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Minnesota Legislature

Office of the Revisor of Statutes

CHAPTER 268. UNEMPLOYMENT INSURANCE

Table of Sections
SectionHeadnote
268.001268.001 CITATION; MINNESOTA UNEMPLOYMENT INSURANCE LAW.
268.01Repealed, 1965 c 45 s 73
268.011Repealed, 1Sp1985 c 14 art 9 s 78 subd 1
268.0111
268.012Repealed, 1Sp1985 c 14 art 9 s 78 subd 1
268.0121
268.0122
268.0124Renumbered 116J.0124
268.0125Renumbered 116J.0125
268.013Repealed, 1Sp1985 c 14 art 9 s 78 subd 1
268.014Renumbered 116J.014
268.02Repealed, 1965 c 45 s 73
268.021Repealed, 1999 c 107 s 67
268.022Renumbered 116L.20
268.025Repealed, 1965 c 45 s 73
268.026Repealed, 1997 c 66 s 81
268.027Repealed, 2004 c 206 s 53
268.028Repealed, 2004 c 206 s 53
268.029Repealed, 2004 c 206 s 53
268.03PUBLIC PURPOSE OF THE MINNESOTA UNEMPLOYMENT INSURANCE PROGRAM.
268.032ELECTRONIC TRANSMISSION; WHEN ALLOWED; SENDING TO LAST KNOWN ADDRESS REQUIRED.
268.033COMPUTATION OF TIME.
268.035DEFINITIONS.
268.04Repealed, 1998 c 265 s 46
268.041Renumbered 268.043
268.042EMPLOYERS COVERAGE.
268.0425ELECTRONIC TRANSACTION PRESUMPTION.
268.043268.043 DETERMINATIONS OF COVERAGE.
268.0435Repealed, 2007 c 128 art 1 s 23
268.044WAGE REPORTING.
268.045EMPLOYER TAX OR REIMBURSABLE ACCOUNTS.
268.046TAX AND REIMBURSABLE ACCOUNTS ASSIGNED TO EMPLOYEE LEASING COMPANIES, PROFESSIONAL EMPLOYER ORGANIZATIONS, OR SIMILAR PERSON.
268.047EFFECT ON AN EMPLOYER OF UNEMPLOYMENT BENEFITS PAID.
268.048Expired, 1997 c 80 s 3
268.05Renumbered 268.194
268.051EMPLOYERS TAXES.
268.0511Repealed, 2007 c 128 art 1 s 23
268.052PAYMENT TO TRUST FUND BY STATE AND POLITICAL SUBDIVISIONS.
268.0525268.0525 INDIAN TRIBES.
268.053PAYMENT TO TRUST FUND BY NONPROFIT ORGANIZATIONS.
268.054Repealed, 1998 c 265 s 46
268.057COLLECTION OF TAXES.
268.058LIEN, LEVY, SETOFF, AND CIVIL ACTION.
268.059GARNISHMENT FOR DELINQUENT TAXES AND UNEMPLOYMENT BENEFIT OVERPAYMENTS.
268.06
268.061Repealed, 1988 c 689 art 2 s 269
268.062Renumbered 268.068
268.0625REVOCATIONS OF BUSINESS LICENSES.
268.063268.063 PERSONAL LIABILITY.
268.064LIABILITY FOR DEBTS UPON ACQUISITION.
268.065LIABILITY OF AMOUNTS DUE FROM SUBCONTRACTORS AND EMPLOYEE LEASING FIRMS.
268.066268.066 CANCELLATION OF AMOUNTS DUE FROM AN EMPLOYER.
268.067268.067 COMPROMISE.
268.0675268.0675 NO ELECTION OF REMEDY.
268.068268.068 NOTICE TO WORKERS.
268.069PAYMENT OF UNEMPLOYMENT BENEFITS.
268.07BENEFIT ACCOUNT.
268.071Renumbered 268.115
268.072Renumbered 268.155
268.073
268.074Renumbered 268.135
268.075Renumbered 268.145
268.08
268.081Repealed, 1993 c 4 s 34
268.084268.084 PERSONAL IDENTIFICATION NUMBER; PRESUMPTION.
268.085ELIGIBILITY REQUIREMENTS.
268.086CONTINUED REQUEST FOR UNEMPLOYMENT BENEFITS ON AN ACTIVE BENEFIT ACCOUNT.
268.087268.087 UNEMPLOYMENT BENEFITS DUE DECEASED PERSONS.
268.09
268.095INELIGIBILITY BECAUSE OF A QUIT OR DISCHARGE.
268.10Repealed, 1996 c 417 s 32
268.101DETERMINATIONS ON ISSUES OF INELIGIBILITY.
268.103APPEALS BY ELECTRONIC TRANSMISSION.
268.105APPEALS.
268.11Renumbered 268.042
268.115EXTENDED UNEMPLOYMENT BENEFITS.
268.12
268.121Renumbered 268.044
268.125ADDITIONAL UNEMPLOYMENT BENEFITS.
268.13
268.131RECIPROCAL UNEMPLOYMENT BENEFIT ARRANGEMENTS.
268.135SHARED WORK PLAN.
268.14
268.145INCOME TAX WITHHOLDING.
268.15
268.155CHILD SUPPORT DEDUCTED FROM UNEMPLOYMENT BENEFITS.
268.16
268.161
268.162Renumbered 268.064
268.163Renumbered 268.065
268.164Renumbered 268.0625
268.165Repealed, 1997 c 66 s 81
268.166Renumbered 268.066
268.167Renumbered 268.059
268.17Renumbered 268.192
268.18UNEMPLOYMENT BENEFIT OVERPAYMENTS.
268.182APPLICANT'S FALSE REPRESENTATIONS; CONCEALMENT OF FACTS; PENALTY.
268.184EMPLOYER MISCONDUCT; PENALTY.
268.186268.186 RECORDS; AUDITS.
268.188268.188 SUBPOENAS; OATHS.
268.19DATA PRIVACY.
268.192PROTECTION OF RIGHTS.
268.194UNEMPLOYMENT INSURANCE TRUST FUND.
268.196ADMINISTRATION ACCOUNT.
268.198Renumbered 268.26
268.20268.20 REPRESENTATION IN COURT.
268.21268.21 NONLIABILITY OF STATE.
268.215268.215 DAY OF THE WEEK AND DATE REQUIREMENT.
268.22268.22 SAVING CLAUSE.
268.23268.23 SEVERABLE.
268.231Repealed, 1996 c 417 s 32
268.24Repealed, 1987 c 385 s 50
268.25Repealed, 1998 c 265 s 46
268.26Repealed, 2004 c 206 s 53
268.29Renumbered 299A.72
268.30Renumbered 116L.30
268.31Repealed, 1994 c 632 art 4 s 84
268.315Repealed, 1994 c 632 art 4 s 84
268.32Repealed, 1994 c 632 art 4 s 84
268.33Repealed, 1994 c 632 art 4 s 84
268.34Repealed, 1994 c 632 art 4 s 84
268.35Repealed, 1994 c 632 art 4 s 84
268.36Repealed, 1994 c 632 art 4 s 84
268.361
268.362Renumbered 116L.362
268.3625Renumbered 116L.3625
268.363Renumbered 116L.363
268.364
268.365
268.366Renumbered 116L.366
268.3661Repealed, 2004 c 206 s 53
268.367Repealed, 1996 c 339 s 10
268.37Repealed, 1998 c 273 s 15
268.371Repealed, 1998 c 273 s 15
268.38
268.39Repealed, 1997 c 200 art 4 s 23
268.40Expired
268.41Expired
268.42Expired
268.43Expired
268.52Renumbered 119A.374
268.53
268.54Renumbered 119A.376
268.55Repealed, 1998 c 273 s 15
268.551Repealed, 2004 c 206 s 53
268.552Repealed, 2004 c 206 s 53
268.56
268.561
268.60Renumbered 116L.60
268.61
268.62Renumbered 116L.62
268.63Renumbered 116L.63
268.64Renumbered 116L.64
268.65Repealed, 2004 c 206 s 53
268.66Renumbered 116L.66
268.665
268.666
268.671Repealed, 1Sp1985 c 14 art 9 s 78 subd 1
268.6715Repealed, 2001 c 79 s 8
268.672Repealed, 2001 c 79 s 8
268.673Repealed, 2001 c 79 s 8
268.674Repealed, 1Sp1985 c 14 art 9 s 78 subd 2
268.675Repealed, 1Sp1985 c 14 art 9 s 78 subd 2
268.6751Repealed, 2001 c 79 s 8
268.676Repealed, 1997 c 200 art 3 s 19
268.677Repealed, 2001 c 79 s 8
268.678Repealed, 1997 c 200 art 3 s 19
268.679
268.68Repealed, 1Sp1985 c 14 art 9 s 78 subd 2
268.681Repealed, 2001 c 79 s 8
268.6811Repealed, 2001 c 79 s 8
268.682Repealed, 2001 c 79 s 8
268.683Repealed, 1Sp1985 c 14 art 9 s 78 subd 2
268.684Repealed, 1Sp1985 c 14 art 9 s 78 subd 2
268.685Repealed, 1Sp1985 c 14 art 9 s 78 subd 1
268.686Repealed, 1Sp1985 c 9 art 2 s 104; 1Sp1985 c 14 art 9 s 78 subd 2
268.80Repealed, 1983 c 312 art 8 s 18; 1Sp1985 c 14 art 9 s 78 subd 1
268.81Repealed, 1983 c 312 art 8 s 18; 1Sp1985 c 14 art 9 s 78 subd 1
268.82Repealed, 1983 c 312 art 8 s 18; 1Sp1985 c 14 art 9 s 78 subd 1
268.83Repealed, 1983 c 312 art 8 s 18; 1Sp1985 c 14 art 9 s 78 subd 1
268.84Repealed, 1Sp1985 c 14 art 9 s 78 subd 1
268.85Repealed, 2001 c 79 s 8
268.86
268.871
268.872
268.88Renumbered 116L.88
268.881Renumbered 116L.881
268.89Repealed, 2004 c 206 s 53
268.90Repealed, 2001 c 79 s 8
268.91
268.911Renumbered 256H.20
268.912Renumbered 119A.50
268.913
268.914
268.915Renumbered 119A.53
268.916Renumbered 119A.54
268.9165Renumbered 119A.545
268.917Repealed, 1998 c 273 s 15
268.918Repealed, 2004 c 206 s 53
268.92Repealed, 1998 c 273 s 15
268.95Repealed, 2004 c 206 s 53
268.96Renumbered 116L.96
268.971Repealed, 2001 c 79 s 8
268.975Repealed, 1Sp2001 c 4 art 2 s 41
268.9755Repealed, 1995 c 131 s 3
268.976
268.977Repealed, 1993 c 369 s 146
268.9771Repealed, 1Sp2001 c 4 art 2 s 41
268.978Repealed, 1Sp2001 c 4 art 2 s 41
268.9781Repealed, 1Sp2001 c 4 art 2 s 41
268.9782Repealed, 1Sp2001 c 4 art 2 s 41
268.9783Repealed, 1Sp2001 c 4 art 2 s 41
268.979Repealed, 1Sp2001 c 4 art 2 s 41
268.98Repealed, 1Sp2001 c 4 art 2 s 41
268.001 CITATION; MINNESOTA UNEMPLOYMENT INSURANCE LAW.
    This chapter will be known and may be cited as the "Minnesota Unemployment Insurance
Law."
History: 1987 c 385 s 47; 1994 c 483 s 1; 2004 c 206 s 38; 2007 c 128 art 6 s 2
268.01 [Repealed, 1965 c 45 s 73]
268.011 [Repealed, 1Sp1985 c 14 art 9 s 78 subd 1]
268.0111    Subdivision 1.[Repealed, 2004 c 206 s 53]
    Subd. 2.[Repealed, 2004 c 206 s 53]
    Subd. 3.[Repealed, 1987 c 403 art 2 s 164]
    Subd. 3a.[Repealed, 2004 c 206 s 53]
    Subd. 4.[Renumbered 116L.19, subd 4]
    Subd. 4a.[Repealed, 2004 c 206 s 53]
    Subd. 5.[Renumbered 116L.19, subd 5]
    Subd. 5a.[Renumbered 116L.19, subd 6]
    Subd. 6.[Renumbered 116L.19, subd 7]
    Subd. 7.[Renumbered 116L.19, subd 8]
    Subd. 8.[Renumbered 116L.19, subd 9]
    Subd. 9.[Repealed, 2001 c 79 s 8]
268.012 [Repealed, 1Sp1985 c 14 art 9 s 78 subd 1]
268.0121    Subdivision 1.[Repealed, 2004 c 206 s 53]
    Subd. 2.[Repealed, 2004 c 206 s 53]
    Subd. 3.[Renumbered 116J.01, subd 6]
    Subd. 4.[Renumbered 116J.035, subd 4]
    Subd. 5.[Renumbered 116J.035, subd 6]
268.0122    Subdivision 1.[Renumbered 116J.401, subdivision 1]
    Subd. 2.[Repealed, 2004 c 206 s 53]
    Subd. 3.[Repealed, 2004 c 206 s 53]
    Subd. 4.[Renumbered 116J.035, subd 5]
    Subd. 5.[Repealed, 2004 c 206 s 53]
    Subd. 6.[Repealed, 2004 c 206 s 53]
    Subd. 7.[Renumbered 116J.401, subd 3]
268.0124 [Renumbered 116J.0124]
268.0125 [Renumbered 116J.0125]
268.013 [Repealed, 1Sp1985 c 14 art 9 s 78 subd 1]
268.014 [Renumbered 116J.014]
268.02 [Repealed, 1965 c 45 s 73]
268.021 [Repealed, 1999 c 107 s 67]
268.022 [Renumbered 116L.20]
268.025 [Repealed, 1965 c 45 s 73]
268.026 [Repealed, 1997 c 66 s 81]
268.027 [Repealed, 2004 c 206 s 53]
268.028 [Repealed, 2004 c 206 s 53]
268.029 [Repealed, 2004 c 206 s 53]
268.03 PUBLIC PURPOSE OF THE MINNESOTA UNEMPLOYMENT INSURANCE
PROGRAM.
    Subdivision 1. Statement. The public purpose of this chapter is: Economic insecurity
because of involuntary unemployment of workers in Minnesota is a subject of general concern
that requires appropriate action by the legislature. The public good is promoted by providing
workers who are unemployed through no fault of their own a temporary partial wage replacement
to assist the unemployed worker to become reemployed. This program is the "Minnesota
unemployment insurance program."
    Subd. 2. Standard of proof. All issues of fact under the Minnesota Unemployment
Insurance Law are 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.
History: (4337-21) Ex1936 c 2 s 1; 1989 c 209 art 2 s 1; 1994 c 488 s 1; 1997 c 7 art 1 s
105; 1998 c 265 s 3; 1999 c 107 s 66; 2000 c 343 s 1; 2001 c 175 s 2,52; 1Sp2003 c 3 art 2 s 20;
2005 c 112 art 2 s 1; 2007 c 128 art 6 s 3,4
268.032 ELECTRONIC TRANSMISSION; WHEN ALLOWED; SENDING TO LAST
KNOWN ADDRESS REQUIRED.
(a) If any required notice, determination, or decision issued under this chapter provides
that the commissioner may send the notice, determination, or decision by mail or electronic
transmission, the commissioner may send the notice, determination, or decision to an applicant or
employer by electronic transmission only if the applicant or employer has affirmatively indicated
that the applicant or employer would prefer required notices, determinations, or decisions be
sent by electronic transmission rather than by mail. An applicant or employer may withdraw an
indicated preference for electronic transmission.
(b) If any required notice, determination, or decision issued under this chapter is sent by
mail to an applicant or an employer, the notice, determination, or decision must be sent to the last
known address. If any required notice, determination, or decision issued under this chapter is sent
by electronic transmission, the notice, determination, or decision must be sent to the last known
electronic address of the applicant or employer. If any required notice, determination, or decision
issued under this chapter is sent by electronic transmission and the commissioner is notified that
the electronic address of the applicant or employer is no longer in service, the commissioner must
then send the required notice, determination, or decision by mail to the last known address.
History: 2004 c 183 s 2
268.033 COMPUTATION OF TIME.
The computation of time provisions of section 645.151 apply to this chapter.
History: 2004 c 183 s 3
268.035 DEFINITIONS.
    Subdivision 1. Scope. The words, terms, and phrases in this section, for the purposes of the
Minnesota Unemployment Insurance Law, 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. 2a. Applicant. "Applicant" means an individual who has filed an application for
unemployment benefits and has established or is pursuing the establishment of a benefit account.
    Subd. 3. Back pay. "Back pay" means a retroactive payment of money by an employer to an
employee or former employee for lost wages.
    Subd. 4. Base period. "Base period" means:
    (1) the first four of the last five completed calendar quarters before the effective date of an
applicant's application for unemployment benefits as set forth below:
If the application for unemployment
benefits is effective on or between these
dates:
The base period is the prior:
January 1 - March 31
October 1 - September 30
April 1 - June 30
January 1 - December 31
July 1 - September 30
April 1 - March 31
October 1 - December 31
July 1 - June 30
    (2) if the applicant has insufficient wage credits to establish a benefit account under
clauses (1) and (3), and during the base period under clause (1) an applicant received workers'
compensation for temporary disability under chapter 176 or a similar federal law or similar law of
another state, or if an applicant whose own serious illness caused a loss of work for which the
applicant received compensation for loss of wages from some other source, the applicant may
request an extended base period as follows:
    (i) if an applicant was compensated for a loss of work of seven to 13 weeks, the base
period is the first four of the last six completed calendar quarters before the effective date of
the application for unemployment benefits;
    (ii) if an applicant was compensated for a loss of work of 14 to 26 weeks, the base period
is the first four of the last seven completed calendar quarters before the effective date of the
application for unemployment benefits;
    (iii) if an applicant was compensated for a loss of work of 27 to 39 weeks, the base period
is the first four of the last eight completed calendar quarters before the effective date of the
application for unemployment benefits; and
    (iv) if an applicant was compensated for a loss of work of 40 to 52 weeks, the base period
is the first four of the last nine completed calendar quarters before the effective date of the
application for unemployment benefits;
    (3) if the applicant has insufficient wage credits to establish a benefit account under clause
(1), an alternate base period of the last four completed calendar quarters before the date the
applicant's application for unemployment benefits is effective will be used. This base period can
be used only 30 calendar days or more after the end of the last completed quarter, when a wage
detail report has been, or should have been, filed for that quarter under section 268.044; and
    (4) no base period under clause (1), (2), or (3) may include wage credits upon which a
prior benefit account was established.
    Subd. 5.[Renumbered subd 26a]
    Subd. 6. Benefit year. "Benefit year" means the period of 52 calendar weeks beginning
the date a benefit account is effective. For a benefit account established effective any January
1, April 1, July 1, October 1, or January 2, 2000, or October 2, 2011, 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.[Renumbered subd 2a]
    Subd. 8a. Commissioner. "Commissioner" means the commissioner of employment and
economic development.
    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, is 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 or has filed business
or self-employment income tax returns with the federal Internal Revenue Service based on that
work or service in the previous year;
    (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 is not 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 is 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 is treated as the employer of the employee; and
    (ii) the other person is 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 is 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 is excluded from covered
agricultural employment unless the employer is an employer under United States Code, title 26,
section 3306(a)(2) of the Federal Unemployment Tax Act.
    Subd. 12. Covered employment. "Covered employment" means the following unless
excluded as "noncovered employment" under subdivision 20:
    (1) an employee's entire employment during the calendar quarter if:
    (i) the employment 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 where part of the employment is
performed, but the employee's residence is in Minnesota;
    (2) an employee's employment during the calendar quarter wherever performed within the
United States or Canada, if:
    (i) the employment is not covered under the unemployment insurance program of any other
state or Canada; and
    (ii) the place from which the employment is directed or controlled is in Minnesota;
    (3) the employment during the calendar quarter 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, an applicant has made
an application for unemployment 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 during the calendar quarter performed by an officer or member of the
crew of an American vessel on or in connection with the vessel, if the operating office from
which the operations of the vessel operating on navigable waters within, or within and without,
the United States are ordinarily and regularly supervised, managed, directed, and controlled
is in Minnesota; and
    (5) for the purposes of satisfying the period of ineligibility under section 268.095,
subdivision 10
, "covered employment" includes covered employment under an unemployment
insurance program of any other state or employment covered under an unemployment insurance
program established by an act of Congress.
    Subd. 12a. Department. "Department" means the Department of Employment and
Economic Development.
    Subd. 12b. Electronic transmission. "Electronic transmission" means a communication sent
by electronic, digital, magnetic, wireless, optical, electromagnetic or similar capabilities, and,
when permitted by the commissioner, a telephone communication.
    Subd. 13. Employee. "Employee" means:
    (1) every individual who is performing or has performed services for an employer in
employment; or
    (2) each individual employed to perform or assist in performing the work of any agent
or employee of the employer is considered to be an employee of 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. 14. Employer. "Employer" means any person that has had one or more employees
during the current or the prior calendar year including any person that has elected, under section
268.042, to be subject to the Minnesota Unemployment Insurance Law and a joint venture
composed of one or more employers.
    An employee leasing company, professional employer organization, or similar person that
has been assigned a tax account under section 268.046 is an employer for purposes of this chapter.
    Subd. 15. Employment. (a) "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) product demonstrators in retail stores or other locations to aid in the sale of products.
The person that pays the wages is considered the employer; or
    (5) an individual who performs services for a person 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; or
    (ii) a traveling or city salesperson, other than as an agent-driver or commission-driver,
engaged full-time in the solicitation on behalf of the 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 applies 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.
    (b) Employment does not include service as a juror.
    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 is considered filed on the day indicated by the cancellation mark of the United States
Postal Service.
    If, where allowed, an application, appeal, or other required action is made by electronic
transmission, it is considered filed on the day received by the department.
    Subd. 18.[Renumbered subd 25a]
    Subd. 19. High quarter. "High quarter" means the calendar quarter in an applicant'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, including
military service;
    (2) employment for a state, other than Minnesota, or a political subdivision or instrumentality
thereof;
    (3) employment for a foreign government;
    (4) employment for an instrumentality wholly owned by a foreign government, if the
employment is of a character similar to that performed in foreign countries by employees of
the United States government or an instrumentality thereof and the United States Secretary
of State has certified that the foreign government grants an equivalent exemption to similar
employment performed in the foreign country by employees of the United States government
and instrumentalities thereof;
    (5) employment covered under United States Code, title 45, section 351, the Railroad
Unemployment Insurance Act;
    (6) employment covered by a reciprocal arrangement between the commissioner and another
state or the federal government that provides that all employment performed by an individual for
an employer during the period covered by the reciprocal arrangement is considered performed
entirely within another state;
    (7) 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);
    (8) employment of a duly ordained or licensed minister of a church in the exercise of a
ministry or by a member of a religious order in the exercise of duties required by the order, 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);
    (9) 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;
    (10) 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 does not apply to programs that require
unemployment benefit coverage for the participants;
    (11) employment for Minnesota or a political subdivision as an elected official, a member of
a legislative body, or a member of the judiciary;
    (12) employment as a member of the Minnesota National Guard or Air National Guard;
    (13) employment for Minnesota, a political subdivision, or instrumentality thereof, as an
employee serving only on a temporary basis in case of fire, flood, tornado, or similar emergency;
    (14) 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;
    (15) employment for Minnesota that is a major policy making or advisory position in the
unclassified service, including those positions established under section 43A.08, subdivision 1a;
    (16) employment for a political subdivision of Minnesota that is a nontenured major policy
making or advisory position;
    (17) domestic employment 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 prior calendar year to all individuals in domestic employment
totaled less than $1,000.
    "Domestic employment" includes all service in the operation and maintenance of a private
household, for a local college club, or local chapter of a college fraternity or sorority as
distinguished from service as an employee in the pursuit of an employer's trade or business;
    (18) 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;
    (19) employment of an inmate of a custodial or penal institution;
    (20) employment for a school, college, or university by a student who is enrolled and is
regularly attending classes at the school, college, or university;
    (21) employment of an individual who is enrolled as a student in a full-time program at
a nonprofit or public educational institution that maintains a regular faculty and curriculum
and has a regularly organized body of students in attendance at the place where its educational
activities are carried on, taken for credit at the institution, that combines academic instruction
with work experience, if the employment is an integral part of the program, and the institution has
so certified to the employer, except that this clause does not apply to employment in a program
established for or on behalf of an employer or group of employers;
    (22) employment of university, college, or professional school students in an internship or
other training program with the city of St. Paul or the city of Minneapolis under Laws 1990,
chapter 570, article 6, section 3;
    (23) employment for a hospital by a patient of the hospital. "Hospital" means an institution
that has been licensed by the Department of Health as a hospital;
    (24) employment as a student nurse for a hospital or a nurses' training school by an individual
who is enrolled and is regularly attending classes in an accredited nurses' training school;
    (25) employment as an intern for a hospital by an individual who has completed a four-year
course in an accredited medical school;
    (26) employment as an insurance salesperson, by other than a corporate officer, if all the
wages from the employment is solely by way of commission. The word "insurance" includes
an annuity and an optional annuity;
    (27) employment as an officer of a township mutual insurance company or farmer's mutual
insurance company operating under chapter 67A;
    (28) employment of a corporate officer, if the officer owns 25 percent or more of the
employer corporation, and employment of a member of a limited liability company, if the member
owns 25 percent or more of the employer limited liability company;
    (29) employment as a real estate salesperson, by other than a corporate officer, if all the
wages from the employment is solely by way of commission;
    (30) employment as a direct seller as defined in United States Code, title 26, section 3508;
    (31) 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;
    (32) casual employment performed for an individual, other than domestic employment under
clause (17), that does not promote or advance that employer's trade or business;
    (33) employment in "agricultural employment" unless considered "covered agricultural
employment" under subdivision 11; or
    (34) if employment during one-half or more of any pay period was covered employment,
all the employment for the pay period is considered covered employment; but if during more
than one-half of any pay period the employment was noncovered employment, then all of the
employment for the pay period is considered noncovered employment. "Pay period" means
a period of not more than a calendar month for which a payment or compensation is ordinarily
made to the employee by the employer.
    Subd. 21. Person. "Person" means:
(1) an individual or any type of organization or entity, resident or nonresident, for profit or
nonprofit, religious, charitable or educational, including any receiver or trustee in a bankruptcy,
successor of any of the foregoing, or legal representative of a deceased individual; and
(2) any government entity, state or federal, foreign or domestic, or Indian tribe, including any
subdivision or instrumentality thereof owned wholly or in part.
    Subd. 21a. Reemployment assistance training. (a) An applicant is in "reemployment
assistance training" when:
    (1) reasonable and suitable employment for the applicant does not exist in the labor market
area and it is necessary that the applicant receive training in order to obtain suitable employment;
    (2) the curriculum, facilities, staff, and other essentials are adequate to achieve the training
objective;
    (3) the training is vocational in nature or short term academic training vocationally directed
to an occupation or skill for which there are reasonable employment opportunities available
to the applicant;
    (4) the training course is considered full time by the training provider; and
    (5) the applicant is making satisfactory progress in the training.
    (b) Full-time training provided through the dislocated worker program, the Trade Act of
1974, as amended, or the North American Free Trade Agreement is considered "reemployment
assistance training," if that training course is in accordance with the requirements of that program.
    (c) An applicant is considered in reemployment assistance training only if the training course
has actually started or is scheduled to start within 30 calendar days.
    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 is 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 is divided by the average monthly covered employment to calculate the
state's average annual wage.
    (3) The state's average annual wage is 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
applies to the calendar year following the calculation.
    (c) For purposes of calculating the state's maximum weekly unemployment benefit amount
available on any benefit account under section 268.07, subdivision 2, the state's average weekly
wage applies to the one-year period beginning the last Sunday in October of the calendar year of
the calculation.
    Subd. 23a. Suitable employment. (a) Suitable employment means employment in the
applicant's labor market area that is reasonably related to the applicant's qualifications. In
determining whether any employment is suitable for an applicant, the degree of risk involved
to the health and safety, physical fitness, prior training, experience, length of unemployment,
prospects for securing employment in the applicant's customary occupation, and the distance of
the employment from the applicant's residence is considered.
    (b) In determining what is suitable employment, primary consideration is given to the
temporary or permanent nature of the applicant's separation from employment and whether the
applicant has favorable prospects of finding employment in the applicant's usual or customary
occupation at the applicant's past wage level within a reasonable period of time.
    If prospects are unfavorable, employment at lower skill or wage levels is suitable if the
applicant is reasonably suited for the employment considering the applicant's education, training,
work experience, and current physical and mental ability.
    The total compensation must be considered, including the wage rate, hours of employment,
method of payment, overtime practices, bonuses, incentive payments, and fringe benefits.
    (c) When potential employment is at a rate of pay lower than the applicant's former rate,
consideration must be given to the length of the applicant's unemployment and the proportion
of difference in the rates. Employment that may not be suitable because of lower wages during
the early weeks of the applicant's unemployment may become suitable as the duration of
unemployment lengthens.
    (d) For an applicant seasonally unemployed, suitable employment includes temporary work
in a lower skilled occupation that pays average gross weekly wages equal to or more than 150
percent of the applicant's weekly unemployment benefit amount.
    (e) If a majority of the applicant's wage credits were earned from part-time employment,
part-time employment in a position with comparable skills and comparable hours that pays
average gross weekly wages equal to or more than 150 percent of the applicant's weekly
unemployment benefit amount is considered suitable employment.
    (f) To determine suitability of employment in terms of shifts, the arrangement of hours in
addition to the total number of hours is to be considered. Employment on a second, third, rotating,
or split shift is suitable employment if it is customary in the occupation in the labor market area.
    (g) Employment is not considered suitable if:
    (1) the position offered is vacant because of a labor dispute;
    (2) the wages, hours, or other conditions of employment are substantially less favorable than
those prevailing for similar employment in the labor market area; or
    (3) as a condition of becoming employed, the applicant would be required to join a company
union or to resign from or refrain from joining any bona fide labor organization.
    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 $1,000.
    (b) Taxable wages includes the amount of wages paid for covered employment by the
employer's predecessor when there has been an experience rating history transfer under section
268.051, subdivision 4.
    Subd. 25. Taxes. "Taxes" means the money payments required by the Minnesota
Unemployment Insurance Law to be paid into the trust fund by an employer on account of paying
wages to employees in covered employment.
    Subd. 25a. Trust fund. "Trust fund" means the Minnesota unemployment insurance trust
fund established by section 268.194.
    Subd. 25b. Trucking industry/independent contractors. In the trucking industry, an
owner-operator of a vehicle that is licensed and registered as a truck, tractor, or truck-tractor
by a governmental motor vehicle regulatory agency is an independent contractor, and is not
considered an employee, while performing services in the operation of the truck only if each
of the following factors is present:
    (1) the individual owns the equipment or holds it under a bona fide lease arrangement;
    (2) the individual is responsible for the maintenance of the equipment;
    (3) the individual bears the principal burdens of the operating costs, including fuel, repairs,
supplies, vehicle insurance, and personal expenses while on the road;
    (4) the individual is responsible for supplying the necessary personal services to operate
the equipment;
    (5) the individual's compensation is based on factors related to the work performed, such as a
percentage of any schedule of rates, and not on the basis of the hours or time expended; and
    (6) the individual enters into a written contract that specifies the relationship to be that of an
independent contractor and not that of an employee.
    Subd. 26. Unemployed. An applicant is considered "unemployed" (1) in any week that
the applicant performs less than 32 hours of service in employment, covered employment,
noncovered employment, self-employment, or volunteer work; and (2) any earnings with respect
to that week are less than the applicant's weekly unemployment benefit amount.
    Subd. 26a. Unemployment benefits. "Unemployment benefits" means the money payments
portion of the Minnesota unemployment insurance program available to an applicant.
    Subd. 27. Wage credits. "Wage credits" mean the amount of wages paid within an applicant's
base period for covered employment.
    Subd. 28. Wage detail report. "Wage detail report" means the report on each employee in
covered employment required from an employer on a calendar quarter basis under section 268.044.
    Subd. 29. Wages. (a) "Wages" means all compensation for services, including commissions;
bonuses, awards, and prizes; severance payments; standby pay; vacation and holiday pay; back
pay as of the date of payment; tips and gratuities paid to an employee by a customer of an
employer and accounted for by the employee to the employer; sickness and accident disability
payments, except as otherwise provided in this subdivision; and the cash value of housing,
utilities, meals, exchanges of services, and any other goods and services provided to compensate
for an employee's services, except:
    (1) the amount of any payment made to, or on behalf of, an employee under a plan
established by an employer that makes provision for employees generally or for a class or classes
of employees, including any amount paid by an employer for insurance or annuities, or into a
plan, to provide for a payment, on account of (i) retirement or (ii) medical and hospitalization
expenses in connection with sickness or accident disability, or (iii) death;
    (2) the payment by an employer of the tax imposed upon an employee under United
States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect to
compensation paid to an employee for domestic employment in a private household of the
employer or for agricultural employment;
    (3) any payment made to, or on behalf of, an employee or beneficiary (i) from or to a trust
described in United States Code, title 26, section 401(a) of the federal Internal Revenue Code,
that is exempt from tax under section 501(a) at the time of the payment unless the payment is
made to an employee of the trust as compensation for services as an employee and not as a
beneficiary of the trust, or (ii) under or to an annuity plan that, at the time of the payment, is
a plan described in section 403(a);
    (4) the value of any special discount or markdown allowed to an employee on goods
purchased from or services supplied by the employer where the purchases are optional and do not
constitute regular or systematic payment for services;
    (5) customary and reasonable directors' fees paid to individuals who are not otherwise
employed by the corporation of which they are directors;
    (6) the payment to employees for reimbursement of meal expenses when employees are
required to perform work after their regular hours;
    (7) the payment into a trust or plan for purposes of providing legal or dental services if
provided for all employees generally or for a class or classes of employees;
    (8) the value of parking facilities provided or paid for by an employer, in whole or in part, if
provided for all employees generally or for a class or classes of employees;
    (9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral, or other right;
    (10) advances or reimbursements for traveling or other bona fide ordinary and necessary
expenses incurred or reasonably expected to be incurred in the business of the employer.
Traveling and other reimbursed expenses must be identified either by making separate payments
or by specifically indicating the separate amounts where both wages and expense allowances
are combined in a single payment;
    (11) residual payments to radio, television, and similar artists that accrue after the production
of television commercials, musical jingles, spot announcements, radio transcriptions, film sound
tracks, and similar activities;
    (12) supplemental unemployment benefits paid under a plan established by an employer,
that makes provisions for employees generally or for a class or classes of employees for the
supplementing of unemployment benefits under the written terms of an agreement, contract, trust
arrangement, or other instrument if the plan provides benefits that are only supplemental to, and
does not replace or duplicate any state or federal unemployment benefits. The plan must provide
that funds are paid solely for the supplementing of state or federal unemployment benefits. The
plan must provide that any supplemental benefits are payable only if the applicant has applied for
all unemployment benefits available. The plan must provide that supplemental benefits, when
combined with the applicant's weekly unemployment benefits available, may not exceed the
applicant's regular weekly pay. The plan must not allow the assignment of supplemental benefits
or payment upon the employee's withdrawal from the plan, or quitting of employment or the
termination of the plan. The plan must not require any consideration from the applicant and
must not be designed for the purpose of avoiding the payment of Social Security obligations, or
unemployment taxes on money disbursed from the plan;
    (13) 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;
    (14) disability payments made under the provisions of any workers' compensation law;
    (15) sickness or accident disability payments made by a third party payer such as an
insurance company; or
    (16) payments made into a trust fund, or for the purchase of insurance or an annuity, to
provide for sickness or accident disability payments to employees under a plan or system
established by the employer that provides for the employer's employees generally or for a class or
classes of employees.
    (b) Nothing in this subdivision excludes from the term "wages" any payment made under
any type of salary reduction agreement, including payments made under a cash or deferred
arrangement and cafeteria plan, as defined in United States Code, title 26, sections 401(k) and
125 of the federal Internal Revenue Code, to the extent that the employee has the option to
receive the payment in cash.
    (c) Wages includes payments made for services as a caretaker. Unless there is a contract or
other proof to the contrary, compensation is considered as being equally received by a married
couple where the employer makes payment to only one spouse, or by all tenants of a household
who perform services where two or more individuals share the same dwelling and the employer
makes payment to only one individual.
    (d) Wages includes payments made for services by a migrant family. Where services
are performed by a married couple or a family and an employer makes payment to only one
individual, each worker is considered as having received an equal share of the compensation
unless there is a contract or other proof to the contrary.
    (e) Wages includes advances or draws against future earnings, when paid, unless the
payments are designated as a loan or return of capital on the books of the employer at the time of
payment.
    (f) Wages includes payments made by a subchapter "S" corporation, as organized under
the Internal Revenue Code, to or on behalf of officers and shareholders that are reasonable
compensation for services performed for the corporation.
    For a subchapter "S" corporation, wages does not include:
    (1) a loan for business purposes to an officer or shareholder evidenced by a promissory note
signed by an officer before the payment of the loan proceeds and recorded on the books and
records of the corporation as a loan to an officer or shareholder;
    (2) a repayment of a loan or payment of interest on a loan made by an officer to the
corporation and recorded on the books and records of the corporation as a liability;
    (3) a reimbursement of reasonable corporation expenses incurred by an officer and
documented by a written expense voucher and recorded on the books and records of the
corporation as corporate expenses; and
    (4) a reasonable lease or rental payment to an officer who owns property that is leased or
rented to the corporation.
    Subd. 30. Wages paid. (a) "Wages paid" means the amount of wages that have been actually
paid or that have been credited to or set apart so that payment and disposition is under the control
of the employee. Wage payments delayed beyond the regularly scheduled pay date are considered
"wages paid" on the missed pay date. Back pay is considered "wages paid" on the date of actual
payment. Any wages earned but not paid with no scheduled date of payment is considered "wages
paid" on the last day of employment.
    (b) Wages paid does 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 unemployment benefit amount. "Weekly unemployment benefit amount"
means the amount of unemployment benefits computed under section 268.07, subdivision 2,
paragraph (b).
History: 1998 c 265 s 4; 1999 c 107 s 2-15,66; 2000 c 343 s 4; 2001 c 175 s 3-8,52; 1Sp2003
c 3 art 2 s 1,2,20; 2004 c 183 s 4-12; 2005 c 112 art 2 s 2-7; 2007 c 128 art 1 s 1,2; art 2 s 1;
art 3 s 1-3; art 4 s 2-4; art 5 s 2; art 6 s 5-13
NOTE:Subdivision 9 is repealed by Laws 2007, chapter 135, article 3, section 42, effective
January 1, 2009. Laws 2007, chapter 135, article 3, section 42, the effective date.
268.04 [Repealed, 1998 c 265 s 46]
268.041 [Renumbered 268.043]
268.042 EMPLOYERS COVERAGE.
    Subdivision 1. Employer registration. (a) Each employer must, upon or before the
submission of its first wage detail report under section 268.044, register with the commissioner
for a tax account or a reimbursable account, by electronic transmission in a format prescribed by
the commissioner. The employer must provide all required information for registration, including
the actual physical street and city address of the employer.
    (b) Within 30 calendar days, each employer must notify the commissioner by electronic
transmission, in a format prescribed, of a change in legal entity, of the transfer, sale, or acquisition
of a business conducted in Minnesota, in whole or in part, if the transaction results in the creation
of a new or different employer or affects the establishment of employer accounts, the assignment
of tax rates, or the transfer of experience rating history.
    (c) Except as provided in subdivision 3, any person that is or becomes an employer subject
to the Minnesota Unemployment Insurance Law because of the application of section 268.035,
subdivision 20
, clause (14), (17), or (33), within any calendar year is considered to be subject to
this chapter the entire calendar year.
    (d) Within 30 calendar days of the termination of business, an employer that has been
assigned a tax account or reimbursable account must notify the commissioner by electronic
transmission, in a format prescribed by the commissioner, that the employer no longer has
employees and does not intend or expect to pay wages to any employees in the next calendar year
and into the foreseeable future. Upon notification, the employer is no longer required to file wage
detail reports under section 268.044, subdivision 1, paragraph (d).
    (e) An employer that has terminated business regains its previous tax account under section
268.045, with the experience rating history of that account, if the employer again commences
business and if:
    (1) less than 14 calendar quarters have elapsed in which no wages were paid for covered
employment;
    (2) the experience rating history regained contains taxable wages; and
    (3) the experience rating history has not been transferred to a successor under section
268.051, subdivision 4.
    Subd. 2.[Repealed, 1998 c 265 s 46]
    Subd. 3. Election to have noncovered employment considered covered employment.
    (a) Any employer that has employment performed for it that is noncovered employment under
section 268.035, subdivision 20, may file with the commissioner, by electronic transmission
in a format prescribed by the commissioner, an election that all employment, in one or more
distinct establishments or places of business, is considered covered employment for not less than
two calendar years. The commissioner has discretion on the approval of any election. Upon the
approval of the commissioner, sent by mail or electronic transmission, the employment constitutes
covered employment beginning the calendar quarter after the date of approval or beginning
a later calendar quarter if requested by the employer. The employment ceases to be considered
covered employment as of the first day of January of any calendar year only if at least 30 calendar
days before the first day of January the employer has filed with the commissioner, by electronic
transmission in a format prescribed by the commissioner, a notice to that effect.
    (b) The commissioner must terminate any election agreement under this subdivision upon 30
calendar days' notice sent by mail or electronic transmission, if the employer is delinquent on any
taxes due or reimbursements due the trust fund.
    Subd. 4. Authorization. The commissioner is authorized to enter into reciprocal
arrangements with other states and the federal government, or both, whereby employment by an
employee or employees for a single employer that is customarily performed in more than one
state is considered performed entirely within any one of the states:
    (1) where any part of the employee's employment is performed, or
    (2) where the employee has a residence, or
    (3) where the employer maintains a place of business; provided, there is in effect, as to the
employment, an election, approved by the state, under which all the employment by the employee
or employees for the employer is considered to be performed entirely within that state.
History: Ex1936 c 2 s 9,11; 1937 c 306 s 6,8; 1939 c 443 s 9; 1941 c 554 s 8,10; 1943 c 650
s 8; 1945 c 376 s 8,10; 1947 c 432 s 8-10; 1947 c 600 s 2; 1949 c 605 s 10; 1953 c 97 s 13,14;
1965 c 45 s 41,45; 1969 c 9 s 64; 1969 c 854 s 9,10; 1971 c 942 s 13; 1979 c 181 s 16; 1983 c
372 s 35,36; 1986 c 444; 1989 c 209 art 2 s 1; 1996 c 417 s 31; 1997 c 66 s 61,79; 1998 c 265 s
5,6,33-35,45; 1999 c 107 s 16; 2001 c 175 s 9,52; 1Sp2003 c 3 art 2 s 20; 2004 c 183 s 13,14;
2005 c 112 art 2 s 8; 2007 c 128 art 4 s 5; art 6 s 14,15
268.0425 ELECTRONIC TRANSACTION PRESUMPTION.
If any electronic transaction is done under this chapter using an identification number or
code assigned an employer by the commissioner, the transaction is presumed as done by that
employer unless a preponderance of the available evidence displays clearly that it was not done
by that employer.
History: 2004 c 183 s 15,86
268.043 DETERMINATIONS OF COVERAGE.
    (a) The commissioner, upon the commissioner's own motion or upon application of a person,
shall determine if that person is an employer or whether services performed for it constitute
employment and covered employment, or whether the compensation for services constitutes
wages, and notify the person of the determination. The determination is final unless the person,
within 20 calendar days after sending of the determination by mail or electronic transmission,
files an appeal. Proceedings on the appeal are conducted in accordance with section 268.105.
    (b) No person may be initially determined an employer, or that services performed for it
were in employment or covered employment, for periods more than four years before the year in
which the determination is made, unless the commissioner finds that there was fraudulent action
to avoid liability under this chapter.
History: 1995 c 54 s 2; 1996 c 417 s 4; 1997 c 66 s 79; 1998 c 265 s 7; 2004 c 183 s
16; 2005 c 112 art 2 s 9; 2007 c 128 art 1 s 3
268.0435 [Repealed, 2007 c 128 art 1 s 23]
NOTE:This section was also amended by Laws 2007, chapter 128, article 6, section 16, to
read as follows:
"268.0435 SINGLE MEMBER LIMITED LIABILITY COMPANIES.
    If the only member of a limited liability company is a corporation, and the limited liability
company is disregarded for purposes of filing federal corporate income tax, all the workers
performing services for the limited liability company must be reported on the corporation's
wage detail report under section 268.044. A corporation that violates this section is subject to
the penalties under section 268.184, subdivision 1a. Penalties are credited to the administration
account to be used to ensure integrity in the unemployment insurance program."
268.044 WAGE REPORTING.
    Subdivision 1. Wage detail report. (a) Each employer must submit, under the account
provided for in section 268.045 or 268.046, a quarterly wage detail report by electronic
transmission, in a format prescribed by the commissioner. The report must include for each
employee in covered employment during the calendar quarter, 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 must report 40 hours worked for each week any duties were performed by a
full-time employee and must report a reasonable estimate of the hours worked for each week
duties were performed by a part-time employee. In addition, the wage detail report must include
the number of employees employed during the payroll period that includes the 12th day of each
calendar month and, if required by the commissioner, the report must be broken down by business
location and, if section 268.046, subdivision 1, paragraph (b), or subdivision 2, paragraph (b),
applies, by separate unit. The report is due and must be received by the commissioner on or
before the last day of the month following the end of the calendar quarter. The commissioner may
delay the due date on a specific calendar quarter in the event the department is unable to accept
wage detail reports electronically.
    (b) The employer may report the wages paid to the next lower 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 from being reported by federal law.
    (d) A wage detail report must be submitted for each calendar quarter even though no wages
were paid, unless the employer has notified the commissioner, under section 268.042, subdivision
1
, paragraph (c), of termination of business.
    Subd. 1a. Electronic transmission of report required. Each employer must submit
the quarterly wage detail report by electronic transmission in a format prescribed by the
commissioner. The commissioner has the discretion to accept wage detail reports that are
submitted by any other means or the commissioner may return the report submitted by other than
electronic transmission to the employer, and reports returned are considered as not submitted and
the late fees under subdivision 2 may be imposed.
    Subd. 2. Failure to timely file report; late fees. (a) Any employer that fails to submit
the quarterly wage detail report when due must pay a late fee of $10 per employee, computed
based upon the highest of:
    (1) the number of employees reported on the last wage detail report submitted;
    (2) the number of employees reported in the corresponding quarter of the prior calendar
year; or
    (3) if no wage detail report has ever been submitted, the number of employees listed at
the time of employer registration.
    The late fee is waived if the wage detail report is received within 30 calendar days after a
demand for the report is sent to the employer by mail or electronic transmission. A late fee
assessed an employer may not be waived more than twice each 12 months. The amount of the
late fee assessed may not be less than $250.
    (b) If the wage detail report is not received in a manner and format prescribed by the
commissioner within 30 calendar days after demand is sent under paragraph (a), the late fee
assessed under paragraph (a) doubles and a renewed demand notice and notice of the increased
late fee will be sent to the employer by mail or electronic transmission.
    (c) Late fees due under this subdivision may be compromised under section 268.067 where
good cause for late submission is found by the commissioner.
    Subd. 3. Missing or erroneous information. (a) Any employer that submits the wage
detail report, but fails to include all employee information or enters erroneous information, is
subject to an administrative service fee of $25 for each employee for whom the information is
partially missing or erroneous.
    (b) Any employer that submits the wage detail report, but fails to include an employee, is
subject to an administrative service fee equal to two percent of the total wages for each employee
for whom the information is completely missing.
    (c) An administrative service fee under this subdivision must be canceled if the commissioner
determines that the failure or error by the employer occurred because of ignorance or inadvertence.
    Subd. 4. Fees. The fees provided for in subdivisions 2 and 3 are in addition to interest
and other penalties imposed by this chapter and are collected in the same manner as delinquent
taxes and credited to the contingent account.
History: 1Sp1982 c 1 s 42; 1986 c 444; 1987 c 362 s 24; 1987 c 370 art 2 s 16; 1987 c 385 s
26; 1997 c 66 s 64,79,80; 1997 c 74 s 1; 1Sp1997 c 5 s 7; 1998 c 265 s 8; 1Sp2003 c 3 art 2 s 3,4;
2004 c 183 s 17-21; 2005 c 112 art 1 s 2,3; art 2 s 10,42; 2007 c 128 art 3 s 4,5; art 6 s 17-19
268.045 EMPLOYER TAX OR REIMBURSABLE ACCOUNTS.
    Subdivision 1. Account for each employer. The commissioner shall maintain (1) a
tax account for each taxpaying employer and (2) a reimbursable account for each nonprofit
or government employer that has elected under section 268.052 or 268.053 to be liable for
reimbursements, except as provided in section 268.046. The commissioner shall assess the tax
account for all the taxes due under section 268.051 and credit the tax account with all taxes
paid. The commissioner shall charge the reimbursable account for any unemployment benefits
determined chargeable under section 268.047 and credit the reimbursable account with the
payments made.
    Subd. 2.[Repealed, 2005 c 112 art 1 s 16]
    Subd. 3.[Repealed, 2005 c 112 art 1 s 16]
    Subd. 4.[Repealed, 2005 c 112 art 1 s 16]
History: Ex1936 c 2 s 4; 1937 c 306 s 2; 1939 c 443 s 3; 1941 c 554 s 3; 1943 c 650 s 2;
1945 c 376 s 3; 1947 c 32 s 1-8; 1947 c 432 s 3-5,11; 1947 c 600 s 7; 1949 c 526 s 1; 1949 c 605 s
3-6,17,18; 1951 c 442 s 2; 1953 c 97 s 5,6,8; 1953 c 288 s 1; 1955 c 380 s 2-4,6; 1957 c 25 s
1; 1957 c 873 s 2; 1959 c 702 s 2-4; 1965 c 45 s 40; 1965 c 741 s 6-11; 1967 c 573 s 3; 1967 c
617 s 1; 1967 c 856 s 1; 1969 c 3 s 1; 1969 c 567 s 3; 1969 c 854 s 6; 1971 c 860 s 1; 1971 c
942 s 3-6; 1973 c 254 s 3; 1973 c 599 s 2-4; 1975 c 336 s 6-10; 1977 c 4 s 4,5; 1977 c 297 s
6-11; 1977 c 430 s 25 subd 1; 1977 c 455 s 82; 1978 c 674 s 60; 1979 c 181 s 4-8; 1980 c 508 s
2-7; 1Sp1982 c 1 s 5-12; 1983 c 216 art 1 s 87; 1983 c 247 s 112; 1983 c 372 s 9-15; 1985 c
248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1986 c 451 s 1; 1987 c 242 s 1; 1987 c 362 s
9-12; 1987 c 385 s 10-18; 1989 c 65 s 3-5; 1989 c 209 art 2 s 1; 1992 c 484 s 4-7; 1994 c 483
s 1; 1994 c 488 s 8; 1995 c 54 s 3-7; 1996 c 417 s 5-7,31; 1997 c 66 s 19,26,79; 1998 c 265 s
9; 1999 c 107 s 17; 2000 c 343 s 4; 2001 c 175 s 10; 1Sp2003 c 3 art 2 s 20; 2004 c 183 s 22;
2005 c 112 art 1 s 4; 2007 c 128 art 6 s 20
268.046 TAX AND REIMBURSABLE ACCOUNTS ASSIGNED TO EMPLOYEE
LEASING COMPANIES, PROFESSIONAL EMPLOYER ORGANIZATIONS, OR
SIMILAR PERSON.
    Subdivision 1. Tax accounts assigned. (a) Any person that contracts with a taxpaying
employer to have that person obtain the taxpaying employer's workforce and provide workers
to the taxpaying employer for a fee is, as of the effective date of the contract, assigned for the
duration of the contract the taxpaying employer's account under section 268.045. That tax account
must be maintained by the person separate and distinct from every other tax account held by the
person and identified in a manner prescribed by the commissioner. The tax account is, for the
duration of the contract, considered that person's account for all purposes of this chapter. The
workers obtained from the taxpaying employer and any other workers provided by that person
to the taxpaying employer must, under section 268.044, be reported on the wage detail report
under that tax account, and that person must pay any taxes due at the tax rate computed for that
account under section 268.051, subdivision 2.
    (b) Any workers of the taxpaying employer who are not covered by the contract under
paragraph (a) must be reported by the taxpaying employer as a separate unit on the wage detail
report under the tax account assigned under paragraph (a). Taxes and any other amounts due on
the wages reported by the taxpaying employer under this paragraph may be paid directly by the
taxpaying employer.
    (c) If the taxpaying employer that contracts with a person under paragraph (a) does not have
a tax account at the time of the execution of the contract, an account must be registered for the
taxpaying employer under section 268.042 and the new employer tax rate under section 268.051,
subdivision 5
, must be assigned. The tax account is then assigned to the person as provided
for in paragraph (a).
    (d) A person that contracts with a taxpaying employer under paragraph (a) must, within 30
calendar days of the execution or termination of a contract, notify the commissioner by electronic
transmission, in a format prescribed by the commissioner, of that execution or termination. The
taxpaying employer's name, the account number assigned, and any other information required by
the commissioner must be provided by that person.
    (e) Any contract subject to paragraph (a) must specifically inform the taxpaying employer
of the assignment of the tax account under this section and the taxpaying employer's obligation
under paragraph (b). If there is a termination of the contract, the tax account is, as of the date of
termination, immediately assigned to the taxpaying employer.
    Subd. 2. Nonprofit and government reimbursable accounts assigned. (a) Any person that
contracts with a nonprofit or government employer that is a reimbursing employer to have that
person obtain the nonprofit or government employer's workforce and provide workers to the
nonprofit or government employer for a fee, is, as of the effective date of the contract, assigned
for the duration of the contract the nonprofit or government employer's account under section
268.045. That reimbursable account must be maintained by the person separate and distinct from
every other account held by the person and identified in a manner prescribed by the commissioner.
That reimbursable account is, for the duration of the contract, considered that person's account for
all purposes of this chapter. The workers obtained from the nonprofit or government employer
and any other workers provided by that person to the nonprofit or government employer must,
under section 268.044, be reported on the wage detail report under that reimbursable account, and
that person must pay any reimbursements due.
    (b) Any workers of the nonprofit or government employer who are not covered by the
contract under paragraph (a) must be reported by the nonprofit or government employer as a
separate unit on the wage detail report under the reimbursable account assigned under paragraph
(a). Reimbursements and any other amounts due on the wages reported by the nonprofit or
government employer under this paragraph may be paid directly by the nonprofit or government
employer.
    (c) If the nonprofit or government employer that contracts with a person under paragraph
(a) does not have an account at the time of the execution of the contract, an account must be
registered for the nonprofit or government employer under section 268.042. The reimbursable
account is then assigned to the person as provided for in paragraph (a).
    (d) A person that contracts with a nonprofit or government employer under paragraph
(a) must, within 30 calendar days of the execution or termination of a contract, notify the
commissioner of that execution or termination by electronic transmission, in a format prescribed
by the commissioner. The nonprofit or government employer's name, the account number
assigned, and any other information required by the commissioner must be provided by that
person.
    (e) Any contract subject to paragraph (a) must specifically inform the nonprofit or
government employer of the assignment of the reimbursable account under this section and the
nonprofit or government employer's obligation under paragraph (b). If there is a termination of the
contract, the reimbursable account is, as of the date of termination, immediately assigned to the
nonprofit or government employer.
    Subd. 3. Penalties; application. (a) Any person that violates the requirements of this section
and any taxpaying employer that violates subdivision 1, paragraph (b), or any nonprofit or
government employer that violates subdivision 2, paragraph (b), is subject to the penalties under
section 268.184, subdivision 1a. Penalties are credited to the administration account to be used
to ensure integrity in the unemployment insurance program.
    (b) Section 268.051, subdivision 4, does not apply to contracts under this section. This
section does not limit or prevent the application of section 268.051, subdivision 4, to any other
transactions or acquisitions involving the taxpaying employer. This section does not limit or
prevent the application of section 268.051, subdivision 4a.
    (c) An assignment of an account upon the execution of a contract under this section and a
termination of a contract with the corresponding assignment of the account is not considered
a separation from employment of any worker covered by the contract. Nothing under this
subdivision causes the person to be liable for any amounts past due under this chapter from the
taxpaying employer or the nonprofit or government employer.
    (d) This section applies to, but is not limited to, persons registered under section 79.255,
but does not apply to persons that obtain an exemption from registration under section 79.255,
subdivision 9
.
History: 2005 c 112 art 1 s 5; 2007 c 128 art 6 s 21
268.047 EFFECT ON AN EMPLOYER OF UNEMPLOYMENT BENEFITS PAID.
    Subdivision 1. General rule. Unemployment benefits paid to an applicant, including
extended, additional, and shared work benefits, will be used in computing the future tax rate of a
taxpaying base period employer or charged to the reimbursable account of a base period nonprofit
or government employer that has elected to be liable for reimbursements except as provided in
subdivisions 2 and 3. The amount of unemployment benefits used in computing the future tax
rate of taxpaying employers or charged to the reimbursable account of a nonprofit or government
employer that has elected to be liable for reimbursements is the same percentage of the total
amount of unemployment benefits paid as the percentage of wage credits from the employer is of
the total amount of wage credits from all the applicant's base period employers.
    In making computations under this subdivision, the amount of wage credits, if not a whole
dollar, must be computed to the nearest whole dollar.
    Subd. 2. Exceptions for all employers. Unemployment benefits paid will not be used in
computing the future tax rate of a taxpaying base period employer or charged to the reimbursable
account of a base period nonprofit or government employer that has elected to be liable for
reimbursements when:
    (1) the applicant was discharged from the employment because of aggravated employment
misconduct as determined under section 268.095. This exception applies only to unemployment
benefits paid for periods after the applicant's discharge from employment;
    (2) an applicant's discharge from that employment occurred because a law required removal
of the applicant from the position the applicant held;
    (3) the employer is in the tourist or recreation industry and is in active operation of business
less than 15 calendar weeks each year and the applicant's wage credits from the employer are less
than 600 times the applicable state or federal minimum wage;
    (4) the employer provided regularly scheduled part-time employment to the applicant during
the applicant's base period and continues to provide the applicant with regularly scheduled
part-time employment during the benefit year of at least 90 percent of the part-time employment
provided in the base period, and is an involved employer because of the applicant's loss of other
employment. This exception terminates effective the first week that the employer fails to meet the
benefit year employment requirements. This exception applies to educational institutions without
consideration of the period between academic years or terms;
    (5) the employer is a fire department or firefighting corporation or operator of a life-support
transportation service, and continues to provide employment for the applicant as a volunteer
firefighter or a volunteer ambulance service personnel during the benefit year on the same basis
that employment was provided in the base period. This exception terminates effective the first
week that the employer fails to meet the benefit year employment requirements;
    (6) the applicant's unemployment from this employer was a direct result of the condemnation
of property by a governmental agency, a fire, flood, or act of nature, where 25 percent or more of
the employees employed at the affected location, including the applicant, became unemployed
as a result. This exception does not apply where the unemployment was a direct result of the
intentional act of the employer or a person acting on behalf of the employer;
    (7) the unemployment benefits were paid by another state as a result of the transferring of
wage credits under a combined wage arrangement provided for in section 268.131;
    (8) the applicant stopped working because of a labor dispute at the applicant's primary place
of employment if the employer was not a party to the labor dispute;
    (9) the unemployment benefits were determined overpaid unemployment benefits under
section 268.18; or
    (10) the trust fund was reimbursed for the unemployment benefits by the federal government.
    Subd. 3. Exceptions for taxpaying employers. Unemployment benefits paid will not be
used in computing the future tax rate of a taxpaying base period employer when:
    (1) the applicant's wage credits from that employer are less than $500;
    (2) the applicant quit the employment, unless it was determined under section 268.095, to
have been because of a good reason caused by the employer or because the employer notified the
applicant of discharge within 30 calendar days. This exception applies only to unemployment
benefits paid for periods after the applicant's quitting the employment; or
    (3) the employer discharged the applicant from employment because of employment
misconduct as determined under section 268.095. This exception applies only to unemployment
benefits paid for periods after the applicant's discharge from employment.
    Subd. 4. Limitation on exceptions. Regardless of subdivisions 2 and 3, an exception
under those subdivisions will be limited in accordance with section 268.101, subdivision 2,
paragraph (b).
    Subd. 5. Notice of unemployment benefits paid. (a) The commissioner shall notify each
employer at least quarterly by mail or electronic transmission of the unemployment benefits paid
each applicant that will be used in computing the future tax rate of a taxpaying employer, or that
have been charged to the reimbursable account of a nonprofit or government employer that
has elected to be liable for reimbursements.
    (b) A notice under this subdivision is not subject to appeal. The commissioner may at any
time upon the commissioner's own motion correct any error that resulted in an incorrect notice
under paragraph (a) and issue a corrected notice.
History: 1997 c 66 s 10,16,79; 1998 c 265 s 10-12; 1999 c 107 s 18-21,66; 2000 c 343 s 4;
2001 c 175 s 11; 1Sp2003 c 3 art 2 s 20; 2004 c 183 s 23; 2007 c 128 art 1 s 4,5; art 6 s 22,23
268.048 [Expired, 1997 c 80 s 3]
268.05 [Renumbered 268.194]
268.051 EMPLOYERS TAXES.
    Subdivision 1. Payments. (a) Unemployment insurance taxes and any additional
assessments, fees, or surcharges accrue and become payable by each employer for each calendar
year on the taxable wages that the employer paid to employees in covered employment, except for:
    (1) nonprofit organizations that elect to make reimbursements as provided in section
268.053; and
    (2) the state of Minnesota and political subdivisions that make reimbursements, unless they
elect to pay taxes as provided in section 268.052.
    Each employer must pay taxes quarterly, at the employer's assigned tax rate under
subdivision 6, on the taxable wages paid to each employee. The commissioner shall compute the
tax due from the wage detail report required under section 268.044 and notify the employer of
the tax due. The taxes and any special assessments, fees, or surcharges must be paid to the trust
fund and must be received by the department on or before the last day of the month following the
end of the calendar quarter.
    (b) The tax amount computed, if not a whole dollar, is rounded down to the next lower
whole dollar.
    (c) If for any reason the wages on the wage detail report under section 268.044 are adjusted
for any quarter, the commissioner shall recompute the taxes due for that quarter and assess the
employer for any amount due or credit the employer as appropriate.
    Subd. 1a. Payments by electronic payment required. (a) Every employer that reports 50 or
more employees in any calendar quarter on the wage detail report required under section 268.044
must make any payments due under this chapter and section 116L.20 by electronic payment.
    (b) All third-party processors, paying on behalf of a client company, must make any
payments due under this chapter and section 116L.20 by electronic payment.
    (c) Regardless of paragraph (a) or (b), the commissioner has the discretion to accept payment
by other means.
    Subd. 2. Computation of tax rates; additional assessments. (a) For each calendar year
the commissioner shall compute the tax rate of each taxpaying employer that qualifies for an
experience rating by adding the base tax rate to the employer's experience rating along with
assigning any appropriate additional assessment under paragraph (d).
    (b) The base tax rate for the calendar year and any additional assessments under this
subdivision are determined based upon the amount in the trust fund on March 31 of the prior year
as a percentage of total wages paid in covered employment. The base tax rate is:
    (1) one-tenth of one percent if the trust fund is equal to or more than 0.75 percent;
    (2) two-tenths of one percent if the trust fund is less than 0.75 percent but equal to or more
than 0.65 percent;
    (3) three-tenths of one percent if the trust fund is less than 0.65 percent but equal to or
more than 0.55 percent; or
    (4) four-tenths of one percent if the trust fund is less than 0.55 percent.
    (c) There is a "falling trust fund adjustment" to the base tax rate for the calendar year if the
amount in the trust fund on March 31 of the prior year is less than 0.75 percent of total wages
paid in covered employment and:
    (1) the amount in the trust fund on March 31 of the prior year is ten percent or more below
the amount in the trust fund on March 31 of the year before that; or
    (2) the amount in the trust fund on March 31 of the prior year is greater than the amount in
the trust fund on June 30 of that same year.
If a "falling trust fund adjustment" is applicable, then the base tax rate is one-tenth of one percent
greater than otherwise provided for under paragraph (b).
    (d) In addition to the base tax rate, there is an additional assessment for the calendar year
on the quarterly unemployment taxes due from every taxpaying employer if the amount in the
trust fund on March 31 of the prior year is less than 0.55 percent of total wages paid in covered
employment. The assessment is as follows:
    (1) a five percent assessment if the trust fund is less than 0.55 percent but equal to or more
than 0.45 percent;
    (2) a ten percent assessment if the trust fund is less than 0.45 percent but equal to or more
than 0.35 percent; or
    (3) a 14 percent assessment if the trust fund is less than 0.35 percent.
    (e) For the purposes of this subdivision, the trust fund does not include any money borrowed
from the federal unemployment trust fund provided for in section 268.194, subdivision 6.
    (f) For the purposes of this subdivision, total wages paid in covered employment are those
wages paid to all employees in covered employment during the calendar year before the March 31
date used in paragraph (b).
    (g) The base tax rate and any additional assessments are assessed on all taxpaying employers
to cover a portion of the costs to the trust fund for unemployment benefits paid that do not affect
any single employer's future experience rating because:
    (1) the employer's experience rating is limited by the maximum under subdivision 3,
paragraph (b);
    (2) the employer has ceased doing business; or
    (3) the unemployment benefits paid have been determined not to be used in computing the
employer's experience rating under section 268.047, subdivision 2 or 3.
    Subd. 3. Computation of a taxpaying employer's experience rating. (a) On or before each
December 15, the commissioner shall compute an experience rating for each taxpaying employer
who has been required to file wage detail reports for the 12 calendar months ending on the prior
June 30. The experience rating computed is applicable for the following calendar year.
    The experience rating is the ratio obtained by dividing 125 percent of the total unemployment
benefits required under section 268.047 to be used in computing the employer's tax rate during
the 48 calendar months ending on the prior June 30, by the employer's total taxable payroll
for that same period.
    (b) The experience rating is computed to the nearest one-hundredth of a percent, to a
maximum of 8.90 percent.
    (c) The use of 125 percent of unemployment benefits paid under paragraph (a), rather than
100 percent of the amount of unemployment benefits paid, is done in order for the trust fund to
recover from all taxpaying employers a portion of the costs of unemployment benefits paid
that do not affect any individual employer's future experience rating because of the reasons set
out in subdivision 2, paragraph (g).
    Subd. 4. Experience rating history transfer. (a) When:
    (1) a taxpaying employer acquires all of the organization, trade or business, or workforce
of another taxpaying employer; and
    (2) there is 25 percent or more common ownership or there is substantially common
management or control between the predecessor and successor, the experience rating history of
the predecessor employer is transferred to the successor employer.
    (b) When:
    (1) a taxpaying employer acquires a portion, but less than all, of the organization, trade or
business, or workforce of another taxpaying employer; and
    (2) there is 25 percent or more common ownership or there is substantially common
management or control between the predecessor and successor, the successor employer acquires,
as of the date of acquisition, the experience rating history attributable to the portion it acquired,
and the predecessor employer retains the experience rating history attributable to the portion that
it has retained. If the commissioner determines that sufficient information is not available to
substantiate that a distinct severable portion was acquired and to assign the appropriate distinct
severable portion of the experience rating history, the commissioner shall assign the successor
employer that percentage of the predecessor employer's experience rating history equal to that
percentage of the employment positions it has obtained, and the predecessor employer retains that
percentage of the experience rating history equal to the percentage of the employment positions
it has retained.
    (c) The term "common ownership" for purposes of this subdivision includes ownership by
a spouse, parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece, nephew, or
first cousin, by birth or by marriage.
    (d) Each successor employer that is subject to paragraph (a) or (b) must notify the
commissioner of the acquisition by electronic transmission, in a format prescribed by the
commissioner, within 30 calendar days of the date of acquisition. Any successor employer that
fails to notify the commissioner is subject to the penalties under section 268.184, subdivision 1a,
if the successor's experience rating was lower than the predecessor's experience rating at the time
of the acquisition. Payments made toward the penalties are credited to the administration account
to be used to ensure integrity in the unemployment insurance program.
    (e) If the successor employer under paragraphs (a) and (b) had an experience rating at the
time of the acquisition, the transferred experience rating history of the predecessor is combined
with the successor's experience rating history for purposes of recomputing a tax rate.
    (f) If there has been a transfer of an experience rating history under paragraph (a) or (b),
employment with a predecessor employer is not considered to have been terminated if similar
employment is offered by the successor employer and accepted by the employee.
    (g) The commissioner, upon notification of an employer, or upon the commissioner's own
motion if the employer fails to provide the required notification, shall determine if an employer is
a successor within the meaning of this subdivision. The commissioner shall, after determining the
issue of succession or nonsuccession, recompute the tax rate under subdivision 6 of all employers
affected. The commissioner shall send the recomputed tax rate to all affected employers by
mail or electronic transmission. Any affected employer may appeal the recomputed tax rate in
accordance with the procedures in subdivision 6, paragraph (c).
    (h) The "experience rating history" for purposes of this subdivision and subdivision 4a means
the amount of unemployment benefits paid and the taxable wages that are being used and would
be used in computing the current and any future experience rating.
    For purposes of this chapter, an "acquisition" means anything that results in the obtaining
by the successor employer, in any way or manner, of the organization, trade or business, or
workforce of the predecessor employer.
    A "distinct severable portion" in paragraph (b) means a location or unit separately identifiable
within the employer's wage detail report under section 268.044.
    (i) Regardless of the ownership, management, or control requirements of paragraph (a), if
there is an acquisition or merger of a publicly held corporation by or with another publicly held
corporation the experience rating histories of the corporations are combined as of the date of
acquisition or merger for the purpose of recomputing a tax rate.
    Subd. 4a. Actions that avoid taxes. (a) If the commissioner determines that any action was
done, in whole or in part, to avoid:
    (1) an experience rating history;
    (2) the transfer of an experience rating history; or
    (3) the assignment of a tax rate for new employers under subdivision 5, paragraph (a) or
(b), the commissioner, to insure that the trust fund receives all the taxes that would have been
received had the action not occurred, may, effective the date of the action, transfer all or part of
an experience rating history and recompute the tax rate or assign the appropriate new employer
tax rate.
    (b) This subdivision applies to any action between persons regardless of whether there is
any commonality of ownership, management, or control between the persons. The authority
granted to the commissioner under this subdivision is in addition to any other authority granted
to the commissioner.
    Subd. 5. Tax rate for new employers. (a) Each new taxpaying employer that does not
qualify for an experience rating under subdivision 3, except new employers in a high experience
rating industry, must be assigned, for a calendar year, a tax rate the higher of (1) one percent,
or (2) the tax rate computed, to the nearest one-hundredth of a percent, by dividing the total
amount of unemployment benefits paid all applicants during the 48 calendar months ending
on June 30 of the prior calendar year by the total taxable wages of all taxpaying employers
during the same period, plus the applicable base tax rate and any additional assessments under
subdivision 2, paragraph (d).
    (b) Each new taxpaying employer in a high experience rating industry that does not qualify
for an experience rating under subdivision 3, must be assigned, for a calendar year, a tax rate of
8.00 percent, plus the applicable base tax rate and any additional assessments under subdivision 2,
paragraph (d).
    An employer is considered to be in a high experience rating industry if:
    (1) the employer is engaged in residential, commercial, or industrial construction, including
general contractors;
    (2) the employer is engaged in sand, gravel, or limestone mining;
    (3) the employer is engaged in the manufacturing of concrete, concrete products, or asphalt;
or
    (4) the employer is engaged in road building, repair, or resurfacing, including bridge and
tunnels and residential and commercial driveways and parking lots.
    (c) The commissioner shall send to the new employer, by mail or electronic transmission,
notice of the tax rate assigned. An employer may appeal the assignment of a tax rate in accordance
with the procedures in subdivision 6, paragraph (c).
    Subd. 6. Notice of tax rate. (a) On or before each December 15, the commissioner shall
notify each employer by mail or electronic transmission of the employer's tax rate, along with
any additional assessments, fees, or surcharges, for the following calendar year. The notice
must contain the base tax rate and the factors used in determining the employer's experience
rating. Unless an appeal of the tax rate is made, the computed tax rate is final, except for fraud
or recomputation required under subdivision 4 or 4a, and is the rate at which taxes must be
paid. A recomputed tax rate under subdivision 4 or 4a is the rate applicable for the quarter that
includes the date of acquisition and any quarter thereafter during the calendar year in which the
acquisition occurred. The tax rate is not subject to collateral attack by way of claim for a credit
adjustment or refund, or otherwise.
    (b) If the legislature, after the sending of the tax rate, changes any of the factors used to
determine the rate, a new tax rate based on the new factors must be computed and sent to the
employer.
    (c) A review of an employer's tax rate may be obtained by the employer filing an appeal
within 20 calendar days from the date the tax rate notice was sent to the employer. Proceedings on
the appeal are 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 employer's tax rate.
    Subd. 7. Tax rate buydown. (a) Any taxpaying employer that has been assigned a tax
rate based upon an experience rating, and has no amounts past due under this chapter, may,
upon the payment of an amount equivalent to any portion or all of the unemployment benefits
used in computing the experience rating plus a surcharge of 25 percent, obtain a cancellation of
unemployment benefits used equal to the payment made, less the surcharge. Upon the payment,
the commissioner shall compute a new experience rating for the employer, and compute a new
tax rate.
    (b) Payments for a tax rate buydown may be made only by electronic payment and must
be received within 120 calendar days from the beginning of the calendar year for which the
tax rate is effective.
    Subd. 8. Special assessment for interest on federal loan. (a) If on October 31 of any
year, the commissioner, in consultation with the commissioner of finance, determines that an
interest payment will be due during the following calendar year on any loan from the federal
unemployment trust fund under section 268.194, subdivision 6, a special assessment on taxpaying
employers will be in effect for the following calendar year. The legislature authorizes the
commissioner, in consultation with the commissioner of finance, to determine the appropriate
level of the assessment, from two percent to eight percent of the total quarterly unemployment
taxes due based upon determined rates and assigned assessments under subdivision 2, that will be
necessary to pay the interest due on the loan.
    (b) The special assessment must be placed into a special account from which the
commissioner shall pay any interest that has accrued on any loan from the federal unemployment
trust fund provided for under section 268.194, subdivision 6. If, at the end of each calendar
quarter, the commissioner, in consultation with the commissioner of finance, determines that the
balance in this special account, including interest earned on the special account, is more than is
necessary to pay the interest that has accrued on any loan as of that date, or will accrue over the
following calendar quarter, the commissioner shall immediately pay to the trust fund the amount
in excess of that necessary to pay the interest on any loan.
    Subd. 9. Assessments, fees, and surcharges; treatment. Any assessment, fee, or
surcharge imposed under the Minnesota Unemployment Insurance Law is treated the same as,
and considered as, a tax. Any assessment, fee, or surcharge is subject to the same collection
procedures that apply to past due taxes.
History: Ex1936 c 2 s 4; 1937 c 306 s 2; 1939 c 443 s 3; 1941 c 554 s 3; 1943 c 650 s 2;
1945 c 376 s 3; 1947 c 32 s 1-8; 1947 c 432 s 3-5,11; 1947 c 600 s 7; 1949 c 526 s 1; 1949 c 605 s
3-6,17,18; 1951 c 442 s 2; 1953 c 97 s 5,6,8; 1953 c 288 s 1; 1955 c 380 s 2-4,6; 1957 c 25 s 1;
1957 c 873 s 2; 1959 c 702 s 2-4; 1965 c 45 s 40; 1965 c 741 s 6-11; 1967 c 573 s 3; 1967 c 617
s 1; 1967 c 856 s 1; 1969 c 3 s 1; 1969 c 567 s 3; 1969 c 854 s 6; 1971 c 860 s 1; 1971 c 942
s 3-6; 1973 c 254 s 3; 1973 c 599 s 2-4; 1975 c 336 s 6-10; 1977 c 4 s 4,5; 1977 c 297 s 6-11;
1977 c 430 s 25 subd 1; 1977 c 455 s 82; 1978 c 674 s 60; 1979 c 181 s 4-8; 1980 c 508 s 2-7;
1Sp1982 c 1 s 5-12; 1983 c 216 art 1 s 87; 1983 c 247 s 112; 1983 c 372 s 9-15; 1985 c 248 s 70;
1Sp1985 c 14 art 9 s 75; 1986 c 444; 1986 c 451 s 1; 1987 c 242 s 1; 1987 c 362 s 9-12; 1987 c
385 s 10-18; 1989 c 65 s 3-5; 1989 c 209 art 2 s 1; 1992 c 484 s 4-7; 1994 c 483 s 1; 1994 c
488 s 8; 1995 c 54 s 3-7; 1996 c 417 s 5-7,31; 1997 c 66 s 11-15,17,18,20,21,79; 1998 c 265 s
13; 1999 c 107 s 23-28,66; 2000 c 343 s 4; 2001 c 175 s 12-15; 2002 c 380 art 1 s 1; 1Sp2003 c
3 art 1 s 1-6; art 2 s 20; 2004 c 183 s 24-30; 2005 c 112 art 1 s 6-9; art 2 s 11; 2007 c 128 art
1 s 6-8; art 2 s 2; art 3 s 6-10; art 6 s 24,25
268.0511 [Repealed, 2007 c 128 art 1 s 23]
268.052 PAYMENT TO TRUST FUND BY STATE AND POLITICAL SUBDIVISIONS.
    Subdivision 1. Payments. In lieu of taxes payable on a quarterly basis, the state of Minnesota
or its political subdivisions must reimburse the trust fund the amount of unemployment benefits
charged to its reimbursable account under section 268.047. Reimbursements in the amount of
unemployment benefits charged to the reimbursable account during a calendar quarter must be
received by the department on or before the last day of the month following the month that the
notice of unemployment benefits paid is sent under section 268.047, subdivision 5. Past due
reimbursements are subject to the same interest charges and collection procedures that apply to
past due taxes.
    Subd. 2. Election by state or political subdivision to be a taxpaying employer. (a) The
state or political subdivision may elect to be a taxpaying employer for any calendar year if a
notice of election is filed within 30 calendar days following January 1 of that calendar year. Upon
election, the state or political subdivision must be assigned the new employer tax rate under
section 268.051, subdivision 5, for the calendar year of the election and until it qualifies for an
experience rating under section 268.051, subdivision 3.
    (b) An election is for a minimum period of two calendar years following the effective date of
the election and continue unless a notice terminating the election is filed not later than 30 calendar
days before the beginning of the calendar year. The termination is effective at the beginning of the
next calendar year. Upon election, the commissioner shall establish a reimbursable account for the
state or political subdivision. A termination of election is allowed only if the state or political
subdivision has, since the beginning of the experience rating period under section 268.051,
subdivision 3
, paid taxes equal to or more than 125 percent of the unemployment benefits used in
computing the experience rating. In addition, any unemployment benefits paid after the experience
rating period are transferred to the new reimbursable account of the state or political subdivision.
If the amount of taxes paid since the beginning of the experience rating period exceeds 125 percent
of the amount of unemployment benefits paid during the experience rating period, that amount in
excess is applied against any unemployment benefits paid after the experience rating period.
    (c) The method of payments to the trust fund under subdivisions 3 and 4 applies to all
taxes paid by or due from the state or political subdivision that elects to be taxpaying employers
under this subdivision.
    (d) A notice of election or a notice terminating election must be filed by electronic
transmission in a format prescribed by the commissioner.
    Subd. 3. Method of payment by state. To discharge its liability, the state and its wholly
owned instrumentalities must pay the trust fund as follows:
    (1) Every self-sustaining department, institution and wholly owned instrumentality must pay
the trust fund in accordance with subdivision 1. For the purposes of this clause a "self-sustaining
department, institution or wholly owned instrumentality" is one where the dedicated income and
revenue substantially offsets its cost of operation.
    (2) Every partially self-sustaining department, institution and wholly owned instrumentality
must pay the trust fund that same proportion of the amount that has been charged to its employer
account as the proportion of the total of its income and revenue is to its annual cost of operation.
    (3) Every department, institution or wholly owned instrumentality that is not self-sustaining
must pay the trust fund to the extent funds are available from appropriated funds.
    (4) The departments, institutions and wholly owned instrumentalities, including the
University of Minnesota, that have money available must pay the trust fund in accordance with
subdivision 1. If an applicant was paid during the base period from a special account provided by
law, the payment to the trust fund must be made from the special account with the approval of the
Department of Administration and the amounts are appropriated.
    (5) For those departments, institutions and wholly owned instrumentalities that cannot
pay the trust fund, the commissioner shall certify on November 1 of each calendar year to the
commissioner of finance the unpaid balances. Upon receipt of the certification, the commissioner
of finance shall include the unpaid balances in the biennial budget submitted to the legislature.
    Subd. 4. Method of payment by political subdivision. A political subdivision or
instrumentality thereof is authorized and directed to pay its liabilities by money collected from
taxes or other revenues. Every political subdivision authorized to levy taxes except school
districts may include in its tax levy the amount necessary to pay its liabilities. School districts
may levy according to section 126C.43, subdivision 2. If the taxes authorized to be levied
cause the total amount of taxes levied to exceed any limitation upon the power of a political
subdivision to levy taxes, the political subdivision may levy taxes in excess of the limitations in
the amounts necessary to meet its liability. The expenditures authorized must not be included in
computing the cost of government as defined in any home rule charter. The governing body of
a municipality, for the purpose of meeting its liabilities, in the event of a deficit, may issue its
obligations payable in not more than two years, in an amount that may cause its indebtedness
to exceed any statutory or charter limitations, without an election, and may levy taxes in the
manner provided in section 475.61.
    Subd. 5. Considered an election. If the state of Minnesota or its political subdivisions
choose not to be a taxpaying employer under subdivision 2, the state or its political subdivision
are considered, for purposes of the Minnesota unemployment insurance program, to have elected
to be liable for reimbursements under subdivision 1.
History: Ex1936 c 2 s 4; 1937 c 306 s 2; 1939 c 443 s 3; 1941 c 554 s 3; 1943 c 650 s 2;
1945 c 376 s 3; 1947 c 32 s 1-8; 1947 c 432 s 3-5,11; 1947 c 600 s 7; 1949 c 526 s 1; 1949 c 605 s
3-6,17,18; 1951 c 442 s 2; 1953 c 97 s 5,6,8; 1953 c 288 s 1; 1955 c 380 s 2-4,6; 1957 c 25 s 1;
1957 c 873 s 2; 1959 c 702 s 2-4; 1965 c 45 s 40; 1965 c 741 s 6-11; 1967 c 573 s 3; 1967 c 617 s
1; 1967 c 856 s 1; 1969 c 3 s 1; 1969 c 567 s 3; 1969 c 854 s 6; 1971 c 860 s 1; 1971 c 942 s 3-6;
1973 c 254 s 3; 1973 c 599 s 2-4; 1975 c 336 s 6-10; 1977 c 4 s 4,5; 1977 c 297 s 6-11; 1977 c
430 s 25 subd 1; 1977 c 455 s 82; 1978 c 674 s 60; 1979 c 181 s 4-8; 1980 c 508 s 2-7; 1Sp1982 c
1 s 5-12; 1983 c 216 art 1 s 87; 1983 c 247 s 112; 1983 c 372 s 9-15; 1985 c 248 s 70; 1Sp1985 c
14 art 9 s 75; 1986 c 444; 1986 c 451 s 1; 1987 c 242 s 1; 1987 c 362 s 9-12; 1987 c 385 s 10-18;
1989 c 65 s 3-5; 1989 c 209 art 2 s 1; 1992 c 484 s 4-7; 1994 c 483 s 1; 1994 c 488 s 8; 1995 c 54
s 3-7; 1996 c 417 s 5-7,31; 1997 c 66 s 22-24,27,79,80; 1999 c 107 s 29,66; 2000 c 343 s 4; 2001
c 175 s 16-18; 2002 c 379 art 1 s 61; 1Sp2003 c 3 art 2 s 5,20; 1Sp2003 c 9 art 5 s 27,28; 2004 c
183 s 32,33; 2005 c 112 art 2 s 12; 2007 c 128 art 6 s 26-30
268.0525 INDIAN TRIBES.
    (a) An Indian tribe, as defined under United States Code, title 25, section 450b(e) of the
Indian Self-Determination and Education Assistance Act, and any subdivision, subsidiary, or
business enterprise owned by the Indian tribe, must be treated the same as the state of Minnesota,
or a political subdivision of the state, for all purposes of the Minnesota Unemployment Insurance
Law.
    (b) The Indian tribe may make separate elections under section 268.052, subdivision 2, for
itself and each subdivision, subsidiary, or business enterprise wholly owned by the Indian tribe.
    (c) If an Indian tribe, subdivision, subsidiary, or business enterprise wholly owned by the
tribe, which has elected to be liable for reimbursements, fails to make the required payments
within 90 calendar days of the notice of delinquency, the commissioner shall terminate the
election to make reimbursements as of the beginning of the next calendar year, unless all past
due reimbursements, and any interest and penalties, have been paid before the beginning of
the next calendar year.
    An Indian tribe, subdivision, subsidiary, or business enterprise wholly owned by the tribe that
has its election terminated under this paragraph must become a taxpaying employer and assigned
the new employer tax rate under section 268.051, subdivision 5, until the tribe, subdivision,
subsidiary, or business enterprise wholly owned by the Indian tribe qualifies for an experience
rating under section 268.051, subdivision 3.
History: 2001 c 175 s 19; 1Sp2003 c 3 art 2 s 20; 2007 c 128 art 6 s 31
268.053 PAYMENT TO TRUST FUND BY NONPROFIT ORGANIZATIONS.
    Subdivision 1. Election. (a) Any nonprofit organization that has employees in covered
employment must pay taxes on a quarterly basis in accordance with section 268.051 unless it
elects to make reimbursements to the trust fund the amount of unemployment benefits charged to
its reimbursable account under section 268.047.
    The organization may elect to make reimbursements for a period of not less than two
calendar years beginning with the date that the organization was determined to be an employer
with covered employment by filing a notice of election not later than 30 calendar days after the
date of the determination.
    (b) Any nonprofit organization that makes an election will continue to be liable for
reimbursements until it files a notice terminating its election not later than 30 calendar days before
the beginning of the calendar year the termination is to be effective.
    (c) A nonprofit organization that has been making reimbursements that files a notice of
termination of election must be assigned the new employer tax rate under section 268.051,
subdivision 5
, for the calendar year of the termination of election and until it qualifies for an
experience rating under section 268.051, subdivision 3.
    (d) Any nonprofit organization that has been paying taxes may elect to make reimbursements
by filing no less than 30 calendar days before January 1 of any calendar year a notice of election.
Upon election, the commissioner shall establish a reimbursable account for the nonprofit
organization. An election is allowed only if the nonprofit organization has, since the beginning of
the experience rating period under section 268.051, subdivision 3, paid taxes equal to or more
than 125 percent of the unemployment benefits used in computing the experience rating. In
addition, any unemployment benefits paid after the experience rating period are transferred to the
new reimbursable account of the nonprofit organization. If the amount of taxes paid since the
beginning of the experience rating period exceeds 125 percent of the amount of unemployment
benefits paid during the experience rating period, that amount in excess is applied against any
unemployment benefits paid after the experience rating period. The election is not terminable by
the organization for that and the next calendar year.
    (e) The commissioner may for good cause extend the period that a notice of election, or a
notice of termination, must be filed and may permit an election to be retroactive.
    (f) A notice of election or notice terminating election must be filed by electronic transmission
in a format prescribed by the commissioner.
    Subd. 2. Determination and appeal. The commissioner shall notify each nonprofit
organization by mail or electronic transmission of any determination of its status as an employer
with covered employment and of the effective date of any election or termination of election.
The determination is final unless an appeal is filed within 20 calendar days of sending the
determination. Proceedings on the appeal are conducted in accordance with section 268.105.
    Subd. 3. Payments. (a) Reimbursements, in the amount of unemployment benefits charged
to the reimbursable account, during a calendar quarter, must be received by the department on or
before the last day of the month following the month that the notice of unemployment benefits
paid is sent under section 268.047, subdivision 5.
    (b) Past due reimbursements are subject to the same interest charges and collection
procedures that apply to past due taxes.
    (c) If any nonprofit organization is delinquent in making reimbursements, the commissioner
may terminate the organization's election to make reimbursements as of the beginning of the
next calendar year, and the termination is effective for that and the following calendar year. A
nonprofit organization that has its election terminated under this paragraph must be assigned the
new employer tax rate under section 268.051, subdivision 5, until the organization qualifies for an
experience rating under section 268.051, subdivision 3.
    Subd. 4. Application. For purposes of this section, a nonprofit organization is an
organization, or group of organizations, described in United States Code, title 26, section
501(c)(3) of the Internal Revenue Code that is exempt from income tax under section 501(a).
    Subd. 5. Compromise. The compromise authority set out in section 268.067 applies to
this section.
History: Ex1936 c 2 s 4; 1937 c 306 s 2; 1939 c 443 s 3; 1941 c 554 s 3; 1943 c 650 s 2;
1945 c 376 s 3; 1947 c 32 s 1-8; 1947 c 432 s 3-5,11; 1947 c 600 s 7; 1949 c 526 s 1; 1949 c 605 s
3-6,17,18; 1951 c 442 s 2; 1953 c 97 s 5,6,8; 1953 c 288 s 1; 1955 c 380 s 2-4,6; 1957 c 25 s 1;
1957 c 873 s 2; 1959 c 702 s 2-4; 1965 c 45 s 40; 1965 c 741 s 6-11; 1967 c 573 s 3; 1967 c 617
s 1; 1967 c 856 s 1; 1969 c 3 s 1; 1969 c 567 s 3; 1969 c 854 s 6; 1971 c 860 s 1; 1971 c 942
s 3-6; 1973 c 254 s 3; 1973 c 599 s 2-4; 1975 c 336 s 6-10; 1977 c 4 s 4,5; 1977 c 297 s 6-11;
1977 c 430 s 25 subd 1; 1977 c 455 s 82; 1978 c 674 s 60; 1979 c 181 s 4-8; 1980 c 508 s 2-7;
1Sp1982 c 1 s 5-12; 1983 c 216 art 1 s 87; 1983 c 247 s 112; 1983 c 372 s 9-15; 1985 c 248 s
70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1986 c 451 s 1; 1987 c 242 s 1; 1987 c 362 s 9-12;
1987 c 385 s 10-18; 1989 c 65 s 3-5; 1989 c 209 art 2 s 1; 1992 c 484 s 4-7; 1994 c 483 s 1;
1994 c 488 s 8; 1995 c 54 s 3-7; 1996 c 417 s 5-7,31; 1997 c 66 s 25,79,80; 1999 c 107 s 30;
2000 c 343 s 2-4; 2001 c 175 s 20,21; 1Sp2003 c 3 art 2 s 20; 2004 c 183 s 34-36; 2005 c 112
art 2 s 13; 2007 c 128 art 1 s 9; art 6 s 32,33
268.054 [Repealed, 1998 c 265 s 46]
268.057 COLLECTION OF TAXES.
    Subdivision 1. Amount computed presumed correct. Any amount due from an employer,
as computed by the commissioner, is presumed to be correctly determined and assessed, and the
burden is upon the employer to show its incorrectness. A statement by the commissioner of the
amount due is admissible in evidence in any court or administrative proceeding and is prima
facie evidence of the facts in the statement.
    Subd. 2. Priority of payments. (a) Any payment received from a taxpaying employer must
be applied in the following order:
    (1) unemployment insurance taxes; then
    (2) special assessment for interest on any federal loan; then
    (3) workforce development fee; then
    (4) interest on past due taxes; then
    (5) penalties, late fees, administrative service fees, and costs.
    (b) Paragraph (a) is the priority used for all payments received from a taxpaying employer,
regardless of how the employer may designate the payment to be applied, except when:
    (1) there is an outstanding lien and the employer designates that the payment made should be
applied to satisfy the lien;
    (2) the payment is for back pay withheld from an applicant under section 268.085,
subdivision 6
, paragraph (b);
    (3) the payment is specifically designated by the employer to be applied to an outstanding
overpayment of unemployment benefits of an applicant;
    (4) a court or administrative order directs that the payment be applied to a specific obligation;
    (5) a preexisting payment plan provides for the application of payment; or
    (6) the commissioner, under the compromise authority of section 268.067, agrees to apply
the payment to a different priority.
    Subd. 3. Estimating the tax due. Only if an employer fails to make all necessary records
available for an audit under section 268.186, paragraph (b), and the commissioner has reason
to believe the employer has not reported all the required wages on the quarterly wage detail
reports under section 268.044, may the commissioner then estimate the amount of tax due and
assess the employer the estimated amount due.
    Subd. 4. Costs. Any person that fails to pay any amount when due under this chapter is
liable for any filing fees, recording fees, sheriff fees, costs incurred by referral to any public or
private collection agency, or litigation costs, including attorney fees, incurred in the collection
of the amounts due.
    If any tendered payment of any amount due is not honored when presented to a financial
institution for payment, any costs assessed the department by the financial institution and a fee of
$25 must be assessed to the person.
    Costs and fees collected under this subdivision are credited to the administration account
to be used by the commissioner to ensure integrity in the administration of the unemployment
insurance program.
    Subd. 5. Interest on amounts past due. If any amounts due from an employer under this
chapter or section 116L.20, except late fees under section 268.044, are not received on the date
due the unpaid balance bears interest at the rate of one and one-half percent per month or any part
thereof. Interest assessed, if not a whole dollar amount, is rounded down to the next lower whole
dollar. Interest collected is credited to the contingent account. Interest may be compromised
under section 268.067.
    Subd. 6. Interest on judgments. Regardless of section 549.09, if judgment is entered upon
any past due amounts from an employer under this chapter or section 116L.20, the unpaid
judgment bears interest at the rate specified in subdivision 5 until the date of payment.
    Subd. 7. Credit adjustments, refunds. (a) If an employer makes an application for a credit
adjustment of any amount paid under this chapter or section 116L.20 within four years of the
date that the payment was due, in a manner and format prescribed by the commissioner, and the
commissioner determines that the payment or any portion was erroneous, the commissioner
shall make an adjustment and issue a credit without interest. If a credit cannot be used, the
commissioner shall refund, without interest, the amount erroneously paid. The commissioner, on
the commissioner's own motion, may make a credit adjustment or refund under this subdivision.
    Any refund returned to the commissioner is considered unclaimed property under chapter
345.
    (b) If a credit adjustment or refund is denied in whole or in part, a notice of denial must be
sent to the employer by mail or electronic transmission. The notice of denial is final unless an
employer files an appeal within 20 calendar days after sending. Proceedings on the appeal are
conducted in accordance with section 268.105.
    Subd. 8.[Repealed, 1999 c 107 s 67]
    Subd. 9.[Repealed, 1999 c 107 s 67]
    Subd. 10. Priorities under legal dissolutions or distributions. In the event of any
distribution of an employer's assets according to an order of any court, including any receivership,
assignment for benefit of creditors, adjudicated insolvency, or similar proceeding, taxes then
or thereafter due must be paid in full before all other claims except claims for wages of not
more than $1,000 per former employee, earned within six months of the commencement of the
proceedings. In the event of an employer's adjudication in bankruptcy under federal law, taxes
then or thereafter due are entitled to the priority provided in that law for taxes due any state.
History: Ex1936 c 2 s 14; 1941 c 554 s 13; 1943 c 650 s 9; 1945 c 376 s 13; 1949 c 605 s
12,13; 1951 c 55 s 1; 1953 c 97 s 17; 1969 c 9 s 65; 1969 c 567 s 3; 1969 c 854 s 13; 1973 c 254
s 3; 1973 c 720 s 73 subds 2,3; 1975 c 108 s 1; 1975 c 302 s 3,4; 1975 c 336 s 22,23; 1977 c
430 s 25 subd 1; 1978 c 618 s 2; 1978 c 674 s 60; 1980 c 508 s 11-13; 3Sp1981 c 2 art 1 s 33;
1Sp1982 c 1 s 34,35; 1983 c 372 s 39; 1985 c 248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444;
1987 c 362 s 26; 1987 c 385 s 28-30; 1989 c 65 s 12; 1989 c 209 art 2 s 1; 1993 c 67 s 11; 1994 c
483 s 1; 1995 c 54 s 13-15; 1996 c 417 s 24,31; 1997 c 66 s 66-69,79,80; 1998 c 265 s 14-17,44;
1999 c 107 s 31,32,66; 2000 c 343 s 4; 1Sp2003 c 3 art 2 s 6,20; 2004 c 183 s 37; 2005 c 112 art
2 s 14; 2007 c 128 art 1 s 10; art 6 s 34-40
268.058 LIEN, LEVY, SETOFF, AND CIVIL ACTION.
    Subdivision 1. Lien. (a) Any amount due under this chapter or section 116L.20, from an
applicant or an employer, becomes a lien upon all the property, within this state, both real and
personal, of the person liable, from the date of assessment. The term "date of assessment" means
the date the obligation was due.
    (b) The lien is not enforceable against any purchaser, mortgagee, pledgee, holder of a
Uniform Commercial Code security interest, mechanic's lien, or judgment lien creditor, until a
notice of lien has been filed with the county recorder of the county where the property is situated,
or in the case of personal property belonging to a nonresident person in the Office of the Secretary
of State. When the notice of lien is filed with the county recorder, the fee for filing and indexing is
as provided in sections 272.483 and 272.484.
    (c) Notices of liens, lien renewals, and lien releases, in a form prescribed by the
commissioner, may be filed with the county recorder or the secretary of state by mail, personal
delivery, or by electronic transmission into the computerized filing system of the secretary of state.
The secretary of state shall, on any notice filed with that office, transmit the notice electronically to
the appropriate county recorder. The filing officer, whether the county recorder or the secretary of
state, shall endorse and index a printout of the notice as if the notice had been mailed or delivered.
    (d) County recorders and the secretary of state shall enter information on lien notices,
renewals, and releases into the central database of the secretary of state. For notices filed
electronically with the county recorders, the date and time of receipt of the notice and county
recorder's file number, and for notices filed electronically with the secretary of state, the secretary
of state's recording information, must be entered into the central database before the close of the
working day following the day of the original data entry by the commissioner.
    (e) The lien imposed on personal property, even though properly filed, is not enforceable
against a purchaser of tangible personal property purchased at retail or personal property listed as
exempt in sections 550.37, 550.38, and 550.39.
    (f) A notice of lien filed has priority over any security interest arising under chapter 336,
article 9, that is perfected prior in time to the lien imposed by this subdivision, but only if:
    (1) the perfected security interest secures property not in existence at the time the notice of
lien is filed; and
    (2) the property comes into existence after the 45th calendar day following the day the
notice of lien is filed, or after the secured party has actual notice or knowledge of the lien filing,
whichever is earlier.
    (g) The lien is enforceable from the time the lien arises and for ten years from the date of
filing the notice of lien. A notice of lien may be renewed before expiration for an additional
ten years.
    (h) The lien is enforceable by levy under subdivision 2 or by judgment lien foreclosure
under chapter 550.
    (i) The lien may be imposed upon property defined as homestead property in chapter 510 but
may be enforced only upon the sale, transfer, or conveyance of the homestead property.
    (j) The commissioner may sell and assign to a third party the commissioner's right of
redemption in specific real property for liens filed under this subdivision. The assignee is limited
to the same rights of redemption as the commissioner, except that in a bankruptcy proceeding, the
assignee does not obtain the commissioner's priority. Any proceeds from the sale of the right of
redemption are credited to the contingent account.
    Subd. 2. Levy. (a) If any amount due under this chapter or section 116L.20, from an applicant
or an employer, is not paid when due, the amount may be collected by the commissioner by direct
levy upon all property and rights of property of the person liable for the amount due except that
exempt from execution under section 550.37. The term "levy" includes the power of distraint
and seizure by any means.
    (b) In addition to a direct levy, the commissioner may issue a warrant to the sheriff of
any county who shall proceed within 60 calendar days to levy upon the property or rights to
property of the delinquent person within the county, except that exempt under section 550.37.
The sheriff shall sell that property necessary to satisfy the total amount due, together with the
commissioner's and sheriff's costs. The sales are governed by the law applicable to sales of like
property on execution of a judgment.
    (c) Notice and demand for payment of the total amount due must be mailed to the delinquent
person at least ten calendar days before action being taken under paragraphs (a) and (b).
    (d) If the commissioner has reason to believe that collection of the amount due is in jeopardy,
notice and demand for immediate payment may be made. If the total amount due is not paid, the
commissioner may proceed to collect by direct levy or issue a warrant without regard to the ten
calendar day period.
    (e) In executing the levy, the commissioner shall have all of the powers provided in chapter
550 or any other law that provides for execution against property in this state. The sale of property
levied upon and the time and manner of redemption is as provided in chapter 550. The seal of the
court is not required. The levy may be made whether or not the commissioner has commenced a
legal action for collection.
    (f) Where any assessment has been made by the commissioner, the property seized for
collection of the total amount due must not be sold until any determination of liability has become
final. No sale may be made unless a portion of the amount due remains unpaid for a period of
more than 30 calendar days after the determination of liability becomes final. Seized property
may be sold at any time if:
    (1) the delinquent person consents in writing to the sale; or
    (2) the commissioner determines that the property is perishable or may become greatly
reduced in price or value by keeping, or that the property cannot be kept without great expense.
    (g) Where a levy has been made to collect the amount due and the property seized is
properly included in a formal proceeding commenced under sections 524.3-401 to 524.3-505 and
maintained under full supervision of the court, the property may not be sold until the probate
proceedings are completed or until the court orders.
    (h) The property seized must be returned if the owner:
    (1) gives a surety bond equal to the appraised value of the owner's interest in the property, as
determined by the commissioner, or
    (2) deposits with the commissioner security in a form and amount the commissioner
considers necessary to insure payment of the liability.
    (i) If a levy or sale would irreparably injure rights in property that the court determines
superior to rights of the state, the court may grant an injunction to prohibit the enforcement
of the levy or to prohibit the sale.
    (j) Any person who fails or refuses to surrender without reasonable cause any property or
rights to property subject to levy is personally liable in an amount equal to the value of the
property or rights not so surrendered, but not exceeding the amount due.
    (k) If the commissioner has seized the property of any individual, that individual may,
upon giving 48 hours notice to the commissioner and to the court, bring a claim for equitable
relief before the district court for the release of the property upon terms and conditions the court
considers equitable.
    (l) Any person in control or possession of property or rights to property upon which a levy
has been made who surrenders the property or rights to property, or who pays the amount due is
discharged from any obligation or liability to the person liable for the amount due with respect to
the property or rights to property.
    (m) The notice of any levy may be served personally or by mail.
    (n) The commissioner may release the levy upon all or part of the property or rights to
property levied upon if the commissioner determines that the release will facilitate the collection
of the liability, but the release does not prevent any subsequent levy. If the commissioner
determines that property has been wrongfully levied upon, the commissioner shall return:
    (1) the specific property levied upon, at any time; or
    (2) an amount of money equal to the amount of money levied upon, at any time before the
expiration of nine months from the date of levy.
    (o) Regardless of section 52.12, a levy upon a person's funds on deposit in a financial
institution located in this state, has priority over any unexercised right of setoff of the financial
institution to apply the levied funds toward the balance of an outstanding loan or loans owed
by the person to the financial institution. A claim by the financial institution that it exercised
its right to setoff before the levy must be substantiated by evidence of the date of the setoff,
and verified by an affidavit from a corporate officer of the financial institution. For purposes of
determining the priority of any levy under this subdivision, the levy is treated as if it were an
execution under chapter 550.
    Subd. 3. Right of setoff. (a) Upon certification by the commissioner to the commissioner of
finance, or to any state agency that disburses its own funds, that a person, applicant, or employer
has a liability under this chapter or section 116L.20, and that the state has purchased personal
services, supplies, contract services, or property from that person, the commissioner of finance
or the state agency shall set off and pay to the commissioner an amount sufficient to satisfy the
unpaid liability from funds appropriated for payment of the obligation of the state otherwise due
the person. No amount may be set off from any funds exempt under section 550.37 or funds due
an individual who receives assistance under chapter 256.
    (b) All funds, whether general or dedicated, are subject to setoff.
    Regardless of any law to the contrary, the commissioner has first priority to setoff from any
funds otherwise due from the department to a delinquent person.
    Subd. 4. Collection by civil action. (a) Any amount due under this chapter or section
116L.20, from an applicant or employer, may be collected by civil action in the name of the state
of Minnesota. Civil actions brought under this subdivision must be heard as provided under
section 16D.14. In any action, judgment must be entered in default for the relief demanded
in the complaint without proof, together with costs and disbursements, upon the filing of an
affidavit of default.
    (b) Any person that is not a resident of this state and any resident person removed from this
state, is considered to appoint the secretary of state as its agent for the acceptance of process in
any civil action. The commissioner shall file process with the secretary of state, together with a
payment of a fee of $15 and that service is considered sufficient service and has the same force
and validity as if served personally within this state. Notice of the service of process, together
with a copy of the process, must be sent by certified mail to the person's last known address.
An affidavit of compliance with this subdivision, and a copy of the notice of service must be
appended to the original of the process and filed in the court.
    (c) No court filing fees, docketing fees, or release of judgment fees may be assessed against
the state for actions under this subdivision.
    Subd. 5. Injunction forbidden. No injunction or other legal action to prevent the
determination, assessment, or collection of any amounts due under this chapter or section
116L.20, from an applicant or employer, are allowed.
History: 1Sp1982 c 1 s 36; 1983 c 372 s 40-44; 1985 c 281 s 1; 1Sp1985 c 14 art 9 s 75;
1986 c 444; 1Sp1986 c 3 art 1 s 82; 1987 c 385 s 31-34; 1989 c 209 art 2 s 1; 1991 c 291 art 18 s
1; 1992 c 484 s 14; 1993 c 67 s 12; 1993 c 137 s 8; 1994 c 483 s 1; 1994 c 488 s 7; 1995 c 54 s
16,17; 1996 c 417 s 25,31; 1997 c 66 s 67,79,80; 1998 c 265 s 44; 1999 c 107 s 33,66; 2000 c 343
s 4; 2001 c 195 art 2 s 10; 1Sp2003 c 3 art 2 s 20; 2004 c 183 s 38; 2007 c 128 art 6 s 41
268.059 GARNISHMENT FOR DELINQUENT TAXES AND UNEMPLOYMENT
BENEFIT OVERPAYMENTS.
    Subdivision 1. Notice. The commissioner may give notice to any employer that an employee
owes any amounts due under this chapter or section 116L.20, and that the obligation should be
withheld from the employee's wages. The commissioner may proceed only if the amount due is
uncontested or if the time for any appeal has expired. The commissioner may not proceed until 30
calendar days after sending to the debtor employee, by mail or electronic transmission, a notice of
intent to garnish wages and exemption notice. That notice must list:
    (1) the amount due from the debtor;
    (2) demand for immediate payment; and
    (3) the intention to serve a garnishment notice on the debtor's employer.
    The notice expires 180 calendar days after it has been sent to the debtor provided that the
notice may be renewed by sending a new notice that is in accordance with this section. The
renewed notice has the effect of reinstating the priority of the original notice. The exemption
notice must be in substantially the same form as in section 571.72. The notice must inform the
debtor of the right to claim exemptions contained in section 550.37, subdivision 14. If no claim of
exemption is received by the commissioner within 30 calendar days after sending of the notice,
the commissioner may proceed with the garnishment. The notice to the debtor's employer may
be served by mail or electronic transmission and must be in substantially the same form as in
section 571.75.
    Subd. 2. Employer action. (a) Upon receipt of the garnishment notice, the employer must
withhold from the earnings due or to become due to the employee, the amount shown on the
notice plus accrued interest, subject to section 571.922. The employer must continue to 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 has priority over any subsequent garnishments or wage assignments. The
commissioner may arrange between the employer and employee for withholding a portion of the
total amount due the employee each pay period, until the total amount shown on the notice plus
accrued interest has been withheld.
    The "earnings due" any employee is as defined in section 571.921.
    (b) The maximum garnishment allowed for any one pay period shall be decreased by any
amounts payable under any other garnishment action served before the garnishment notice, and
any amounts covered by any irrevocable and previously effective assignment of wages; the
employer must give notice to the commissioner of the amounts and the facts relating to the
assignment within ten calendar days after the service of the garnishment notice on the form
provided by the commissioner.
    (c) Within ten calendar days after the expiration of the pay period, the employer must remit
to the commissioner, on a form and in the manner prescribed by the commissioner, the amount
withheld during each pay period.
    Subd. 3. Discharge or discipline prohibited. (a) If the employee ceases to be employed by
the employer before the full amount set forth on the garnishment notice plus accrued interest has
been withheld, the employer must immediately notify the commissioner in writing or by electronic
transmission, as prescribed by the commissioner, of the termination date of the employee and
the total amount withheld. No employer may discharge or discipline any employee because
the commissioner has proceeded under this section. If an employer discharges an employee in
violation of this section, the employee has the same remedy as provided in section 571.927,
subdivision 2
.
    (b) This section applies if the employer is the state of Minnesota or any political subdivision.
    (c) The commissioner shall refund to the employee any excess amounts withheld from
the employee.
    (d) An employer that fails or refuses to comply with this section is jointly and severally
liable for the total amount due from the employee. Any amount due from the employer under
this paragraph may be collected in the same manner as any other amounts due from an employer
under this chapter.
History: 1996 c 417 s 28; 1997 c 66 s 70,79; 1998 c 265 s 18; 2000 c 343 s 4; 2000 c 499 s
1; 2001 c 175 s 22; 1Sp2003 c 3 art 2 s 20; 2004 c 183 s 39,40; 2007 c 128 art 6 s 42
268.06    Subdivision 1.[Renumbered 268.051, subdivision 1]
    Subd. 2.[Repealed, 1997 c 66 s 81]
    Subd. 3.[Repealed, 1969 c 854 s 14]
    Subd. 3a.[Renumbered 268.051, subd 5]
    Subd. 4.[Repealed, 1997 c 66 s 81]
    Subd. 5.[Repealed, 1997 c 66 s 81]
    Subd. 6.[Renumbered 268.051, subd 3]
    Subd. 7.[Repealed, 1949 c 605 s 15]
    Subd. 8.[Renumbered 268.051, subd 2]
    Subd. 8a.[Renumbered 268.051, subd 8]
    Subd. 9.[Repealed, 1949 c 605 s 15]
    Subd. 10.[Repealed, 1949 c 605 s 15]
    Subd. 11.[Repealed, 1953 c 97 s 7]
    Subd. 12.[Repealed, 1953 c 97 s 7]
    Subd. 13.[Repealed, 1953 c 97 s 7]
    Subd. 14.[Repealed, 1953 c 97 s 7]
    Subd. 15.[Repealed, 1953 c 97 s 7]
    Subd. 16.[Repealed, 1953 c 97 s 7]
    Subd. 17.[Repealed, 1949 c 605 s 15]
    Subd. 18.[Renumbered 268.047, subd 5]
    Subd. 19.[Renumbered 268.051, subd 6]
    Subd. 20.[Renumbered 268.051, subd 6, paras (c) and (d)]
    Subd. 21.[Renumbered 268.045]
    Subd. 22.[Renumbered 268.051, subd 4]
    Subd. 23.[Repealed, 1955 c 380 s 5]
    Subd. 24.[Renumbered 268.051, subd 7]
    Subd. 25.[Renumbered 268.052, subdivision 1]
    Subd. 26.[Renumbered 268.052, subd 3]
    Subd. 27.[Renumbered 268.052, subd 4]
    Subd. 28.[Renumbered 268.053]
    Subd. 29.[Renumbered 268.045, para (d)]
    Subd. 30.[Repealed, 1997 c 66 s 81]
    Subd. 31.[Renumbered 268.052, subd 2]
    Subd. 32.[Repealed, 1983 c 372 s 48]
    Subd. 33.[Repealed, 1997 c 66 s 81]
    Subd. 34.[Renumbered 268.054]
268.061 [Repealed, 1988 c 689 art 2 s 269]
268.062 [Renumbered 268.068]
268.0625 REVOCATIONS OF BUSINESS LICENSES.
    Subdivision 1. Notice of debt to licensing authority. The state of Minnesota or a political
subdivision may not issue, transfer, or renew, and must revoke a license for the conduct of
any profession, trade, or business, if the commissioner notifies the licensing authority that the
licensee, applicant, or employer owes any amount due under this chapter or section 116L.20, of
$500 or more. A licensing authority that has received such a notice may issue, transfer, renew, or
not revoke the license only if the licensing authority has received a copy of the debt clearance
certificate issued by the commissioner.
    Subd. 2. Debt clearance certificate. The commissioner may issue a debt clearance
certificate only if:
(1) the licensee has fully paid any amounts due under this chapter or section 116L.20; or
(2) the licensee has entered into an agreement to pay the total amount due and is current
with all the terms of that agreement.
    Subd. 3. Definition. For the purposes of this section, "licensee" means:
(1) an individual if the license is issued to or in the name of an individual, or the corporation,
limited liability company, or partnership if the license is issued to or in the name of a corporation,
limited liability company, or partnership; or
(2) an officer of a corporation, manager of a limited liability company, or a member of a
partnership, or an individual who is liable for amounts due under this chapter or section 116L.20,
either for the entity that the license is at issue or for another entity that the liability was incurred,
or personally as a licensee. "Licensee" includes both the transferor and the transferee of the
license and any holder of a license.
    Subd. 4. Notice and right to hearing. At least 30 calendar days before the commissioner
notifies a licensing authority, a notice of action under this section must be sent to the licensee by
mail or electronic transmission. If the licensee disputes the action, the licensee must appeal within
20 calendar days after the sending of the notice to the licensee. The only issue on any appeal is
whether the commissioner has complied with the requirements of this section. Proceedings on
the appeal are conducted in accordance with section 268.105.
    Subd. 5. Licensing authority; duties. Upon request, the licensing authority must provide the
commissioner with a list of all licensees, including the name, address, business name and address,
Social Security number, and business identification number. The commissioner may request a
list of the licensees no more than once each calendar year. Regardless of section 268.19, the
commissioner may release information necessary to accomplish this section.
History: 1987 c 385 s 37; 1994 c 488 s 8; 1995 c 54 s 20; 1996 c 417 s 26,27; 1997 c 66 s
79,80; 1999 c 107 s 34; 2000 c 343 s 4; 1Sp2003 c 3 art 2 s 20; 2004 c 183 s 41; 2007 c 128
art 2 s 3; art 6 s 43
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 who
    (1) either individually or jointly with others, have or should have had control of, supervision
over, or responsibility for paying the amounts due under this chapter or section 116L.20, and
    (2) knowingly fails to pay the amounts due, is personally liable for the amount due in the
event the employer does not pay.
    For purposes of this section, "knowingly" means that the facts demonstrate that the
responsible individual used or allowed the use of corporate or company assets to pay other
creditors knowing that the amounts due under this chapter were unpaid. An evil motive or intent
to defraud is not necessary.
    (b) Any partner of a limited liability partnership, or professional limited liability partnership,
is jointly and severally liable for any amount due under this chapter or section 116L.20 in the
event the employer does not pay.
    (c) Any personal representative of the estate of a decedent or fiduciary who voluntarily
distributes the assets without reserving a sufficient amount to pay the amount due is personally
liable for the deficiency.
    (d) The personal liability of any individual survives dissolution, reorganization, receivership,
or assignment for the benefit of creditors. For the purposes of this section, all wages paid by the
employer are considered earned from the individual determined to be personally liable.
    (e) The commissioner shall make a determination as to personal liability. The determination
is final unless the individual found to be personally liable, within 20 calendar days after sending,
by mail or electronic transmission, a notice of determination, files an appeal. Proceedings on the
appeal are conducted in accordance with section 268.105.
History: 1Sp1982 c 1 s 36; 1983 c 372 s 40-44; 1985 c 281 s 1; 1Sp1985 c 14 art 9 s 75;
1986 c 444; 1Sp1986 c 3 art 1 s 82; 1987 c 385 s 31-34; 1989 c 209 art 2 s 1; 1991 c 291 art 18
s 1; 1992 c 484 s 14; 1993 c 67 s 12; 1993 c 137 s 8; 1994 c 483 s 1; 1994 c 488 s 7; 1995 c
54 s 16,17; 1996 c 417 s 25,31; 1997 c 66 s 79; 1998 c 265 s 19; 1Sp2003 c 3 art 2 s 20; 2004
c 183 s 42; 2007 c 128 art 1 s 11
268.064 LIABILITY FOR DEBTS UPON ACQUISITION.
    Subdivision 1. Acquisition of organization, trade, business, or assets. Any person who
acquires all or part of the organization, trade, business or assets from an employer, is jointly and
severally liable, in an amount not to exceed the reasonable value of that part of the organization,
trade, business or assets acquired, for any amounts due and unpaid by the employer. The amount
of liability is, in addition, a lien against the property or assets acquired and is before all other
unrecorded liens. This section does not apply to sales in the normal course of the employer's
business.
    Subd. 2. Reasonable value. The commissioner, upon the commissioner's own motion or
upon application of the acquiring person, shall determine the reasonable value of the organization,
trade, business or assets acquired based on available information. The determination is final
unless the acquiring person, within 20 calendar days after being sent the determination by mail or
electronic transmission, files an appeal. Proceedings on the appeal are conducted in accordance
with section 268.105.
    Subd. 3. Statement of amount due. Before the date of acquisition, the commissioner must
furnish the acquiring person with a statement of the amounts due and unpaid under this chapter or
section 116L.20 upon the request of the potential acquiring person and the release of the obligor.
No release is required after the date of acquisition.
    Subd. 4.[Repealed by amendment, 1999 c 107 s 35]
History: 1987 c 385 s 35; 1989 c 65 s 13; 1995 c 54 s 18; 1997 c 66 s 79,80; 1998 c 265 s
20,44; 1999 c 107 s 35; 2004 c 183 s 43,44; 2007 c 128 art 6 s 44
268.065 LIABILITY OF AMOUNTS DUE FROM SUBCONTRACTORS AND
EMPLOYEE LEASING FIRMS.
    Subdivision 1. Subcontractors. A contractor who contracts with any subcontractor must
guarantee the payment of all amounts that are due or become due from the subcontractor with
respect to taxable wages paid on the contract by:
    (1) withholding sufficient money on the contract; or
    (2) requiring the subcontractor to provide a sufficient bond guaranteeing the payment of
all amounts that may become due.
    The contractor may make a request for verification that the subcontractor has paid the taxes
due 60 calendar days after the due date for filing the wage detail report that includes the final
wages paid for employment performed under the contract. If the subcontractor has paid the
amounts due for the period covered by the contract, the commissioner may release the contractor
from its liability.
    The words "contractor" and "subcontractor" include individuals, partnerships, firms, or
corporations, or other association of persons engaged in the construction industry.
    Subd. 2. Employee leasing company, professional employer organization, or similar
person. (a) A person whose work force consists of 50 percent or more of workers provided by
an employee leasing company, professional employer organization, or similar person for a fee,
is jointly and severally liable for the unpaid amounts that are due under this chapter or section
116L.20 on the wages paid on the contract with the employee leasing company, professional
employer organization, or similar person.
(b) This subdivision applies to, but is not limited to, persons registered under section 79.255,
but does not apply to agreements with persons that obtain an exemption from registration under
section 79.255, subdivision 9.
    Subd. 3. Determination of liability. The commissioner shall make a determination as to
the liability under this section. The determination is final unless the contractor or person found
to be liable files an appeal within 20 calendar days after being sent the determination by mail
or electronic transmission. Proceedings on the appeal are conducted in accordance with section
268.105.
History: 1987 c 385 s 36; 1989 c 65 s 14; 1995 c 54 s 19; 1997 C 66 S 79,80; 1998 c 265 s
44; 1999 c 107 s 36; 2004 c 183 s 45,46; 2005 c 112 art 1 s 10; 2007 c 128 art 2 s 4; art 6 s 45
268.066 CANCELLATION OF AMOUNTS DUE FROM AN EMPLOYER.
    (a) The commissioner shall cancel as uncollectible any amounts due from an employer under
this chapter or section 116L.20, that remain unpaid six years after the amounts have been first
determined due, except where the delinquent amounts are secured by a notice of lien, a judgment,
are in the process of garnishment, or are under a payment plan.
    (b) The commissioner may cancel at any time as uncollectible any amount due, or any
portion of an amount due, from an employer under this chapter or section 116L.20, that (1)
are uncollectible due to death or bankruptcy, (2) the Collection Division of the Department of
Revenue under section 16D.04 was unable to collect, or (3) the commissioner determines that it is
not in the public interest to pursue collection of the amount due.
History: 1987 c 385 s 39; 1996 c 305 art 1 s 58; 1997 c 66 s 79; 1998 c 265 s 21; 1Sp2003 c
3 art 2 s 20; 2004 c 183 s 47; 2007 c 128 art 3 s 11
268.067 COMPROMISE.
    (a) The commissioner may compromise in whole or in part any action, determination, or
decision that affects only an employer and not an applicant, and that has occurred during the prior
24 months. This paragraph may apply if it is determined by a court of law, or a confession of
judgment, that an applicant, while employed, wrongfully took from the employer $500 or more in
money or property.
    (b) The commissioner may at any time compromise any amount due from an employer
under this chapter or section 116L.20.
    (c) Any compromise involving an amount over $2,500 must be authorized by an attorney
licensed to practice law in Minnesota who is an employee of the department designated by the
commissioner for that purpose.
    (d) Any compromise must be in the best interest of the state of Minnesota.
History: Ex1936 c 2 s 14; 1941 c 554 s 13; 1943 c 650 s 9; 1945 c 376 s 13; 1949 c 605 s
12,13; 1951 c 55 s 1; 1953 c 97 s 17; 1969 c 9 s 65; 1969 c 567 s 3; 1969 c 854 s 13; 1973 c 254 s
3; 1973 c 720 s 73 subds 2,3; 1975 c 108 s 1; 1975 c 302 s 3,4; 1975 c 336 s 22,23; 1977 c 430 s
25 subd 1; 1978 c 618 s 2; 1978 c 674 s 60; 1980 c 508 s 11-13; 3Sp1981 c 2 art 1 s 33; 1Sp1982
c 1 s 34,35; 1983 c 372 s 39; 1985 c 248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 362 s
26; 1987 c 385 s 28-30; 1989 c 65 s 12; 1989 c 209 art 2 s 1; 1993 c 67 s 11; 1994 c 483 s 1;
1995 c 54 s 13-15; 1996 c 417 s 24,31; 1997 c 66 s 79; 1998 c 265 s 22; 1999 c 107 s 37,66;
1Sp2003 c 3 art 2 s 7; 2004 c 183 s 48; 2007 c 128 art 3 s 24; art 6 s 46
268.0675 NO ELECTION OF REMEDY.
    Use of any remedy under this chapter for the collection of any amount due from an employer
or an applicant does not constitute an election of remedy to the exclusion of any other available
remedy.
History: 1999 c 107 s 38; 2000 c 343 s 4; 1Sp2003 c 3 art 2 s 20; 2004 c 183 s 49; 2007 c
128 art 6 s 47
268.068 NOTICE TO WORKERS.
    Each employer must post and maintain printed statements of an individual's right to apply
for unemployment benefits in places readily accessible to workers in the employer's service. The
printed statements must be supplied by the commissioner at no cost to an employer.
History: 1996 c 417 s 8; 1997 c 66 s 79; 1999 c 107 s 39; 2000 c 343 s 4; 2007 c 128
art 6 s 48
268.069 PAYMENT OF UNEMPLOYMENT BENEFITS.
    Subdivision 1. Requirements. The commissioner shall pay unemployment benefits from the
trust fund to an applicant who has met each of the following requirements:
    (1) the applicant has filed an application for unemployment benefits and established a benefit
account in accordance with section 268.07;
    (2) the applicant has not been held ineligible for unemployment benefits under section
268.095 because of a quit or discharge;
    (3) the applicant has met all of the ongoing eligibility requirements under sections 268.085
and 268.086;
    (4) the applicant does not have an outstanding overpayment of unemployment benefits,
including any penalties or interest; and
    (5) the applicant has not been held ineligible for unemployment benefits under section
268.182 because of a false representation or concealment of facts.
    Subd. 2. Unemployment benefits paid from state funds. Unemployment benefits are
paid from state funds and are not considered paid from any special insurance plan, nor as paid
by an employer. An application for unemployment benefits is not considered a claim against
an employer but is considered a request for unemployment benefits from the trust fund. The
commissioner has the responsibility for the proper payment of unemployment benefits regardless
of the level of interest or participation by an applicant or an employer in any determination or
appeal. An applicant's entitlement to unemployment benefits must be determined based upon
that information available without regard to any burden of proof, and any agreement between
an applicant and an employer is not binding on the commissioner in determining an applicant's
entitlement. There is no presumption of entitlement or nonentitlement to unemployment benefits.
    Subd. 3. Common law. There is no equitable or common law denial or allowance of
unemployment benefits.
History: 1997 c 66 s 28; 1998 c 265 s 45; 1999 c 107 s 40,66; 2000 c 343 s 4; 1Sp2003 c 3
art 2 s 20; 2005 c 112 art 2 s 15; 2007 c 128 art 3 s 24; art 5 s 3; art 6 s 49,50
268.07 BENEFIT ACCOUNT.
    Subdivision 1. Application for unemployment benefits; determination of benefit
account. (a) An application for unemployment benefits may be filed in person, by mail, or by
electronic transmission as the commissioner may require. The applicant must be unemployed at
the time the application is filed and must provide all requested information in the manner required.
If the applicant is not unemployed at the time of the application or fails to provide all requested
information, the communication is not considered an application for unemployment benefits.
    (b) The commissioner shall examine each application for unemployment benefits to
determine the base period and the benefit year, and based upon all the covered employment in the
base period the commissioner shall determine the weekly unemployment benefit amount available,
if any, and the maximum amount of unemployment benefits available, if any. The determination is
known as the determination of benefit account. A determination of benefit account must be sent to
the applicant and all base period employers, by mail or electronic transmission.
    (c) If a base period employer did not provide wage information for the applicant as
provided for in section 268.044, or provided erroneous information, the commissioner may
accept an applicant certification as to wage credits, based upon the applicant's records, and issue
a determination of benefit account.
    (d) The commissioner may, at any time within 24 months from the establishment of a benefit
account, reconsider any determination of benefit account and make an amended determination
if the commissioner finds that the determination was incorrect for any reason. An amended
determination must be promptly sent to the applicant and all base period employers, by mail
or electronic transmission.
    (e) If an amended determination of benefit account reduces the weekly unemployment benefit
amount or maximum amount of unemployment benefits available, any unemployment benefits
that have been paid greater than the applicant was entitled is considered an overpayment of
unemployment benefits. A determination or amended determination issued under this section that
results in an overpayment of unemployment benefits must set out the amount of the overpayment
and the requirement under section 268.18, subdivision 1, that the overpaid unemployment benefits
must be repaid.
    Subd. 2. Benefit account requirements and weekly unemployment benefit amount and
maximum amount of unemployment benefits. (a) To establish a benefit account, an applicant
must have:
    (1) high quarter wage credits of $1,000 or more; and
    (2) wage credits, in other than the high quarter, of $250 or more.
    (b) If an applicant has established a benefit account, the weekly unemployment benefit
amount available during the benefit year is the higher of:
    (1) 50 percent of the applicant's average weekly wage during the base period, to a maximum
of 66-2/3 percent of the state's average weekly wage; or
    (2) 50 percent of the applicant's average weekly wage during the high quarter, to a maximum
of 43 percent of the state's average weekly wage.
    The applicant's average weekly wage under clause (1) is computed by dividing the total wage
credits by 52. The applicant's average weekly wage under clause (2) is computed by dividing
the high quarter wage credits by 13.
    (c) The state's maximum weekly unemployment benefit amount and an applicant's weekly
unemployment benefit amount and maximum amount of unemployment benefits available is
rounded down to the next lower whole dollar. The state's maximum weekly benefit amount,
computed in accordance with section 268.035, subdivision 23, applies to a benefit account
established effective on or after the last Sunday in October. Once established, an applicant's
weekly unemployment benefit amount is not affected by the last Sunday in October change in
the state's maximum weekly unemployment benefit amount.
    (d) The maximum amount of unemployment benefits available on any benefit account is the
lower of:
    (1) 33-1/3 percent of the applicant's total wage credits; or
    (2) 26 times the applicant's weekly unemployment benefit amount.
    Subd. 2a.[Repealed by amendment, 1996 c 417 s 9]
    Subd. 3. Second benefit account requirements. To establish a second benefit account
following the expiration of a benefit year on a prior benefit account, an applicant must have
sufficient wage credits to establish a benefit account under subdivision 2 and must have performed
services in covered employment after the effective date of the prior benefit account. The wages
paid for that employment must equal not less than eight times the weekly unemployment benefit
amount of the prior benefit account. The purpose of this subdivision is to prevent an applicant
from establishing more than one benefit account as a result of one loss of employment.
    Subd. 3a. Right of appeal. (a) A determination or amended determination of benefit account
is final unless an applicant or base period employer within 20 calendar days after the sending of
the determination or amended determination files an appeal. Every determination or amended
determination of benefit account must contain a prominent statement indicating in clear language
the consequences of not appealing. Proceedings on the appeal are conducted in accordance with
section 268.105.
    (b) Any applicant or base period employer may appeal from a determination or amended
determination of benefit account on the issue of whether services performed constitute
employment and covered employment. Proceedings on the appeal are conducted in accordance
with section 268.105.
    Subd. 3b. Limitations on applications and benefit accounts. (a) An application for
unemployment benefits is effective the Sunday of the calendar week that the application was
filed. Upon specific request of an applicant, an application for unemployment benefits may be
backdated one calendar week before the Sunday of the week the application was actually filed. An
application may be backdated only if the applicant was unemployed throughout the period of the
backdating. If an individual attempted to file an application for unemployment benefits, but was
prevented from filing an application by the department, the application is effective the Sunday of
the calendar week the individual first attempted to file an application.
    (b) A benefit account established under subdivision 2 is effective the date the application for
unemployment benefits was effective.
    (c) A benefit account, once established, may later be withdrawn only if:
    (1) a new application for unemployment benefits is filed and a new benefit account is
established at the time of the withdrawal; and
    (2) the applicant has not served the nonpayable waiting week under section 268.085,
subdivision 1
, clause (5).
    A determination or amended determination under section 268.101, that was issued before
the withdrawal of the benefit account, remains in effect and is not voided by the withdrawal of
the benefit account. A determination of ineligibility requiring subsequent earnings to satisfy the
period of ineligibility under section 268.095, subdivision 10, applies to the weekly unemployment
benefit amount on the new benefit account.
    (d) An application for unemployment benefits is not allowed before the Sunday following
the expiration of the benefit year on a prior benefit account. Except as allowed under paragraph
(b), an applicant may establish only one benefit account each 52 calendar weeks.
    Subd. 4.MS 1949 [Repealed, 1951 c 442 s 3]
    Subd. 4.MS 1980 [Repealed, 1Sp1982 c 1 s 43]
    Subd. 5.[Repealed, 1975 c 336 s 25]
    Subd. 6.[Repealed, 1947 c 32 s 9]
History: (4337-25) Ex1936 c 2 s 5; 1937 c 306 s 3; 1939 c 443 s 4; 1941 c 554 s 4; 1943 c
650 s 3; 1945 c 376 s 4; 1947 c 432 s 6; 1949 c 605 s 7,8; 1951 c 442 s 3; 1953 c 587 s 1; 1955 c
816 s 1; 1957 c 780 s 1; 1965 c 741 s 12,13; 1967 c 573 s 4; 1969 c 854 s 7; 1971 c 408 s 1; 1971
c 942 s 7,8; Ex1971 c 10 s 1; 1973 c 599 s 5; 1975 c 104 s 1; 1975 c 336 s 11; 1977 c 4 s 6; 1977
c 297 s 12; 1979 c 284 s 1; 1Sp1982 c 1 s 13-15; 1983 c 372 s 17,18; 1985 c 248 s 70; 1986 c
444; 1987 c 242 s 2; 1987 c 362 s 13-15; 1987 c 385 s 19; 1989 c 65 s 6,7; 1989 c 209 art 2 s 1;
1990 c 516 s 3; 1992 c 484 s 8; 1996 c 417 s 9,31; 1997 c 66 s 29-32,79; 1998 c 265 s 23; 1998 c
408 s 3; 1999 c 107 s 41,66; 2000 c 343 s 4; 2001 c 175 s 23-26; 1Sp2003 c 3 art 1 s 7; art 2 s
8,20; 2004 c 183 s 50-52; 2005 c 112 art 2 s 16; 2007 c 128 art 1 s 12; art 2 s 5,6; art 3 s 12
268.071 [Renumbered 268.115]
268.072 [Renumbered 268.155]
268.073    Subdivision 1.[Renumbered 268.125, subdivision 1]
    Subd. 2.[Renumbered 268.125, subd 2]
    Subd. 3.[Renumbered 268.125, subd 3]
    Subd. 4.[Renumbered 268.125, subd 4]
    Subd. 5.[Renumbered 268.125, subd 5]
    Subd. 6.[Repealed, 1994 c 503 s 7]
    Subd. 7.[Repealed, 1997 c 66 s 81]
268.074 [Renumbered 268.135]
268.075 [Renumbered 268.145]
268.08    Subdivision 1.[Renumbered 268.085, subdivision 1]
    Subd. 1a.[Renumbered 268.087]
    Subd. 2.[Renumbered 268.085, subd 2]
    Subd. 2a.[Renumbered 268.085, subd 13]
    Subd. 3.[Renumbered 268.085, subd 3]
    Subd. 3a.[Renumbered 268.085, subd 5]
    Subd. 3b.[Renumbered 268.085, subd 6]
    Subd. 4.[Renumbered 268.085, subd 4]
    Subd. 5.[Repealed, 1977 c 297 s 22]
    Subd. 5a.[Repealed, 1998 c 265 s 46]
    Subd. 6.[Renumbered 268.085, subd 7]
    Subd. 7.[Renumbered 268.085, subd 11]
    Subd. 8.[Renumbered 268.085, subd 12]
    Subd. 9.[Renumbered 268.085, subd 8]
    Subd. 10.[Renumbered 268.085, subd 10]
    Subd. 11.[Renumbered 268.085, subd 9]
268.081 [Repealed, 1993 c 4 s 34]
268.084 PERSONAL IDENTIFICATION NUMBER; PRESUMPTION.
    (a) Each applicant must be issued a personal identification number (PIN) for the purpose
of filing continued requests for unemployment benefits, accessing information, and engaging in
other transactions with the department.
    (b) If a PIN assigned to an applicant is used in the filing of a continued request for
unemployment benefits under section 268.086 or any other type of transaction, the applicant
is presumed to have been the individual using that PIN and presumed to have received any
unemployment benefit payment issued. This presumption may be rebutted by a preponderance
of the evidence showing that the applicant assigned the PIN was not the individual who used
that PIN in the transaction.
    (c) The commissioner shall notify each applicant of this section.
History: 1Sp2003 c 3 art 2 s 9; 2007 c 128 art 3 s 24; art 6 s 51
268.085 ELIGIBILITY REQUIREMENTS.
    Subdivision 1. Eligibility conditions. An applicant may be eligible to receive unemployment
benefits for any week if:
    (1) the applicant has an active benefit account and has filed a continued request for
unemployment benefits for that week under section 268.086;
    (2) the week for which unemployment benefits are requested is in the applicant's benefit year;
    (3) the applicant was unemployed as defined in section 268.035, subdivision 26;
    (4) the applicant was able to work and was available for suitable employment, and was
actively seeking suitable employment. The applicant's weekly unemployment benefit amount is
reduced one-fifth for each day the applicant is unable to work or is unavailable for suitable
employment. If the computation of the reduced unemployment benefits is not a whole dollar, it is
rounded down to the next lower whole dollar.
This clause does not apply to an applicant who is in reemployment assistance training, or each
day the applicant is on jury duty or serving as an election judge;
    (5) the applicant has served a nonpayable waiting period of one week that the applicant is
otherwise entitled to some amount of unemployment benefits. This clause does not apply if
the applicant would have been entitled to federal disaster unemployment assistance because of
a disaster in Minnesota, but for the applicant's establishment of a benefit account under section
268.07; and
    (6) the applicant has been participating in reemployment assistance services, such as job
search and resume writing classes, if the applicant has been determined in need of reemployment
assistance services by the commissioner, unless the applicant has good cause for failing to
participate.
    Subd. 2. Not eligible. An applicant is ineligible for unemployment benefits for any week:
    (1) that occurs before the effective date of a benefit account;
    (2) that the applicant, at the beginning of the week, has an outstanding fraud overpayment
balance under section 268.18, subdivision 2, including any penalties and interest;
    (3) that occurs in a period when the applicant is a student in attendance at, or on vacation
from a secondary school including the period between academic years or terms;
    (4) that the applicant is incarcerated or performing court ordered community service. The
applicant's weekly unemployment benefit amount is reduced by one-fifth for each day the applicant
is incarcerated or performing court ordered community service. If the computation of the reduced
unemployment benefits is not a whole dollar, it is rounded down to the next lower whole dollar;
    (5) that the applicant fails or refuses to provide information on an issue of ineligibility
required under section 268.101;
    (6) that the applicant is performing services 32 hours or more, in employment, covered
employment, noncovered employment, volunteer work, or self-employment regardless of the
amount of any earnings; or
    (7) with respect to which the applicant is receiving, has received, or has filed an application
for unemployment benefits under any federal law or the law of any other state. If the appropriate
agency finally determines that the applicant is not entitled to the unemployment benefits, this
clause does not apply.
    Subd. 3. Payments that delay unemployment benefits. (a) An applicant is not eligible to
receive unemployment benefits for any week with respect to which the applicant is receiving, has
received, or has filed for payment, equal to or in excess of the applicant's weekly unemployment
benefit amount, in the form of:
    (1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause does not
apply to vacation pay paid upon a permanent separation from employment;
    (2) severance pay, bonus pay, sick pay, and any other payments, except earnings under
subdivision 5, and back pay under subdivision 6, paid by an employer because of, upon, or
after separation from employment, but only if the payment is considered wages at the time of
payment under section 268.035, subdivision 29; or
    (3) pension, retirement, or annuity payments from any plan contributed to by a base
period employer including the United States government, except Social Security benefits that
are provided for in subdivision 4. The base period employer is considered to have contributed
to the plan if the contribution is excluded from the definition of wages under section 268.035,
subdivision 29
, clause (1).
    An applicant is not considered to have received the lump sum payment if the applicant
immediately deposits that payment in a qualified pension plan or account.
    (b) This subdivision applies to all the weeks of payment. Payments under paragraph (a),
clauses (1) and (2), are applied to the period immediately following the last day of employment
and the number of weeks of payment, for purposes of those clauses, is determined as follows:
    (1) if the payments are made periodically, the total of the payments to be received is divided
by the applicant's last level of regular weekly pay from the employer; or
    (2) if the payment is made in a lump sum, that sum is divided by the applicant's last level of
regular weekly pay from the employer.
    (c) If the payment is less than the applicant's weekly unemployment benefit amount,
unemployment benefits are reduced by the amount of the payment. If the computation of reduced
unemployment benefits is not a whole dollar, it is rounded down to the next lower whole dollar.
    Subd. 3a. Workers' compensation and disability insurance offset. (a) An applicant is not
eligible to receive unemployment benefits for any week in which the applicant is receiving or
has received compensation for loss of wages equal to or in excess of the applicant's weekly
unemployment benefit amount under:
    (1) the workers' compensation law of this state;
    (2) the workers' compensation law of any other state or similar federal law; or
    (3) any insurance or trust fund paid in whole or in part by an employer.
    (b) This subdivision does not apply to an applicant who has a claim pending for loss of
wages under paragraph (a); however, before unemployment benefits may be paid when a claim is
pending, the issue of the applicant being able to work, as required under subdivision 1, clause (2),
is determined under section 268.101, subdivision 3. If the applicant later receives compensation
as a result of the pending claim, the applicant is subject to the provisions of paragraph (a) and the
unemployment benefits paid are subject to recoupment by the commissioner to the extent that
the compensation constitutes overpaid unemployment benefits.
    (c) If the amount of compensation described under paragraph (a) for any week is less than
the applicant's weekly unemployment benefit amount, unemployment benefits requested for that
week are reduced by the amount of that compensation payment.
    Subd. 4. Social Security benefits. (a) Any applicant aged 62 or over is required to state
when filing an application for unemployment benefits and when filing continued requests for
unemployment benefits if the applicant is receiving, has filed for, or intends to file for, primary
Social Security old age benefits for any week during the benefit year.
    If the effective date of the applicant's Social Security claim for old age benefits is, or will be,
after the start of the base period, there must be deducted from an applicant's weekly unemployment
benefit amount 50 percent of the weekly equivalent of the primary Social Security old age benefit
the applicant has received, has filed for, or intends to file for, with respect to that week.
    If the effective date of the applicant's Social Security claim for old age benefits is before
the start of the base period, there is no deduction from the applicant's weekly unemployment
benefit amount.
    (b) An applicant who is receiving, has received, or has filed for primary Social Security
disability benefits for any week during the benefit year must be determined unable to work and
unavailable for suitable employment for that week, unless:
    (1) the Social Security Administration approved the collecting of primary Social Security
disability benefits each month the applicant was employed during the base period; or
    (2) the applicant provides a statement from an appropriate health care professional who is
aware of the applicant's Social Security disability claim and the basis for that claim, certifying
that the applicant is able to work and available for suitable employment.
    If an applicant meets the requirements of clause (1) there is no deduction from the applicant's
weekly benefit amount for any Social Security disability benefits. If only clause (2) applies, then
there must be deducted from the applicant's weekly unemployment benefit amount 50 percent of
the weekly equivalent of the primary Social Security disability benefits the applicant is receiving,
has received, or has filed for, with respect to that week; provided, however, that if the Social
Security Administration determines that an individual is not entitled to receive primary Social
Security disability benefits for any week the applicant has applied for those benefits, the 50
percent deduction does not apply to that week.
    (c) Information from the Social Security Administration is considered conclusive, absent
specific evidence showing that the information was erroneous.
    (d) If the computation of the reduced unemployment benefits is not a whole dollar, it is
rounded down to the next lower whole dollar.
    (e) This subdivision does not apply to Social Security survivor benefits.
    Subd. 5. Deductible earnings. (a) If the applicant has earnings, including holiday pay,
with respect to any week, from employment, covered employment, noncovered employment,
self-employment, or volunteer work, equal to or in excess of the applicant's weekly unemployment
benefit amount, the applicant is ineligible for unemployment benefits for that week.
    (b) If the applicant has earnings, with respect to any week, that is less than the applicant's
weekly unemployment benefit amount, from employment, covered employment, noncovered
employment, self-employment, or volunteer work, 55 percent of the earnings are deducted from
the weekly unemployment benefit amount.
    The resulting unemployment benefit, if not a whole dollar, is rounded down to the next
lower whole dollar.
    (c) No deduction is made from an applicant's weekly unemployment benefit amount for
earnings from service in the National Guard or a United States military reserve unit or from
direct service as a volunteer firefighter or volunteer ambulance service personnel. This exception
to paragraphs (a) and (b) does not apply to on-call or standby pay provided to a volunteer
firefighter or volunteer ambulance service personnel. No deduction is made for jury duty pay or
for pay as an election judge.
    (d) The applicant may report deductible earnings on continued requests for unemployment
benefits at the next lower whole dollar amount.
    (e) Deductible earnings does not include any money considered a deductible payment
under subdivision 3, but includes all compensation considered wages under section 268.035,
subdivision 29
, and any other compensation considered earned income under state and federal
law for income tax purposes.
    Subd. 6. Receipt of back pay. (a) Back pay received by an applicant with respect to any
week occurring in the 104 weeks before the payment of the back pay must be deducted from
unemployment benefits paid for that week.
    If the back pay is not paid with respect to a specific period, the back pay must be applied to
the period immediately following the last day of employment.
    (b) If the back pay is reduced by the amount of unemployment benefits that have been
paid, the amount of back pay withheld must be:
    (1) paid by the employer to the trust fund within 30 calendar days and subject to the same
collection procedures that apply to past due taxes;
    (2) applied to unemployment benefit overpayments resulting from the payment of the
back pay; and
    (3) credited to the maximum amount of unemployment benefits available to the applicant in
a benefit year that includes the weeks for which back pay was deducted.
    (c) Unemployment benefits paid the applicant must be removed from the computation of
the tax rate for taxpaying employers and removed from the reimbursable account for nonprofit
and government employers that have elected to be liable for reimbursements in the calendar
quarter the trust fund receives payment.
    (d) Payments to the trust fund under this subdivision are considered as made by the applicant.
    Subd. 7. School employees. (a) No wage credits in any amount from any employment with
any educational institution or institutions earned in any capacity may be used for unemployment
benefit purposes for any week during the period between two successive academic years or
terms if:
    (1) the applicant had employment for any educational institution or institutions in the prior
academic year or term; and
    (2) there is a reasonable assurance that the applicant will have employment for any
educational institution or institutions in the following academic year or term, unless that
subsequent employment is substantially less favorable than the employment of the prior academic
year or term.
    (b) Paragraph (a) does not apply to an applicant who, at the end of the prior academic year or
term, had an agreement for a definite period of employment between academic years or terms
in other than an instructional, research, or principal administrative capacity and the educational
institution or institutions failed to provide that employment.
    (c) If unemployment benefits are denied to any applicant under paragraph (a) who was
employed in the prior academic year or term in other than an instructional, research, or principal
administrative capacity and who was not offered an opportunity to perform the employment in the
following academic year or term, the applicant is entitled to retroactive unemployment benefits
for each week during the period between academic years or terms that the applicant filed a timely
continued request for unemployment benefits, but unemployment benefits were denied solely
because of paragraph (a).
    (d) An educational assistant is not considered to be in an instructional, research, or principal
administrative capacity.
    (e) Paragraph (a) applies to any vacation period or holiday recess if the applicant was
employed immediately before the vacation period or holiday recess, and there is a reasonable
assurance that the applicant will be employed immediately following the vacation period or
holiday recess.
    (f) This subdivision applies to employment with an educational service agency if the
applicant performed the services at an educational institution or institutions. "Educational service
agency" means a governmental agency or entity established and operated exclusively for the
purpose of providing services to one or more educational institutions. This subdivision also
applies to employment with Minnesota or a political subdivision, or a nonprofit organization, if
the services are provided to or on behalf of an educational institution or institutions.
    (g) Paragraphs (a) and (e) apply beginning the Sunday of the week that there is a reasonable
assurance of employment.
    (h) Employment with multiple education institutions must be aggregated for purposes of
application of this subdivision.
    (i) If all of the applicant's employment with any educational institution or institutions
during the prior academic year or term consisted of on-call employment, and the applicant has a
reasonable assurance of any on-call employment with any educational institution or institutions for
the following academic year or term, it is not considered substantially less favorable employment.
    (j) Paragraph (a) also applies to the period between two regular but not successive terms.
    (k) A "reasonable assurance" may be written, oral, implied, or established by custom
or practice.
    (l) 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. 8. Services for school contractors. (a) Wage credits from an employer are subject
to subdivision 7, if:
    (1) the employment was provided under a contract between the employer and an elementary
or secondary school; and
    (2) the contract was for services that the elementary or secondary school could have had
performed by its employees.
    (b) Wage credits from an employer are not subject to subdivision 7 if:
    (1) those wage credits were earned by an employee of a private employer performing work
under a contract between the employer and an elementary or secondary school; and
    (2) the employment was related to food services provided to the school by the employer.
    Subd. 9. Business owners. Wage credits from an employer may not be used for
unemployment benefit purposes by any applicant who:
    (1) individually, jointly, or in combination with the applicant's spouse, parent, or child owns
or controls directly or indirectly 25 percent or more interest in the 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 employer; and
    (2) is temporarily, seasonally, or indefinitely unemployed and not permanently separated
from the employment.
    This subdivision is effective when the applicant has been paid four times the applicant's
weekly unemployment benefit amount in the current benefit year.
    Subd. 10.[Repealed, 2007 c 128 art 1 s 23]
    Subd. 11. Athletes and coaches. Unemployment benefits must not be paid to an applicant
on the basis of any wage credits from employment that consists of coaching or participating in
sports or athletic events or training or preparing to participate for any week during the period
between two successive sport seasons, or similar periods, if:
    (1) the applicant was so employed in the prior season or similar period, and
    (2) there is a reasonable assurance that the applicant will be so employed in the following
season or similar period.
    Subd. 12. Aliens. (a) An alien is ineligible for unemployment benefits for any week the alien
is not authorized to work in the United States under federal law. Information from the Bureau of
Citizenship and Immigration Services is considered conclusive, absent specific evidence that the
information was erroneous. Under the existing agreement between the United States and Canada,
this paragraph does not apply to an applicant who is a Canadian citizen and has returned to and is
living in Canada each week unemployment benefits are requested.
    (b) Unemployment benefits must not be paid on the basis of wage credits earned by an alien
unless the alien (1) was lawfully admitted for permanent residence at the time of the employment,
(2) was lawfully present for the purposes of the employment, or (3) was permanently residing in
the United States under color of law at the time of the employment.
    (c) Any information required of applicants applying for unemployment benefits to determine
eligibility because of their alien status must be required from all applicants.
    Subd. 13. Suspension from employment. (a) An applicant who has been suspended from
employment without pay for 30 calendar days or less, as a result of employment misconduct as
defined under section 268.095, subdivision 6, is ineligible for unemployment benefits beginning
the Sunday of the week that the applicant was suspended and continuing for the duration of
the suspension.
    (b) A suspension from employment without pay for more than 30 calendar days is considered
a discharge from employment under section 268.095, subdivision 5.
    (c) A suspension from employment with pay, regardless of duration, is not considered a
separation from employment and the applicant is ineligible for unemployment benefits for the
duration of the suspension with pay.
    Subd. 13a. Leave of absence. (a) An applicant on a voluntary leave of absence is ineligible
for unemployment benefits for the duration of the leave of absence. An applicant on an involuntary
leave of absence is not ineligible under this subdivision.
    A leave of absence is voluntary when work that the applicant can then perform is available
with the applicant's employer but the applicant chooses not to work. A medical leave of absence is
not presumed to be voluntary.
    (b) A period of vacation requested by the applicant, paid or unpaid, is considered a voluntary
leave of absence. A vacation period assigned by an employer under: (1) a uniform vacation
shutdown; (2) a collective bargaining agreement; or (3) an established employer policy, is
considered an involuntary leave of absence.
    (c) A voluntary leave of absence is not considered a quit and an involuntary leave of absence
is not considered a discharge from employment for purposes of section 268.095.
    (d) An applicant who is on a paid leave of absence, whether the leave of absence is voluntary
or involuntary, is ineligible for unemployment benefits for the duration of the leave.
    (e) This subdivision applies to a leave of absence from a base period employer, an employer
during the period between the end of the base period and the effective date of the benefit account,
or an employer during the benefit year.
    Subd. 13b. Labor dispute. (a) An applicant who has stopped working because of a labor
dispute at the establishment where the applicant is employed is ineligible for unemployment
benefits:
    (1) until the end of the calendar week that the labor dispute was in active progress if the
applicant is participating in or directly interested in the labor dispute; or
    (2) until the end of the calendar week that the labor dispute began if the applicant is not
participating in or directly interested in the labor dispute.
    Participation includes any failure or refusal by an applicant, voluntarily or involuntarily, to
accept and perform available and customary work at the establishment.
    (b) An applicant who has stopped working because of a jurisdictional controversy between
two or more labor organizations at the establishment where the applicant is employed is ineligible
for unemployment benefits until the end of the calendar week that the jurisdictional controversy
was in progress.
    (c) An applicant is not ineligible for unemployment benefits under this subdivision if:
    (1) the applicant stops working because of an employer's intentional failure to observe the
terms of the safety and health section of a union contract or failure to comply with an official
citation for a violation of federal or state laws involving occupational safety and health;
    (2) the applicant stops working because of a lockout; or
    (3) the applicant is discharged before the beginning of a labor dispute.
    (d) A quit from employment by the applicant during the time that the labor dispute is in
active progress at the establishment does not terminate the applicant's participation in or direct
interest in the labor dispute for purposes of this subdivision.
    (e) For the purpose of this subdivision, the term "labor dispute" has the same definition
as provided in section 179.01, subdivision 7.
    Subd. 13c. Offers of suitable employment. (a) An applicant is ineligible for all
unemployment benefits for eight calendar weeks if the applicant, without good cause:
    (1) failed to apply for available, suitable employment of which the applicant was advised by
the commissioner or an employer;
    (2) failed to accept suitable employment when offered; or
    (3) avoided an offer of suitable employment.
    (b) "Good cause" is a reason that would cause a reasonable individual who wants suitable
employment to fail to apply for, accept, or avoid suitable employment. Good cause includes:
    (1) the applicant is employed in other suitable employment;
    (2) the applicant is in reemployment assistance training;
    (3) the applicant formerly worked for the employer and the loss of employment occurred
prior to the commencement of a labor dispute, was permanent or for an indefinite period, and the
applicant failed to apply for or accept the employment because a labor dispute was in progress at
the establishment; or
    (4) the applicant formerly worked for the employer and quit that employment because of a
good reason caused by the employer.
    (c) This subdivision only applies to offers of suitable employment with a new or a former
employer and does not apply to any type of job transfers, position reassignments, or changes in
job duties or responsibilities during the course of employment with an employer.
    (d) The period of ineligibility under this subdivision begins the Sunday of the week the
applicant failed to apply for, failed to accept, or avoided suitable employment without good cause.
    (e) This subdivision applies to offers of suitable employment that occur before the effective
date of the benefit account and that occur during the benefit year.
    (f) This subdivision only applies to offers of suitable employment that are considered
covered employment under section 268.035, subdivision 12.
    Subd. 14. Able to work defined. "Able to work" means an applicant has the physical and
mental ability to perform (1) the usual duties of the applicant's usual occupation or (2) the usual
duties of work that is gainful employment engaged in by others as a means of livelihood.
    Subd. 15. Available for suitable employment defined. (a) "Available for suitable
employment" means an applicant is ready and willing to accept suitable employment in the
labor market area. The attachment to the work force must be genuine. An applicant may restrict
availability to suitable employment, but there must be no other restrictions, either self-imposed or
created by circumstances, temporary or permanent, that prevent accepting suitable employment.
(b) To be considered "available for suitable employment," a student must be willing to
quit school to accept suitable employment.
(c) An applicant who is absent from the labor market area for personal reasons, other than to
search for work, is not "available for suitable employment."
(d) An applicant who has restrictions on the hours of the day or days of the week that the
applicant can or will work, that are not normal for the applicant's usual occupation or other
suitable employment, is not "available for suitable employment." An applicant must be available
for daytime employment, if suitable employment is performed during the daytime, even though
the applicant previously worked the night shift.
(e) An applicant must have transportation throughout the labor market area to be considered
"available for suitable employment."
    Subd. 16. Actively seeking suitable employment defined. (a) "Actively seeking suitable
employment" means those reasonable, diligent efforts an individual in similar circumstances
would make if genuinely interested in obtaining suitable employment under the existing conditions
in the labor market area. Limiting the search to positions that are not available or are above the
applicant's training, experience, and qualifications is not "actively seeking suitable employment."
    (b) To be considered "actively seeking suitable employment" an applicant must, when
reasonable, contact those employers from whom the applicant was laid off because of lack of
work and request suitable employment.
    (c) If reasonable prospects of suitable employment in the applicant's usual or customary
occupation do not exist, the applicant must actively seek other suitable employment to be
considered "actively seeking suitable employment." This applies to an applicant who is seasonally
unemployed.
    (d) An applicant who is seeking employment only through a union is not actively seeking
suitable employment unless the applicant is in an occupation where it is required by union rule
that all the hiring in that locality is done through the union or that all members are restricted to
obtaining employment among signatory contractors in the construction industry. The applicant
must be a union member in good standing, registered with the union for employment, and in
compliance with other union rules to be considered "actively seeking suitable employment."
History: (4337-26) Ex1936 c 2 s 6,7; 1937 c 43 s 2; 1937 c 306 s 4; 1937 c 401 s 1; 1939 c
443 s 5,6; 1941 c 554 s 5,6; 1943 c 650 s 4,5; 1945 c 376 s 5,6; 1947 c 432 s 7; 1949 c 605 s 9;
1953 c 97 s 9; 1953 c 699 s 10; 1965 c 741 s 14-17; 1967 c 342 s 1; 1967 c 573 s 5; 1969 c 6 s 34;
1969 c 42 s 1; 1971 c 942 s 9-11; 1973 c 23 s 1; 1973 c 599 s 6-9; 1974 c 477 s 1; 1975 c 104 s 2;
1975 c 336 s 13-16; 1975 c 359 s 23; 1976 c 163 s 59; 1976 c 271 s 78; 1977 c 4 s 7,8; 1977 c 242
s 1; 1977 c 297 s 15-19; 1978 c 612 s 1; 1978 c 618 s 1; 1979 c 24 s 1; 1979 c 181 s 9-13,19; 1980
c 508 s 8,9; 1982 c 619 s 1; 1Sp1982 c 1 s 23-28; 1983 c 290 s 168; 1983 c 372 s 20-24,26,27;
1985 c 248 s 44; 1986 c 444; 1987 c 362 s 18-20; 1987 c 384 art 1 s 55; 1987 c 385 s 20-24; 1989
c 65 s 8; 1989 c 209 art 2 s 1; 1989 c 282 art 2 s 169; 1990 c 516 s 4; 1991 c 265 art 11 s 22;
1992 c 484 s 10-12; 1993 c 67 s 3-7; 1994 c 488 s 2-4,8; 1995 c 54 s 8,9; 1995 c 229 art 3 s 15;
1995 c 231 art 1 s 32; 1996 c 417 s 18-20,31; 1997 c 66 s 36-54,79; 1998 c 265 s 24-29,44,45;
1999 c 107 s 42,44,66; 2000 c 343 s 4; 2000 c 478 art 2 s 7; 2000 c 488 art 2 s 17; 2001 c 175 s
27-35,38-41,52; 1Sp2003 c 3 art 1 s 8; art 2 s 11-14,20; 2004 c 183 s 53-65,86; 2005 c 112 art 2 s
17-21,27,41; 2005 c 115 s 1; 2007 c 128 art 1 s 13-15; art 2 s 7; art 3 s 13-15,24; art 6 s 52-61
268.086 CONTINUED REQUEST FOR UNEMPLOYMENT BENEFITS ON AN ACTIVE
BENEFIT ACCOUNT.
    Subdivision 1. Active benefit account. (a) A benefit account is considered active only when
an applicant files continued requests for unemployment benefits in the manner and within the
time periods prescribed. A benefit account is considered inactive if an applicant stops filing a
continued request or fails to file a continued request within the time period required. The benefit
account is considered inactive as of the Sunday following the last week or biweekly period for
which a continued request has been timely filed.
    (b) A benefit account that is inactive is reactivated the Sunday of the week that the applicant
makes a contact with the department to do so, in the manner prescribed by the commissioner for
reactivating that applicant's benefit account. Upon specific request of an applicant, a benefit
account may be reactivated effective up to two weeks before the week the applicant made contact
with the department to reactivate.
    Subd. 2. Continued request for unemployment benefits defined. A continued request
for unemployment benefits is a certification by an applicant, done on a weekly or biweekly
basis as the commissioner designates, that the applicant is unemployed and meets the ongoing
eligibility requirements for unemployment benefits under section 268.085 for a specific week or
two-week period. A continued request must include information on possible issues of ineligibility
in accordance with section 268.101, subdivision 1, paragraph (c).
    Subd. 3. Methods for filing continued requests for unemployment benefits. (a) The
commissioner shall designate to each applicant one of the following methods for filing a
continued request:
    (1) by electronic transmission under subdivision 5;
    (2) by mail under subdivision 6; or
    (3) by in-person interview under subdivision 7.
    (b) The method designated by the commissioner is the only method allowed for filing a
continued request by that applicant. An applicant may ask that one of the other allowed methods
be designated and the commissioner shall consider inconvenience to the applicant as well as
administrative capacity in determining whether to allow an applicant to change the designated
method for filing a continued request for unemployment benefits.
    Subd. 4.[Repealed, 2005 c 112 art 2 s 42]
    Subd. 5. Continued request for unemployment benefits by electronic transmission. (a)
A continued request for unemployment benefits by electronic transmission must be filed to that
electronic mail address, telephone number, or Internet address prescribed by the commissioner
for that applicant. In order to constitute a continued request, all information asked for, including
information authenticating that the applicant is sending the transmission, must be provided in
the format required. If all of the information asked for is not provided, the communication does
not constitute a continued request for unemployment benefits.
    The electronic transmission communication must be filed on the date required for the
applicant for filing a continued request by electronic transmission.
    (b) If the electronic transmission continued request is not filed on the date required, a
continued request by electronic transmission must be accepted if the applicant files the continued
request by electronic transmission within 14 calendar days following the week in which the date
required occurred. If the continued request by electronic transmission is not filed within 14
calendar days following the week in which the date required occurred, the electronic continued
request must not be accepted and the applicant is ineligible for unemployment benefits for the
period covered by the continued request and the benefit account is considered inactive, unless the
applicant shows good cause for failing to file the continued request by electronic transmission
within the time period required.
    Subd. 6. Continued request for unemployment benefits by mail. (a) A continued request
for unemployment benefits by mail must be on a form prescribed by the commissioner. The form,
in order to constitute a continued request, must be totally completed and signed by the applicant.
    The form must be filed on the date required for the applicant for filing a continued request
by mail, in an envelope with postage prepaid thereon, and sent to the address required by the
commissioner for that applicant.
    (b) If the mail continued request for unemployment benefits is not filed on the date required, a
continued request must be accepted if the form is filed by mail within 14 calendar days following
the week in which the date required occurred. If the form is not filed within 14 calendar days
following the week in which the date required occurred, the form will not be accepted and the
applicant is ineligible for unemployment benefits for the period covered by the continued request
for unemployment benefits and the benefit account is considered inactive, unless the applicant
shows good cause for failing to file the form by mail within the time period required.
    (c) If the applicant has been designated to file a continued request for unemployment benefits
by mail, an applicant may submit the form by facsimile transmission on the day otherwise
required for mailing, or within 14 calendar days following the week in which the date required
occurred. A form submitted by facsimile transmission must be sent only to the telephone number
assigned for that purpose.
    (d) An applicant who has been designated to file a continued request by mail may personally
deliver a continued request form only to the location to which the form was otherwise required to
be mailed.
    Subd. 7. In-person continued request for unemployment benefits. The commissioner may
require any applicant who has been designated to make a continued request for unemployment
benefits by electronic transmission or by mail to appear for a personal interview at a place, time,
and date designated, during which a written continued request for unemployment benefits form
must be completed and submitted by the applicant.
    An applicant is ineligible for unemployment benefits for the week or biweekly period
covered by a continued request and the benefit account is considered inactive if the applicant fails,
without good cause, to comply with the requirement that the applicant appear for a personal
interview and at that time complete and submit a written continued request form.
    Subd. 8. Good cause. A continued request for unemployment benefits that is not filed within
the time periods required by this section may be accepted only for those weeks that the applicant
has "good cause" for not filing within the time periods required.
    Subd. 9. Good cause defined. "Good cause" for purposes of this section is a compelling
substantial reason that would have prevented a reasonable person acting with due diligence from
filing a continued request for unemployment benefits within the time periods required.
    "Good cause" does not include forgetfulness, loss of the continued request form, having
returned to work, or inability to file a continued request for unemployment benefits by the method
designated if the applicant was aware of the inability and did not make diligent effort to have
the method of filing a continued request changed by the commissioner. "Good cause" does not
include having previously made an attempt to file a continued request for unemployment benefits
but where the communication was not considered a continued request because the applicant failed
to submit all required information.
History: 1999 c 107 s 43,66; 2000 c 343 s 4; 2001 c 175 s 36,37; 1Sp2003 c 3 art 2 s 10,20;
2005 c 112 art 2 s 22,23; 2007 c 128 art 3 s 16,17,24; art 6 s 62-67
268.087 UNEMPLOYMENT BENEFITS DUE DECEASED PERSONS.
    If unemployment benefits are due and payable at the time of an applicant's death, those
benefits must, upon application, be paid to the personal representative of the estate of the
deceased. In the event that no personal representative is appointed, the unemployment benefits
must, upon application be paid in the following order: (1) the surviving spouse, (2) the surviving
child or children, or (3) the surviving parent or parents.
    An individual seeking payment must complete an application prescribed by the commissioner
and the payment of unemployment benefits discharges the obligations to the applicant and no
other individual may claim or assert any right to those unemployment benefits.
History: (4337-26) Ex1936 c 2 s 6; 1937 c 43 s 2; 1937 c 306 s 4; 1939 c 443 s 5; 1941 c
554 s 5; 1943 c 650 s 4; 1945 c 376 s 5; 1949 c 605 s 9; 1953 c 97 s 9; 1953 c 699 s 10; 1965 c
741 s 14-16; 1969 c 6 s 34; 1971 c 942 s 9,10; 1973 c 599 s 6-8; 1975 c 104 s 2; 1975 c 336 s
13-15; 1975 c 359 s 23; 1976 c 163 s 59; 1976 c 271 s 78; 1977 c 4 s 7; 1977 c 297 s 15-18;
1978 c 612 s 1; 1979 c 24 s 1; 1979 c 181 s 9,10,19; 1980 c 508 s 8; 1Sp1982 c 1 s 23-25; 1983 c
290 s 168; 1983 c 372 s 20-24; 1985 c 248 s 44; 1986 c 444; 1987 c 362 s 18; 1987 c 384
art 1 s 55; 1987 c 385 s 20-22; 1989 c 209 art 2 s 1; 1989 c 282 art 2 s 169; 1990 c 516 s 4;
1991 c 265 art 11 s 22; 1992 c 484 s 10; 1993 c 67 s 3,4; 1994 c 488 s 2,3,8; 1995 c 54 s 8,9;
1995 c 231 art 1 s 32; 1996 c 417 s 18,31; 1997 c 66 s 36-42; 1998 c 265 s 24,45; 1999 c 107
s 66; 2000 c 343 s 4; 2007 c 128 art 6 s 68
268.09    Subdivision 1.[Repealed, 1997 c 66 s 81]
    Subd. 1a.[Renumbered 268.095, subdivision 1]
    Subd. 2.[Repealed, 1997 c 66 s 81]
    Subd. 2a.[Renumbered 268.095, subd 2]
    Subd. 3.[Renumbered subd 18]
    Subd. 4.[Repealed, 1997 c 66 s 81]
    Subd. 5.[Repealed, 1997 c 66 s 81]
    Subd. 6.[Repealed, 1997 c 66 s 81]
    Subd. 7.[Repealed, 1997 c 66 s 81]
    Subd. 8.[Repealed, 1997 c 66 s 81]
    Subd. 9.[Renumbered 268.095, subd 3]
    Subd. 10.[Renumbered 268.095, subd 4]
    Subd. 11.[Renumbered 268.095, subd 5]
    Subd. 12.[Renumbered 268.095, subd 6]
    Subd. 13.[Renumbered 268.095, subd 7]
    Subd. 14.[Renumbered 268.095, subd 8]
    Subd. 15.[Renumbered 268.095, subd 9]
    Subd. 16.[Renumbered 268.095, subd 10]
    Subd. 17.[Renumbered 268.095, subd 11]
    Subd. 18.[Renumbered 268.095, subd 12]
268.095 INELIGIBILITY BECAUSE OF A QUIT OR DISCHARGE.
    Subdivision 1. Quit. An applicant who quit employment is ineligible for all unemployment
benefits according to subdivision 10 except when:
    (1) the applicant quit the employment because of a good reason caused by the employer
as defined in subdivision 3;
    (2) the applicant quit the employment to accept other covered employment that provided
substantially better terms and conditions of employment, but the applicant did not work long
enough at the second employment to have sufficient subsequent earnings to satisfy the period
of ineligibility that would otherwise be imposed under subdivision 10 for quitting the first
employment;
    (3) the applicant quit the employment within 30 calendar days of beginning the employment
because the employment was unsuitable for the applicant;
    (4) the employment was unsuitable for the applicant and the applicant quit to enter
reemployment assistance training;
    (5) the employment was part time and the applicant also had full-time employment in the base
period, from which full-time employment the applicant separated because of reasons for which the
applicant was held not to be ineligible, and the wage credits from the full-time employment are
sufficient to meet the minimum requirements to establish a benefit account under section 268.07;
    (6) the applicant quit because the employer notified the applicant that the applicant was going
to be laid off because of lack of work within 30 calendar days. An applicant who quit employment
within 30 calendar days of a notified date of layoff because of lack of work is ineligible for
unemployment benefits through the end of the week that includes the scheduled date of layoff;
    (7) the applicant quit the employment because the applicant's serious illness or injury made it
medically necessary that the applicant quit, provided that the applicant inform the employer of
the serious illness or injury and request accommodation and no reasonable accommodation is
made available.
    If the applicant's serious illness is chemical dependency, this exception does not apply if
the applicant was previously diagnosed as chemically dependent or had treatment for chemical
dependency, and since that diagnosis or treatment has failed to make consistent efforts to control
the chemical dependency.
    This exception raises an issue of the applicant's being able to work under section 268.085,
subdivision 1
, that the commissioner shall determine;
    (8) the applicant's loss of child care for the applicant's minor child caused the applicant to
quit the employment, provided the applicant made reasonable effort to obtain other child care and
requested time off or other accommodation from the employer and no reasonable accommodation
is available.
    This exception raises an issue of the applicant's availability for suitable employment under
section 268.085, subdivision 1, that the commissioner shall determine; or
    (9) domestic abuse of the applicant or the applicant's minor child, necessitated the applicant's
quitting the employment. Domestic abuse must be shown by one or more of the following:
    (i) a district court order for protection or other documentation of equitable relief issued
by a court;
    (ii) a police record documenting the domestic abuse;
    (iii) documentation that the perpetrator of the domestic abuse has been convicted of the
offense of domestic abuse;
    (iv) medical documentation of domestic abuse; or
    (v) written statement that the applicant or the applicant's minor child is a victim of domestic
abuse, provided by a social worker, member of the clergy, shelter worker, attorney at law, or other
professional who has assisted the applicant in dealing with the domestic abuse.
    Domestic abuse for purposes of this clause is defined under section 518B.01.
    Subd. 2. Quit defined. (a) A quit from employment occurs when the decision to end the
employment was, at the time the employment ended, the employee's.
    (b) An employee who has been notified that the employee will be discharged in the future,
who chooses to end the employment while employment in any capacity is still available, is
considered to have quit the employment.
    (c) An employee who seeks to withdraw a previously submitted notice of quitting is
considered to have quit the employment if the employer does not agree that the notice may
be withdrawn.
    (d) An applicant who, within five calendar days after completion of a suitable temporary
job assignment from a staffing service employer, (1) fails without good cause to affirmatively
request an additional job assignment, or (2) refuses without good cause an additional suitable
job assignment offered, is considered to have quit employment.
    This paragraph applies only if, at the time of beginning of employment with the staffing
service employer, the applicant signed and was provided a copy of a separate document written in
clear and concise language that informed the applicant of this paragraph and that unemployment
benefits may be affected.
    For purposes of this paragraph, "good cause" is a reason that is significant and would
compel an average, reasonable worker, who would otherwise want an additional temporary job
assignment with the staffing service employer, (1) to fail to contact the staffing service employer,
or (2) to refuse an offered assignment.
    For purposes of this paragraph, a "staffing service employer" is an employer whose business
involves employing individuals directly for the purpose of furnishing temporary job assignment
workers to clients of the staffing service.
    Subd. 3. Good reason caused by the employer defined. (a) A good reason caused by the
employer for quitting is a reason:
    (1) that is directly related to the employment and for which the employer is responsible;
    (2) that is adverse to the worker; and
    (3) that would compel an average, reasonable worker to quit and become unemployed rather
than remaining in the employment.
    (b) The analysis required in paragraph (a) must be applied to the specific facts of each case.
    (c) If an applicant was subjected to adverse working conditions by the employer, the
applicant must complain to the employer and give the employer a reasonable opportunity to
correct the adverse working conditions before that may be considered a good reason caused by
the employer for quitting.
    (d) A reason for quitting employment is not considered a good reason caused by the employer
for quitting if the reason for quitting occurred because of the applicant's employment misconduct.
    (e) Notification of discharge in the future, including a layoff because of lack of work, is not
considered a good reason caused by the employer for quitting.
    (f) An applicant has a good reason caused by the employer for quitting if it results from
sexual harassment of which the employer was aware, or should have been aware, and the
employer failed to take timely and appropriate action. Sexual harassment means unwelcome
sexual advances, requests for sexual favors, sexually motivated physical contact or other conduct
or communication of a sexual nature when:
    (1) the applicant's submission to the conduct or communication is made a term or condition
of the employment;
    (2) the applicant's submission to or rejection of the conduct or communication is the basis for
decisions affecting employment; or
    (3) the conduct or communication has the purpose or effect of substantially interfering
with an applicant's work performance or creating an intimidating, hostile, or offensive working
environment.
    (g) The definition of a good reason caused by the employer for quitting employment provided
by this subdivision is exclusive and no other definition applies.
    Subd. 4. Discharge. An applicant who was discharged from employment by an employer is
ineligible for all unemployment benefits according to subdivision 10 only if:
    (1) the applicant was discharged because of employment misconduct as defined in
subdivision 6; or
    (2) the applicant was discharged because of aggravated employment misconduct as defined
in subdivision 6a.
    Subd. 4a.[Renumbered subd 6a]
    Subd. 5. Discharge defined. (a) A discharge from employment occurs when any words or
actions by an employer would lead a reasonable employee to believe that the employer will no
longer allow the employee to work for the employer in any capacity. A layoff because of lack
of work is considered a discharge. A suspension from employment without pay of more than
30 calendar days is considered a discharge.
    (b) An employee who gives notice of intention to quit the employment and is not allowed by
the employer to work the entire notice period is considered discharged from the employment as of
the date the employer will no longer allow the employee to work. If the discharge occurs within
30 calendar days before the intended date of quitting, then, as of the intended date of quitting, the
separation from employment is considered a quit from employment subject to subdivision 1.
    Subd. 6. Employment misconduct defined. (a) Employment misconduct means any
intentional, negligent, or indifferent conduct, on the job or off the job (1) that displays clearly a
serious violation of the standards of behavior the employer has the right to reasonably expect of
the employee, or (2) that displays clearly a substantial lack of concern for the employment.
    Inefficiency, inadvertence, simple unsatisfactory conduct, a single incident that does not have
a significant adverse impact on the employer, conduct an average reasonable employee would
have engaged in under the circumstances, poor performance because of inability or incapacity,
good faith errors in judgment if judgment was required, or absence because of illness or injury
with proper notice to the employer, are not employment misconduct.
    (b) Conduct that was a direct result of the applicant's chemical dependency is not
employment misconduct unless the applicant was previously diagnosed chemically dependent or
had treatment for chemical dependency, and since that diagnosis or treatment has failed to make
consistent efforts to control the chemical dependency.
    (c) Conduct that was a result of the applicant, or the applicant's minor child, being a victim
of domestic abuse as defined under section 518B.01, is not employment misconduct. Domestic
abuse must be shown as provided for in section 268.095, subdivision 1, clause (9).
    (d) A driving offense in violation of sections 169A.20, 169A.31, or 169A.50 to 169A.53 that
interferes with or adversely affects the employment is employment misconduct.
    (e) The definition of employment misconduct provided by this subdivision is exclusive and
no other definition applies.
    Subd. 6a. Aggravated employment misconduct defined. (a) For the purpose of this section,
"aggravated employment misconduct" means:
    (1) the commission of any act, on the job or off the job, that would amount to a gross
misdemeanor or felony if the act substantially interfered with the employment or had a significant
adverse effect on the employment; or
    (2) for an employee of a facility as defined in section 626.5572, aggravated employment
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.
    (b) If an applicant is convicted of a gross misdemeanor or felony for the same act for which
the applicant was discharged, it is aggravated employment misconduct if the act substantially
interfered with the employment or had a significant adverse effect on the employment.
    (c) The definition of aggravated employment misconduct provided by this subdivision
is exclusive and no other definition applies.
    Subd. 7. Act or omissions after separation. An applicant may not be held ineligible for
unemployment benefits under this section for any acts or omissions occurring after the applicant's
separation from employment with the employer. A layoff because of lack of work is considered a
separation from employment.
    Subd. 8.[Renumbered 268.085, subd 13c]
    Subd. 9.[Renumbered 268.035, subd 23a]
    Subd. 10. Ineligibility duration. (a) Ineligibility from the payment of all unemployment
benefits under subdivisions 1 and 4 is for the duration of the applicant's unemployment and
until the end of the calendar week that the applicant had total earnings in subsequent covered
employment of eight times the applicant's weekly unemployment benefit amount.
    (b) Ineligibility imposed under subdivisions 1 and 4 begins on the Sunday of the week that
the applicant became separated from employment.
    (c) In addition to paragraph (a), if the applicant was discharged from employment because of
aggravated employment misconduct, wage credits from that employment are canceled.
    Subd. 11. Application. (a) Section 268.085, subdivision 13c, and this section apply to all
covered employment, full time or part time, temporary or of limited duration, permanent or of
indefinite duration, that occurred in Minnesota during the base period, the period between the
end of the base period and the effective date of the benefit account, or the benefit year, except
as provided for in subdivision 1, clause (5).
    (b) Paragraph (a) also applies to employment covered under an unemployment insurance
program of any other state or established by an act of Congress.
    Subd. 12.[Renumbered 268.085, subd 13b]
History: (4337-27) Ex1936 c 2 s 7; 1937 c 401 s 1; 1939 c 443 s 6; 1941 c 554 s 6; 1943 c
650 s 5; 1945 c 376 s 6; 1947 c 432 s 7; 1965 c 741 s 17; 1967 c 342 s 1; 1967 c 573 s 5; 1969 c
42 s 1; 1971 c 942 s 11; 1973 c 23 s 1; 1973 c 599 s 9; 1974 c 477 s 1; 1975 c 336 s 16; 1977
c 4 s 8; 1977 c 242 s 1; 1977 c 297 s 19; 1978 c 618 s 1; 1979 c 181 s 11-13; 1980 c 508 s 9;
1982 c 619 s 1; 1Sp1982 c 1 s 26-28; 1983 c 372 s 26,27; 1986 c 444; 1987 c 362 s 19,20; 1987
c 385 s 23,24; 1989 c 65 s 8; 1989 c 209 art 2 s 1; 1992 c 484 s 11,12; 1993 c 67 s 5-7; 1994
c 488 s 4,8; 1995 c 229 art 3 s 15; 1996 c 417 s 19,20,31; 1997 c 66 s 43-54,79; 1998 c 265 s
25-29,44,45; 1999 c 107 s 44,66; 2000 c 343 s 4; 2000 c 478 art 2 s 7; 2001 c 175 s 38-41,52;
1Sp2003 c 3 art 2 s 11-14,20; 2004 c 183 s 62-65,86; 2005 c 112 art 2 s 24-29; 2007 c 128 art 1 s
16,17; art 5 s 4-6,9; art 6 s 69-73
268.10 [Repealed, 1996 c 417 s 32]
268.101 DETERMINATIONS ON ISSUES OF INELIGIBILITY.
    Subdivision 1. Notification. (a) In an application for unemployment benefits, each applicant
must report the name and the reason for no longer working for the applicant's most recent
employer, as well as the names of all employers and the reasons for no longer working for all
employers during the six calendar months before the date of the application. If the reason reported
for no longer working for any of those employers is other than a layoff because of lack of
work, that raises an issue of ineligibility that the department must determine. An applicant must
report any offers of employment refused during the eight calendar weeks before the date of the
application for unemployment benefits and the name of the employer that made the offer. An
applicant's failure to report the name of an employer, or giving an incorrect reason for no longer
working for an employer, or failing to disclose an offer of employment that was refused, is a
violation of section 268.182, subdivision 2.
    In an application, the applicant must also provide all information necessary to determine
the applicant's eligibility for unemployment benefits under this chapter. If the applicant fails or
refuses to provide information necessary to determine the applicant's eligibility for unemployment
benefits, the applicant is ineligible for unemployment benefits under section 268.085, subdivision
2
, until the applicant provides this required information.
    (b) Upon establishment of a benefit account under section 268.07, subdivision 2, the
commissioner shall notify, by mail or electronic transmission, all employers the applicant was
required to report on the application and all base period employers and determined successors
to those employers under section 268.051, subdivision 4, in order to provide the employer
an opportunity to raise, in a manner and format prescribed by the commissioner, any issue
of ineligibility. An employer must be informed of the effect that failure to raise an issue of
ineligibility as a result of a quit or discharge of the applicant, within ten calendar days after
sending of the notice, as provided for under subdivision 2, paragraph (b), may have on the
employer under section 268.047.
    (c) Each applicant must report any employment, and loss of employment, and offers of
employment refused, during those weeks the applicant filed continued requests for unemployment
benefits under section 268.086. Each applicant who stops filing continued requests during the
benefit year and later begins filing continued requests during that same benefit year must report the
name of any employer the applicant worked for during the period between the filing of continued
requests and the reason the applicant stopped working for the employer. The applicant must report
any offers of employment refused during the period between the filing of continued requests
for unemployment benefits. Those employers from which the applicant has reported a loss of
employment under this paragraph must be notified by mail or electronic transmission and provided
an opportunity to raise, in a manner prescribed by the commissioner, any issue of ineligibility. An
employer must be informed of the effect that failure to raise an issue of ineligibility as a result of a
quit or a discharge of the applicant may have on the employer under section 268.047.
    (d) The purpose for requiring the applicant to report the name of employers and the reason
for no longer working for those employers, or offers of employment refused, under paragraphs
(a) and (c) is for the commissioner to obtain information from an applicant raising all issues that
may result in the applicant being ineligible for unemployment benefits under section 268.095,
because of a quit or discharge, or the applicant being ineligible for unemployment benefits under
section 268.085, subdivision 13c. If the reason given by the applicant for no longer working for
an employer is other than a layoff because of lack of work, that raises an issue of ineligibility
and the applicant is required, as part of the determination process under subdivision 2, paragraph
(a), to state all the facts about the cause for no longer working for the employer, if known. If the
applicant fails or refuses to provide any required information, the applicant is ineligible for
unemployment benefits under section 268.085, subdivision 2, until the applicant provides this
required information.
    Subd. 2. Determination. (a) The commissioner shall determine any issue of ineligibility
raised by information required from an applicant under subdivision 1, paragraph (a) or (c),
and send to the applicant and any involved employer, by mail or electronic transmission, a
determination of eligibility or a determination of ineligibility, as is appropriate. The determination
on an issue of ineligibility as a result of a quit or a discharge of the applicant must state the effect
on the employer under section 268.047. A determination must be made in accordance with this
paragraph even if a notified employer has not raised the issue of ineligibility.
    (b) The commissioner shall determine any issue of ineligibility raised by an employer and
send to the applicant and that employer, by mail or electronic transmission, a determination of
eligibility or a determination of ineligibility as is appropriate. The determination on an issue of
ineligibility as a result of a quit or discharge of the applicant must state the effect on the employer
under section 268.047.
    If a base period employer:
    (1) was not the applicant's most recent employer before the application for unemployment
benefits;
    (2) did not employ the applicant during the six calendar months before the application for
unemployment benefits; and
    (3) did not raise an issue of ineligibility as a result of a quit or discharge of the applicant
within ten calendar days of notification under subdivision 1, paragraph (b);
then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two weeks
following the week that the issue of ineligibility as a result of a quit or discharge of the applicant
was raised by the employer.
    A communication from an employer must specifically set out why the applicant should be
determined ineligible for unemployment benefits for that communication to be considered to have
raised an issue of ineligibility for purposes of this section. A statement of "protest" or a similar
term without more information does not constitute raising an issue of ineligibility for purposes
of this section.
    (c) An issue of ineligibility is determined based upon that information required of an
applicant, any information that may be obtained from an applicant or employer, and information
from any other source, without regard to any burden of proof.
    (d) Regardless of the requirements of this subdivision, the commissioner is not required to
send to an applicant a copy of the determination where the applicant has satisfied any otherwise
period of ineligibility because of a quit or a discharge under section 268.095, subdivision 10.
    (e) The commissioner may issue a determination on an issue of ineligibility at any time
within 24 months from the establishment of a benefit account based upon information from any
source, even if the issue of ineligibility was not raised by the applicant or an employer.
    This paragraph does not prevent the imposition of a penalty under section 268.18,
subdivision 2
, or 268.182.
    (f) A determination of eligibility or determination of ineligibility is final unless an appeal
is filed by the applicant or notified employer within 20 calendar days after sending. The
determination must contain a prominent statement indicating the consequences of not appealing.
Proceedings on the appeal are conducted in accordance with section 268.105.
    (g) An issue of ineligibility required to be determined under this section includes any
question regarding the denial or allowing of unemployment benefits under this chapter except for
issues under section 268.07. An issue of ineligibility for purposes of this section includes any
question of effect on an employer under section 268.047.
    (h) Except for issues of ineligibility as a result of a quit or discharge of the applicant,
the employer will be (1) sent a copy of the determination of eligibility or a determination of
ineligibility, or (2) considered an involved employer for purposes of an appeal under section
268.105, only if the employer raised the issue of ineligibility.
    Subd. 3. [Repealed by amendment, 2007 c 128 art 5 s 7]
    Subd. 3a. Direct hearing. Regardless of any provision of the Minnesota Unemployment
Insurance Law, the commissioner or an unemployment law judge may, before a determination
being made under this chapter, refer any issue of ineligibility, or any other issue under this chapter,
directly for hearing in accordance with section 268.105, subdivision 1. The status of the issue is
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, may reconsider a determination of eligibility or ineligibility that
has not become final and issue an amended determination. Any amended determination must
be sent to the applicant and any involved employer by mail or electronic transmission. Any
amended determination is final unless an appeal is filed by the applicant or notified employer
within 20 calendar days after sending. Proceedings on the appeal are conducted in accordance
with section 268.105.
    Subd. 5. Unemployment benefit payment. If a determination or amended determination
allows unemployment benefits to an applicant, the unemployment benefits must be paid regardless
of any appeal period or any appeal having been filed.
    Subd. 6. Overpayment. A determination or amended determination that holds an applicant
ineligible for unemployment benefits for periods an applicant has been paid benefits is considered
an overpayment of those unemployment benefits. A determination or amended determination
issued under this section that results in an overpayment of unemployment benefits must set out the
amount of the overpayment and the requirement under section 268.18, subdivision 1, that the
overpaid unemployment benefits must be repaid.
    Subd. 7.[Renumbered 268.19, subd 2]
History: 1996 c 417 s 21; 1997 c 66 s 55-58,79; 1998 c 265 s 30; 1999 c 107 s 45,66; 2000
c 343 s 4; 2001 c 175 s 42,43,52; 1Sp2003 c 3 art 2 s 20; 2004 c 183 s 66-69; 2005 c 112 art
2 s 30-32,41; 2007 c 128 art 2 s 8; art 5 s 7
268.103 APPEALS BY ELECTRONIC TRANSMISSION.
    Subdivision 1. In commissioner's discretion. The commissioner shall have the discretion to
allow an appeal to be filed by electronic transmission. If the commissioner allows an appeal to
be filed by electronic transmission, that must be clearly set out on the determination or decision
subject to appeal.
    The commissioner may restrict the manner, format, and conditions under which an appeal
by electronic transmission may be filed. Any restrictions as to days, hours, telephone number,
electronic address, or other conditions, must be clearly set out on the determination or decision
subject to appeal.
    All information requested by the commissioner when an appeal is filed by electronic
transmission must be supplied or the communication does not constitute an appeal.
    Subd. 2. Applicant's appeal by mail. (a) The commissioner must allow an applicant to file
an appeal by mail even if an appeal by electronic transmission is allowed.
    (b) A written statement delivered or mailed to the department that could reasonably be
interpreted to mean that an involved applicant is in disagreement with a specific determination
or decision is considered an appeal. No specific words need be used for the written statement
to be considered an appeal.
    Subd. 3.[Repealed by amendment, Laws 2004 c 183 s 70]
    Subd. 4.[Repealed, 2007 c 128 art 1 s 23]
History: 1997 c 66 s 59; 1999 c 107 s 46; 2004 c 183 s 70; 2005 c 112 art 2 s 33; 2007
c 128 art 6 s 74,75
268.105 APPEALS.
    Subdivision 1. Evidentiary hearing by unemployment law judge. (a) Upon a timely appeal
having been filed, the department must send, by mail or electronic transmission, a notice of appeal
to all involved parties that an appeal has been filed, that a de novo due process evidentiary hearing
will be scheduled, and that the parties have certain rights and responsibilities regarding the
hearing. The department must set a time and place for a de novo due process evidentiary hearing
and send notice to any involved applicant and any involved employer, by mail or electronic
transmission, not less than ten calendar days before the date of the hearing.
    (b) The evidentiary hearing is conducted by an unemployment law judge without regard
to any burden of proof as an evidence gathering inquiry and not an adversarial proceeding. The
unemployment law judge must ensure that all relevant facts are clearly and fully developed. The
department may adopt rules on evidentiary hearings. The rules need not conform to common
law or statutory rules of evidence and other technical rules of procedure. The department has
discretion regarding the method by which the evidentiary hearing is conducted. A report of any
employee of the department, except a determination, made in the regular course of the employee's
duties, is competent evidence of the facts contained in it.
    (c) After the conclusion of the hearing, upon the evidence obtained, the unemployment law
judge must make findings of fact and decision and send those, by mail or electronic transmission,
to all involved parties. When the credibility of an involved party or witness testifying in an
evidentiary hearing has a significant effect on the outcome of a decision, the unemployment law
judge must set out the reason for crediting or discrediting that testimony. The unemployment law
judge's decision is final unless a request for reconsideration is filed under subdivision 2.
    (d) Regardless of paragraph (c), if the appealing party fails to participate in the evidentiary
hearing, the unemployment law judge has the discretion to dismiss the appeal by summary order.
By failing to participate, the appealing party is considered to have failed to exhaust available
administrative remedies unless the appealing party files a request for reconsideration under
subdivision 2 and establishes good cause for failing to participate in the evidentiary hearing under
subdivision 2, paragraph (d). Submission of a written statement does not constitute participation.
The applicant must participate personally and appearance solely by a representative does not
constitute participation.
    (e) Only employees of the department who are attorneys licensed to practice law in
Minnesota may serve as unemployment law judges. The commissioner may transfer to another
unemployment law judge any proceedings pending before an unemployment law judge.
    Subd. 2. Request for reconsideration. (a) Any involved applicant, involved employer, or
the commissioner may, within 20 calendar days of the sending of the unemployment law judge's
decision under subdivision 1, file a request for reconsideration asking the unemployment law
judge to reconsider that decision. Section 268.103 applies to a request for reconsideration. If a
request for reconsideration is timely filed, the unemployment law judge must issue an order:
    (1) modifying the findings of fact and decision issued under subdivision 1;
    (2) setting aside the findings of fact and decision issued under subdivision 1 and directing
that an additional evidentiary hearing be conducted under subdivision 1; or
    (3) affirming the findings of fact and decision issued under subdivision 1.
    (b) Upon a timely request for reconsideration having been filed, the department must send a
notice, by mail or electronic transmission, to all involved parties that a request for reconsideration
has been filed. The notice must inform the involved parties:
    (1) of the opportunity to provide comment on the request for reconsideration, and the right
under subdivision 5 to obtain a copy of any recorded testimony and exhibits offered or received
into evidence at the evidentiary hearing;
    (2) that providing specific comments as to a perceived factual or legal error in the decision,
or a perceived error in procedure during the evidentiary hearing, will assist the unemployment
law judge in deciding the request for reconsideration;
    (3) of the right to obtain any comments and submissions provided by the other involved party
regarding the request for reconsideration; and
    (4) of the provisions of paragraph (c) regarding additional evidence.
This paragraph does not apply if paragraph (d) is applicable.
    (c) In deciding a request for reconsideration, the unemployment law judge must not, except
for purposes of determining whether to order an additional evidentiary hearing, consider any
evidence that was not submitted at the evidentiary hearing conducted under subdivision 1.
    The unemployment law judge must order an additional evidentiary hearing if an involved
party shows that evidence which was not submitted at the evidentiary hearing: (1) would likely
change the outcome of the decision and there was good cause for not having previously submitted
that evidence; or (2) would show that the evidence that was submitted at the evidentiary hearing
was likely false and that the likely false evidence had an effect on the outcome of the decision.
    (d) If the involved applicant or involved employer who filed the request for reconsideration
failed to participate in the evidentiary hearing conducted under subdivision 1, an order setting
aside the findings of fact and decision and directing that an additional evidentiary hearing be
conducted must be issued if the party who failed to participate had good cause for failing to do so.
In the notice that a request for reconsideration has been filed, the party who failed to participate
must be informed of the requirement, and provided the opportunity, to show good cause for
failing to participate. If the unemployment law judge determines that good cause for failure to
participate has not been shown, the unemployment law judge must state that in the order issued
under paragraph (a).
    Submission of a written statement at the evidentiary hearing under subdivision 1 does not
constitute participation for purposes of this paragraph.
    All involved parties must be informed of this paragraph with the notice of appeal and notice
of hearing provided for in subdivision 1.
    "Good cause" for purposes of this paragraph is a reason that would have prevented a
reasonable person acting with due diligence from participating at the evidentiary hearing.
    (e) A request for reconsideration must be decided by the unemployment law judge who
issued the findings of fact and decision under subdivision 1 unless that unemployment law judge:
(1) is no longer employed by the department; (2) is on an extended or indefinite leave; (3) has
been disqualified from the proceedings on the judge's own motion; or (4) has been removed from
the proceedings as provided for under subdivision 1 or applicable rule.
    (f) The unemployment law judge must send to any involved applicant or involved employer,
by mail or electronic transmission, the order issued under this subdivision. An order modifying the
previously issued findings of fact and decision or an order affirming the previously issued findings
of fact and decision is the final department decision on the matter and is final and binding on the
involved applicant and involved employer unless judicial review is sought under subdivision 7.
    Subd. 2a.[Repealed by amendment, 2005 c 112 art 2 s 34]
    Subd. 3. Withdrawal of appeal. (a) Any appeal that is pending before an unemployment
law judge may be withdrawn by the appealing person, or an authorized representative of that
person, upon filing of a notice of withdrawal.
    (b) The appeal must, by order, be dismissed if a notice of withdrawal is filed, unless an
unemployment law judge directs that further adjudication is required for a proper result.
    (c) A notice of withdrawal may be filed by mail or by electronic transmission.
    Subd. 3a. Decisions. (a) If an unemployment law judge's decision or order allows
unemployment benefits to an applicant, the unemployment benefits must be paid regardless of any
request for reconsideration or any appeal to the Minnesota Court of Appeals having been filed.
    (b) If an unemployment law judge's decision or order modifies or reverses a determination, or
prior decision of the unemployment law judge, allowing unemployment benefits to an applicant,
any benefits paid in accordance with the determination, or prior decision of the unemployment
law judge, is considered an overpayment of those unemployment benefits. A decision or order
issued under this section that results in an overpayment of unemployment benefits must set out the
amount of the overpayment and the requirement under section 268.18, subdivision 1, that the
overpaid unemployment benefits must be repaid.
    (c) If an unemployment law judge's order under subdivision 2 allows unemployment benefits
to an applicant under section 268.095 because of a quit or discharge and the unemployment
law judge's decision is reversed by the Minnesota Court of Appeals or the Supreme Court of
Minnesota, any unemployment benefits paid the applicant is not considered an overpayment of
those unemployment benefits under section 268.18, subdivision 1.
    (d) If an unemployment law judge, under subdivision 2, orders the taking of additional
evidence, the unemployment law judge's prior decision must continue to be enforced until new
findings of fact and decision are made by the unemployment law judge.
    Subd. 4. Oaths; subpoenas. An unemployment law judge has authority to administer oaths
and affirmations, take depositions, and issue subpoenas to compel the attendance of witnesses
and the production of documents and other personal property considered necessary as evidence
in connection with the subject matter of an evidentiary hearing. The subpoenas are enforceable
through the district court in Ramsey County. Witnesses subpoenaed, other than an involved
applicant or involved employer or officers and employees of an involved employer, must be paid
by the department the same witness fees as in a civil action in district court.
    Subd. 5. Use of evidence; data privacy. (a) All testimony at any evidentiary hearing
conducted under subdivision 1 must be recorded. A copy of any recorded testimony and exhibits
offered or received into evidence at the hearing must, upon request, be furnished to a party at
no cost during the time period for filing a request for reconsideration or while a request for
reconsideration is pending.
    (b) Regardless of any provision of law to the contrary, if recorded testimony and exhibits
received into evidence at the evidentiary hearing are not requested during the time period for filing
a request for reconsideration, or while a request for reconsideration is pending, that testimony
and other evidence may later be made available only under a district court order. A subpoena is
not considered a district court order.
    (c) Testimony obtained under subdivision 1, may not be used or considered for any purpose,
including impeachment, in any civil, administrative, or contractual proceeding, except by a
local, state, or federal human rights agency with enforcement powers, unless the proceeding is
initiated by the department.
    Subd. 5a. No collateral estoppel. No findings of fact or decision or order issued by an
unemployment law judge may be held conclusive or binding or used as evidence in any separate
or subsequent action in any other forum, be it contractual, administrative, or judicial, except
proceedings provided for under this chapter, regardless of whether the action involves the same
or related parties or involves the same facts.
    Subd. 6. Representation; fees. (a) In any proceeding under subdivision 1 or 2, an applicant
or involved employer may be represented by any agent.
    (b) Except for services provided by an attorney-at-law, an applicant may not be charged fees,
costs, or disbursements of any kind in a proceeding before an unemployment law judge, the
Minnesota Court of Appeals, or the Supreme Court of Minnesota.
    Subd. 7. Judicial review. (a) The Minnesota Court of Appeals shall, by writ of certiorari to
the department, review the unemployment law judge's decision, provided a petition for the writ is
filed with the court and a copy is served upon the unemployment law judge or the commissioner
and any other involved party within 30 calendar days of the sending of the unemployment law
judge's order under subdivision 2.
    (b) Any employer petitioning for a writ of certiorari must pay to the court the required filing
fee and upon the service of the writ must furnish a cost bond to the department in accordance
with the Rules of Civil Appellate Procedure. If the employer requests a written transcript of
the testimony received at the evidentiary hearing conducted under subdivision 1, the employer
must pay to the department the cost of preparing the transcript. That money is credited to the
administration account.
    (c) Upon issuance by the Minnesota Court of Appeals of a writ of certiorari as a result of an
applicant's petition, the department must furnish to the applicant at no cost a written transcript
of any testimony received at the evidentiary hearing conducted under subdivision 1, and, if
requested, a copy of all exhibits entered into evidence. No filing fee or cost bond is required of an
applicant petitioning the Minnesota Court of Appeals for a writ of certiorari.
    (d) The Minnesota Court of Appeals may affirm the decision of the unemployment law
judge or remand the case for further proceedings; or it may reverse or modify the decision if the
substantial rights of the petitioner may have been prejudiced because the findings, inferences,
conclusion, or decision are:
    (1) in violation of constitutional provisions;
    (2) in excess of the statutory authority or jurisdiction of the department;
    (3) made upon unlawful procedure;
    (4) affected by other error of law;
    (5) unsupported by substantial evidence in view of the entire record as submitted; or
    (6) arbitrary or capricious.
    (e) The department is considered the primary responding party to any judicial action
involving an unemployment law judge's decision. The department may be represented by an
attorney licensed to practice law in Minnesota who is an employee of the department.
History: 1995 c 54 s 11; 1996 c 417 s 22,31; 1997 c 66 s 60; 1998 c 265 s 31,44; 1999 c 107
s 47,66; 2000 c 343 s 4; 2001 c 175 s 44; 1Sp2003 c 3 art 2 s 15; 2004 c 183 s 71; 2005 c 112 art
2 s 34; 2007 c 128 art 1 s 18; art 2 s 9,10; art 3 s 18,24; art 6 s 76-79
268.11 [Renumbered 268.042]
268.115 MS 1974 [Expired]
268.115 EXTENDED UNEMPLOYMENT BENEFITS.
    Subdivision 1. Definitions. The terms used in this section have the following meaning:
    (1) "Extended unemployment benefit period" means a period that lasts for a minimum
of 13 weeks and that:
    (i) Begins with the third week after there is a state "on" indicator; and
    (ii) Ends with the third week after there is a state "off" indicator.
    No extended unemployment benefit period may begin before the 14th week following the
end of a prior extended unemployment benefit period.
    (2) There is a "state 'on' indicator" for a week if:
    (i) for that week and the prior 12 weeks, the rate of insured unemployment:
    (a) equaled or exceeded 120 percent of the average of the rates for the corresponding
13-week period ending in each of the prior two calendar years, and was five percent or more; or
    (b) equaled or exceeded six percent; or
    (ii) The United States Secretary of Labor determines that the average rate of seasonally
adjusted total unemployment in Minnesota for the most recent three months for which data is
published equals or exceeds 6.5 percent and this rate equals or exceeds 110 percent of the rate of
the corresponding three-month period in either of the prior two calendar years.
    (3) There is a "state 'off' indicator" for a week if:
    (i) under clause (2)(i), for that week and the prior 12 weeks, the requirements for a "state
'on' indicator" are not satisfied; or
    (ii) under clause (2)(ii) the requirements for a "state 'on' indicator" are not satisfied.
    (4) "Rate of insured unemployment," means the percentage derived by dividing the average
weekly number of applicants filing continued requests for regular unemployment benefits in the
most recent 13-week period by the average monthly covered employment for the first four of the
last six completed calendar quarters before the end of that 13-week period.
    (5) "Regular unemployment benefits" means unemployment benefits available to an applicant
other than extended unemployment benefits and additional unemployment benefits.
    (6) "Eligibility period" for an applicant means the period consisting of the weeks remaining
in the applicant's benefit year within the extended unemployment benefit period and, if the
benefit year ends within the extended unemployment benefit period, any weeks in the extended
unemployment benefit period.
    (7) "Exhaustee" means an applicant who, in the eligibility period:
    (i) the benefit year having not expired has received the maximum amount of regular
unemployment benefits that were available under section 268.07; or
    (ii) the benefit year having expired, has insufficient wage credits to establish a new benefit
account; and
has no right to any type of unemployment benefits under any other state or federal laws and is
not receiving unemployment benefits under the law of Canada.
    Subd. 2.[Repealed by amendment, 1999 c 107 s 48]
    Subd. 3. Requirements for extended unemployment benefits. If an extended
unemployment benefit period is in effect, an applicant is paid extended unemployment benefits
from the trust fund for any week in the applicant's eligibility period if the applicant:
    (1) is an "exhaustee";
    (2) has satisfied the same requirements as those for regular unemployment benefits under
section 268.069;
    (3) has wage credits of not less than 40 times the weekly unemployment benefit amount; and
    (4) is not subject to a denial of extended unemployment benefits under subdivision 9.
    Subd. 4. Weekly extended unemployment benefit amount. The weekly extended
unemployment benefit amount is the same as the weekly unemployment benefit amount of regular
unemployment benefits.
    Subd. 5. Maximum amount of extended unemployment benefits. The maximum amount
of extended unemployment benefits available to an applicant is 50 percent of the maximum
amount of regular unemployment benefits available in the benefit year, rounded down to the next
lower whole dollar. If the total rate of unemployment computed under subdivision 1, clause
(2)(ii), equaled or exceeded eight percent, the maximum amount of extended unemployment
benefits available is 80 percent of the maximum amount of regular unemployment benefits
available in the benefit year.
    Subd. 6. Public announcement. Whenever an extended unemployment benefit period is
to begin as a result of a state "on" indicator, or an extended unemployment benefit period is
to end as a result of a state "off" indicator the commissioner shall make an appropriate public
announcement.
    Subd. 7. Federal law. This section is enacted to conform to the requirements of United
States Code, title 26, section 3304, the Federal-State Extended Unemployment Compensation
Act of 1970 as amended and the applicable federal regulations.
    Subd. 8. Interstate applicants. An applicant residing in a state other than Minnesota shall be
eligible for only the first two weeks of extended unemployment benefits if the applicant's benefit
account was established under the interstate benefit payment plan and no extended unemployment
benefit period is in effect for the week in that state.
    Subd. 9. Denial provisions. (a) An applicant is denied extended unemployment benefits for
any week in the applicant's eligibility period if during that week the applicant failed to accept any
offer of suitable employment, failed to apply for any suitable employment that the applicant was
referred to by the commissioner, or failed to actively seek suitable employment.
    The denial continues until the applicant has been employed in covered employment in
each of four subsequent weeks, whether or not consecutive, and had earnings from that covered
employment of not less than four times the applicant's weekly unemployment benefit amount.
    (b) For the purpose of this subdivision "suitable employment" means any employment that
is within the applicant's capabilities and that has a gross average weekly wage that exceeds the
applicant's weekly unemployment benefit amount. The employment must pay wages not less than
the higher of the federal minimum wage without regard to any exemption, or the applicable
state minimum wage.
    (c) No applicant may be denied extended unemployment benefits for failure to accept an
offer of or apply for any suitable employment if:
    (1) the position was not offered to the applicant in writing;
    (2) the position was not listed with the job service; or
    (3) the applicant furnishes satisfactory evidence that prospects for obtaining employment in
the applicant's customary occupation within a reasonably short period are good. If the evidence is
satisfactory, the determination of whether any employment is suitable is made in accordance with
the definition of suitable employment in section 268.035, subdivision 23a.
    (d) For the purpose of this subdivision an applicant is "actively seeking suitable employment"
only if the applicant has engaged in a systematic and sustained effort to obtain employment, and
the applicant furnishes tangible evidence of that effort.
    Subd. 10. Job service referral. The job service must refer any applicant who is filing
continued requests for extended unemployment benefits to any employment that is suitable under
subdivision 9.
History: 1971 c 61 s 1; 1974 c 355 s 58; 1975 c 1 s 1; 1975 c 336 s 12; 1977 c 297 s 13,14;
1Sp1982 c 1 s 16-21; 1983 c 372 s 19; 1985 c 248 s 70; 1986 c 444; 1987 c 362 s 16; 1992 c 484
s 9; 1993 c 13 art 1 s 33; 1997 c 66 s 33-35,79,80; 1998 c 265 s 44,45; 1999 c 107 s 48,66; 2000
c 343 s 4; 1Sp2003 c 3 art 2 s 20; 2004 c 183 s 72; 2007 c 128 art 3 s 24; art 6 s 80
268.12    Subdivision 1.[Repealed, 1Sp1985 c 14 art 9 s 78 subd 1]
    Subd. 1a.[Repealed, 1Sp1985 c 14 art 9 s 78 subd 1]
    Subd. 2.[Repealed, 1997 c 66 s 81]
    Subd. 3.[Repealed, 1983 c 268 s 2]
    Subd. 4.[Repealed, 1997 c 66 s 81]
    Subd. 5.[Repealed, 1997 c 66 s 81]
    Subd. 6.[Repealed, 1989 c 343 s 7]
    Subd. 7.[Repealed, 1997 c 66 s 81]
    Subd. 8.[Renumbered 268.186]
    Subd. 9.[Repealed, 1995 c 54 s 29]
    Subd. 9a.[Renumbered 268.188]
    Subd. 10.[Repealed, 1995 c 54 s 29]
    Subd. 11.[Repealed, 1997 c 66 s 81]
    Subd. 12.[Renumbered 268.19]
    Subd. 13.[Repealed, 1995 c 54 s 29]
    Subd. 14.[Repealed, 1949 c 605 s 15]
268.121 [Renumbered 268.044]
268.125 ADDITIONAL UNEMPLOYMENT BENEFITS.
    Subdivision 1. Additional unemployment benefits; when available. Additional
unemployment benefits are available if:
(1) at a facility that had 100 or more employees, the employer reduced operations, resulting
within a one-month period in the layoff of 50 percent or more of the facility's work force,
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 that would lead to the
reemployment of those employees in the immediate future; and
(3) the seasonally adjusted unemployment rate in the county that the facility is located was
ten percent or more during the month of the reduction or any of the three months before or after
the month of the reduction.
    Subd. 2. Payment of unemployment benefits. Additional unemployment benefits are
payable from the trust fund.
    Subd. 3. Eligibility conditions. An applicant is eligible to receive additional unemployment
benefits for any week during the applicant's benefit year if:
    (1) the applicant was laid off from employment as a result of a reduction under subdivision 1
or was laid off because of 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 applicant meets the eligibility requirements under section 268.085;
    (3) the applicant is not ineligible under section 268.095 because of a quit or a discharge;
    (4) the applicant has exhausted regular unemployment benefits under section 268.07, is not
entitled to receive extended unemployment benefits under section 268.115, and is not entitled to
receive unemployment benefits under any other state or federal law for that week; and
    (5) a majority of the applicant's wage credits were from the employer that had a reduction
in operations under subdivision 1.
    Subd. 4. Weekly unemployment benefit amount. An applicant's weekly additional
unemployment benefit amount is the same as the applicant's weekly unemployment benefit
amount during the current benefit year under section 268.07.
    Subd. 5. Maximum amount of unemployment benefits. The maximum amount of
additional unemployment benefits available in the applicant's benefit year is one-half of the
applicant's maximum amount of regular unemployment benefits available under section 268.07,
subdivision 2
, rounded down to the next lower whole dollar. Extended unemployment benefits paid
and unemployment benefits paid under any federal law other than regular unemployment benefits
must be deducted from the maximum amount of additional unemployment benefits available.
History: 1987 c 362 s 17; 1994 c 488 s 8; 1994 c 503 s 1-3; 1996 c 417 s 13-15; 1997 c 66 s
79; 2Sp1997 c 2 s 18,19; 1998 c 265 s 32; 1999 c 107 s 49-51,66; 2000 c 343 s 4; 1Sp2003 c 3
art 2 s 20; 2004 c 183 s 73; 2007 c 128 art 5 s 8; art 6 s 81,82
268.13    Subdivision 1.(a) [Renumbered 268.042, subd 4]
(b) [Renumbered 268.131, subdivision 1, para (a)]
(c) [Renumbered 268.131, subdivision 1, para (b)]
    Subd. 2.[Renumbered 268.194, subd 3a]
    Subd. 3.[Repealed, 1998 c 265 s 46]
    Subd. 4.[Renumbered 268.131, subd 2]
    Subd. 5.[Repealed, 1998 c 265 s 46]
268.131 RECIPROCAL UNEMPLOYMENT BENEFIT ARRANGEMENTS.
    Subdivision 1. Cooperation with other states on combining wages. (a) In accordance
with the requirements of United States Code, title 26, section 3304(a)(9)(B), the Federal
Unemployment Tax Act, the commissioner shall participate in reciprocal arrangements with other
states for the payment of unemployment benefits on the basis of combining an applicant's wages
from multiple states for the purposes of collecting unemployment benefits from a single state. The
reciprocal agreement must include provisions for applying the base period of a single state law to
a benefit account involving the combining of an applicant's wages and employment and avoiding
the duplicate use of wages by reason of such combining. The commissioner may not enter into
any reciprocal arrangement unless it contains provisions for reimbursements to the trust fund,
by the other state, for unemployment benefits paid from the trust fund to applicants based upon
wages and employment covered under the laws of the other state.
    (b) The commissioner is authorized to pay unemployment benefits based upon an applicant's
wages paid in covered employment in another state only if the applicant is combining Minnesota
wage credits with the wages paid in covered employment from another state or states.
    (c) Section 268.23 does not apply to this subdivision.
    (d) On any reciprocal arrangement, the wages paid an applicant from employment covered
under an unemployment insurance program of another state are considered wages from covered
employment for the purpose of determining the applicant's rights to unemployment benefits under
the Minnesota Unemployment Insurance Law.
    Subd. 2. Cooperation with foreign governments. The commissioner is authorized to enter
into or cooperate in arrangements whereby facilities and services provided under the Minnesota
Unemployment Insurance Law and facilities and services provided under the unemployment
insurance program of any foreign government, may be used for the taking of applications for
unemployment benefits and continued requests and the payment of unemployment benefits under
this law or under a similar law of a foreign government.
History: (4337-31) Ex1936 c 2 s 11; 1937 c 306 s 8; 1939 c 443 s 9; 1941 c 554 s 10; 1943 c
650 s 8; 1945 c 376 s 10; 1947 c 432 s 8-10; 1965 c 45 s 45; 1969 c 9 s 64; 1971 c 942 s 13;
1979 c 181 s 16; 1986 c 444; 1989 c 209 art 2 s 1; 1996 c 417 s 31; 1997 c 66 s 79; 1998 c 265 s
33-35,45; 1999 c 107 s 66; 2000 c 343 s 4; 2001 c 175 s 45,52; 1Sp2003 c 3 art 2 s 20; 2007 c
128 art 2 s 11; art 3 s 24
268.135 SHARED WORK PLAN.
    Subdivision 1. Definitions. For purposes of this section:
    (1) "Affected employee" means an employee who was continuously employed as a member
of the affected group, for at least six months, on a full-time basis, before submission of the
shared work plan.
    (2) "Affected group" means five or more employees designated by the employer to
participate in a shared work plan.
    (3) "Shared work plan" or "plan" means an employer's plan, submitted in a manner and format
prescribed by the commissioner, under which a group of employees whose normal weekly hours
of work are reduced, in order to prevent employees from being laid off because of lack of work.
    (4) "Normal weekly hours of work" means the number of hours in a week that the employee
normally would work for the shared work employer or 40 hours, whichever is less.
    Subd. 2. Participation. (a) An employer wishing to participate in the shared work benefit
program must submit a shared work plan to the commissioner in a manner and format prescribed
for approval. The commissioner may approve a shared work plan only if it:
    (1) specifies the employees in the affected group;
    (2) applies to only one affected group;
    (3) includes a certified statement by the employer that each employee specified in the
affected group is an affected employee;
    (4) includes a certified statement by the employer that for the duration of the plan the
reduction in normal weekly hours of work of the employees in the affected group is instead of
layoffs that otherwise would result in at least as large a reduction in the total normal weekly
hours of work;
    (5) specifies an expiration date that is no more than one year from the date the employer
submits the plan for approval;
    (6) specifies that fringe benefits, such as health and retirement, available to the employees in
the affected group are not reduced beyond the percentage of reduction in hours of work; and
    (7) is approved in writing by the collective bargaining agent for each collective bargaining
agreement that covers any employee in the affected group.
    (b) The commissioner shall set the beginning and ending dates of an approved shared work
plan.
    (c) The commissioner shall send to the employer a determination, by mail or electronic
transmission, approving or disapproving the plan within 15 calendar days of its receipt.
Determinations are final.
    (d) Disapproval of a plan may be reconsidered at the discretion of the commissioner.
Approval of a shared work plan may be revoked if the approval was based, in whole or in part,
upon information that was false or misleading.
    Subd. 3. Eligibility. (a) Regardless of any other provision, an applicant is eligible to receive
shared work benefits with respect to any week if:
    (1) during the week the applicant is employed as a member of an affected group in a plan
that was approved before the week and is in effect for the week; and
    (2) during the week the normal weekly hours of work were reduced, in accordance with the
plan, at least 20 percent but not more than 40 percent, with a corresponding reduction in wages.
    (b) Shared work benefits may not be paid to an applicant beyond one benefit year.
    (c) The total amount of regular unemployment benefits and shared work benefits paid to
an applicant in a benefit year may not exceed the maximum amount of regular unemployment
benefits available.
    (d) An otherwise eligible applicant may not be denied shared work benefits because of
the application of any provision relating to availability for employment, active search for
employment, or refusal to apply for or accept suitable employment from other than the applicant's
shared work employer.
    Subd. 4. Weekly benefit amount. (a) An applicant who is eligible for shared work benefits
is paid an amount equal to the regular weekly unemployment benefit amount multiplied by the
nearest full percentage of reduction of the applicant's regular weekly hours of work as set in the
plan. The benefit payment, if not a whole dollar must be rounded down to the next lower whole
dollar.
    (b) The deductible earnings provisions of section 268.085, subdivision 5, must not apply to
earnings from the shared work employer of an applicant eligible for shared work benefits unless
the resulting amount would be less than the regular weekly unemployment benefit amount the
applicant would otherwise be eligible for without regard to shared work benefits.
    (c) An applicant is not eligible for shared work benefits for any week that employment is
performed for the shared work employer in excess of the reduced hours set forth in the plan.
History: 1994 c 503 s 4; 1996 c 417 s 16; 1997 c 66 s 79,80; 1998 c 265 s 45; 1999 c 107 s
52,66; 2000 c 343 s 4; 2004 c 183 s 74-76; 2007 c 128 art 6 s 83
268.14    Subdivision 1.[Renumbered 268.198, subdivision 1]
    Subd. 2.[Renumbered 268.198, subd 2]
    Subd. 3.[Repealed, 1997 c 66 s 81]
    Subd. 4.[Repealed, 1997 c 66 s 81]
    Subd. 5.[Renumbered 268.198, subd 3]
    Subd. 6.[Expired]
268.145 INCOME TAX WITHHOLDING.
    Subdivision 1. Notification. (a) Upon filing an application for unemployment benefits,
the applicant must be informed that:
    (1) unemployment benefits are subject to federal and state income tax;
    (2) there are requirements for filing estimated tax payments;
    (3) the applicant may elect to have federal income tax withheld from unemployment benefits;
    (4) if the applicant elects to have federal income tax withheld, the applicant may, in addition,
elect to have Minnesota state income tax withheld; and
    (5) at any time during the benefit year the applicant may change a prior election.
    (b) If an applicant elects to have federal income tax withheld, the commissioner shall
deduct ten percent for federal income tax, rounded down to the next lower whole dollar. If an
applicant also elects to have Minnesota state income tax withheld, the commissioner shall make
an additional five percent deduction for state income tax, rounded down to the next lower whole
dollar. Any amounts deducted or offset under sections 268.155, 268.18, and 268.184 have priority
over any amounts deducted under this section. Federal income tax withholding has priority
over state income tax withholding.
    (c) An election to have income tax withheld may not be retroactive and only applies to
unemployment benefits paid after the election.
    Subd. 2. Transfer of funds. The amount of any unemployment benefits deducted under this
section remains in the trust fund until transferred to the federal Internal Revenue Service, or the
Department of Revenue, as an income tax payment on behalf of the applicant.
    Subd. 3. Correction of errors. Any error that resulted in underwithholding or
overwithholding under this section will not be corrected retroactively.
    Subd. 4. Federal requirement. The commissioner shall follow all federal requirements for
the deduction and withholding of income tax from unemployment benefits.
    Subd. 5. Effect of payments. Any amount deducted under this section shall be considered as
unemployment benefits paid to the applicant.
History: 1996 c 417 s 17; 1997 c 66 s 79; 1998 c 254 art 1 s 73; 1999 c 107 s 53,66; 2000
c 343 s 4; 1Sp2001 c 4 art 2 s 23; 1Sp2003 c 3 art 2 s 20; 2004 c 183 s 77; 2005 c 112 art 2 s
35; 2007 c 128 art 6 s 84-86
268.15    Subdivision 1.[Renumbered 268.196, subdivision 1]
    Subd. 2.[Renumbered 268.196, subd 2]
    Subd. 3.[Renumbered 268.196, subd 3]
    Subd. 4.[Repealed, 2Sp1981 c 1 s 8]
268.155 CHILD SUPPORT DEDUCTED FROM UNEMPLOYMENT BENEFITS.
    Subdivision 1. Definitions. As used in this section:
    (1) "Child support obligations" means obligations that are being enforced by a child support
agency in accordance with a plan described in United States Code, title 42, section 454, of
the Social Security Act that has been approved by the secretary of health and human services
under part D of title IV of the Social Security Act. This does not include any type of spousal
maintenance or foster care payments; and
    (2) "Child support agency" means the public agency responsible for child support
enforcement.
    Subd. 2. Notice upon application. In an application for unemployment benefits, the
applicant must disclose if child support obligations are owed and, if so, in what state and county.
If child support obligations are owed, the commissioner shall, if the applicant establishes a benefit
account, notify the child support agency.
    Subd. 3. Withholding of unemployment benefits. The commissioner shall deduct and
withhold from any unemployment benefits payable to an applicant who owes child support
obligations:
    (1) the amount required under a proper order of a court or administrative agency; or
    (2) if clause (1) is not applicable, the amount determined under an agreement under United
States Code, title 42, section 454 (20) (B) (i), of the Social Security Act; or
    (3) if clause (1) or (2) is not applicable, the amount specified by the applicant.
    Subd. 4. Payment. Any amount deducted and withheld must be paid to the child support
agency, but will for all purposes be treated as if it were paid to the applicant as unemployment
benefits and paid by the applicant to the child support agency in satisfaction of the applicant's
child support obligations.
    Subd. 5. Payment of costs. The child support agency must pay the costs incurred by the
commissioner in the implementation and administration of this section and sections 518A.50 and
518A.53.
    Subd. 6.[Renumbered subd 5]
History: 1Sp1982 c 1 s 22; 1986 c 444; 1987 c 384 art 2 s 67; 1994 c 488 s 8; 1996 c 417 s
10-12; 1997 c 66 s 79,80; 1997 c 203 art 6 s 92; 1999 c 107 s 54,66; 2000 c 343 s 4; 2005 c 164 s
29; 1Sp2005 c 7 s 28; 2007 c 128 art 6 s 87
268.16    Subdivision 1.[Renumbered 268.057, subd 5]
    Subd. 1a.[Renumbered 268.057, subd 6]
    Subd. 2.[Renumbered 268.057, subdivision 1]
    Subd. 3.[Repealed, 1Sp1982 c 1 s 43]
    Subd. 3a.[Renumbered 268.057, subd 4]
    Subd. 4.[Renumbered 268.067]
    Subd. 5.[Renumbered 268.057, subd 10]
    Subd. 6.[Renumbered 268.057, subd 7]
    Subd. 7.[Renumbered 268.057, subd 8]
    Subd. 8.[Repealed, 1997 c 66 s 81]
    Subd. 9.[Renumbered 268.057, subd 9]
268.161    Subdivision 1.[Renumbered 268.058, subdivision 1]
    Subd. 1a.[Renumbered 268.058, subd 2]
    Subd. 2.[Renumbered 268.058, subd 6]
    Subd. 3.[Repealed, 1997 c 66 s 81]
    Subd. 4.[Renumbered 268.058, subd 5]
    Subd. 5.[Renumbered 268.058, subd 4]
    Subd. 6.[Renumbered 268.057, subd 2]
    Subd. 7.[Renumbered 268.057, subd 3]
    Subd. 8.[Renumbered 268.058, subd 3]
    Subd. 9.[Renumbered 268.063]
268.162 [Renumbered 268.064]
268.163 [Renumbered 268.065]
268.164 [Renumbered 268.0625]
268.165 [Repealed, 1997 c 66 s 81]
268.166 [Renumbered 268.066]
268.167 [Renumbered 268.059]
268.17 [Renumbered 268.192]
268.18 UNEMPLOYMENT BENEFIT OVERPAYMENTS.
    Subdivision 1. Nonfraud overpayment. (a) Any applicant who (1) because of a
determination or amended determination issued under section 268.07 or 268.101, or any other
section of this chapter, or (2) because of an appeal decision or order under section 268.105, has
received any unemployment benefits that the applicant was held not entitled to, must promptly
repay the unemployment benefits to the trust fund.
    (b) If the applicant fails to repay the unemployment benefits overpaid, the commissioner may
offset from any future unemployment benefits otherwise payable the amount of the overpayment.
Except when the overpayment resulted because the applicant failed to report deductible earnings
or deductible or benefit delaying payments, no single offset may exceed 50 percent of the amount
of the payment from which the offset is made. The overpayment may also be collected by the
same methods as delinquent payments from an employer.
    (c) If an applicant has been overpaid unemployment benefits under the law of another
state, because of a reason other than fraud, and that state certifies that the applicant is liable
under its law to repay the unemployment benefits and requests the commissioner to recover the
overpayment, the commissioner may offset from future unemployment benefits otherwise payable
the amount of overpayment, except that no single offset may exceed 50 percent of the amount of
the payment from which the offset is made.
    (d) If under paragraph (b) or (c) the reduced unemployment benefits as a result of a 50
percent offset is not a whole dollar amount, it is rounded down to the next lower whole dollar.
    Subd. 2. Overpayment because of fraud. (a) Any applicant who receives unemployment
benefits by knowingly misrepresenting, misstating, or failing to disclose any material fact, or who
makes a false statement or representation without a good faith belief as to the correctness of the
statement or representation, has committed fraud. After the discovery of facts indicating fraud, the
commissioner shall make a determination that the applicant obtained unemployment benefits by
fraud and that the applicant must promptly repay the unemployment benefits to the trust fund. In
addition, the commissioner shall assess a penalty equal to 40 percent of the amount fraudulently
obtained. This penalty is in addition to penalties under section 268.182.
    (b) Unless the applicant files an appeal within 20 calendar days after the sending of the
determination of overpayment by fraud to the applicant by mail or electronic transmission, the
determination is final. Proceedings on the appeal are conducted in accordance with section
268.105.
    (c) If the applicant fails to repay the unemployment benefits, penalty, and interest assessed,
the total due may be collected by the same methods as delinquent payments from an employer. A
determination of overpayment by fraud must state the methods of collection the commissioner
may use to recover the overpayment. Money received in repayment of fraudulently obtained
unemployment benefits, penalties, and interest is first applied to the unemployment benefits
overpaid, then to the penalty amount due, then to any interest due. 62.5 percent of the payments
made toward the penalty are credited to the contingent account and 37.5 percent credited to the
administration account for deterring, detecting, or collecting overpayments.
    (d) If an applicant has been overpaid unemployment benefits under the law of another state
because of fraud and that state certifies that the applicant is liable to repay the unemployment
benefits and requests the commissioner to recover the overpayment, the commissioner may offset
from future unemployment benefits otherwise payable the amount of overpayment.
    (e) Unemployment benefits paid for weeks more than four years before the date of a
determination of overpayment by fraud issued under this subdivision are not considered overpaid
unemployment benefits.
    Subd. 2a.[Renumbered subd 3a]
    Subd. 2b. Interest. (a) On any unemployment benefits fraudulently obtained, and any
penalty amounts assessed under subdivision 2, the commissioner shall assess interest at the rate of
1-1/2 percent per month on any amount that remains unpaid beginning 30 calendar days after
the date of the determination of overpayment by fraud. A determination of overpayment by
fraud must state that interest will be assessed.
    (b) If the determination did not state that interest will be assessed, interest is assessed
beginning 30 calendar days after notification, by mail or electronic transmission, to the applicant
that interest is now assessed.
    (c) Interest payments under this section are credited to the administration account.
    Subd. 3.[Renumbered 268.182]
    Subd. 3a. Offset of federal unemployment benefits. The commissioner is authorized
to enter into reciprocal agreements with the United States Secretary of Labor, whereby,
overpayments of unemployment benefits as determined under federal law, may be recovered by
offset from unemployment benefits otherwise payable and unemployment benefit overpayments
under subdivisions 1 and 2 may be recovered by offset from unemployment benefits otherwise
payable under a federal program.
    Subd. 4. Cancellation of overpayments. (a) If unemployment benefits overpaid under
subdivision 1 are not repaid or offset from subsequent unemployment benefits as provided for in
subdivision 1 within six years after the date of the determination or decision holding the applicant
overpaid, the commissioner shall cancel the overpayment balance, and no administrative or legal
proceedings may be used to enforce collection of those amounts.
    (b) If unemployment benefits determined overpaid under subdivision 2 including penalties
and interest are not repaid within 15 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 may be used to enforce collection of those amounts.
    (c) The commissioner may cancel at any time any overpayment, including penalties and
interest, that the commissioner determines is uncollectible because of death or bankruptcy.
    Subd. 4a. Court fees. (a) If the commissioner is required to pay any court fees in an attempt
to enforce collection of overpaid unemployment benefits, penalties, or interest, the commissioner
may add the amount of the court fees to the total amount due.
(b) If an applicant who has been determined overpaid unemployment 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.
    Subd. 5.[Repealed, 1997 c 66 s 81]
    Subd. 5. Remedies. (a) Any method undertaken to recover an overpayment of unemployment
benefits, including any penalties and interest, is not considered an election of a method of recovery.
    (b) Intervention or lack thereof, in whole or in part, in a workers' compensation matter under
section 176.361 is not considered an election of a remedy and does not prevent the commissioner
from determining any unemployment benefits overpaid under subdivision 1 or 2 or taking action
under section 268.182.
    Subd. 6.[Renumbered 268.184]
    Subd. 6. Collection of overpayments. (a) The commissioner may not compromise the
amount that has been determined overpaid under this section including penalties and interest.
    (b) The commissioner has discretion regarding the recovery of any overpayment under
subdivision 1. Regardless of any law to the contrary, the commissioner is not required to refer
any amount determined overpaid under subdivision 1 to a public or private collection agency,
including agencies of this state.
    (c) Amounts determined overpaid under subdivision 1 are not considered a "debt" to the state
of Minnesota for purposes of any reporting requirements to the commissioner of finance.
    (d) A pending appeal under section 268.105 does not suspend the assessment of interest,
penalties, or collection of an overpayment under this section.
    (e) Section 16A.626 applies to the repayment by an applicant of any overpayment, penalty,
or interest under this section.
History: (4337-36) Ex1936 c 2 s 16; 1941 c 554 s 15; 1951 c 442 s 11; 1953 c 97 s 18; 1969
c 567 s 3; 1973 c 254 s 3; 1975 c 336 s 24; 1977 c 4 s 10; 1977 c 430 s 25 subd 1; 1979 c 181
s 17,18; 1Sp1982 c 1 s 37-40; 1983 c 216 art 1 s 42,87; 1983 c 372 s 45,46; 1985 c 248 s 70;
1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 385 s 40-45; 1988 c 712 s 3; 1989 c 209 art 2 s 1;
1990 c 566 s 8; 1992 c 484 s 15; 1994 c 483 s 1; 1995 c 54 s 21-24; 1996 c 417 s 29,31; 1997 c
66 s 71-73,79; 1998 c 265 s 36,45; 1999 c 107 s 55,66; 2000 c 343 s 4; 2001 c 175 s 46; 1Sp2003
c 3 art 2 s 16,17,20; 2004 c 183 s 78-81; 2004 c 206 s 52; 2005 c 112 art 2 s 36-38; 2007 c
128 art 1 s 19; art 2 s 12-14; art 6 s 88,89
268.182 APPLICANT'S FALSE REPRESENTATIONS; CONCEALMENT OF FACTS;
PENALTY.
    Subdivision 1. Criminal penalties. Whoever obtains, or attempts to obtain, or aids or
abets any 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,
unemployment benefits that the individual is not entitled or unemployment benefits greater
than the individual is entitled under this chapter, or under the law of any state or of the federal
government, either personally or for any other individual, is guilty of theft and must be sentenced
under section 609.52.
    Subd. 2. Administrative penalties. Any applicant who knowingly makes a false statement or
representation, who knowingly fails to disclose a material fact, or who makes a false statement or
representation without a good faith belief as to the correctness of the statement or representation,
in order to obtain or in an attempt to obtain unemployment benefits may be assessed, in addition
to any other penalties, an administrative penalty of being ineligible for unemployment benefits for
13 to 104 weeks. A determination of ineligibility setting out the weeks the applicant is ineligible
must be sent to the applicant by mail or electronic transmission. Unless an appeal is filed within
20 calendar days of sending, the determination is final. Proceedings on the appeal are conducted
in accordance with section 268.105.
History: Ex1936 c 2 s 16; 1941 c 554 s 15; 1951 c 442 s 11; 1953 c 97 s 18; 1969 c 567 s 3;
1973 c 254 s 3; 1975 c 336 s 24; 1977 c 4 s 10; 1977 c 430 s 25 subd 1; 1979 c 181 s 17,18;
1Sp1982 c 1 s 37-40; 1983 c 216 art 1 s 42,87; 1983 c 372 s 45,46; 1985 c 248 s 70; 1Sp1985 c
14 art 9 s 75; 1986 c 444; 1987 c 385 s 40-45; 1988 c 712 s 3; 1989 c 209 art 2 s 1; 1990 c 566 s
8; 1992 c 484 s 15; 1994 c 483 s 1; 1995 c 54 s 21-24; 1996 c 417 s 29,31; 1997 c 66 s 74,79;
1998 c 265 s 37; 1999 c 107 s 56,66; 2000 c 343 s 4; 2004 c 183 s 82; 2004 c 206 s 52; 2005 c
112 art 2 s 39; 2007 c 128 art 2 s 15; art 6 s 90
268.184 EMPLOYER MISCONDUCT; PENALTY.
    Subdivision 1. Administrative penalties. (a) The commissioner shall penalize an employer
if that employer or any employee, officer, or agent of that employer, is in collusion with any
applicant for the purpose of assisting the applicant to receive unemployment benefits fraudulently.
The penalty is $500 or the amount of unemployment benefits determined to be overpaid,
whichever is greater.
    (b) The commissioner shall penalize an employer if that employer or any employee, officer,
or agent of that employer (1) made a false statement or representation knowing it to be false,
(2) made a false statement or representation without a good faith belief as to correctness of
the statement or representation, or (3) knowingly failed to disclose a material fact; but only if
the employer's action:
     (i) was taken to prevent or reduce the payment of unemployment benefits to any applicant;
    (ii) was taken to reduce or avoid any payment required from an employer under this chapter
or section 116L.20; or
    (iii) caused an overpayment of unemployment benefits to an applicant.
    The penalty is $500, or 50 percent of the overpaid or reduced unemployment benefits or
payment required, whichever is greater.
    (c) The commissioner shall penalize an employer if that employer failed or refused to honor
a subpoena issued under section 268.105, subdivision 4, or section 268.188. The penalty is $500
and any costs of enforcing the subpoena, including attorney fees.
    (d) Penalties under this subdivision are in addition to any other penalties and subject to the
same collection procedures that apply to past due taxes. Penalties must be paid within 30 calendar
days of assessment and credited to the contingent account.
    (e) The assessment of the penalty is final unless the employer files an appeal within 20
calendar days after the sending of notice of the penalty to the employer by mail or electronic
transmission. Proceedings on the appeal are conducted in accordance with section 268.105.
    Subd. 1a. Notification and misreporting penalties. (a) If the commissioner finds that any
employer or agent of an employer failed to meet the notification requirements of section 268.051,
subdivision 4
, the employer must be assessed a penalty of $5,000 or two percent of the first
full quarterly payroll acquired, whichever is higher. Payroll is wages paid as defined in section
268.035, subdivision 30. The penalty under this paragraph must be canceled if the commissioner
determines that the failure occurred because of ignorance or inadvertence.
    (b) If the commissioner finds that any individual advised an employer to violate the
employer's notification requirements under section 268.051, subdivision 4, the individual, and
that individual's employer, must each be assessed the penalty in paragraph (a).
    (c) If the commissioner finds that any person or agent of a person violated the reporting
requirements of section 268.0435 or 268.046, the person must be assessed a penalty of $5,000
or two percent of the quarterly payroll reported in violation of section 268.0435 or 268.046,
whichever is higher. Payroll is wages paid as defined in section 268.035, subdivision 30.
    (d) Penalties under this subdivision are in addition to any other penalties and subject to the
same collection procedures that apply to past due amounts from an employer. Penalties must be
paid within 30 calendar days after sending of the notice of penalty.
    (e) The assessment of a penalty is final unless the person assessed files an appeal within
20 calendar days after sending of the notice of the penalty by mail or electronic transmission.
Proceedings on the appeal are conducted in accordance with section 268.105.
    Subd. 2. Criminal penalties. Any employer or any officer or agent of an employer or any
other individual who:
(1) makes a false statement or representation knowing it to be false;
(2) knowingly fails to disclose a material fact, including notification required under section
268.051, subdivision 4; or
(3) knowingly advises or assists an employer in violating clause (1) or (2), to avoid or reduce
any payment required from an employer under this chapter or section 116L.20, or to prevent or
reduce the payment of unemployment benefits to any applicant, is guilty of a gross misdemeanor
unless the underpayment exceeds $500, in that case the individual is guilty of a felony.
History: Ex1936 c 2 s 16; 1941 c 554 s 15; 1951 c 442 s 11; 1953 c 97 s 18; 1969 c 567 s 3;
1973 c 254 s 3; 1975 c 336 s 24; 1977 c 4 s 10; 1977 c 430 s 25 subd 1; 1979 c 181 s 17,18;
1Sp1982 c 1 s 37-40; 1983 c 216 art 1 s 42,87; 1983 c 372 s 45,46; 1985 c 248 s 70; 1Sp1985 c
14 art 9 s 75; 1986 c 444; 1987 c 385 s 40-45; 1988 c 712 s 3; 1989 c 209 art 2 s 1; 1990 c 566 s
8; 1992 c 484 s 15; 1994 c 483 s 1; 1995 c 54 s 21-24; 1996 c 417 s 29,31; 1997 c 66 s 76,79;
1998 c 265 s 38; 1999 c 107 s 56,66; 2000 c 343 s 4; 2001 c 175 s 47; 2004 c 183 s 83; 2005 c
112 art 1 s 11-13; 2007 c 128 art 2 s 16,17
268.186 RECORDS; AUDITS.
    (a) Each employer must keep true and accurate records for the periods of time and containing
the information the commissioner may require by rule. For the purpose of administering this
chapter, the commissioner has the power to audit, examine, or cause to be supplied or copied,
any books, correspondence, papers, records, or memoranda that are relevant, whether the books,
correspondence, papers, records, or memoranda are the property of or in the possession of the
employer or any other person at any reasonable time and as often as may be necessary.
    (b) Any employer that refuses to allow an audit of its records by the department, or that fails
to make all necessary records available for audit in Minnesota upon request of the commissioner,
may be assessed an administrative penalty of $500. The penalty collected is credited to the
administration account to be used by the commissioner to ensure integrity in the administration of
the unemployment insurance program.
    (c) The commissioner may make summaries, compilations, photographs, duplications,
or reproductions of any records, or reports that the commissioner considers advisable
for the preservation of the information contained therein. Any summaries, compilations,
photographs, duplications, or reproductions is admissible in any proceeding under this chapter.
The commissioner may duplicate records, reports, summaries, compilations, instructions,
determinations, or any other written or recorded matter pertaining to the administration of this
chapter.
    (d) Regardless of any law to the contrary, the commissioner may provide for the destruction
of any records, reports, or reproductions, or other papers that are no longer necessary for the
administration of this chapter, including any required audit. In addition, the commissioner may
provide for the destruction or disposition of any record, report, or other paper from which
the information has been electronically captured and stored, or that has been photographed,
duplicated, or reproduced.
History: Ex1936 c 2 s 10; 1937 c 306 s 7; 1939 c 441 s 42; 1939 c 443 s 8,10; 1941 c 554 s
9; 1943 c 650 s 7; 1945 c 376 s 9; 1947 c 600 s 3-6; 1949 c 605 s 15; 1949 c 739 s 8; 1951 c 442
s 6-10; 1951 c 713 s 29; 1953 c 97 s 15; 1953 c 603 s 1; 1953 c 612 s 1; 1955 c 847 s 22; 1957 c
883 s 7; 1965 c 45 s 42-44; 1965 c 741 s 18; 1967 c 770 s 1; 1969 c 9 s 63; 1969 c 310 s 2; 1969
c 567 s 1,3; 1969 c 854 s 11,12; 1969 c 1129 art 8 s 7; 1971 c 942 s 12; 1973 c 254 s 1,3; 1973 c
492 s 14; 1974 c 241 s 1; 1975 c 315 s 19; 1975 c 336 s 20,21; 1977 c 172 s 2; 1977 c 237 s 1;
1977 c 297 s 20; 1977 c 305 s 31; 1977 c 430 s 25 subd 1; 1978 c 674 s 60; 1979 c 181 s 15; 1980
c 615 s 37; 1981 c 311 s 39; 1982 c 424 s 130; 1982 c 545 s 23,24; 1Sp1982 c 1 s 31,32; 1983 c
216 art 1 s 87; 1983 c 247 s 114; 1983 c 260 s 58; 1983 c 312 art 8 s 2; 1983 c 372 s 37,38; 1984
c 544 s 89; 1985 c 248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 165 s 1; 1987 c 312 art
1 s 26 subd 2; 1987 c 362 s 23; 1987 c 385 s 25; 1989 c 65 s 11; 1989 c 209 art 2 s 1; 1990 c 516
s 6,7; 1991 c 202 s 16; 1993 c 67 s 10; 1994 c 483 s 1; 1994 c 488 s 8; 1995 c 54 s 12; 1996 c 417
s 23,31; 1996 c 440 art 1 s 47; 1997 c 66 s 62,79; 1998 c 265 s 44; 1999 c 107 s 57,66; 2000 c
343 s 4; 1Sp2003 c 1 art 2 s 77; 2004 c 183 s 84; 2007 c 128 art 6 s 91
268.188 SUBPOENAS; OATHS.
    (a) The commissioner has authority to administer oaths and affirmations, take depositions,
certify to official acts, and issue subpoenas to compel the attendance of individuals and
the production of documents and other personal property necessary in connection with the
administration of the Minnesota unemployment insurance program.
    (b) Individuals subpoenaed, other than applicants or officers and employees of an employer
that is the subject of the inquiry, are paid witness fees the same as witness fees in civil actions in
district court. The fees need not be paid in advance.
    (c) The subpoena is enforceable through the district court in Ramsey County.
History: Ex1936 c 2 s 10; 1937 c 306 s 7; 1939 c 441 s 42; 1939 c 443 s 8,10; 1941 c 554 s
9; 1943 c 650 s 7; 1945 c 376 s 9; 1947 c 600 s 3-6; 1949 c 605 s 15; 1949 c 739 s 8; 1951 c 442
s 6-10; 1951 c 713 s 29; 1953 c 97 s 15; 1953 c 603 s 1; 1953 c 612 s 1; 1955 c 847 s 22; 1957 c
883 s 7; 1965 c 45 s 42-44; 1965 c 741 s 18; 1967 c 770 s 1; 1969 c 9 s 63; 1969 c 310 s 2; 1969
c 567 s 1,3; 1969 c 854 s 11,12; 1969 c 1129 art 8 s 7; 1971 c 942 s 12; 1973 c 254 s 1,3; 1973 c
492 s 14; 1974 c 241 s 1; 1975 c 315 s 19; 1975 c 336 s 20,21; 1977 c 172 s 2; 1977 c 237 s 1;
1977 c 297 s 20; 1977 c 305 s 31; 1977 c 430 s 25 subd 1; 1978 c 674 s 60; 1979 c 181 s 15; 1980
c 615 s 37; 1981 c 311 s 39; 1982 c 424 s 130; 1982 c 545 s 23,24; 1Sp1982 c 1 s 31,32; 1983
c 216 art 1 s 87; 1983 c 247 s 114; 1983 c 260 s 58; 1983 c 312 art 8 s 2; 1983 c 372 s 37,38;
1984 c 544 s 89; 1985 c 248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 165 s 1; 1987 c
312 art 1 s 26 subd 2; 1987 c 362 s 23; 1987 c 385 s 25; 1989 c 65 s 11; 1989 c 209 art 2 s 1;
1990 c 516 s 6,7; 1991 c 202 s 16; 1993 c 67 s 10; 1994 c 483 s 1; 1994 c 488 s 8; 1995 c 54 s
12; 1996 c 417 s 23,31; 1996 c 440 art 1 s 47; 1997 c 66 s 63,79; 1998 c 265 s 44; 1999 c 107 s
58,66; 2001 c 175 s 52; 2004 c 206 s 52; 2007 c 128 art 3 s 19
268.19 DATA PRIVACY.
    Subdivision 1. Use of data. (a) Except as provided by this section, data gathered from any
person under the administration of the Minnesota Unemployment Insurance Law are private data
on individuals or nonpublic data not on individuals as defined in section 13.02, subdivisions 9
and 12
, and may not be disclosed except according to a district court order or section 13.05. A
subpoena is not considered a district court order. These data may be disseminated to and used by
the following agencies without the consent of the subject of the data:
    (1) state and federal agencies specifically authorized access to the data by state or federal law;
    (2) any agency of any other state or any federal agency charged with the administration of an
unemployment insurance program;
    (3) any agency responsible for the maintenance of a system of public employment offices for
the purpose of assisting individuals in obtaining employment;
    (4) the public authority responsible for child support in Minnesota or any other state in
accordance with section 256.978;
    (5) human rights agencies within Minnesota that have enforcement powers;
    (6) the Department of Revenue to the extent necessary for its duties under Minnesota laws;
    (7) public and private agencies responsible for administering publicly financed assistance
programs for the purpose of monitoring the eligibility of the program's recipients;
    (8) the Department of Labor and Industry and the Division of Insurance Fraud Prevention in
the Department of Commerce for uses consistent with the administration of their duties under
Minnesota law;
    (9) local and state welfare agencies for monitoring the eligibility of the data subject for
assistance programs, or for any employment or training program administered by those agencies,
whether alone, in combination with another welfare agency, or in conjunction with the department
or to monitor and evaluate the statewide Minnesota family investment program by providing
data on recipients and former recipients of food stamps or food support, cash assistance under
chapter 256, 256D, 256J, or 256K, child care assistance under chapter 119B, or medical programs
under chapter 256B, 256D, or 256L;
    (10) local and state welfare agencies for the purpose of identifying employment, wages, and
other information to assist in the collection of an overpayment debt in an assistance program;
    (11) local, state, and federal law enforcement agencies for the purpose of ascertaining the
last known address and employment location of an individual who is the subject of a criminal
investigation;
    (12) the United States Citizenship and Immigration Services has access to data on specific
individuals and specific employers provided the specific individual or specific employer is the
subject of an investigation by that agency;
    (13) the Department of Health for the purposes of epidemiologic investigations; and
(14) the Department of Corrections for the purpose of postconfinement employment tracking
of individuals who had been committed to the custody of the commissioner of corrections.
    (b) Data on individuals and employers that are collected, maintained, or used by the
department in an investigation under section 268.182 are confidential as to data on individuals
and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3 and
13
, and must not be disclosed except under statute or district court order or to a party named in a
criminal proceeding, administrative or judicial, for preparation of a defense.
    (c) Data gathered by the department in the administration of the Minnesota unemployment
insurance program must not be made the subject or the basis for any suit in any civil proceedings,
administrative or judicial, unless the action is initiated by the department.
    Subd. 1a. Wage detail data. (a) Wage and employment data gathered under section 268.044
may be disseminated to and used, without the consent of the subject of the data, by an agency
of another state that is designated as the performance accountability and consumer information
agency for that state under Code of Federal Regulations, volume 20, part 663.510(c), in order to
carry out the requirements of the Workforce Investment Act of 1998, United States Code, title
29, sections 2842 and 2871.
    (b) The commissioner may enter into a data exchange agreement with an employment
and training service provider under section 116L.17, or the Workforce Investment Act of 1998,
United States Code, title 29, section 2864, under which the commissioner, with the consent of the
subject of the data, may furnish data on the quarterly wages paid and number of hours worked
on those individuals who have received employment and training services from the provider.
With the initial consent of the subject of the data, this data may be shared for up to three years
after termination of the employment and training services provided to the individual without
execution of an additional consent. This data is furnished solely for the purpose of evaluating the
employment and training services provided. The data subject's ability to receive service is not
affected by a refusal to give consent under this paragraph. The consent form must state this fact.
    Subd. 2. Employer information; absolute privilege. (a) Regardless of any provision of law
to the contrary, an employer may provide the commissioner with information on an applicant so
that the commissioner can determine an applicant's entitlement to unemployment benefits under
the Minnesota Unemployment Insurance Law.
    (b) The commissioner may disseminate an employer's name and address and the name and
address of any employer's unemployment insurance processing agent in order to administer the
Minnesota unemployment insurance program.
    (c) Information obtained under the Minnesota Unemployment Insurance Law, in order to
determine an applicant's entitlement to unemployment benefits, are absolutely privileged and may
not be made the subject matter or the basis for any civil proceeding, administrative, or judicial.
History: Ex1936 c 2 s 10; 1937 c 306 s 7; 1939 c 441 s 42; 1939 c 443 s 8,10; 1941 c 554 s
9; 1943 c 650 s 7; 1945 c 376 s 9; 1947 c 600 s 3-6; 1949 c 605 s 15; 1949 c 739 s 8; 1951 c 442
s 6-10; 1951 c 713 s 29; 1953 c 97 s 15; 1953 c 603 s 1; 1953 c 612 s 1; 1955 c 847 s 22; 1957 c
883 s 7; 1965 c 45 s 42-44; 1965 c 741 s 18; 1967 c 770 s 1; 1969 c 9 s 63; 1969 c 310 s 2; 1969
c 567 s 1,3; 1969 c 854 s 11,12; 1969 c 1129 art 8 s 7; 1971 c 942 s 12; 1973 c 254 s 1,3; 1973 c
492 s 14; 1974 c 241 s 1; 1975 c 315 s 19; 1975 c 336 s 20,21; 1977 c 172 s 2; 1977 c 237 s 1;
1977 c 297 s 20; 1977 c 305 s 31; 1977 c 430 s 25 subd 1; 1978 c 674 s 60; 1979 c 181 s 15; 1980
c 615 s 37; 1981 c 311 s 39; 1982 c 424 s 130; 1982 c 545 s 23,24; 1Sp1982 c 1 s 31,32; 1983 c
216 art 1 s 87; 1983 c 247 s 114; 1983 c 260 s 58; 1983 c 312 art 8 s 2; 1983 c 372 s 37,38; 1984
c 544 s 89; 1985 c 248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 165 s 1; 1987 c 312 art
1 s 26 subd 2; 1987 c 362 s 23; 1987 c 385 s 25; 1989 c 65 s 11; 1989 c 209 art 2 s 1; 1990 c 516
s 6,7; 1991 c 202 s 16; 1993 c 67 s 10; 1994 c 483 s 1; 1994 c 488 s 8; 1995 c 54 s 12; 1996 c 417
s 21,23,31; 1996 c 440 art 1 s 47; 1997 c 66 s 55-58,79; 1998 c 265 s 30; 1998 c 273 s 13; 1998 c
371 s 11; 1999 c 107 s 45,66; 2000 c 343 s 4; 2000 c 468 s 25; 2001 c 175 s 52; 1Sp2003 c 3 art 2
s 20; 1Sp2003 c 4 s 1; 1Sp2003 c 8 art 2 s 16; 1Sp2003 c 14 art 1 s 106; 2004 c 183 s 85; 2004 c
206 s 52; 2004 c 269 art 1 s 10; 2004 c 290 s 31,32; 2005 c 112 art 2 s 41; 1Sp2005 c 1 art 4 s 74;
2007 c 13 art 1 s 25; 2007 c 54 art 6 s 13; 2007 c 128 art 3 s 20; art 6 s 92,93; 2007 c 129 s 50
268.192 PROTECTION OF RIGHTS.
    Subdivision 1. Waiver of rights void. Any agreement by an individual to waive, release, or
commute rights to unemployment benefits or any other rights under the Minnesota Unemployment
Insurance Law is void. Any agreement by an employee to pay all or any portion of an employer's
taxes, is void. No employer may directly or indirectly make or require or accept any deduction
from wages to pay the employer's taxes, require or accept any waiver of any right or in any
manner obstruct or impede an application or continued request for unemployment benefits. Any
employer or officer or agent of any employer who violates any portion of this subdivision is, for
each offense, guilty of a misdemeanor.
    Subd. 2. No assignment of unemployment benefits; exemptions. Any assignment, pledge,
or encumbrance of unemployment benefits is void. Unemployment benefits are exempt from levy,
execution, attachment, or any other remedy provided for the collection of debt. Any waiver
of this subdivision is void.
History: Ex1936 c 2 s 15; 1941 c 554 s 14; 1986 c 444; 1989 c 209 art 2 s 1; 1996 c 417 s
31; 1997 c 66 s 79; 1998 c 265 s 39; 1999 c 107 s 59; 2000 c 343 s 4; 2001 c 175 s 48,52;
1Sp2003 c 3 art 2 s 20; 2007 c 128 art 3 s 24; art 6 s 94
268.194 UNEMPLOYMENT INSURANCE TRUST FUND.
    Subdivision 1. Establishment. There is established as a special state trust fund, separate
and apart from all other public money or funds of this state, an unemployment insurance trust
fund, that is administered by the commissioner exclusively for the payment of unemployment
benefits. This trust fund consists of:
    (1) all taxes collected;
    (2) interest earned upon any money in the trust fund;
    (3) reimbursements paid by nonprofit organizations and the state and political subdivisions;
    (4) tax rate buydown payments under section 268.051, subdivision 7;
    (5) any money received as a loan from the federal unemployment trust fund in accordance
with United States Code, title 42, section 1321, of the Social Security Act;
    (6) any other money received under a reciprocal unemployment benefit arrangement with the
federal government or any other state;
    (7) money recovered on overpaid unemployment benefits except, if allowed by federal law,
five percent of any recovered amount is credited to the administration account;
    (8) all money recovered on losses sustained by the trust fund;
    (9) all money received from the contingent account under section 268.196, subdivision 3;
    (10) all money credited to the account of Minnesota in the federal unemployment trust fund
under United States Code, title 42, section 1103, of the Social Security Act, also known as the
Reed Act; and
    (11) all money received for the trust fund from any other source.
    Subd. 2. Commissioner of finance to be custodian; separate accounts. (a) The
commissioner of finance is the treasurer and custodian of the trust fund, and shall administer the
trust fund in accordance with the directions of the commissioner. The commissioner of finance
shall maintain within the trust fund three separate accounts:
    (1) a clearing account;
    (2) an unemployment trust fund account; and
    (3) an unemployment benefit payment account.
    All money payable to the trust fund, upon receipt by the commissioner, must be forwarded to
the commissioner of finance who shall immediately deposit the money in the clearing account.
All money in the clearing account, after clearance, must be deposited to the credit of Minnesota's
account in the federal unemployment trust fund. Tax refunds payable under section 268.057 may
be paid from the clearing account or the unemployment benefit payment account.
    (b) The unemployment benefit payment account consists of all money requisitioned from
Minnesota's account in the federal unemployment trust fund for the payment of unemployment
benefits. Money in the clearing and unemployment benefit payment accounts may be deposited by
the commissioner of finance, under the direction of the commissioner, in any depository bank
that general funds of Minnesota may be deposited, but no public deposit insurance charge or
premium may be paid out of the trust fund. Money in the clearing and unemployment benefit
payment accounts must be maintained in separate accounts on the books of the depository bank.
This money must be secured by the depository bank to the same extent and in the same manner as
required by the general depository law of Minnesota.
    Subd. 3. Exclusive use. (a) Money requisitioned from Minnesota's account in the federal
unemployment trust fund must be used exclusively for the payment of unemployment benefits
and for tax refunds under section 268.057, except that money credited to Minnesota's account
under United States Code, title 42, section 1103 of the Social Security Act, also known as the
Reed Act, may be used for the payment of expenses of administration. The commissioner may
requisition from the federal unemployment trust fund the amounts necessary for the payment
of unemployment benefits and tax refunds for a reasonable future period. Upon receipt the
commissioner of finance shall deposit the money in the unemployment benefit payment account.
    (b) Expenditures of money in the unemployment benefit payment account and tax refunds
from the clearing account are not subject to any provisions of law requiring specific appropriations
or other formal release by state officers.
    Subd. 3a.[Renumbered subd 4]
    Subd. 4. Reimbursements. The commissioner is authorized to make to other state or federal
agencies and to receive from other state or federal agencies, reimbursements from or to the trust
fund, in accordance with reciprocal arrangements entered into under section 268.131.
    Money received under a reciprocal agreement must be placed directly in the unemployment
benefit payment account of the trust fund.
    Subd. 5. Reed Act money. (a) Money credited to the account of Minnesota in the federal
unemployment trust fund under United States Code, title 42, section 1103, of the Social
Security Act, also known as the Reed Act, may be requisitioned and used for (1) the payment
of unemployment benefits, or (2) expenses incurred for the administration of the Minnesota
unemployment insurance program according to a specific appropriation by the legislature. Any
money used for the payment of unemployment benefits may be restored for appropriation and use
for administrative expenses upon request of the governor to the United States Secretary of Labor.
    (b) Reed Act money may be used for expenses in the administration of the Minnesota
unemployment insurance program provided that the expenses are incurred and the money is
requisitioned after the enactment of an appropriation law that:
    (1) specifies the amounts and the purposes for which the money is appropriated;
    (2) limits the period within which the money may be obligated to a period ending not more
than two years after the date of the enactment of the appropriation law; and
    (3) limits the amount that may be obligated to an amount that does not exceed the amount by
which the aggregate of the amounts transferred to the account of Minnesota under the Reed Act
exceeds the aggregate of the amounts used under this subdivision and charged against the amounts
transferred to the account of Minnesota. For the purposes of this subdivision, amounts used for
administration are chargeable against the transferred amounts at the time of the obligation.
    (c) Reed Act money requisitioned for the payment of expenses of administration remain a
part of the trust fund. The commissioner shall account for the use of this money in accordance
with the standards established by the United States Secretary of Labor. If any money is not
spent for the purpose for which it was appropriated, or, if it remains unspent at the end of the
period specified by the law appropriating the money, it must be returned for credit to Minnesota's
account in the federal unemployment trust fund.
    Subd. 6. Borrowing federal funds. (a) The governor is authorized, if necessary, to borrow
funds from the federal unemployment trust fund in accordance with United States Code, title 42,
section 1321 of the Social Security Act in order to pay unemployment benefits.
    (b) Any amount transferred to the trust fund under the terms of any loan must be repayable
as provided in United States Code, title 42, sections 1101(d)(1), 1103(b)(2), and 1322 of the
Social Security Act.
    (c) Interest payable on any loan is paid in accordance with section 268.051, subdivision 8,
paragraph (b).
History: Ex1936 c 2 s 3,11; 1937 c 306 s 8; 1937 c 452 s 1; 1939 c 443 s 2,9; 1941 c
554 s 2,10; 1943 c 650 s 8; 1945 c 376 s 2,10; 1947 c 432 s 8-10; 1949 c 605 s 2; 1953 c 97 s
3,4; 1957 c 883 s 2-5; 1961 c 517 s 1; 1965 c 45 s 45; 1969 c 9 s 64; 1969 c 310 s 1; 1969 c
567 s 3; 1971 c 942 s 13; 1975 c 302 s 1; 1979 c 181 s 16; 1Sp1982 c 1 s 4; 1983 c 216 art 1
s 87; 1983 c 372 s 8; 1985 c 248 s 70; 1Sp1985 c 13 s 300; 1986 c 444; 1989 c 209 art 2 s 1;
1994 c 488 s 8; 1996 c 417 s 31; 1997 c 66 s 79,80; 1998 c 265 s 33-35,40-42,45; 1999 c 107
s 60,66; 2000 c 343 s 4; 2001 c 175 s 52; 1Sp2003 c 3 art 2 s 20; 2004 c 206 s 52; 2007 c
128 art 1 s 20; art 3 s 21,22; art 6 s 95-97
268.196 ADMINISTRATION ACCOUNT.
    Subdivision 1. Administration account. (a) There is created in the state treasury a special
account to be known as the administration account. All money that is deposited or paid into
this account is continuously available to the commissioner for expenditure to administer the
Minnesota unemployment insurance program, and does not lapse at any time. The administration
account consists of:
    (1) all money received from the federal government to administer the Minnesota
unemployment insurance program;
    (2) five percent of any money recovered on overpaid unemployment benefits as provided for
in section 268.194, subdivision 1, clause (7), which must be used for deterring, detecting, and
collecting overpaid unemployment benefits;
    (3) any money received as compensation for services or facilities supplied to the federal
government or any other state;
    (4) any amounts received for losses sustained by this account or by reason of damage to
equipment or supplies; and
    (5) any proceeds from the sale or disposition of any equipment or supplies that may no
longer be necessary for the proper administration of those sections.
    (b) All money in this account must be deposited, administered, and disbursed in the same
manner and under the same conditions and requirements as are provided by law for the other
special accounts in the state treasury. The commissioner of finance, as treasurer and custodian of
this account, is liable for the faithful performance of duties in connection with this account.
    (c) All money in this account must be spent for the purposes and in the amounts found
necessary by the United States Secretary of Labor for the proper and efficient administration of
the Minnesota unemployment insurance program.
    Subd. 2. State to replace money wrongfully used. If any money received under United
States Code, title 42, section 501 of the Social Security Act or the Wagner-Peyser Act, is found by
the United States Secretary of Labor to have been spent for purposes other than, or in amounts
in excess of, those necessary for the proper administration of the Minnesota unemployment
insurance program, the commissioner may replace the money from the contingent account. If the
money is not replaced from the contingent account, it is the policy of this state that the money
be replaced by money appropriated for that purpose from the general funds of this state. If not
replaced from the contingent account, the commissioner shall, at the earliest opportunity, submit
to the legislature a request for the appropriation of that amount.
    Subd. 3. Contingent account. (a) There is created in the state treasury a special account, to
be known as the contingent account, that does not lapse nor revert to any other fund or account.
This account consists of all money appropriated by the legislature, all money collected under this
chapter that is required to be placed in this account, and any interest earned on the account. All
money in this account is supplemental to all federal money available to the commissioner. Money
in this account is appropriated to the commissioner and is available to the commissioner for
administration of the Minnesota unemployment insurance program.
    (b) All money in this account must be deposited, administered, and disbursed in the same
manner and under the same conditions and requirements as is provided by law for the other
special accounts in the state treasury. On June 30 of each year, all amounts in excess of $300,000
in this account must be paid over to the trust fund.
    Subd. 4. Unemployment insurance benefits telephone system. The commissioner must
ensure that the telephone system used for unemployment insurance benefits provides an option for
any caller to speak to an unemployment insurance specialist. An individual who calls any of the
publicized telephone numbers seeking information about applying for benefits or on the status
of a claim must have the option to speak on the telephone to a specialist who can provide direct
assistance or can direct the caller to the person or office that is able to respond to the caller's needs.
History: Ex1936 c 2 s 13; 1941 c 554 s 12; 1945 c 376 s 12; 1953 c 97 s 16; 1957 c 883 s
8-10; 1963 c 721 s 1; 1965 c 45 s 46; 1969 c 399 s 1; 1969 c 567 s 3; 1973 c 254 s 3; 1973 c
492 s 14; 1973 c 720 s 73 subd 1; 1974 c 497 s 1; 1975 c 302 s 2; 1Sp1982 c 1 s 33; 1983 c 216
art 1 s 87; 1986 c 444; 1987 c 362 s 25; 1987 c 385 s 27; 1989 c 209 art 2 s 1; 1994 c 488 s
8; 1996 c 417 s 31; 1997 c 7 art 1 s 106; 1997 c 66 s 79,80; 1998 c 265 s 43; 1999 c 107 s
61,66; 2000 c 343 s 4; 2001 c 175 s 52; 1Sp2003 c 3 art 2 s 20; 2004 c 206 s 52; 2007 c 128
art 1 s 21; art 3 s 23; 2007 c 135 art 2 s 26
268.198 [Renumbered 268.26]
268.20 REPRESENTATION IN COURT.
    In any civil action to enforce the provisions of the Minnesota Unemployment Insurance Law,
the commissioner may be represented by the attorney general.
History: (4337-37) Ex1936 c 2 s 17; 1941 c 554 s 16; 1989 c 209 art 2 s 1; 1996 c 417 s 31;
2001 c 175 s 52; 1Sp2003 c 3 art 2 s 20; 2007 c 128 art 6 s 98
268.21 NONLIABILITY OF STATE.
    (a) Unemployment benefits are payable only to the extent provided in this chapter and to the
extent that money is available in the trust fund and neither the state nor the commissioner is liable
for any amount in excess of the money available in the trust fund.
    (b) No person may make any demand, bring any suit, or other proceeding to recover from the
state or the commissioner any sum alleged to be due on a benefit account after the expiration of
two years from the effective date of the benefit account.
History: (4337-38) Ex1936 c 2 s 18; 1941 c 554 s 17; 1989 c 209 art 2 s 1; 1994 c 488 s 8;
1996 c 417 s 31; 1997 c 66 s 77; 1998 c 265 s 44; 1999 c 107 s 63; 2000 c 343 s 4; 1Sp2003 c
3 art 2 s 20; 2007 c 128 art 6 s 99
268.215 DAY OF THE WEEK AND DATE REQUIREMENT.
    (a) Every determination issued under this chapter that is subject to an appeal to an
unemployment law judge must indicate the day of the week and the date, for example, Tuesday,
August 1, 2006, that the determination is final and no longer subject to an appeal.
    (b) Every decision issued by an unemployment law judge under section 268.105, subdivision
1, must indicate the day of the week and the date, for example, Tuesday, August 1, 2006, that
the decision is final and no longer subject to reconsideration.
History: 2007 c 128 art 2 s 18
268.22 SAVING CLAUSE.
    The legislature reserves the right to amend or repeal all or any part of the Minnesota
Unemployment Insurance Law at any time; and there is no vested private right of any kind against
amendment or repeal. All the rights, privileges, immunities conferred, or acts done exist subject to
the power of the legislature to amend or repeal these sections at any time.
History: (4337-39) Ex1936 c 2 s 19; 1941 c 554 s 18; 1991 c 199 art 2 s 1; 1996 c 417 s 31;
2001 c 175 s 52; 1Sp2003 c 3 art 2 s 20; 2007 c 128 art 6 s 100
268.23 SEVERABLE.
    In the event that the United States Department of Labor determines that any provision of the
Minnesota Unemployment Insurance Law, or any other provision of Minnesota Statutes relating
to the unemployment insurance program, is not in conformity with the requirements of federal
law, the provision has no force or effect; but if only a portion of the provision, or the application
to any person or circumstances, is held not in conformity, the remainder of the provision and the
application of the provision to other persons or circumstances are not affected.
History: (4337-40) Ex1936 c 2 s 20; 1941 c 554 s 19; 1949 c 605 s 14; 1965 c 45 s 47;
1991 c 199 art 2 s 1; 1996 c 417 s 30,31; 1999 c 107 s 64,66; 2000 c 343 s 4; 2001 c 175 s 52;
1Sp2003 c 3 art 2 s 20; 2007 c 128 art 6 s 101
268.231 [Repealed, 1996 c 417 s 32]
268.24 [Repealed, 1987 c 385 s 50]
268.25 [Repealed, 1998 c 265 s 46]
268.26 [Repealed, 2004 c 206 s 53]
268.29 [Renumbered 299A.72]
268.30 [Renumbered 116L.30]
268.31 [Repealed, 1994 c 632 art 4 s 84]
268.315 [Repealed, 1994 c 632 art 4 s 84]
268.32 [Repealed, 1994 c 632 art 4 s 84]
268.33 [Repealed, 1994 c 632 art 4 s 84]
268.34 [Repealed, 1994 c 632 art 4 s 84]
268.35 [Repealed, 1994 c 632 art 4 s 84]
268.36 [Repealed, 1994 c 632 art 4 s 84]
268.361    Subdivision 1.[Renumbered 116L.361, subdivision 1]
    Subd. 2.[Renumbered 116L.361, subd 2]
    Subd. 3.[Repealed, 2004 c 206 s 53]
    Subd. 4.[Renumbered 116L.361, subd 3]
    Subd. 4a.[Renumbered 116L.361, subd 4]
    Subd. 5.[Renumbered 116L.361, subd 5]
    Subd. 6.[Renumbered 116L.361, subd 6]
    Subd. 7.[Renumbered 116L.361, subd 7]
268.362 [Renumbered 116L.362]
268.3625 [Renumbered 116L.3625]
268.363 [Renumbered 116L.363]
268.364    Subdivision 1.[Renumbered 116L.364, subdivision 1]
    Subd. 2.[Renumbered 116L.364, subd 2]
    Subd. 3.[Renumbered 116L.364, subd 3]
    Subd. 4.[Renumbered 116L.364, subd 4]
    Subd. 5.[Repealed by amendment, 1989 c 328 art 7 s 4]
    Subd. 6.[Renumbered 116L.364, subd 5]
268.365    Subdivision 1.[Repealed, 1993 c 369 s 146]
    Subd. 2.[Renumbered 116L.365, subdivision 1]
    Subd. 3.[Renumbered 116L.365, subd 2]
    Subd. 4.[Renumbered 116L.365, subd 3]
268.366 [Renumbered 116L.366]
268.3661 [Repealed, 2004 c 206 s 53]
268.367 [Repealed, 1996 c 339 s 10]
268.37 [Repealed, 1998 c 273 s 15]
268.371 [Repealed, 1998 c 273 s 15]
268.38    Subdivision 1.[Repealed, 1998 c 273 s 15]
    Subd. 2.[Repealed, 1998 c 273 s 15]
    Subd. 3.[Repealed, 1998 c 273 s 15]
    Subd. 4.[Repealed, 1998 c 273 s 15]
    Subd. 5.[Repealed, 1998 c 273 s 15]
    Subd. 6.[Repealed, 1998 c 273 s 15]
    Subd. 7.[Repealed, 1998 c 273 s 15]
    Subd. 8.[Repealed, 1998 c 273 s 15]
    Subd. 9.[Repealed, 1998 c 273 s 15]
    Subd. 10.[Deleted, 1995 c 233 art 2 s 56]
    Subd. 11.[Repealed, 1996 c 339 s 10]
    Subd. 12.[Repealed, 1998 c 273 s 15]
    Subd. 13.[Renumbered 119A.43, subd 11]
268.39 [Repealed, 1997 c 200 art 4 s 23]
268.40 [Expired]
268.41 [Expired]
268.42 [Expired]
268.43 [Expired]
268.52 [Renumbered 119A.374]
268.53    Subdivision 1.[Renumbered 119A.375, subdivision 1]
    Subd. 1a.[Renumbered 119A.375, subd 2]
    Subd. 2.[Renumbered 119A.375, subd 3]
    Subd. 3.[Renumbered 119A.375, subd 4]
    Subd. 4.[Renumbered 119A.375, subd 5]
    Subd. 5.[Renumbered 119A.375, subd 6]
    Subd. 6.[Renumbered 119A.375, subd 7]
    Subd. 7.[Renumbered 119A.375, subd 8]
268.54 [Renumbered 119A.376]
268.55 [Repealed, 1998 c 273 s 15]
268.551 [Repealed, 2004 c 206 s 53]
268.552 [Repealed, 2004 c 206 s 53]
268.56    Subdivision 1.[Renumbered 116L.56, subdivision 1]
    Subd. 2.[Repealed, 2004 c 206 s 53]
    Subd. 3.[Renumbered 116L.56, subd 2]
    Subd. 4.[Renumbered 116L.56, subd 3]
268.561    Subdivision 1.[Renumbered 116L.561, subdivision 1]
    Subd. 2.[Renumbered 116L.561, subd 2]
    Subd. 3.[Renumbered 116L.561, subd 3]
    Subd. 4.[Renumbered 116L.561, subd 4]
    Subd. 5.[Renumbered 116L.561, subd 5]
    Subd. 6.[Renumbered 116L.561, subd 6]
    Subd. 7.[Renumbered 116L.561, subd 7]
    Subd. 8.[Renumbered 116L.561, subd 8]
    Subd. 9.[Renumbered 116L.561, subd 9]
    Subd. 10.[Repealed, 2004 c 206 s 53]
268.60 [Renumbered 116L.60]
268.61    Subdivision 1.[Renumbered 116L.61, subdivision 1]
    Subd. 2.[Repealed, 2004 c 206 s 53]
    Subd. 3.[Renumbered 116L.61, subd 2]
    Subd. 4.[Renumbered 116L.61, subd 3]
    Subd. 5.[Renumbered 116L.61, subd 4]
    Subd. 6.[Renumbered 116L.61, subd 5]
268.62 [Renumbered 116L.62]
268.63 [Renumbered 116L.63]
268.64 [Renumbered 116L.64]
268.65 [Repealed, 2004 c 206 s 53]
268.66 [Renumbered 116L.66]
268.665    Subdivision 1.[Renumbered 116L.665, subdivision 1]
    Subd. 2.[Renumbered 116L.665, subd 2]
    Subd. 3.[Renumbered 116L.665, subd 3]
    Subd. 3a.[Renumbered 116L.665, subd 4]
    Subd. 4.[Renumbered 116L.665, subd 5]
    Subd. 5.[Renumbered 116L.665, subd 6]
    Subd. 6.[Renumbered 116L.665, subd 7]
268.666    Subdivision 1.[Renumbered 116L.666, subdivision 1]
    Subd. 2.[Renumbered 116L.666, subd 2]
    Subd. 3.[Renumbered 116L.666, subd 3]
    Subd. 4.[Renumbered 116L.666, subd 4]
    Subd. 5.[Repealed, 2004 c 206 s 53]
268.671 [Repealed, 1Sp1985 c 14 art 9 s 78 subd 1]
268.6715 [Repealed, 2001 c 79 s 8]
268.672 [Repealed, 2001 c 79 s 8]
268.673 [Repealed, 2001 c 79 s 8]
268.674 [Repealed, 1Sp1985 c 14 art 9 s 78 subd 2]
268.675 [Repealed, 1Sp1985 c 14 art 9 s 78 subd 2]
268.6751 [Repealed, 2001 c 79 s 8]
268.676 [Repealed, 1997 c 200 art 3 s 19]
268.677 [Repealed, 2001 c 79 s 8]
268.678 [Repealed, 1997 c 200 art 3 s 19]
268.679    Subdivision 1.[Repealed, 1Sp1985 c 14 art 9 s 78 subd 2]
    Subd. 2.[Repealed, 1Sp1985 c 14 art 9 s 78 subd 2]
    Subd. 3.[Repealed, 1997 c 200 art 3 s 19]
268.68 [Repealed, 1Sp1985 c 14 art 9 s 78 subd 2]
268.681 [Repealed, 2001 c 79 s 8]
268.6811 [Repealed, 2001 c 79 s 8]
268.682 [Repealed, 2001 c 79 s 8]
268.683 [Repealed, 1Sp1985 c 14 art 9 s 78 subd 2]
268.684 [Repealed, 1Sp1985 c 14 art 9 s 78 subd 2]
268.685 [Repealed, 1Sp1985 c 14 art 9 s 78 subd 1]
268.84 [Repealed, 1Sp1985 c 14 art 9 s 78 subd 1]
268.85 [Repealed, 2001 c 79 s 8]
268.86    Subdivision 1.[Repealed, 1987 c 403 art 3 s 98]
    Subd. 2.[Renumbered 116L.86, subdivision 1]
    Subd. 3.[Repealed, 1987 c 403 art 3 s 98]
    Subd. 4.[Repealed, 1987 c 403 art 3 s 98]
    Subd. 5.[Repealed, 1987 c 403 art 3 s 98]
    Subd. 6.[Renumbered 116L.86, subd 2]
    Subd. 7.[Repealed, 1989 c 282 art 5 s 133]
    Subd. 8.[Repealed, 2001 c 79 s 8]
    Subd. 9.[Repealed, 1990 c 568 art 4 s 85]
    Subd. 10.[Renumbered 116L.86, subd 3]
268.871    Subdivision 1.[Renumbered 116L.871, subdivision 1]
    Subd. 1a.[Renumbered 116L.871, subd 2]
    Subd. 2.[Repealed, 2001 c 79 s 8]
    Subd. 3.[Renumbered 116L.871, subd 3]
    Subd. 4.[Repealed, 2001 c 79 s 8]
    Subd. 5.[Repealed, 1999 c 159 s 154]
268.872    Subdivision 1.[Renumbered 116L.872, subdivision 1]
    Subd. 2.[Renumbered 116L.872, subd 2]
    Subd. 3.[Repealed, 1990 c 568 art 4 s 85]
268.88 [Renumbered 116L.88]
268.881 [Renumbered 116L.881]
268.89 [Repealed, 2004 c 206 s 53]
268.90 [Repealed, 2001 c 79 s 8]
268.91    Subdivision 1.[Renumbered 256H.01]
    Subd. 2.[Renumbered 256H.02]
    Subd. 3.[Renumbered 256H.03]
    Subd. 3a.[Renumbered 256H.04]
    Subd. 3b.[Renumbered 256H.05]
    Subd. 3c.[Renumbered 256H.06]
    Subd. 3d.[Renumbered 256H.07]
    Subd. 3e.[Renumbered 256H.08]
    Subd. 3f.[Renumbered 256H.09]
    Subd. 4.[Renumbered 256H.10]
    Subd. 5.[Renumbered 256H.11]
    Subd. 6.[Renumbered 256H.12]
    Subd. 6a.[Renumbered 256H.13]
    Subd. 7.[Renumbered 256H.14]
    Subd. 8.[Renumbered 256H.15]
    Subd. 9.[Renumbered 256H.16]
    Subd. 10.[Renumbered 256H.17]
    Subd. 11.[Renumbered 256H.18]
    Subd. 12.[Renumbered 256H.19]
268.911 [Renumbered 256H.20]
268.912 [Renumbered 119A.50]
268.913    Subdivision 1.[Renumbered 119A.51, subdivision 1]
    Subd. 2.[Renumbered 119A.51, subd 2]
    Subd. 3.[Renumbered 119A.51, subd 3]
    Subd. 4.[Renumbered 119A.51, subd 4]
    Subd. 5.[Repealed, 1997 c 162 art 1 s 19]
    Subd. 6.[Renumbered 119A.51, subd 5]
268.914    Subdivision 1.[Renumbered 119A.52]
    Subd. 2.[Repealed, 1993 c 369 s 146]
268.915 [Renumbered 119A.53]
268.916 [Renumbered 119A.54]
268.9165 [Renumbered 119A.545]
268.917 [Repealed, 1998 c 273 s 15]
268.918 [Repealed, 2004 c 206 s 53]
268.92 [Repealed, 1998 c 273 s 15]
268.95 [Repealed, 2004 c 206 s 53]
268.96 [Renumbered 116L.96]
268.971 [Repealed, 2001 c 79 s 8]
268.975 [Repealed, 1Sp2001 c 4 art 2 s 41]
268.9755 [Repealed, 1995 c 131 s 3]
268.976    Subdivision 1.[Repealed, 2004 c 206 s 53]
    Subd. 2.[Renumbered 116L.976, subdivision 1]
    Subd. 3.[Renumbered 116L.976, subd 2]
268.977 [Repealed, 1993 c 369 s 146]
268.9771 [Repealed, 1Sp2001 c 4 art 2 s 41]
268.978 [Repealed, 1Sp2001 c 4 art 2 s 41]
268.9781 [Repealed, 1Sp2001 c 4 art 2 s 41]
268.9782 [Repealed, 1Sp2001 c 4 art 2 s 41]
268.9783 [Repealed, 1Sp2001 c 4 art 2 s 41]
268.979 [Repealed, 1Sp2001 c 4 art 2 s 41]
268.98 [Repealed, 1Sp2001 c 4 art 2 s 41]