisions
of under section 268.18.
Subd. 5a. [SELF-EMPLOYMENT.] (a) A claimant who is
determined to be likely to exhaust regular reemployment
insurance benefits and is enrolled in a dislocated worker
program shall be considered in approved training for purposes of
this chapter for each week the claimant is engaged on a
full-time basis in activities, including training, relating to
the establishment of a business and becoming self-employed. A
claimant who meets the requirements of this subdivision shall be
considered unemployed for purposes of this chapter. Income
earned from the self-employment activity shall not be considered
for purposes of subdivision 3a 5. Under no circumstances shall
more than five percent of the number of claimants receiving
regular reemployment insurance benefits be actively enrolled in
this program at any time. This subdivision shall not apply to
claimants claiming state or federal extended or additional
benefits.
(b) This subdivision shall apply to weeks beginning after
April 18, 1995, or weeks beginning after approval of this
subdivision by the United States Department of Labor whichever
date is later. This subdivision shall have no force or effect
for any purpose as of the end of the week preceding the date
when federal law no longer authorizes the provisions of this
subdivision, unless such date is a Saturday in which case this
subdivision shall have no force and effect for any purpose as of
that date.
Subd. 6. [SERVICES PERFORMED FOR STATE, MUNICIPALITIES, OR
CHARITABLE CORPORATION SCHOOL EMPLOYEES.] 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 No wage credits
in any amount from any employment with any educational
institution or institutions earned while in an instructional,
research, or principal administrative capacity for an
educational institution, shall not be paid may be used for
benefit purposes for any week of unemployment
commencing beginning during the a 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 claimant's contract, to any
claimant if:
(1) the claimant performs the services had employment in
any instructional, research, or principal administrative
capacity for any educational institution or institutions in the
first of the academic years or terms; and
if (2) there is a contract or a reasonable assurance that
the claimant will perform services in any such capacity have
employment in any instructional, research, or principal
administrative capacity for an any educational institution or
institutions in the second of the academic years or terms, that
is substantially similar to the employment of the first academic
years or terms;
(b) With respect to employment in any capacity other than
those described in paragraph (a), including educational
assistants, benefits shall not be paid based upon wage credits
earned with from any educational institution or institutions for
any week which commences beginning during a period between two
successive academic years or terms if the claimant was employed
in the first academic year or term by any educational
institution or institutions and there is reasonable assurance
that the claimant will be employed under similar terms and
conditions by any educational institution or institutions in the
second academic year or term. A claimant who has an agreement
for a definite period of employment between academic years or
terms shall be eligible for any weeks within that period the
educational institution or institutions fails to provide
employment. If benefits are denied to any claimant under this
paragraph and the claimant was not offered an opportunity to
perform the employment in the second of the academic years or
term, the claimant shall be entitled to a retroactive payment of
benefits for each week in which that the claimant filed a timely
continued claim for benefits, but the continued claim was
benefits were denied solely because of this paragraph;
(c) With respect to services employment described in
paragraph (a) or (b), benefits payable on the basis of the
services based upon wage credits from any educational
institution or institutions shall not be paid to any claimant
for any week which commences beginning during an established and
customary vacation period or holiday recess if the
claimant performs the services was employed in the period
immediately before the vacation period or holiday recess, and
there is a reasonable assurance that the claimant will perform
the services be employed in the period immediately following the
vacation period or holiday recess;
(d) With respect to services described in paragraph (a) or
(b), benefits shall not be payable on the basis of services in
any capacity specified in Paragraphs (a), (b), and (c) to any
claimant who performed those services in an educational
institution while in the employ of shall apply to employment
with an educational service agency if the claimant performed the
services at an educational institution or institutions. For
purposes of this paragraph, "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 Paragraphs (a) to (d) shall apply to employment with
Minnesota or a political subdivision, or a nonprofit
organizations covered by section 501(c)(3) of the Internal
Revenue Code of 1986, as amended through December 31,
1992 organization, if the services are provided to or on behalf
of an educational institution, benefits must be denied under the
same circumstances as described in paragraphs (a) to (d) or
institutions.
(f) Paragraphs (a), (b), and (c) shall apply beginning the
Sunday of the week that there is a contract or reasonable
assurance of employment.
(g) Employment with multiple education institutions shall
be aggregated for purposes of application of this subdivision.
(h) An "educational institution" is an educational entity
operated by Minnesota or a political subdivision or an
instrumentality thereof, or an educational 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).
Subd. 7. [PROFESSIONAL ATHLETES.] Benefits shall not be
paid to a claimant on the basis of any service wage credits from
employment that substantially all of which consist consists of
participating in sports or athletic events or training or
preparing to so participate for any week which commences that
begins during the period between two successive sport seasons
(or similar periods) if the claimant performed such service was
so employed in the first of such seasons season (or similar
period) and there is a reasonable assurance that the claimant
will perform such service be so employed in the later of such
seasons following season (or similar periods).
Subd. 8. [ILLEGAL ALIENS.] (a) An alien shall be
ineligible for benefits for any week the alien is not authorized
to work in the United States under federal law.
(b) Benefits shall not be paid on the basis of services
performed wage credits earned by an alien unless such the
alien is a claimant who (1) was lawfully admitted for permanent
residence at the time such services were performed of the
employment, (2) was lawfully present for the purposes
of performing such services the employment, or (3) was
permanently residing in the United States under color of law at
the time such services were performed (of the employment
including an alien who was lawfully present in the United States
as a result of the application of the provision of section
203(a)(7) or section 212(d)(5) of the Immigration and
Nationality Act).
(b) (c) Any data or information required of claimants
applying for benefits to determine whether benefits are not
payable to them eligibility because of their alien status shall
be uniformly required from all applicants for benefits claimants.
(c) In the case of a claimant whose application for
benefits would otherwise be approved, no determination that
benefits to such claimant are not payable because of alien
status shall be made except upon a preponderance of the evidence.
Subd. 9. [SERVICES FOR CERTAIN SCHOOL CONTRACTORS.]
Benefits based upon services performed for Wage credits from an
employer are subject to subdivision 6 7, paragraphs (b) and (c)
if:
(a) (1) the employment was provided pursuant to a contract
between the employer and a public or private school an
educational institution;
(b) (2) the contract was for services which that the
public or private school educational institution could have had
performed by its employees; and
(c) the employment was not as defined in section 268.04,
subdivision 12, clauses (7), (8), and (9); and
(d) (3) the claimant was notified in writing of the
provisions of this subdivision while employed in 1983 or prior
to or at the time of commencing beginning the employment.
Subd. 10. [SEASONAL EMPLOYMENT.] (a) If a claimant has
wage credits from seasonal employment, benefits shall be payable
only if the claimant can establish a reemployment insurance
account under section 268.07, subdivision 2, excluding the wage
credits from seasonal employment. For purposes of this
subdivision, "seasonal employment" means employment with a
single employer in the recreation or tourist industry that is
available with the employer for 15 consecutive weeks or less
each calendar year.
(b) Wage credits from seasonal employment may not be used
for benefit purposes during weeks outside the normal season.
Subd. 11. [BUSINESS OWNERS.] Wages paid by Wage credits
from an employing unit employer may not be used for benefit
purposes by any claimant who:
(1) individually, jointly, or in combination with the
claimant's spouse, parent, or child owns or controls directly or
indirectly 25 percent or more interest in the employing unit
employer, or is the spouse, parent, or minor child of any
individual who owns or controls directly or indirectly 25
percent or more interest in the employing unit employer; and
(2) is not permanently separated from employment.
This subdivision is effective when the claimant has been
paid four times the claimant's weekly benefit amount in the
current benefit year.
Sec. 25. Minnesota Statutes 1997 Supplement, section
268.09, subdivision 1a, is amended to read:
Subd. 1a. [QUIT.] A claimant who quits employment shall be
disqualified from benefits:
(1) unless the claimant quit the employment because of a
good reason caused by the employer;
(2) unless the claimant quit the employment to accept other
covered employment that provided substantially higher wages or
substantially better conditions of employment or both, but the
claimant did not work long enough at the other employment to
have sufficient subsequent earnings to satisfy the
disqualification that would otherwise be imposed;
(3) unless the claimant quit the employment within 30
calendar days of commencing beginning the employment because the
employment was unsuitable for the claimant;
(4) unless the employment was unsuitable for the claimant
and the claimant quit to enter approved training;
(5) unless the employment was part time and the claimant
had full-time employment in the base period, that the claimant
separated from because of nondisqualifying reasons, sufficient
to meet the minimum requirements to establish a reemployment
insurance account under section 268.07, subdivision 2; or
(6) unless the claimant quit the employment because of the
claimant's serious illness made it medically necessary that the
claimant quit, provided that the claimant made reasonable
efforts to retain remain in that employment in spite of the
serious illness.
Reasonable efforts to remain in that employment require
that the claimant inform the employer of the serious illness and
request accommodation.
A claimant who quit employment because of the claimant's
serious illness of chemical dependency, has not made reasonable
efforts to retain the remain in that employment if the claimant
has previously been professionally diagnosed as chemically
dependent, or has previously voluntarily submitted to treatment
for chemical dependency, and has failed to make consistent
efforts to maintain the treatment the claimant knows or has been
professionally advised is necessary to control the chemical
dependency.
Sec. 26. Minnesota Statutes 1997 Supplement, section
268.09, subdivision 10, is amended to read:
Subd. 10. [DISCHARGE.] A claimant who is discharged from
employment by an employer shall not be disqualified from
benefits:
(1) unless the claimant was discharged because of
misconduct that interfered with and adversely affected that
employment. This clause shall not apply if:
(i) the misconduct was a direct result of the claimant's
serious illness provided that the claimant made reasonable
efforts to retain the remain in that employment in spite of the
serious illness.
Reasonable efforts to remain in that employment require
that the claimant inform the employer of the serious illness and
request accommodation.
If the misconduct was a direct result of the
claimant's serious illness of chemical dependency, the claimant
has not made reasonable efforts to retain remain in that
employment if the claimant has previously been professionally
diagnosed chemically dependent or the claimant has previously
voluntarily submitted to treatment for chemical dependency and
has failed to make consistent efforts to maintain the treatment
the claimant knows or has been professionally advised is
necessary to control the chemical dependency; or.
This subclause shall not apply if the misconduct was a
violation of section 169.121, 169.1211, or 169.123; or
(ii) the employment was part time and the claimant had
full-time employment in the base period, that the claimant
separated from because of nondisqualifying reasons, sufficient
to meet the minimum requirements to establish a reemployment
insurance account under section 268.07, subdivision 2;
(2) unless the claimant was discharged because of gross
misconduct that interfered with and adversely affected that
employment. For the purpose of this clause, "gross misconduct"
means:
(i) the commission of any act that amounts to a gross
misdemeanor or felony; or
(ii) for an employee of a facility as defined in section
626.5572, gross misconduct includes an act of patient or
resident abuse, financial exploitation, or recurring or serious
neglect, as defined in section 626.5572 and applicable rules.
If a claimant is convicted of a gross misdemeanor or felony
for the same act or acts for which the claimant was discharged,
it is conclusively presumed to be gross misconduct; or
(3) if the claimant was discharged because the claimant
gave notice of intention to quit the employment within 30
calendar days. This clause shall be effective only through the
end of the calendar week that includes the intended date of
quitting. Thereafter the separation from employment shall be
considered a quit of employment by the claimant, and a
disqualification, if any, shall commence begin with the Sunday
of the week following the week that includes the intended date
of quitting.
Sec. 27. Minnesota Statutes 1997 Supplement, section
268.09, subdivision 13, is amended to read:
Subd. 13. [ACT OR OMISSIONS AFTER SEPARATION.] Except as
provided for under subdivision 14 8, a claimant shall not be
disqualified from benefits for any acts or omissions occurring
after the claimant's separation from employment with the
employer.
Sec. 28. Minnesota Statutes 1997 Supplement, section
268.09, subdivision 16, is amended to read:
Subd. 16. [DISQUALIFICATION DURATION.] (a) A
disqualification from the payment of benefits under subdivisions
1a 1, 10 4, and 14 8 shall be for the duration of the
claimant's unemployment and until the end of the calendar
week in which that the claimant had total earnings in subsequent
covered employment of eight times the claimant's weekly benefit
amount.
(b) Any disqualification imposed under subdivisions 1a 1
and 10 4 shall commence begin on the Sunday of the week in
which that the claimant became separated from employment. Any
disqualification imposed under subdivision 14 8 shall
commence begin on the Sunday of the week the claimant failed to
apply for, accept, or avoided employment.
(c) Notwithstanding paragraph (a), if the claimant was
discharged from employment because of gross misconduct that
interfered with and adversely affected that employment, the
disqualification shall be for the duration of the claimant's
unemployment and until the end of the calendar week in which
that the claimant had total earnings in subsequent covered
employment of 12 times the claimant's weekly benefit amount. In
addition, wage credits from that employment shall be
canceled and the claimant's reemployment insurance account
redetermined pursuant to section 268.07, subdivision 1,
paragraph (d).
Sec. 29. Minnesota Statutes 1997 Supplement, section
268.09, subdivision 17, is amended to read:
Subd. 17. [APPLICATION.] This section shall apply to:
(1) all covered employment, full time or part time,
temporary or limited duration, permanent or indefinite duration,
that occurred during the base period, the period between the end
of the base period and the effective date of the reemployment
insurance account, or the benefit year, except as provided for
in subdivisions 1a 1, clause (5); and 10 4, clause (1)(ii); or
(2) all covered employment occurring in this state, and
employment covered under a reemployment insurance program, (i)
of any other state, federal employment, or employment covered
under the Railroad Unemployment Compensation Act or (ii)
established by an act of Congress.
Sec. 30. Minnesota Statutes 1996, section 268.101, as
amended by Laws 1997, chapter 66, sections 55, 56, 57, and 58,
is amended to read:
268.101 [DETERMINATIONS ON DISQUALIFICATION AND
ELIGIBILITY.]
Subdivision 1. [NOTIFICATION.] (a) Upon application for a
reemployment insurance account, each claimant shall report the
names of all employers and the reasons for no longer working for
all employers during the claimant's last 30 days of employment.
(b) Upon establishment of a reemployment insurance account,
the commissioner shall notify, by mail or electronic
transmission, all employers the claimant was employed by during
the claimant's last 30 days of employment prior to making an
application and all base period employers and determined
successors to those employers under section 268.051, subdivision
4. An employer so notified shall have ten calendar days after
the mailing sending of the notice to make a protest in a manner
prescribed by the commissioner raising any issue of
disqualification or any issue of eligibility. An employer so
notified shall be informed of the effect that failure to timely
protest may have on the employer charges. A protest made more
than ten calendar days after mailing sending of the notice shall
be considered untimely.
(c) Each claimant shall report any employment, loss of
employment, and offers of employment received, for during those
weeks the claimant made continued claims for benefits. Each
claimant who stops making continued claims during the benefit
year and later commences begins making continued claims during
that same benefit year shall report the name of any employer the
claimant worked for during the period between the making of
continued claims, up to a period of the last 30 days of
employment, and the reason the claimant stopped working for the
employer. The claimant shall report any offers of employment
during the period between the making of continued claims. Those
employers from which the claimant has reported a loss of
employment or an offer of employment pursuant to this paragraph
shall be notified by mail or electronic transmission. An
employer so notified shall have ten calendar days after the
mailing sending of the notice to make a protest in a manner
prescribed by the commissioner raising any issue of
disqualification or any issue of eligibility. An employer so
notified shall be informed of the effect that failure to timely
protest may have on the employer charges. A protest made more
than ten calendar days after mailing sending of the notice shall
be considered untimely.
(d) The purpose for requiring the claimant to report the
name of all employers and the reason for no longer working for
all employers during the claimant's "last 30 days of employment"
is for the commissioner to obtain information from a claimant on
all issues that have the potential of disqualifying the claimant
from benefits under section 268.095. If the reason given by the
claimant for no longer working for an employer is a discharge,
other than a layoff due to lack of work, the claimant shall be
required to state all the facts about the cause of the
discharge, if known.
Subd. 2. [DISQUALIFICATION DETERMINATION.] (a) The
commissioner shall promptly determine any issue of
disqualification raised by a timely protest made by an employer,
and mail to the claimant and that employer at the last known
address a determination of disqualification or a determination
of nondisqualification, as is appropriate. The determination
shall set forth the effect on employer charges.
(b) The commissioner shall promptly determine any issue of
disqualification raised by information obtained from a claimant
pursuant to subdivision 1, paragraph (a) or (c), and mail to the
claimant and employer at the last known address a determination
of disqualification or a determination of nondisqualification,
as is appropriate. The determination shall set forth the effect
on employer charges.
(c) The commissioner shall promptly determine any issue of
disqualification raised by an untimely protest made by an
employer and mail to the claimant and that employer at the last
known address a determination of disqualification or a
determination of nondisqualification as is appropriate. The
determination shall set forth the effect on employer charges.
Notwithstanding section 268.09 268.095, any disqualification
imposed as a result of determination issued pursuant to this
paragraph shall commence begin the Sunday two weeks following
the week in which that the untimely protest was made.
Notwithstanding any provisions to the contrary, any relief of
employer charges as a result of a determination issued pursuant
to this paragraph shall commence begin the Sunday two weeks
following the week in which that the untimely protest was made.
(d) If any time within 24 months from the establishment of
a reemployment insurance account the commissioner finds that a
claimant failed to report any employment, loss of employment, or
offers of employment that were required to be provided by the
claimant under this section, the commissioner shall promptly
determine any issue of disqualification on that loss of
employment or offer of employment and mail to the claimant and
involved employer at the last known address a determination of
disqualification or a determination of nondisqualification, as
is appropriate. The determination shall set forth the effect on
employer charges.
This paragraph shall not apply if the involved employer was
notified and given the opportunity to protest pursuant to
subdivision 1, paragraph (b) or (c).
(e) A determination of disqualification or a determination
of nondisqualification shall be final unless an appeal is filed
by the claimant or notified employer within 15 30 calendar days
after mailing of the determination to the last known address.
The determination shall contain a prominent statement indicating
in clear language the method of appealing, the time within which
an appeal must be made, and the consequences of not appealing.
Proceedings on the appeal shall be conducted in accordance with
section 268.105.
(f) An issue of disqualification for purposes of this
section shall include any reason for no longer working for an
employer other than a layoff due to lack of work, any question
of denial of a disqualification from benefits under section
268.09 268.095, any question of an exception to disqualification
under section 268.09 268.095, any question of benefit charge to
an employer under section 268.047, and any question of an
otherwise imposed disqualification for which that a claimant has
had subsequent earnings sufficient to satisfy the
disqualification.
(g) Notwithstanding the requirements of this subdivision,
the commissioner is not required to mail to a claimant a
determination of nondisqualification where the claimant has had
subsequent earnings sufficient to satisfy any otherwise
potential disqualification.
Subd. 3. [ELIGIBILITY DETERMINATION.] (a) The commissioner
shall promptly determine any issue of eligibility raised by a
timely protest made by an employer and mail to the claimant and
that employer at the last known address a determination of
eligibility or a determination of ineligibility, as is
appropriate.
(b) The commissioner shall promptly determine any issue of
eligibility raised by information obtained from a claimant and
mail to the claimant and any involved employer at the last known
address a determination of eligibility or a determination of
ineligibility, as is appropriate.
(c) The commissioner shall promptly determine any issue of
eligibility raised by an untimely protest made by an employer
and mail to the claimant and that employer at the last known
address a determination of eligibility or a determination of
ineligibility, as is appropriate. Any denial of benefits
imposed as a result of determination issued pursuant to this
paragraph shall commence begin the Sunday two weeks following
the week in which that the untimely protest was made.
(d) If any time within 24 months from the establishment of
a reemployment insurance account the commissioner finds the
claimant failed to provide requested information regarding the
claimant's eligibility for benefits, the commissioner shall
determine the issue of eligibility and mail to the claimant and
any involved employer at the last known address a determination
of eligibility or a determination of ineligibility, as is
appropriate.
This paragraph shall not apply if the involved employer was
notified, was aware, or should have been aware of the issue of
eligibility at the time of notification, and was given the
opportunity to protest pursuant to subdivision 1, paragraph (b)
or (c).
(e) A determination of eligibility or determination of
ineligibility shall be final unless an appeal is filed by the
claimant or notified employer within 15 30 calendar days after
mailing of the determination to the last known address. The
determination shall contain a prominent statement indicating in
clear language the method of appealing, the time within which an
appeal must be made, and the consequences of not appealing.
Proceedings on the appeal shall be conducted in accordance with
section 268.105.
(f) An issue of eligibility for purposes of this section
shall include any question of denial of benefits under sections
268.08 268.085, 268.115, 268.125, 268.135, and 268.155.
Subd. 3a. [DIRECT HEARING.] Notwithstanding subdivision 2
or 3 any provision of sections 268.03 to 268.23, the
commissioner may refer any issue of disqualification or, any
issue of eligibility, or any other issue, directly for hearing
in accordance with section 268.105, subdivision 1. The status
of the issue shall be the same as if a determination had been
made and an appeal filed.
Subd. 4. [AMENDED DETERMINATION.] Unless an appeal has
been filed, the commissioner, on the commissioner's own motion,
upon finding that an error has occurred in the issuing of may
reconsider a determination of disqualification or
nondisqualification or a determination of eligibility or
ineligibility, may that has not become final and issue an
amended determination. An amended determination shall not be
done at the request of a claimant or an employer. Any amended
determination shall be mailed to the claimant and any involved
employer at the last known address. Any amended determination
shall be final unless an appeal is filed by the claimant or
notified employer within 15 30 calendar days after mailing of
the amended determination to the last known address.
Proceedings on the appeal shall be conducted in accordance with
section 268.105.
Subd. 5. [PROMPT PAYMENT.] If a determination or amended
determination awards benefits to a claimant, the benefits shall
be promptly paid regardless of any appeal period or any appeal
having been filed.
Subd. 6. [OVERPAYMENT.] A determination or amended
determination which that holds a claimant disqualified or
ineligible for benefits for periods a claimant has been paid
benefits is an overpayment of those benefits subject to section
268.18.
Sec. 31. Minnesota Statutes 1997 Supplement, section
268.105, subdivision 3a, is amended to read:
Subd. 3a. [DECISIONS.] (a) If a reemployment insurance
judge's decision or the commissioner's decision awards
benefits to a claimant, the benefits shall be promptly paid
regardless of any appeal period or any appeal having been filed.
(b) If a reemployment insurance judge's decision modifies
or reverses a determination awarding benefits to a claimant, any
benefits paid pursuant to the determination is an overpayment of
those benefits subject to section 268.18.
(c) Except as provided in paragraph (d), If a
commissioner's decision modifies or reverses a reemployment
insurance judge's decision awarding benefits to a claimant, any
benefits paid pursuant to the reemployment insurance judge's
decision is an overpayment of those benefits subject to section
268.18.
(d) If a reemployment insurance judge's decision affirms a
determination on an issue of disqualification awarding benefits
or the commissioner affirms a reemployment insurance judge's
decision on an issue of disqualification awarding that awards
benefits to a claimant, the commissioner's decision, if finally
reversed by the Minnesota Court of Appeals or the Supreme Court
of Minnesota, shall not result in a disqualification of the
claimant from benefits only for weeks following the week in
which the decision reversing the award of benefits was issued
and benefits paid for that week and previous weeks shall not be
deemed overpaid and the benefits paid shall not be charged to a
contributing employer's account under section 268.095.
(e) If the commissioner, pursuant to subdivision 3, remands
a matter to a reemployment insurance judge for the taking of
additional evidence, the prior reemployment insurance judge's
decision shall continue to be enforced until new findings of
fact and decision are made by a reemployment insurance judge.
Sec. 32. Minnesota Statutes 1997 Supplement, section
268.125, is amended to read:
268.125 [ADDITIONAL REEMPLOYMENT INSURANCE BENEFITS.]
Subdivision 1. [ADDITIONAL BENEFITS; WHEN AVAILABLE.]
Additional reemployment insurance benefits are authorized under
this section only if the commissioner determines that:
(1) an employer has reduced operations at a facility
employing that had 100 or more individuals employees for at
least six months during the preceding year prior 12 months, the
employer reduced operations, resulting within a one-month period
in the reduction layoff of at least 50 percent or more of
the employer's facility's work force and the layoff of at
least amounting to 50 or more employees at that facility,
including reductions caused as a result of a major natural
disaster declared by the President;
(2) the employer has no expressed plan to resume operations
which that would lead to the reemployment of those employees at
any time in the immediate future; and
(3) the seasonally adjusted unemployment rate for in the
county in which that the facility is located was ten percent or
more during the month of the reduction or any of the three
months preceding before or succeeding after the month of the
reduction.
Subd. 2. [PAYMENT OF BENEFITS.] All Additional benefits
payable under this section are payable from the fund.
Subd. 3. [ELIGIBILITY CONDITIONS.] A claimant is eligible
to receive additional benefits under this section for any week
during the claimant's benefit year if the commissioner finds
that:
(1) the claimant's unemployment is the claimant was laid
off from employment as a result of a reduction in operations as
provided under subdivision 1 or was laid off due to lack of work
from that employer during the three-month period before, or the
three-month period after the month of the reduction under
subdivision 1;
(2) the claimant is unemployed and meets the eligibility
requirements for the receipt of unemployment benefits under
section 268.08 268.085;
(3) the claimant is not subject to a disqualification for
benefits under section 268.09 268.095; for the purpose of this
subdivision, the disqualifying conditions set forth in section
268.09 268.095, and the requalifying requirements thereunder,
apply to the receipt of additional benefits under this section;
(4) the claimant has exhausted all rights to regular
benefits payable under section 268.07, is not entitled to
receive extended benefits under section 268.115, and is not
entitled to receive reemployment insurance benefits under any
other state or federal law for the that week in which the
claimant is claiming additional benefits;
(5) the claimant has made a claim for additional benefits
with respect to any week the claimant is claiming benefits in
accordance with the regulations as the commissioner may
prescribe with respect to claims for regular benefits; and
(6) a majority of the claimant's wage credits were earned
with an from the employer for whom the commissioner has
determined there was that had a reduction in operations under
subdivision 1.
Subd. 4. [WEEKLY BENEFIT AMOUNT.] A claimant's weekly
benefit amount under this section shall be the same as the
individual's claimant's weekly benefit amount payable during the
individual's current benefit year under section 268.07.
Subd. 5. [MAXIMUM BENEFITS PAYABLE.] A claimant's The
maximum amount of additional benefits payable in the
individual's claimant's benefit year shall be 13 times the
individual's claimant's weekly benefit amount. Reemployment
insurance Benefits paid to an individual a claimant under any
state or federal law other than regular benefits payable under
section 268.07 shall be deducted from that individual's the
maximum amount of additional benefits.
Sec. 33. Minnesota Statutes 1997 Supplement, section
268.13, subdivision 1, is amended to read:
Subdivision 1. [AUTHORIZATION.] (a) The commissioner is
hereby authorized to enter into reciprocal arrangements with the
appropriate and duly authorized agencies of other states and of
the federal government, or both, whereby:
(1) Service performed employment by an individual employee
or individuals employees for a single employing unit for which
service employer that is customarily performed in more than one
state shall be deemed to be service considered performed
entirely within any one of the states:
(a) in which (1) where any part of any such individual's
service the employee's employment is performed, or
(b) in which any such individual (2) where the employee has
a residence, or
(c) in which (3) where the employing unit employer
maintains a place of business; provided, there is in effect, as
to such service the employment, an election, approved by
the agency charged with the administration of such state's
employment security law state, pursuant to which all the service
performed employment by such individual the employee or
individuals employees for such employing unit the employer is
deemed considered to be performed entirely within such that
state;.
(2) (b) The commissioner shall participate in any
reciprocal arrangements with other states and the federal
government, or both, for the payment of compensation benefits on
the basis of combining an individual's a claimant's wages and
employment covered under this law with wages and employment
covered under the unemployment compensation reemployment
insurance laws of other states which are approved by the United
States Secretary of Labor in consultation with the state
unemployment compensation agencies as reasonably calculated to
assure the prompt and full payment of compensation in such
situations and which or the federal government that include
provisions for applying the base period of a single state law to
a claim an account involving the combining of an individual's a
claimant's wages and employment covered under two or more state
unemployment compensation laws, and avoiding the duplicate use
of wages and employment by reason of such combining;. No
reciprocal arrangement shall be entered into unless it contains
provisions for reimbursements to the fund, by the other state or
the federal government, for benefits paid from the fund to
claimants based upon wages and employment covered under the laws
of the other state or the federal government.
(3) (c) On any reciprocal arrangement, the wages or
services, upon the basis of which an individual may become
entitled to benefits paid a claimant from employment covered
under an employment security a reemployment insurance law of
another state or of the federal government, shall be deemed to
be considered wages for insured work from covered employment for
the purpose of determining the individual's claimant's rights to
benefits under sections 268.03 to 268.23., and wages for insured
work, on the basis of which an individual may become entitled to
benefits thereunder shall be deemed to be wages or services on
the basis of which unemployment compensation under such law of
another state or of the federal government is payable, but no
such arrangement shall be entered into unless it contains
provisions for reimbursements to the fund for such of the
benefits paid thereunder upon the basis of such wages or
service, and provisions for reimbursements from the fund for
such of the compensation paid under such other law upon the
basis of wages for insured work;
(4) Contributions due thereunder with respect to wages for
insured work shall for the purpose of section 268.057 be deemed
to have been paid to the fund as of the date payment was made as
contributions therefor under another state or federal employment
security law, but no such arrangement shall be entered into
unless it contains provisions for such reimbursement to the fund
of such contributions and the actual earnings thereon.
Sec. 34. Minnesota Statutes 1997 Supplement, section
268.13, subdivision 2, is amended to read:
Subd. 2. [REIMBURSEMENTS.] Reimbursements paid from the
fund pursuant to subdivision 1 shall be deemed to be benefits
for the purposes of sections 268.045 to 268.194. The
commissioner is authorized to make to other state or federal
agencies and to receive from such other state or federal
agencies, reimbursements from or to the fund, in accordance with
reciprocal arrangements entered into pursuant to subdivision 1
section 268.131.
Sec. 35. Minnesota Statutes 1996, section 268.13,
subdivision 4, is amended to read:
Subd. 4. [UTILIZATION OF FEDERAL BENEFITS COOPERATION WITH
FOREIGN GOVERNMENTS.] To the extent permissible under the laws
and Constitution of the United States, The commissioner is
authorized to enter into or cooperate in arrangements whereby
facilities and services provided under sections 268.03 to 268.23
and facilities and services provided under the employment
security reemployment insurance law of any foreign government,
may be utilized used for the taking of applications for benefits
and continued claims and the payment of benefits under the
employment security this law of this state or under a similar
law of such a foreign government.
Sec. 36. Minnesota Statutes 1996, section 268.18, as
amended by Laws 1997, chapter 66, sections 71, 72, 73, 74, 75,
76, and 81, is amended to read:
268.18 [RETURN OF BENEFITS; OFFENSES.]
Subdivision 1. [ERRONEOUS PAYMENTS.] (a) Any claimant who,
by reason of the claimant's own mistake or through the error of
any individual engaged in the administration of this chapter or
because of a determination, redetermination, or amended
determination issued pursuant to section 268.07 or 268.101, has
received any benefits that the claimant was not entitled to,
shall promptly repay the benefits to the department. If the
claimant fails to repay the benefits, the
department commissioner shall, as soon as the erroneous payment
is discovered, determine the amount due and notify the claimant
in writing to repay the benefits.
(b) Unless the claimant files an appeal within 15 30
calendar days after the mailing of the determination of
overpayment to the claimant's last known address, the
determination shall become final. Proceedings on the appeal
shall be conducted in accordance with section 268.105. A
claimant may not collaterally attack, by way of an appeal to an
overpayment determination, any prior determination issued
pursuant to section 268.07 or 268.101, or decision issued
pursuant to section 268.105, that has become final.
(c) If the claimant fails to repay the benefits, the
commissioner may deduct from any future benefits payable to the
claimant in either the current or any subsequent benefit year an
the amount equivalent to of the overpayment determined, except
that no single deduction under this subdivision shall exceed 50
percent of the amount of the payment from which the deduction is
made, or the overpayment may be collected the same as delinquent
contributions taxes. A determination of overpayment shall state
the methods of collection the commissioner will may use to
recover the overpayment.
(d) If a claimant has been overpaid benefits under the law
of another state because of an error and that state certifies to
the department commissioner that the claimant is liable under
its law to repay the benefits and requests the department
commissioner to recover the overpayment, the commissioner may
deduct from future benefits payable to the claimant in either
the current or any subsequent benefit year an amount equivalent
to the amount of overpayment determined by that state, except
that no single deduction under this subdivision shall exceed 50
percent of the amount of the payment from which the deduction is
made.
(d) (e) Benefits paid for weeks more than three years prior
to the discovery of error are not erroneous payments.
(e) Notwithstanding paragraph (a), the commissioner shall
waive recovery of an overpayment if the commissioner's
authorized representative under section 268.105, subdivision 3,
determines the overpayment resulted from an administrative
failure to identify that a claimant's wage credits were not
earned in covered employment. This paragraph shall not apply to
misidentification of an employee-employer relationship.
Subd. 2. [FRAUD.] (a) Any claimant who receives benefits
by knowingly and willfully misrepresenting, misstating, or
failing to disclose any material fact that would have made the
claimant not entitled to those benefits has committed fraud.
After the discovery of facts indicating fraud, the commissioner
shall make a written determination that the claimant was not
entitled to benefits that were obtained by fraud and that the
claimant must promptly repay the benefits to the department. In
addition, the commissioner may deny benefits to a claimant for
one to 52 weeks for which the claimant is otherwise entitled to
benefits following the week in which the fraud was determined.
A denial imposed for fraud shall not apply to any week more than
104 weeks after the week in which the fraud was determined shall
assess a penalty equal to 25 percent of the amount fraudulently
obtained. If the claimant had a prior overpayment due to fraud,
the commissioner shall, on the present overpayment, assess a
penalty equal to 50 percent of the amount fraudulently obtained.
(b) Unless the claimant files an appeal within 15 30
calendar days after the mailing of the determination of
overpayment by fraud to the claimant's last known address, the
determination shall become final. Proceedings on the appeal
shall be conducted in accordance with section 268.105.
(c) If the claimant fails to repay the benefits, penalty,
and any interest assessed under subdivision 2b, the commissioner
may shall deduct from future benefits payable to the claimant in
either the current or any subsequent benefit year an amount
equivalent to the amount of overpayment determined or the
overpayment total due may be collected the same as delinquent
contributions taxes. A determination of overpayment by fraud
shall state the methods of collection the commissioner may use
to recover the overpayment. Money received in repayment of
fraudulently obtained benefits, penalties, and interest shall
first be applied to the benefits overpaid, then to the penalty
amount due, then to any interest due. Payments made toward
penalty and interest shall be credited to the contingent account.
(d) If a claimant has been overpaid benefits under the law
of another state because of fraud and that state certifies to
the department commissioner that the claimant is liable to repay
the benefits and requests the department commissioner to recover
the overpayment, the commissioner may deduct from future
benefits payable to the claimant in either the current or any
subsequent benefit year an amount equivalent to the amount of
overpayment determined by that state.
(d) (e) A determination of overpayment by fraud may be made
at any time.
Subd. 2a. [OFFSET OF STATE AND FEDERAL UNEMPLOYMENT
BENEFITS.] To the extent permissible under the laws and
constitution of the United States, The commissioner is
authorized to enter into or cooperate in arrangements or
reciprocal agreements with the United States Secretary of Labor,
whereby, overpayments of unemployment benefits as determined
under applicable federal law, with respect to benefits or
allowances for unemployment provided under a federal program
administered by this state under an agreement with the United
States Secretary of Labor Minnesota, may be recovered by offset
from unemployment benefits otherwise payable under this chapter
or any such federal program. As provided by reciprocal
agreement, benefit overpayments as determined under subdivisions
1 and 2 may be recovered by offset from benefits or allowances
for unemployment otherwise payable under a federal program
administered by this state.
Subd. 2b. [INTEREST.] (a) On any benefits fraudulently
obtained, as determined under subdivision 2, the commissioner
shall have the discretion to assess interest at the rate of
1-1/2 percent per month on any overpaid amount which that
remains unpaid 30 calendar days after the date of the
determination of overpayment by fraud. A determination of
overpayment by fraud shall state that interest may be assessed.
(b) Any money received in repayment of fraudulently
obtained benefits and interest thereon shall be first applied to
the overpayment balance.
(c) Unpaid interest may be collected the same as delinquent
contributions.
(b) If this subdivision became effective after the date of
the determination of overpayment by fraud, or the determination
did not state that interest may be assessed, interest pursuant
to this subdivision may be assessed beginning 30 calendar days
after written notification to the claimant.
Subd. 4. [CANCELLATION OF BENEFITS PAID THROUGH ERROR OR
FRAUD.] (a) If benefits paid through error are not repaid or
deducted from subsequent benefit amounts benefits as provided
for in subdivision 1 within six years after the date of the
determination of overpayment, the commissioner shall cancel the
overpayment balance, and no administrative or legal proceedings
shall be used to enforce collection of those amounts.
(b) If benefits paid as a result of fraud including
penalties and interest are not repaid or deducted from
subsequent benefits as provided for in subdivision 2 within ten
years after the date of the determination of overpayment by
fraud, the commissioner shall cancel the overpayment balance and
any penalties and interest due, and no administrative or legal
proceeding shall be used to enforce collection of those amounts.
(c) The commissioner may cancel at any time benefits paid
through error or fraud including penalties and interest that the
commissioner determines are uncollectible due to death or
bankruptcy.
Subd. 4a. [COURT FEES.] (a) If the commissioner is
required to pay any court fees in an attempt to enforce
collection of overpaid benefits, penalties, or interest, the
commissioner may add the amount of the court fees to the total
amount due.
(b) If a claimant who has been determined overpaid benefits
because of fraud seeks to have any portion of the debt
discharged under the federal bankruptcy code, and the
commissioner files an objection in bankruptcy court to the
discharge, the commissioner may add the commissioner's cost of
any court fees to the debt if the bankruptcy court does not
discharge the debt.
Sec. 37. Minnesota Statutes 1997 Supplement, section
268.182, is amended to read:
268.182 [FALSE REPRESENTATIONS; CONCEALMENT OF FACTS;
PENALTY.]
(a) Whoever obtains, or attempts to obtain, or aids or
abets any person individual to obtain by means of an intentional
false statement or representation, by intentional concealment of
a material fact, or by impersonation or other fraudulent means,
benefits that the person individual is not entitled or benefits
greater than the person individual is entitled under this
chapter, or under the law of any state or of the federal
government, either personally or for any other person
individual, is guilty of theft and shall be sentenced pursuant
to section 609.52. The amount of the benefits incorrectly paid
shall be the difference between the amount of benefits paid and
the amount that the claimant would have been entitled under
state and federal law had the department been informed of all
material facts.
(b) Any individual who violates paragraph (a) may be
assessed an administrative penalty of denial of benefits for one
to 52 weeks that the individual would otherwise be entitled to
benefits. A denial shall not apply to any week more than 2
years after the week that the violation of paragraph (a) was
determined. A written determination of denial shall be mailed
to the individual's last known address. Unless an appeal is
filed within 30 calendar days of mailing, the determination
shall be final. Proceeding on the appeal shall be conducted in
accordance with section 268.105. This paragraph shall not apply
if prosecution is commenced under paragraph (a) or a penalty is
imposed under section 268.18, subdivision 2.
(b) (c) Any employing unit employer or any officer or agent
of an employing unit employer or any other person who makes a
false statement or representation knowing it to be false, or who
knowingly fails to disclose a material fact, to prevent or
reduce the payment of benefits to any claimant, is guilty of a
gross misdemeanor unless the benefit underpayment exceeds $500,
in that case the person is guilty of a felony.
Sec. 38. Minnesota Statutes 1997 Supplement, section
268.184, is amended to read:
268.184 [EMPLOYER MISCONDUCT; PENALTY.]
(a) If the commissioner finds that any employing unit
employer or any employee, officer, or agent of any employing
unit employer, is in collusion with any claimant for the purpose
of assisting the claimant to receive benefits illegally,
the employing unit employer shall be penalized $500 or an amount
equal to the amount of benefits determined to be overpaid,
whichever is greater.
(b) If the commissioner finds that any employer or any
employee, officer, or agent of an employer has made (1) a false
statement or representation knowing it to be false, or (2) has
made a false statement or representation without a good faith
belief as to correctness of the statement or representation, or
(3) who knowingly fails to disclose a material fact, to prevent
or reduce the payment of benefits to any claimant or to reduce
or prevent a charge of benefits to its account, the employer
shall be penalized $500.
(c) Penalties assessed under this section shall be in
addition to any other penalties provided for and be subject to
the same collection procedures that apply to past
due contributions under this chapter taxes. Penalties under
this section shall be paid to the department within 30 calendar
days of assessment and credited to the contingent fund account.
(d) The assessment of the penalty shall be final unless the
employing unit employer files a written an appeal within 30
calendar days after the mailing sending of the notice of the
penalty to the employer's last known address employer by mail or
electronic transmission. Proceedings on the appeal shall be
conducted in accordance with section 268.105.
Sec. 39. Minnesota Statutes 1997 Supplement, section
268.192, subdivision 1, is amended to read:
Subdivision 1. [WAIVER OF RIGHTS VOID.] Any agreement by
an individual to waive, release, or commute rights to benefits
or any other rights under sections 268.03 to 268.23 shall be
void. Any agreement by any individual in the employ of any
person or concern an employee to pay all or any portion of an
employer's contributions, required under these sections from
such employer taxes, shall be void. No employer shall directly
or indirectly make or require or accept any deduction from wages
to finance pay the employer's contributions taxes, require or
accept any waiver of any right hereunder by any employed
individual or in any manner obstruct or impede the filing of
claims an application or continued claim for benefits. Any
employer or officer or agent of any employer who violates any
provision portion of this subdivision shall, for each offense,
be guilty of a misdemeanor.
Sec. 40. Minnesota Statutes 1997 Supplement, section
268.194, subdivision 2, is amended to read:
Subd. 2. [COMMISSIONER OF FINANCE TO BE CUSTODIAN;
SEPARATE ACCOUNTS; BONDS.] The commissioner of finance shall
be ex officio the treasurer and custodian of the fund,
administer the fund in accordance with the directions of the
commissioner, and issue warrants upon it in accordance with such
rules as the commissioner shall prescribe. The commissioner of
finance shall maintain within the fund three separate accounts:
(1) a clearing account;
(2) an unemployment trust fund account; and
(3) a benefit account.
All money payable to the fund, upon receipt thereof by the
commissioner, shall be forwarded to the commissioner of finance
who shall immediately deposit them the money in the clearing
account. All money in the clearing account, after
clearance thereof, shall, except as herein otherwise provided,
be immediately deposited with the secretary of the treasury of
the United States to the credit of the account of this state
Minnesota in the federal unemployment trust fund established and
maintained pursuant to section 904 of the Social Security Act,
as amended, any provisions of law in this state relating to the
deposit, administration, release, or disbursement of money in
the possession or custody of this state to the contrary
notwithstanding. Refunds payable pursuant to sections section
268.04, subdivision 12, clause (8) (f), and 268.057, subdivision
7, may be paid from the clearing account or the benefit
account. The benefit account shall consist of all money
requisitioned from this state's Minnesota's account in the
federal unemployment trust fund in the United States Treasury
for the payment of benefits. Except as herein otherwise
provided, Money in the clearing and benefit accounts may be
deposited by the commissioner of finance, under the direction of
the commissioner, in any depository bank in which that general
funds of the state Minnesota may be deposited, but no public
deposit insurance charge or premium shall be paid out of the
fund. Money in the clearing and benefit accounts shall not be
commingled with other state funds, but shall be maintained in
separate accounts on the books of the depository bank. Such
This money shall be secured by the depository bank to the same
extent and in the same manner as required by the general
depository law of this state Minnesota; and collateral pledged
for this purpose shall be kept separate and distinct from any
collateral pledged to secure other funds of the
state Minnesota. All sums recovered for losses sustained by the
fund shall be deposited therein in the fund.
Sec. 41. Minnesota Statutes 1997 Supplement, section
268.194, subdivision 3, is amended to read:
Subd. 3. [WITHDRAWALS.] (1) Moneys Money requisitioned
from this state's Minnesota's account in the federal
unemployment trust fund shall be used exclusively for the
payment of benefits and for refunds pursuant to sections 268.04,
subdivision 12, clause (8) (f), and section 268.057, subdivision
7, except that money credited to this state's Minnesota's
account pursuant to United States Code, title 42, section 903
1103 of the Social Security Act, as amended, shall be used
exclusively as provided in subdivision 5 of this section for the
payment of expenses of administration. The commissioner or a
duly authorized agent for that purpose, shall from time to time
requisition from the federal unemployment trust fund such the
amounts, not exceeding the amount standing to this state's in
Minnesota's account therein, as the commissioner deems
considers necessary for the payment of such benefits and refunds
for a reasonable future period. Upon receipt thereof the
treasurer commissioner of finance shall deposit such moneys the
money in the benefit account and issue warrants for the payment
of benefits solely from such the benefit account. Expenditures
of such moneys money in the benefit account and refunds from the
clearing account shall not be subject to any provisions of law
requiring specific appropriations or other formal release by
state officers of money in their custody. All warrants
issued by the treasurer for the payment of benefits and refunds
shall bear the signature of the treasurer commissioner of
finance and the counter signature of the commissioner or a duly
authorized agent for that purpose.
(2) Any balance of moneys money requisitioned from the
unemployment trust fund which that remains unclaimed or unpaid
in the benefit account after the expiration of the period for
which such the sums were requisitioned shall either be deducted
from estimates for, and may be utilized for the payment of,
benefits and refunds during succeeding following periods or, in
the discretion of the commissioner, shall be redeposited with
the secretary of the treasury of the United States, to the
credit of this state's account in the federal unemployment trust
fund, as provided in subdivision 2.
Sec. 42. Minnesota Statutes 1997 Supplement, section
268.194, subdivision 6, is amended to read:
Subd. 6. [ADVANCE ON FEDERAL FUNDS.] (1) (a) The governor
is hereby authorized to make application as may be necessary to
secure any an advance of funds by the secretary of the treasury
of the United States in accordance with the authority extended
under section 1201 from the federal unemployment trust fund in
accordance with United States Code, title 42, section 1321, of
the Social Security Act, as amended.
(2) (b) Any amount transferred to the Minnesota
reemployment insurance fund by the secretary of the treasury of
the United States under the terms of any application made
pursuant to this subdivision shall be repayable in the manner as
provided in United States Code, title 42, sections 901(d) 1,
903(b) 2 and 1202 1101(d)(1), 1103(b)(2), and 1322, of the
Social Security Act, as amended.
(c) Interest payable on any advance shall be paid in
accordance with section 268.051, subdivision 8, paragraph (b).
Sec. 43. Minnesota Statutes 1997 Supplement, section
268.196, subdivision 2, is amended to read:
Subd. 2. [STATE TO REPLACE MONEYS MONEY WRONGFULLY USED.]
If any moneys money received after June 30, 1941, under Title
III United States Code, title 42, section 501, of the Federal
Social Security Act, or any unencumbered balances in the
economic security administration fund as of that date, or any
moneys granted after that date to the state pursuant to the
provisions of the Wagner-Peyser Act, are found by the United
States Secretary of Labor, because of any action or contingency,
to have been lost or been expended for purposes other than, or
in amounts in excess of, those found necessary by the secretary
of labor for the proper administration of these sections, the
commissioner may, with the approval of the commissioner of
administration, replace such moneys the money from the economic
security contingent fund hereinafter established account.
If such moneys are the money is not thus replaced from the
contingent account, it is the policy of this state that such
moneys shall the money be replaced by moneys money appropriated
for such that purpose from the general funds of this state to
the economic security administration fund for expenditure as
provided in subdivision 1. Upon receipt of notice of such a
finding by the secretary of labor, the commissioner shall
promptly report the amount required for such replacement to the
governor and the governor shall, at the earliest opportunity,
submit to the legislature a request for the appropriation
of such that amount. This subdivision shall not be construed to
relieve this state of its obligation with respect to funds
received prior to July 1, 1941, pursuant to the provisions of
Title III of the Social Security Act.
Sec. 44. [INSTRUCTION TO REVISOR.]
The revisor of statutes shall change the words "employing
unit" to "employer" wherever it occurs in Minnesota Statutes,
sections 268.03 to 268.23.
The revisor of statutes shall change the words "employing
units" to "employers" wherever it occurs in Minnesota Statutes,
sections 268.03 to 268.23.
The revisor of statutes shall change the words
"agricultural labor" to "agricultural employment" wherever it
occurs in Minnesota Statutes, sections 268.03 to 268.23.
The revisor of statutes shall change the word
"remuneration" to "compensation" wherever it occurs in Minnesota
Statutes, sections 268.03 to 268.23.
The revisor of statutes shall change the words "department
of economic security" to "department" wherever it occurs in
Minnesota Statutes, sections 268.03 to 268.23.
The revisor of statutes shall change the word "deemed" to
"considered" wherever it occurs in Minnesota Statutes, sections
268.03 to 268.23.
Sec. 45. [INSTRUCTION TO REVISOR.]
The revisor of statutes shall renumber each section of
Minnesota Statutes specified in column A with the number set
forth in column B. The revisor shall also make necessary
cross-reference changes consistent with the renumbering.
Column A Column B
268.08 268.085
268.08, subd. 1 268.085, subd. 1
268.08, subd. 1a 268.087
268.08, subd. 2 268.085, subd. 2
268.08, subd. 2a 268.085, subd. 13
268.08, subd. 3 268.085, subd. 3
268.08, subd. 3a 268.085, subd. 5
268.08, subd. 3b 268.085, subd. 6
268.08, subd. 4 268.085, subd. 4
268.08, subd. 6 268.085, subd. 7
268.08, subd. 7 268.085, subd. 11
268.08, subd. 8 268.085, subd. 12
268.08, subd. 9 268.085, subd. 8
268.08, subd. 10 268.085, subd. 10
268.08, subd. 11 268.085, subd. 9
268.09 268.095
268.09, subd. 1a 268.095, subd. 1
268.09, subd. 2a 268.095, subd. 2
268.09, subd. 9 268.095, subd. 3
268.09, subd. 10 268.095, subd. 4
268.09, subd. 11 268.095, subd. 5
268.09, subd. 12 268.095, subd. 6
268.09, subd. 13 268.095, subd. 7
268.09, subd. 14 268.095, subd. 8
268.09, subd. 15 268.095, subd. 9
268.09, subd. 16 268.095, subd. 10
268.09, subd. 17 268.095, subd. 11
268.09, subd. 18 268.095, subd. 12
268.13 268.131
268.13, subd. 1, para. (a) 268.042, subd. 4
268.13, subd. 1, para. (b) 268.131, subd. 1, para. (a)
268.13, subd. 1, para. (c) 268.131, subd. 1, para. (b)
268.13, subd. 2 268.194, subd. 3a
268.13, subd. 4 268.131, subd. 2
268.18, subd. 2a 268.18, subd. 3a
Sec. 46. [REPEALER.]
Minnesota Statutes 1996, sections 268.04, as amended by
Laws 1997, chapter 66, sections 3 to 9; 268.13, subdivisions 3
and 5; and 268.25; and Minnesota Statutes 1997 Supplement,
sections 268.042, subdivision 2; and 268.054, are repealed.
Minnesota Statutes 1996, Section 268.08, subdivision 5a, is
repealed effective December 31, 1998.
Sec. 47. [EFFECTIVE DATE.]
Section 1 is effective the day following final enactment.
Section 4, subdivision 23, is effective the day following final
enactment. Section 24, subdivision 6, is effective the day
following final enactment. Section 31 is effective the day
following final enactment. Section 36, subdivision 2, paragraph
(a), is effective for determinations issued on or after July 1,
1999.
Presented to the governor March 2, 1998
Signed by the governor March 4, 1998, 10:18 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes