Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1987, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1987
CHAPTER 385-H.F.No. 1542
An act relating to unemployment compensation; making
various technical and housekeeping changes; defining
"wages"; regulating benefits and contributions;
providing for the administration of the unemployment
compensation law; providing penalties; amending
Minnesota Statutes 1986, sections 268.04, subdivisions
9, 12, 24, 25, 26, 29, and by adding subdivisions;
268.06, subdivisions 2, 3a, 5, 6, 8, 19, 20, 22, and
24; 268.07, subdivision 3; 268.08, subdivisions 3, 3a,
and by adding a subdivision; 268.09, subdivisions 1
and 3; 268.12, subdivision 8; 268.121; 268.15,
subdivision 3; 268.16, subdivision 2, and by adding
subdivisions; 268.161, subdivisions 1, 8, 9, and by
adding a subdivision; 268.18, subdivisions 1, 2, 3, 4,
5, and by adding a subdivision; 268.65, subdivision 5;
270A.09, by adding a subdivision; and 508.25;
proposing coding for new law in Minnesota Statutes,
chapter 268; and repealing Minnesota Statutes 1986,
section 268.24.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1986, section 268.04,
subdivision 9, is amended to read:
Subd. 9. "Employing unit" means any individual or type of
organization, including any partnership, association, trust,
estate, joint-stock company, insurance company, or corporation,
whether domestic or foreign, or the receiver, trustee in
bankruptcy, trustee or successor of any of the foregoing, or the
legal representative of a deceased person, which has or
subsequent to January 1, 1936, had in its employ one or more
individuals performing services for it. All individuals
performing services within this state for any employing unit
which maintains two or more separate establishments within this
state shall be deemed to be employed by a single employing
unit for all the purposes of sections 268.03 to 268.24. Each
individual employed to perform or assist in performing the work
of any agent or individual employed by an employing unit shall
be deemed to be employed by such employing unit for all the
purposes of sections 268.03 to 268.24 whether such individual
was hired or paid directly by such employing unit or by such
agent or individual, provided the employing unit had actual or
constructive knowledge of such work. For the purposes of
sections 268.03 to 268.24 Any private or nonprofit organization
or government agency providing or authorizing the hiring of
homeworkers, personal care attendants, or other individuals
performing similar services in the private home of an individual
is the employing unit of the homeworker, attendant or similar
worker whether the agency pays the employee directly or provides
funds to the recipient of the services to pay for the services.
Sec. 2. Minnesota Statutes 1986, section 268.04,
subdivision 12, is amended to read:
Subd. 12. "Employment" means: (1) Subject to the other
provisions of this subdivision "employment" means service
performed prior to January 1, 1945, which was employment as
defined in this section prior to such date, and any service
performed after December 31, 1944, including service in
interstate commerce, by an individual who is a servant under the
law of master and servant or who performs services for any
employing unit, unless such services are performed by an
independent contractor.
The term "employment" shall include: Any service
performed, including service in interstate commerce, by;
(a) any officer of any corporation; or
(b) any individual other than an individual who is an
employee under clause (1) who performs services for remuneration
for any person as an agent-driver or commission-driver engaged
in distributing meat products, vegetable products, fruit
products, bakery products, beverages (other than milk), or
laundry or dry-cleaning services, for a principal, or as a
traveling or city salesperson, other than as an agent-driver or
commission-driver, engaged upon a full-time basis in the
solicitation on behalf of, and the transmission to, a principal
(except for sideline sales activities on behalf of some other
person) of orders from wholesalers, retailers, contractors, or
operators of hotels, restaurants, or other similar
establishments for merchandise for resale or supplies for use in
their business operations; or
(c) any individual who is a servant under the law of master
and servant or who performs services for any employing unit,
unless such services are performed by an independent contractor.
Provided, that for purposes of clause (1)(b), the term
"employment" shall include services described above only if the
contract of service contemplates that substantially all of the
services are to be performed personally by such individual, the
individual does not have a substantial investment in facilities
used in connection with the performance of the services (other
than in facilities for transportation), and the services are not
in the nature of a single transaction that is not part of a
continuing relationship with the person for whom the services
are performed.
(2) The term "employment" shall include an individual's
entire service, performed within or both within and without this
state if (a) the service is localized in this state; or (b) the
service is not localized in any state but some of the service is
performed in this state and (1) the base of operations, or, if
there is no base of operations, then the place from which such
service is directed or controlled, is in this state; or (2) the
base of operations or place from which such service is directed
or controlled is not in any state in which some part of the
service is performed, but the individual's residence is in this
state.
(3) Service shall be deemed to be localized within a state
if (a) the service is performed entirely within such state; or
(b) the service is performed both within and without such state,
but the service performed without such state is incidental to
the individual's service within the state, for example, is
temporary or transitory in nature or consists of isolated
transactions.
(4) The term "employment" shall include an individual's
service wherever performed within the United States or Canada,
if
(a) such service is not covered under the unemployment
compensation law of any other state or Canada, and
(b) the place from which the service is directed or
controlled is in this state.
(5) (a) Service covered by an election pursuant to section
268.11, subdivision 3; and
(b) service covered by an arrangement pursuant to section
268.13 between the commissioner and the agency charged with the
administration of any other state or federal employment security
law, pursuant to which all service performed by an individual
for an employing unit is deemed to be performed entirely within
this state, shall be deemed to be employment if the commissioner
has approved an election of the employing unit for which such
service is performed, pursuant to which the entire service of
such individual during the period covered by such election is
deemed to be employment.
(6) Notwithstanding any inconsistent provisions of sections
268.03 to 268.24, the term "employment" shall include any
services which are performed by an individual with respect to
which an employing unit is liable for any federal tax against
which credit may be taken for contributions required to be paid
into a state unemployment compensation fund or which as a
condition for full tax credit against the tax imposed by the
Federal Unemployment Tax Act is required to be covered under
this law.
(7) Service performed by an individual in the employ of the
state of Minnesota or any instrumentality which is wholly owned
by the state of Minnesota or in the employ of this state and one
or more other states or an instrumentality of this state and one
or more of its political subdivisions or an instrumentality of
this state and another state or an instrumentality of this state
and one or more political subdivisions of another state if such
service is excluded from "employment" as defined by section
3306(c)(7) of the Federal Unemployment Tax Act and is not
excluded from "employment" under clause (10).
(8) Service performed by an individual in the employ of any
political subdivision of the state of Minnesota or
instrumentality thereof or an instrumentality of two or more
political subdivisions of this state or any instrumentality of a
political subdivision of this state and another state or
political subdivisions of another state if such service is
excluded from "employment" as defined by section 3306(c)(7) of
the Federal Unemployment Tax Act and is not excluded from
"employment" under clause (10).
(a) The provisions of section 268.08, subdivision 6, shall
apply to service covered by this section.
(b) The amounts required to be paid in lieu of
contributions by any political subdivision shall be billed and
payment made as provided in section 268.06, subdivision 28,
clause (2), with respect to similar payments by nonprofit
organizations.
(9) Service performed by an individual in the employ of a
religious, charitable, educational or other organization but
only if the following conditions are met:
(a) the service is excluded from "employment" as defined in
the Federal Unemployment Tax Act solely by reason of section
3306(c)(8) of that act; and
(b) the organization had one or more individuals in
employment for some portion of a day in each of 20 different
weeks, whether or not such weeks were consecutive, within either
the current or preceding calendar year, regardless of whether
they were employed at the same moment of time.
(10) For the purposes of clauses (7), (8), and (9), the
term "employment" does not apply to service performed
(a) in the employ of a church or convention or association
of churches, or an organization which is operated primarily for
religious purposes and which is operated, supervised,
controlled, or principally supported by a church or convention
or association of churches; or
(b) by a duly ordained, commissioned, or licensed minister
of a church in the exercise of a ministry or by a member of a
religious order in the exercise of duties required by such
order; or
(c) in a facility conducted for the purpose of carrying out
a program of rehabilitation for individuals whose earning
capacity is impaired by age or physical or mental deficiency or
injury or a program providing remunerative work for individuals
who because of their an impaired physical or mental capacity
cannot be readily absorbed in the competitive labor market, by
an individual receiving such the rehabilitation or remunerative
work. This exclusion applies only to services performed in a
facility which is certified by the Minnesota department of jobs
and training, division of rehabilitative services, and is
limited to the effective period of the certificate; or
(d) as part of an unemployment work relief or work training
program assisted or financed in whole or in part by any federal
agency or an agency of a state or political subdivision thereof,
by an individual receiving such work relief or work training.
This exclusion shall not apply to programs that provide for and
require unemployment insurance coverage for the participants; or
(e) by an inmate of a custodial or penal institution; or
(f) in the employ of governmental entities referred to in
clauses (7) and (8) of this subdivision if such service is
performed by an individual in the exercise of duties
(i) as an elected official,
(ii) as a member of a legislative body, or a member of the
judiciary,
(iii) as a member of the Minnesota national guard or air
national guard,
(iv) as an employee serving only on a temporary basis in
case of fire, storm, snow, earthquake, flood or similar
emergency,
(v) (a) in a position with the state of Minnesota which is
a major nontenured policy making or advisory position in the
unclassified service, or
(b) a policy making position with the state of Minnesota or
a political subdivision the performance of the duties of which
ordinarily does not require more than eight hours per week; or
(c) in a position with a political subdivision which is a
major nontenured policy making or advisory position.
(11) The term "employment" shall include the service of an
individual who is a citizen of the United States, performed
outside the United States, except in Canada, in the employ of an
American employer (other than service which is deemed
"employment" under the provisions of clause (2), (3), or (4) or
the parallel provisions of another state's law) if:
(a) The employer's principal place of business in the
United States is located in this state; or
(b) The employer has no place of business in the United
States, but the employer is an individual who is a resident of
this state, or the employer is a corporation which is organized
under the laws of this state, or the employer is a partnership
or a trust and the number of partners or trustees who are
residents of this state is greater than the number who are
residents of any one other state; or
(c) None of the criteria of (a) and (b) is met but the
employer has elected coverage in this state, or the employer
having failed to elect coverage in any state, the individual has
filed a claim for benefits, based on such service, under the law
of this state.
(d) An "American employer," for the purposes of this
subdivision, means a person who is an individual who is a
resident of the United States, or a partnership if two-thirds or
more of the partners are residents of the United States, or a
trust, if all of the trustees are residents of the United
States, or a corporation organized under the laws of the United
States or of any state;
(e) As used in this subdivision, the term "United States"
includes the states, the District of Columbia, the Commonwealth
of Puerto Rico, and the Virgin Islands.
(12) Notwithstanding clause (2), all service performed by
an officer or member of the crew of an American vessel on or in
connection with such vessel, if the operating office, from which
the operations of such vessel operating on navigable waters
within, or within and without, the United States are ordinarily
and regularly supervised, managed, directed and controlled is
within this state.
(13) Service performed by an individual in agricultural
labor as defined in clause (15)(a) when:
(a) Such service is performed for a person who:
(i) during any calendar quarter in either the current or
the preceding calendar year paid wages of $20,000 or more to
individuals employed in agricultural labor, or
(ii) for some portion of a day in each of 20 different
calendar weeks, whether or not such weeks were consecutive, in
either the current or preceding calendar year employed in
agricultural labor four or more individuals regardless of
whether they were employed at the same time.
(b) For the purpose of this clause (13) any individual who
is a member of a crew furnished by a crew leader to perform
service in agricultural labor for any other person shall be
treated as an employee of the crew leader:
(i) if the crew leader holds a valid certificate of
registration under the Farm Labor Contractor Registration Act of
1963, as amended; or substantially all of the members of the
crew operate or maintain tractors, mechanized harvesting or crop
dusting equipment, or any other mechanized equipment, which is
provided by the crew leader; and
(ii) if the individual is not an employee of another person
as determined by clause (1).
(c) For the purpose of this clause (13) in the case of any
individual who is furnished by a crew leader to perform service
in agricultural labor for any other person and who is not
treated as an employee of the crew leader under subclause
(13)(b):
(i) such other person and not the crew leader shall be
treated as the employer of such individual; and
(ii) such other person shall be treated as having paid
wages to such individual in an amount equal to the amount of
wages paid to such individual by the crew leader (either on the
crew leader's behalf or on behalf of such other person) for the
service in agricultural labor performed for such other person.
(d) For the purposes of this clause (13) the term "crew
leader" means an individual who:
(i) furnishes individuals to perform service in
agricultural labor for any other person,
(ii) pays (either on the crew leader's own behalf or on
behalf of such other person) the individuals so furnished by the
crew leader for the service in agricultural labor performed by
them, and
(iii) has not entered into a written agreement with such
other person under which such furnished individual is designated
as an employee of such other person.
(e) For the purposes of this clause (13) services performed
by an officer or shareholder of a family farm corporation shall
be excluded from agricultural labor and employment unless said
corporation is an employer as defined in section 3306(a)(2) of
the Federal Unemployment Tax Act.
(f) For the purposes of this clause (13), services
performed by an individual 16 years of age or under shall be
excluded from agricultural labor and employment unless the
employer is an employer as defined in section 3306(a)(2) of the
Federal Unemployment Tax Act.
(14) The term "employment" shall include Domestic service
in a private home, local college club, or local chapter of a
college fraternity or sorority performed for a person who paid
wages of $1,000 or more in any calendar quarter in either the
current calendar year or the preceding calendar year to
individuals employed in domestic service in any calendar quarter.
"Domestic service" includes all service for an individual
in the operation and maintenance of a private household, for a
local college club, or local chapter of a college fraternity or
sorority as distinguished from service as an employee in the
pursuit of an employer's trade, occupation, profession,
enterprise or vocation.
(15) The term "employment" shall not include:
(a) Agricultural labor. Service performed by an individual
in agricultural labor, except as provided in clause (13) of this
subdivision. The term "agricultural labor" includes all
services performed:
(1) On a farm, in the employ of any person or family farm
corporation, in connection with cultivating the soil, or in
connection with raising or harvesting any agricultural or
horticultural commodity, including the raising, shearing,
feeding, caring for, training, and management of livestock,
bees, poultry, fur-bearing animals and wildlife;
(2) In the employ of the owner or tenant or other operator
of a farm, in connection with the operation, management,
conservation, improvement, or maintenance of such farm and its
tools and equipment, or in salvaging timber or clearing land of
brush and other debris left by a tornadic-like storm, if the
major part of such service is performed on a farm;
(3) In connection with the production or harvesting of any
commodity defined as an agricultural commodity in section 15(g)
of the Agricultural Marketing Act, as amended (46 Statutes 1550,
section 3; United States Code, title 12, section 1141j) or in
connection with the ginning of cotton, or in connection with the
operation or maintenance of ditches, canals, reservoirs, or
waterways, not owned or operated for profit, used exclusively
for supplying and storing water for farming purposes;
(4) In the employ of the operator of a farm in handling,
planting, drying, packing, packaging, processing, freezing,
grading, storing, or delivering to storage or to market or to a
carrier for transportation to market, in its unmanufactured
state, any agricultural or horticultural commodity; but only if
such operator produced more than one-half of the commodity with
respect to which such service is performed, or in the employ of
a group of operators of farms (or a cooperative organization of
which such operators are members) in the performance of service
described herein, but only if such operators produced more than
one-half of the commodity with respect to which such service is
performed; however, the provisions of this paragraph shall not
be deemed to be applicable with respect to service performed in
connection with commercial canning or commercial freezing or in
connection with any agricultural or horticultural commodity
after its delivery to a terminal market for distribution for
consumption; or
(5) On a farm operated for profit if such service is not in
the course of the employer's trade or business.
As used herein, the term "farm" includes stock, dairy,
poultry, fruit, fur-bearing animal, and truck farms,
plantations, ranches, nurseries, ranges, greenhouses or other
similar structures used primarily for the raising of
agricultural or horticultural commodities, and orchards.
(b) Casual labor not in the course of the employing unit's
trade or business;
(c) Service performed on the navigable waters of the United
States as to which this state is prohibited by the constitution
and laws of the United States of America from requiring
contributions of employers with respect to wages as provided in
sections 268.03 to 268.24;
(d) Service performed by an individual in the employ of a
son, daughter, or spouse, and service performed by a child under
the age of 18 in the employ of the child's father or mother;
(e) Service performed in the employ of the United States
government, or any instrumentality of the United States exempt
under the constitution of the United States from the
contributions imposed by sections 268.03 to 268.24, except that
with respect to such service and to the extent that the congress
of the United States shall permit states to require any
instrumentalities of the United States to make payments into an
unemployment compensation fund under a state unemployment
compensation act; then, to the extent permitted by congress, and
from and after the date as of which such permission becomes
effective, all of the provisions of these sections shall be
applicable to such instrumentalities and to services performed
for such instrumentalities in the same manner, to the same
extent, and on the same terms as to all other employers,
employing units, individuals, and services; provided, that if
this state shall not be certified for any year by the United
States department of labor under section 3304(c) of the federal
Internal Revenue Code, the payments required of such
instrumentalities with respect to such year shall be refunded by
the commissioner from the fund in the same manner and within the
same period as is provided in section 268.16, subdivision 6,
with respect to contributions erroneously collected;
(f) Service with respect to which unemployment compensation
is payable under an unemployment compensation system established
by an act of Congress;
(g) (1) Service performed in any calendar quarter in the
employ of any organization exempt from income tax under section
501(a) (other than an organization described in section 401(a))
or section 521 of the federal Internal Revenue Code, if the
remuneration for such service is less than $50; or
(2) Service performed in the employ of a school, college,
or university, if such service is performed by a student who is
enrolled and is regularly attending classes at such school,
college, or university; or
(3) Service performed by an individual who is enrolled at a
nonprofit or public educational institution which normally
maintains a regular faculty and curriculum and normally has a
regularly organized body of students in attendance at the place
where its educational activities are carried on as a student in
a full-time program, taken for credit at such institution, which
combines academic instruction with work experience, if such
service is an integral part of such program, and such
institution has so certified to the employer, except that this
paragraph shall not apply to service performed in a program
established for or on behalf of an employer or group of
employers;
(h) Service performed in the employ of a foreign government
(including service as a consular or other officer or employee or
a nondiplomatic representative);
(i) Service performed in the employ of an instrumentality
wholly owned by a foreign government, if
(1) The service is of a character similar to that performed
in foreign countries by employees of the United States
government or of an instrumentality thereof; and
(2) The commissioner finds that the United States secretary
of state has certified to the United States secretary of the
treasury that the foreign government, with respect to whose
instrumentality exemption is claimed, grants an equivalent
exemption with respect to similar service performed in the
foreign country by employees of the United States government and
of instrumentalities thereof.
(j) Service covered by an arrangement between the
commissioner and the agency charged with the administration of
any other state or federal employment security law pursuant to
which all services performed by an individual for an employing
unit during the period covered by such employing unit's duly
approved election, are deemed to be performed entirely within
such agency's state;
(k) Service performed in the employ of a hospital, if such
service is performed by a patient of the hospital, as defined in
clause (17);
(l) Service performed as a student nurse in the employ of a
hospital or a nurses' training school by an individual who is
enrolled and is regularly attending classes in a nurses'
training school chartered and approved pursuant to state law;
and service performed as an intern a medical or dental intern,
or resident in training in the employ of a hospital, clinic, or
medical or dental office by an individual who has completed a
four years' course in a medical or dental school chartered and
approved pursuant to state law;
(m) Service performed by an individual for a person as an
insurance agent or as an insurance solicitor, if all such
service performed by such individual for such person is
performed for remuneration solely by way of commission (the word
"insurance" as used in this subdivision shall include an annuity
and an optional annuity);
(n) Service performed by an individual under the age of 18
in the delivery or distribution of newspapers or shopping news,
not including delivery or distribution to any point for
subsequent delivery or distribution;
(o) Service performed by an individual for a person as a
real estate salesperson, if all such service performed by such
individual for such person is performed for remuneration solely
by way of commission;
(p) If the service performed during one-half or more of any
pay period by an individual for the person employing the
individual constitutes employment, all the service of such
individual for such period shall be deemed to be employment; but
if the service performed during more than one-half of any such
pay period by an individual for the person employing the
individual does not constitute employment, then none of the
service of such individual for such period shall be deemed to be
employment. As used in this subdivision, the term "pay period"
means a period (of not more than 31 consecutive days) for which
a payment or remuneration is ordinarily made to the individual
by the person employing the individual.
(q) Services performed for a state, other than the state of
Minnesota, or an instrumentality wholly owned by such other
state or political subdivision of such other state;
(r) Services performed as a direct seller as defined in
United States Code, title 26, section 3508.
(16) "Institution of higher education," for the purposes of
this chapter, means an educational institution which:
(a) Admits as regular students only individuals having a
certificate of graduation from a high school, or the recognized
equivalent of such a certificate;
(b) Is legally authorized in this state to provide a
program of education beyond high school;
(c) Provides an educational program for which it awards a
bachelor's or higher degree, or provides a program which is
acceptable for credit toward such a degree, a program of
post-graduate or post-doctoral studies, or a program of training
to prepare students for gainful employment in a recognized
occupation; and
(d) Is a public or other nonprofit institution.
(e) Notwithstanding any of the foregoing provisions of this
clause, all colleges and universities in this state are
institutions of higher education for purposes of this section.
(17) "Hospital" means an institution which has been
licensed, certified or approved by the department of health as a
hospital.
Sec. 3. Minnesota Statutes 1986, section 268.04,
subdivision 24, is amended to read:
Subd. 24. "Valid claim" with respect to any individual
means a claim filed by an individual who has registered for work
and who has earned wage credits and established credit
weeks wages paid during the individual's base period sufficient
to entitle the individual to benefits under section 268.07,
subdivision 2.
Sec. 4. Minnesota Statutes 1986, section 268.04,
subdivision 25, is amended to read:
Subd. 25. [WAGES.] "Wages" means all remuneration for
services, including commissions and; bonuses,; back pay as of
the date of payment, and; tips and gratuities paid to an
employee by a customer of an employer and accounted for by the
employee to the employer,; sickness and accident disability
payments, except as otherwise provided in this subdivision; and
the cash value of all remuneration in any medium other than
cash, except that such term shall not include:
(a) For the purpose of determining contributions payable
under section 268.06, subdivision 2, that part of the
remuneration which exceeds, for each calendar year, the greater
of $7,000 or that part of the remuneration which exceeds 60
percent of the average annual wage rounded to the nearest $100
computed in accordance with the provisions of clause (f) (j),
paid to an individual by an employer or the employer's
predecessor with respect to covered employment in this state, or
with respect to employment under the unemployment compensation
law of any other state during any calendar year paid to such
individual by such covered employer or predecessor during such
calendar year; provided, that. Credit for remuneration reported
under the unemployment compensation law of another state is
limited to that state's taxable wage base. If the term "wages"
as contained in the Federal Unemployment Tax Act is amended to
include remuneration in excess of the amount required to be paid
hereunder to an individual by an employer under the federal act
for any calendar year, wages for the purposes of sections 268.03
to 268.24 shall include remuneration paid in a calendar year up
to an amount equal to the dollar limitation specified in the
Federal Unemployment Tax Act. For the purposes of this clause,
the term "employment" shall include service constituting
employment under any employment security law of another state or
of the federal government;
(b) The amount of any payment made to, or on behalf of, an
employee under a plan or system established by an employer which
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 fund, to provide for any
such payment), on account of (1) retirement or (2) sickness or
accident disability or (3) medical and hospitalization expenses
in connection with sickness or accident disability, or (4) (3)
death, provided the employee has not the option to receive,
instead of provision for such death benefit, any part of such
payment, or if such death benefit is insured, any part of the
premium (or contributions to premiums) paid by the employer and
has not the right, under the provisions of the plan or system or
policy of insurance providing for such death benefit, to assign
such benefit, or to receive a cash consideration in lieu of such
benefit either upon withdrawal from the plan or system providing
for such benefit or upon termination of such plan or system or
policy of insurance or of employment with such employer;
(c) The payment by an employer (without deduction from the
remuneration of the employee) (1) of the tax imposed upon an
employee under section 3101 of the federal Internal Revenue
Code, or (2) of any payment required from an employee under a
state unemployment compensation law, with respect to
remuneration paid to an employee for domestic service in a
private home of the employer or for agricultural labor;
(d) Any payments made to a former employee during the
period of active military service in the armed forces of the
United States by such employer, whether legally required or not;
(e) Any payment made to, or on behalf of, an employee or
beneficiary (1) from or to a trust described in section 401(a)
of the federal Internal Revenue Code which is exempt from tax
under section 501(a) of such code at the time of such payment
unless such payment is made to an employee of the trust as
remuneration for services rendered as an employee and not as a
beneficiary of the trust, or (2) under or to an annuity plan
which, at the time of such payment is a plan described in
section 403(a) of the federal Internal Revenue Code, or (3)
under or to a bond purchase plan which, at the time of such
payment, is a qualified bond purchase plan described in section
405(a) of the federal Internal Revenue Code;
(f) Sickness or accident disability payments made by the
employer after the expiration of six calendar months following
the last calendar month in which the individual worked for the
employer;
(g) Disability payments made under the provisions of any
workers' compensation law;
(h) Sickness or accident disability payments made by a
third party payer such as an insurance company;
(i) Payments made into a fund, or for the purchase of
insurance or an annuity, to provide for sickness or accident
disability payments to employees pursuant to a plan or system
established by the employer which provides for his employees
generally or for a class or classes of his employees;
(j) On or before July 1 of each year the commissioner shall
determine the average annual wage paid by employers subject to
sections 268.03 to 268.24 in the following manner:
(1) The sum of the total monthly employment reported for
the previous calendar year shall be divided by 12 to determine
the average monthly employment;
(2) The sum of the total wages reported for the previous
calendar year shall be divided by the average monthly employment
to determine the average annual wage.
The average annual wage determined shall be effective for
the calendar year next succeeding the determination;
(k) Nothing in this subdivision, other than clause (a),
shall exclude from the term "wages" any payment made under any
type of salary reduction agreement, including payments made
under a cash or deferred arrangement and cafeteria plan, as
defined in sections 401(k) and 125(d), respectively, of the
federal Internal Revenue Code, to the extent that the employee
has the option to receive the payment in cash.
Sec. 5. Minnesota Statutes 1986, section 268.04, is
amended by adding a subdivision to read:
Subd. 25a. [WAGES PAID.] "Wages paid" means the amount of
wages which have been actually paid or which have been credited
to or set apart for the employee so that payment and disposition
is under the control of the employee. Wage payments delayed
beyond their regularly scheduled pay date are considered
"actually paid" on the missed pay date. Any wages earned but
not paid with no scheduled date of payment shall be considered
"actually paid" on the last day services are performed in
employment before separation.
Wages paid shall not include wages earned but not paid
except as provided for in this subdivision.
Sec. 6. Minnesota Statutes 1986, section 268.04,
subdivision 26, is amended to read:
Subd. 26. [WAGE CREDITS.] "Wage credits" mean the amount
of wages actually or constructively paid, wages overdue and
delayed beyond the usual time of payment and back pay paid by or
from an employer to an employee for insured work and tips and
gratuities paid to an employee by a customer of an employer and
accounted for by the employee to the employer except that wages
earned in part-time employment by a student as an integral part
of an occupational course of study, under a plan for vocational
education accepted by the Minnesota department of education,
shall not result in wage credits available for benefit purposes
paid within the base period for insured work.
Sec. 7. Minnesota Statutes 1986, section 268.04,
subdivision 29, is amended to read:
Subd. 29. [CREDIT WEEK.] "Credit week" is any week for
which wages or back pay, actually or constructively paid, wages
overdue and delayed beyond the usual time of payment, and back
pay by or from one or more employers to an employee for insured
work wage credits equal or exceed 30 percent of the average
weekly wage computed to the nearest whole dollar. On or before
June 30 of each year the commissioner shall determine the
average weekly wage paid by employers subject to sections 268.03
to 268.24 in the following manner:
(a) The sum of the total monthly employment reported for
the previous calendar year shall be divided by 12 to determine
the average monthly employment;
(b) The sum of the total wages reported for the previous
calendar year shall be divided by the average monthly employment
to determine the average annual wage; and
(c) The average annual wage shall be divided by 52 to
determine the average weekly wage.
The average weekly wage as so determined computed to the
nearest whole dollar shall apply to claims for benefits which
establish a benefit year which begins subsequent to December 31
of the year of the computation.
Sec. 8. Minnesota Statutes 1986, section 268.04, is
amended by adding a subdivision to read:
Subd. 34. [CONTRIBUTION REPORT.] "Contribution report"
means the summary report of wages paid and employment used to
determine the amount of contributions due by employers on a
calendar quarter basis. An auxiliary report of wages paid and
employment broken down by business locations, when required, is
part of the contribution report.
Sec. 9. Minnesota Statutes 1986, section 268.04, is
amended by adding a subdivision to read:
Subd. 35. [WAGE DETAIL REPORT.] "Wage detail report" means
the itemized report used to record the information required by
section 268.121.
Sec. 10. Minnesota Statutes 1986, section 268.06,
subdivision 2, is amended to read:
Subd. 2. [RATES.] Each employer shall pay contributions
equal to two and seven-tenths percent for each calendar year
prior to 1985 and 5-4/10 percent for 1985 and each subsequent
calendar year of wages paid and wages overdue and delayed beyond
the usual time of payment from the employer with respect to
employment occurring during each calendar year, except as may be
otherwise prescribed in subdivisions 3a and 4. Each employer
who has an experience ratio of less than one-tenth of one
percent shall pay contributions on only the first $8,000 in
wages paid and wages overdue and delayed beyond the usual time
of payment to each employee with respect to employment occurring
during each calendar year.
Sec. 11. Minnesota Statutes 1986, section 268.06,
subdivision 3a, is amended to read:
Subd. 3a. [RATE FOR NEW EMPLOYERS.] Notwithstanding the
provisions of subdivision 2, each employer, who becomes subject
to this law, shall pay contributions at a rate:
(a) Not exceeding 2-7/10 percent, that is the higher of (1)
one percent and (2) the state's three-year benefit cost rate for
the 36 consecutive month period immediately preceding July 1 of
each year for each employer who becomes subject to this law
prior to January 1, 1984. For purposes of this clause, the
state's three-year benefit cost rate shall be computed annually
and shall be derived by dividing the total dollar amount of
benefits paid to claimants under this law during the 36
consecutive calendar months immediately preceding July 1 of each
year by the total dollar amount of wages subject to
contributions under this law during the same period. The rate
so determined shall be applicable for the calendar year next
succeeding each computation date.
(b) Not exceeding 2-7/10 percent, that is the higher of (1)
one percent and (2) the state's four-year benefit cost rate for
the 48 consecutive month period immediately preceding July 1 of
each year for each employer, except employers in the
construction industry, as determined by the commissioner, who
becomes subject to this law subsequent to December 31, 1983 and
prior to January 1, 1985. For purposes of this clause, the
state's four-year benefit cost rate shall be computed and
derived by dividing the total dollar amount of benefits paid to
claimants under this law during the 48 consecutive calendar
months immediately preceding July 1, 1983 by the total dollar
amount of wages subject to contributions under this law during
the same period. The rate so determined shall be applicable for
the calendar year 1984.
Each construction employer described above who becomes
subject to chapter 268 shall pay contributions at a rate, not
exceeding 7-1/2 percent, that is the higher of (1) one percent,
or (2) the state's four-year benefit cost rate for construction
employers for the 48 consecutive month period immediately
preceding July 1, 1983. For purposes of this clause, the
state's four-year benefit cost rate shall be computed and
derived by dividing the total dollar amount of benefits paid to
claimants of construction employers, as determined by the
commissioner, during the 48 consecutive calendar months
immediately preceding July 1, 1983 by the total dollar amount of
wages of construction employers subject to contributions during
the same period. The rate so determined shall be applicable for
the calendar year 1984.
(c) Not exceeding 5-4/10 percent, that is the higher of (1)
one percent and (2) the state's five-year benefit cost rate for
the 60 consecutive month period immediately preceding July 1,
1984 and of each year thereafter for each employer, except
employers in the construction industry, as determined by the
commissioner who becomes subject to this law on January 1, 1985
and thereafter. For purposes of this clause, the state's
five-year benefit cost rate shall be computed annually and shall
be derived by dividing the total dollar amount of benefits paid
to claimants under this law during the 60 consecutive calendar
months immediately preceding July 1, 1984 and of each year
thereafter by the total dollar amount of wages subject to
contributions under this law during the same period. The rate
so determined shall be applicable for the calendar year next
succeeding each computation date.
(b) Each construction employer described above in the
construction industry who becomes subject to this chapter shall
pay contributions at a rate, not exceeding 7-1/2 percent, that
is the higher of (1) one percent, or (2) the state's five-year
benefit cost rate for construction employers for the 60
consecutive month period immediately preceding July 1, 1984
and of each year thereafter. For purposes of this clause, the
state's five-year benefit cost rate shall be computed annually
and shall be derived by dividing the total dollar amount of
benefits paid to claimants of construction employers, as
determined by the commissioner, during the 60 consecutive
calendar months immediately preceding July 1, 1984 and of each
year thereafter by the total dollar amount of wages of
construction employers subject to contributions during the same
period. The rate so determined shall be applicable for the
calendar year next succeeding each computation date.
For purposes of this subdivision an employer is in the
construction industry if assigned an industrial classification
within division C of the Standard Industrial Classification
Manual issued by the United States Office of Management and
Budget as determined by the tax branch of the department.
Sec. 12. Minnesota Statutes 1986, section 268.06,
subdivision 5, is amended to read:
Subd. 5. [BENEFITS CHARGED AS AND WHEN PAID.] Benefits
paid to an individual pursuant to a valid claim shall be charged
against the account of the individual's employer as and when
paid, except that benefits paid to an individual who earned base
period wages for part-time employment shall not be charged to an
employer that is liable for payments in lieu of contributions or
to the experience rating account of an employer if the
employer: (1) provided weekly base period regularly scheduled
part-time employment to the individual during the individual's
base period; (2) during the individual's benefit year, continues
to provide weekly the individual with regularly scheduled
employment equal to at least approximating 90 percent of the
part-time employment provided the claimant by that employer in
the base period; and (3) is an interested party because of the
individual's loss of other employment. The relief of charges
shall terminate effective the first week in the claimant's
benefit year that the employer fails to meet the provisions of
clause (2). The amount of benefits so chargeable against each
base period employer's account shall bear the same ratio to the
total benefits paid to an individual as the base period wage
credits of the individual earned from such employer bear to the
total amount of base period wage credits of the individual
earned from all the individual's base period employers.
In making computations under this provision, the amount of
wage credits if not a multiple of $1, shall be computed to the
nearest multiple of $1.
Benefits shall not be charged to an employer that is liable
for payments in lieu of contributions or to the experience
rating account of an employer for unemployment (1) that is
directly caused by a major natural disaster declared by the
president pursuant to section 102(2) of the Disaster Relief Act
of 1974 (United States Code, title 42, section 5122(2)), if the
unemployed individual would have been eligible for disaster
unemployment assistance with respect to that unemployment but
for the individual's receipt of unemployment insurance benefits,
or (2) that is directly caused by a fire, flood, or act of God
where 70 percent or more of the employees employed in the
affected location become unemployed as a result and the employer
substantially reopens its operations in that same area within
360 days of the fire, flood, or act of God. Benefits shall be
charged to the employer's account where the unemployment is
caused by the willful act of the employer or a person acting on
behalf of the employer.
Sec. 13. Minnesota Statutes 1986, section 268.06,
subdivision 6, is amended to read:
Subd. 6. [COMPUTATION OF EACH EMPLOYER'S EXPERIENCE
RATIO.] The commissioner shall, for the calendar year 1966, and
for each calendar year thereafter, compute an experience ratio
for each employer whose account has been chargeable with
benefits;
(a) During the 36 consecutive calendar months immediately
preceding July 1 of the preceding calendar year for calendar
years up to December 31, 1983; except that, for any employer who
has not been subject to the Minnesota economic security law for
a period of time sufficient to meet the 36 consecutive months
requirement, the commissioner shall compute an experience ratio
if the employer's account has been chargeable with benefits
during at least the 12 consecutive calendar months immediately
preceding July 1 of the preceding calendar year. Such
experience ratio shall be the quotient obtained by dividing
1-1/4 times the total benefits charged to the employer's account
during the period the account has been chargeable but not less
than the 12 or more than the 36 consecutive calendar months
ending on June 30 of the preceding calendar year, by the
employer's total taxable payroll for the same period on which
all contributions due have been paid to the department of jobs
and training on or before July 31 of the preceding calendar
year. Such experience ratio shall be computed to the nearest
one-tenth of a percent.
(b) During the 48 consecutive calendar months immediately
preceding July 1, 1983 for the calendar year for 1984; except
that, for any employer who has not been subject to the Minnesota
economic security law for a period of time sufficient to meet
the 48 consecutive months requirement, the commissioner shall
compute an experience ratio if the employer's account has been
chargeable with benefits during at least the 12 consecutive
calendar months immediately preceding July 1, 1983. Such
experience ratio shall be the quotient obtained by dividing
1-1/4 times the total benefits charged to the employer's account
during the period the account has been chargeable but not less
than the 12 or more than the 48 consecutive calendar months
ending on June 30, 1983, by the employer's total taxable payroll
for the same period on which all contributions due have been
paid to the department of jobs and training on or before July
31, 1983. Such experience ratio shall be computed to the
nearest one-tenth of a percent.
(c) during the 60 consecutive calendar months immediately
preceding July 1 of the preceding calendar year for 1985 and
each year thereafter; except that, for any employer who has not
been subject to the Minnesota economic security law for a period
of time sufficient to meet the 60 consecutive months
requirement, the commissioner shall compute an experience ratio
if the employer's account has been chargeable with benefits
during at least the 12 consecutive calendar months immediately
preceding July 1 of the preceding calendar year. Such
experience ratio shall be the quotient obtained by dividing
1-1/4 times the total benefits charged to the employer's account
during the period the account has been chargeable but not less
than the 12 or more than the 60 consecutive calendar months
ending on June 30 of the preceding calendar year for 1985 and
each year thereafter, by the employer's total taxable payroll
for the same period on which all contributions due have been
paid to the department of jobs and training on or before July
October 31 of the preceding calendar year. Such experience
ratio shall be computed to the nearest one-tenth of a percent.
Sec. 14. Minnesota Statutes 1986, section 268.06,
subdivision 8, is amended to read:
Subd. 8. [DETERMINATION OF CONTRIBUTION RATES.] (a) For
each calendar year the commissioner shall determine the
contribution rate of each employer by adding the minimum rate to
the experience ratio, except that if the ratio for the current
calendar year increases or decreases the experience ratio for
the preceding calendar year by more than one and one-half
percentage points for 1982; and 2-1/2 percentage points for 1983
and each year thereafter, the increase or decrease for the
current year shall be limited to one and one-half percentage
points for 1982; and 2-1/2 percentage points for 1983 and each
year thereafter, provided that a small business employer shall
be eligible, upon application, for a reduction in the limitation
to 1-1/2 percentage points for 1983 and each year thereafter.
"Small business employer" for the purpose of this subdivision
means an employer with an annual covered payroll of $250,000 or
less, or fewer than 20 employees in three of the four quarters
ending June 30, of the previous calendar year.
(b) The minimum rate for all employers shall be one percent
if the amount in the unemployment compensation fund is less than
$80,000,000 on June 30 of the preceding calendar year; or
nine-tenths of one percent if the fund is more than $80,000,000
but less than $90,000,000; or eight-tenths of one percent if the
fund is more than $90,000,000 but less than $110,000,000; or
seven-tenths of one percent if the fund is more than
$110,000,000 but less than $130,000,000; or six-tenths of one
percent if the fund is more than $130,000,000 but less than
$150,000,000; or five-tenths of one percent if the fund is more
than $150,000,000 but less than $170,000,000; or three-tenths of
one percent if the fund is more than $170,000,000 but less than
$200,000,000; or one-tenth of one percent if the fund is
$200,000,000 or more; provided that no employer shall have a
contribution rate of more than 7.5 percent.
(c) For the purposes of this section the unemployment
compensation fund shall not include any moneys advanced from the
Federal Unemployment Account in the unemployment trust fund in
accordance with Title XII of the Social Security Act, as
amended. No employer first assigned an experience ratio in
accordance with subdivision 6, shall have a contribution rate
increased or decreased by more than one and one-half percentage
points for 1982; and 2-1/2 percentage points for 1983 and each
year thereafter over the contribution rate assigned for the
preceding calendar year in accordance with subdivision 3a,
provided that a small business employer shall be eligible, upon
application, for a reduction in the limitation to 1-1/2
percentage points for 1983 and each year thereafter.
Sec. 15. Minnesota Statutes 1986, section 268.06,
subdivision 19, is amended to read:
Subd. 19. [NOTICE OF RATE.] The commissioner shall mail to
each employer notice of the employer's rate of contributions as
determined for any calendar year pursuant to this section. Such
notice shall contain the contribution rate, factors used in
determining the individual employer's experience rating, and
such other information as the commissioner may prescribe.
Unless reviewed in the manner hereinafter changed by the
procedure provided in this subdivision, the assigned rate as
initially determined or as modified changed by a redetermination
by the tax branch of this department, a decision of a referee,
or the commissioner shall be final except for fraud and shall be
the rate upon which contributions shall be computed for the
calendar year for which such rate was determined assigned, and
shall not be subject to collateral attack for any errors,
clerical or otherwise, whether by way of claim for adjustment or
refund, or otherwise. If the legislature changes any of the
factors used to determine the contribution rate of any employer
for any year subsequent to the original mailing of such notice
for the year, the earlier notice shall be void. The notice
based on the new factors shall be deemed to be the only notice
of rate of contributions for that year and shall be subject to
the same finality, redetermination and review procedures as
provided above.
Sec. 16. Minnesota Statutes 1986, section 268.06,
subdivision 20, is amended to read:
Subd. 20. [PROTEST, REVIEW, REDETERMINATION, APPEAL.] A
review of the charges made to an employer's account as set forth
in the notice of charges referred to in subdivision 18 and a
review of an employer's contribution rate as set forth in the
notice of the employer's rate for any calendar year as provided
in subdivision 19, may be had by the employer by filing with the
commissioner a written protest setting forth reasons therefor
within 30 days from the date of the mailing of the notice of
charges or contribution rate to the employer. The date shall
appear on the notice. Upon receipt of the protest, the
commissioner shall refer the matter to an official designated by
the commissioner to review the charges appearing on the notice
appealed from or the computations of the protesting employer's
rate, as the case may be, to determine whether or not there has
been any clerical error or error in computation in either case.
The official shall either affirm or make a redetermination
rectifying the charges or rate as the case may be, and a notice
of the affirmation or redetermination shall immediately be
mailed to the employer. If the employer is not satisfied with
the affirmation or redetermination, the employer may appeal by
filing a notice with the department within ten days after the
date of mailing appearing upon the redetermination. Upon the
receipt of the appeal, the commissioner shall refer the matter
to a referee for a hearing and after opportunity for a fair
hearing, the referee shall affirm, modify or set aside the
original determination with its affirmation or the
redetermination, as appears just and proper. The commissioner
may at any time upon the commissioner's own motion correct any
clerical error of the department resulting in charges against an
employer's account or any error in the computation or the
assignment of an employer's contribution rate. The referee may
order the consolidation of two or more appeals whenever, in the
referee's judgment, consolidation will not be prejudicial to any
interested party. At any hearing a written report of any
employee of the department which has been authenticated shall be
admissible in evidence. Appeals from the decision of the
referee shall be provided by section 268.10, subdivision 5.
Sec. 17. Minnesota Statutes 1986, section 268.06,
subdivision 22, is amended to read:
Subd. 22. [EMPLOYMENT EXPERIENCE RECORD TRANSFER.] (a)
When an employing unit succeeds to or acquires the organization,
trade or business or substantially all the assets of another
employing unit which at the time of the acquisition was an
employer subject to this law, and continues such organization,
trade or business, the experience rating record of the
predecessor employer shall be transferred as of the date of
acquisition to the successor employer for the purpose of rate
determination.
(b) When an employing unit succeeds to or acquires a
distinct severable portion of the organization, trade, business
or assets which is less than substantially all of the employing
enterprises of another employing unit, the successor employing
unit shall acquire the experience rating record attributable to
the portion to which it has succeeded, and the predecessor
employing unit shall retain the experience rating record
attributable to the portion which it has retained, if (1) the
successor continues the organization, trade or business of the
portion acquired, (2) the successor within 90 days of
acquisition makes a written request to file an application as
prescribed by the commissioner for the transfer of the
experience rating record for the severable portion acquired from
the predecessor (3) and within 90 days from the date the
application is mailed to the successor the successor and
predecessor employing units jointly sign the and file a properly
completed, written application as prescribed by the commissioner
that furnishes the commissioner with sufficient information to
substantiate the severable portion and to assign the appropriate
total and taxable wages and benefit charges to the successor for
experience rating purposes. Previously assigned contribution
rates that have become final in accordance with subdivision 19
prior to the filing of the written request to file an
application shall not be affected by the transfer.
(c) An employing unit which succeeds to or acquires the
organization, trade or business or substantially all of the
assets of an employer shall notify the department in writing of
the acquisition not later than 30 days after the acquisition.
Failure to give notice shall render the predecessor and
successor employing unit jointly and severally liable for
contributions due and unpaid by the predecessor.
(d) Employment with a predecessor employer shall not be
deemed to have been terminated if similar employment is offered
by the successor employer and accepted by the employee.
(e) (d) An official, designated by the commissioner, upon
the official's own motion or upon application of an employing
unit shall determine if an employing unit is a successor within
the meaning of this subdivision and shall notify the employing
unit of the determination. The determination shall be final
unless the employing unit shall within 30 days after mailing of
notice of determination to the employing unit's last known
address file a written appeal. Proceedings on the appeal shall
be in accordance with section 268.12, subdivision 13.
(f) (e) Notwithstanding subdivision 19, the commissioner
may, after as the result of any determination of or decision
regarding succession or nonsuccession, recompute the rate of the
employer all employers affected by the determination or decision
for any prior year, including the year of the acquisition or
succession and subsequent years, that is affected by the
transfer or nontransfer of part or all of the experience rating
record under this subdivision. This paragraph does not apply to
rates that have become final in accordance with subdivision 19
prior to the filing of a written request to file an application
for the transfer of a severable portion of the experience rating
record as provided in paragraph (b).
Sec. 18. Minnesota Statutes 1986, section 268.06,
subdivision 24, is amended to read:
Subd. 24. [REASSIGNMENT VOLUNTARY CONTRIBUTIONS.]
Notwithstanding any inconsistent provisions of law any employer
who has been assigned a contribution rate pursuant to
subdivisions 4, 6, and 8 of this section may, for the calendar
year 1967, or any calendar year thereafter, upon the voluntary
payment of an amount equivalent to any portion or all of the
benefits charged to the employer's account during the period
ending June 30 of the preceding year used for the purpose of
computing an employer's experience ratio as authorized by said
subdivisions 4, 6, and 8, obtain a cancellation of benefits
charged to the account during such period equal to such payment
so voluntarily made. Upon the payment of such voluntary
contribution, plus a surcharge of 25 percent of such benefit
charged, within the applicable period prescribed by the
provisions of this subdivision, the commissioner shall cancel
the benefits equal to such payment, excluding the 25 percent
surcharge, so voluntarily made and compute a new experience
ratio for such employer. The employer then shall be assigned the
contribution rate applicable to the category within which the
recomputed experience ratio is included. Such voluntary
payments may be made only during the 30-day period immediately
following the date of mailing to the employer of the notice of
contribution rate as prescribed in this section; provided that
the commissioner may extend this period if the commissioner
finds that the employer's failure to make such payment within
such 30-day period was for good cause; and provided further that
notwithstanding any of the foregoing provisions of this
subdivision, in no event shall any new experience ratio be
computed for any employer or a contribution rate be reduced as a
result of any such voluntary payment which is made after the
expiration of the 120-day period commencing with the first day
of the calendar year for which such rate is effective. Any
adjustments under this subdivision shall be used only in the
form of credits against accrued or future
contributions Voluntary contributions made within the required
time limits will not be refunded unless a request is made in
writing at the time of payment that the department refund the
voluntary contribution if it does not result in a lower rate.
When all or a part of the benefits charged to an employer's
account are for the unemployment of 75 percent or more of the
employees in an employing unit and the unemployment is caused by
damages to the unit by fire, flood, wind or other act of God,
the employer may obtain a cancellation of benefits incurred
because of that unemployment in the manner provided by this
subdivision without being subject to the surcharge of 25 percent
otherwise required.
Sec. 19. Minnesota Statutes 1986, section 268.07,
subdivision 3, is amended to read:
Subd. 3. [WHEN WAGE CREDITS ARE NOT AVAILABLE.] (1) No
individual may receive benefits in a benefit year unless,
subsequent to the beginning of the next preceding benefit year
during which benefits were received, the individual performed
service in insured work as defined in section 268.04,
subdivision 17, and earned remuneration for the service in an
amount equal to not less than the minimum wage credits required
to qualify for benefits.
(2) No employer who provided 90 percent or more of the wage
credits in a claimant's base period shall be charged for
benefits based upon earnings of the claimant during a subsequent
base period unless the employer has employed the claimant in any
part of the subsequent base period.
(3) Wages paid by an employing unit may not be used for
benefit purposes by any individual claimant who (a) individually
or, jointly, or in combination with a the claimant's spouse,
parent, or child owns or controls directly or indirectly 25
percent or more interest in the employing unit; or (b) is the
spouse, parent, or minor child of any individual who owns or
controls directly or indirectly 25 percent or more interest in
the employing unit; and (c) is not permanently separated from
employment.
This clause is effective when the individual has been paid
four times the individual's weekly benefit amount in the current
benefit year.
(4) Wages paid in seasonal employment, as defined in
subdivision 2a, are not available for benefit purposes during
weeks in which there is no seasonal employment available with
the employer.
Sec. 20. Minnesota Statutes 1986, section 268.08, is
amended by adding a subdivision to read:
Subd. 1a. [BENEFITS DUE DECEASED PERSONS.] Upon the death
of any claimant for benefits, and in the event it is found by
the commissioner that benefits have accrued and are due and
payable to that claimant and remain wholly or partially unpaid
at the time of the claimant's death, or in the event there have
been issued and unpaid one or more benefit checks, those checks
may, upon application therefor, be paid to the duly qualified
administrator or executor of the estate of the deceased
claimant. In the event that no administrator or executor is
appointed to administer the estate of the deceased, if any, the
benefits may, upon the order and direction of the commissioner
be paid to any person designated by the commissioner in the
following order: (1) the surviving spouse, (2) the surviving
child or children, or (3) the surviving parent or parents.
A person seeking payment under this subdivision shall
complete an affidavit on a form prescribed by the department and
the payment of benefits to a person pursuant to an affidavit
under this subdivision shall discharge the obligations of the
department to the claimant to the extent of the payment, and no
other person shall claim or assert any right with respect
thereto.
Sec. 21. Minnesota Statutes 1986, section 268.08,
subdivision 3, is amended to read:
Subd. 3. [NOT ELIGIBLE.] An individual shall not be
eligible to receive benefits for any week with respect to which
the individual is receiving, has received, or has filed a claim
for remuneration in an amount equal to or in excess of the
individual's weekly benefit amount in the form of
(1) termination, severance, or dismissal payment or wages
in lieu of notice whether legally required or not; provided that
if a termination, severance, or dismissal payment is made in a
lump sum, the employer may allocate such lump sum payment over a
period equal to the lump sum divided by the employee's regular
pay while employed by such employer; provided any such payment
shall be applied for a period immediately following the last day
of work but not to exceed 28 calendar days; or
(2) vacation allowance paid directly by the employer for a
period of requested vacation, including vacation periods
assigned by the employer under the provisions of a collective
bargaining agreement, or uniform vacation shutdown; or
(3) compensation for loss of wages under the workers'
compensation law of this state or any other state or under a
similar law of the United States, or under other insurance or
fund established and paid for by the employer except that this
does not apply to an individual who is receiving temporary
partial compensation pursuant to section 176.101, subdivision
3k; or
(4) 50 percent of the pension payments from any fund,
annuity or insurance maintained or contributed to by a base
period employer including the armed forces of the United States
if the employee contributed to the fund, annuity or insurance
and all of the pension payments if the employee did not
contribute to the fund, annuity or insurance; or
(5) 50 percent of a primary insurance benefit under title
II of the Social Security Act as amended, or similar old age
benefits under any act of congress or this state or any other
state; or
(6) holiday pay, in excess of $25.
Provided, that if such remuneration is less than the
benefits which would otherwise be due under sections 268.03 to
268.24, the individual shall be entitled to receive for such
week, if otherwise eligible, benefits reduced by the amount of
such remuneration; provided, further, that if the appropriate
agency of such other state or the federal government finally
determines that the individual is not entitled to such benefits,
this provision shall not apply. If the computation of reduced
benefits, required by this subdivision, is not a whole dollar
amount, it shall be rounded down to the next lower dollar amount.
Sec. 22. Minnesota Statutes 1986, section 268.08,
subdivision 3a, is amended to read:
Subd. 3a. [RECEIPT OF BACK PAY.] Back pay received by an
individual with respect to any weeks of unemployment occurring
in the 104 weeks immediately preceding the payment of the back
pay shall be deducted from benefits paid for those weeks.
The amount deducted shall not reduce the benefits for which
the individual is otherwise eligible for that week below zero.
If the amount of benefits after the deduction of back pay is not
a whole dollar amount, it shall be rounded to the next lower
dollar.
If a deduction from back pay is paid to the fund for
benefits deductible under this subdivision, the payment the back
pay awarded the individual is reduced by benefits paid, the
amounts withheld shall be: (a) shall be paid by the employer
into the fund within 30 days of the award and are subject to the
same collection procedures that apply to past due contributions
under this chapter; (b) applied to benefit overpayments
resulting from the payment of the back pay; (b) (c) credited to
the individual's maximum amount of benefits payable in a benefit
year which includes the weeks of unemployment for which back pay
was deducted; and (c). Benefit charges for those weeks shall be
removed from the employer's account as of the calendar quarter
in which the fund receives payment.
Payments to the fund under this subdivision are made by the
employer on behalf of the individual and are not voluntary
contributions under section 268.06, subdivision 24.
Sec. 23. Minnesota Statutes 1986, section 268.09,
subdivision 1, is amended to read:
Subdivision 1. [DISQUALIFYING CONDITIONS.] An individual
separated from any employment under clause (1), (2), or
(3) paragraph (a), (b), or (d) shall be disqualified for waiting
week credit and benefits. For separations under clauses
(1) paragraphs (a) and (2) (b), the disqualification shall
continue until four calendar weeks have elapsed following the
individual's separation and the individual has earned four times
the individual's weekly benefit amount in insured work.
(1) (a) [VOLUNTARY LEAVE.] The individual voluntarily and
without good cause attributable to the employer discontinued
employment with such employer. For the purpose of this clause
paragraph, a separation from employment by reason of its
temporary nature or for inability to pass a test or for
inability to meet performance standards necessary for
continuation of employment or based solely on a provision in a
collective bargaining agreement by which an individual has
vested discretionary authority in another to act in behalf of
the individual shall not be deemed voluntary.
A separation shall be for good cause attributable to the
employer if it occurs as a consequence of sexual harassment.
Sexual harassment means unwelcome sexual advances, requests for
sexual favors, sexually motivated physical contact or other
conduct or communication of a sexual nature when: (1) the
employee's submission to such conduct or communication is made a
term or condition of the employment, (2) the employee's
submission to or rejection of such conduct or communication is
the basis for decisions affecting employment, or (3) such
conduct or communication has the purpose or effect of
substantially interfering with an individual's work performance
or creating an intimidating, hostile, or offensive working
environment and the employer knows or should know of the
existence of the harassment and fails to take timely and
appropriate action.
(2) (b) [DISCHARGE FOR MISCONDUCT.] The individual was
discharged for misconduct, not amounting to gross misconduct
connected with work or for misconduct which interferes with and
adversely affects employment.
(c) [EXCEPTIONS TO DISQUALIFICATION.] An individual shall
not be disqualified under clauses (1) and (2) paragraphs (a) and
(b) of this subdivision under any of the following conditions:
(a) (1) the individual voluntarily discontinued employment
to accept work offering substantially better conditions of work
or substantially higher wages or both;
(b) (2) the individual is separated from employment due to
personal, serious illness provided that such individual has made
reasonable efforts to retain employment;.
An individual who is separated from employment due to the
individual's illness of chemical dependency which has been
professionally diagnosed or for which the individual has
voluntarily submitted to treatment and who fails to make
consistent efforts to maintain the treatment the individual
knows or has been professionally advised is necessary to control
that illness has not made reasonable efforts to retain
employment.
(c) (3) the individual accepts work from a base period
employer which involves a change in location of work so that
said work would not have been deemed to be suitable work under
the provisions of subdivision 2 and within a period of 13 weeks
from the commencement of said work voluntarily discontinues
employment due to reasons which would have caused the work to be
unsuitable under the provision of said subdivision 2;
(d) (4) the individual left employment because of reaching
mandatory retirement age and was 65 years of age or older;
(e) (5) the individual is terminated by the employer
because the individual gave notice of intention to terminate
employment within 30 days. This exception shall be effective
only through the calendar week which includes the date of
intended termination, provided that this exception shall not
result in the payment of benefits for any week for which the
individual receives the individual's normal wage or salary which
is equal to or greater than the weekly benefit amount;
(f) (6) the individual is separated from employment due to
the completion of an apprenticeship program, or segment thereof,
approved pursuant to chapter 178;
(g) (7) the individual voluntarily leaves part-time
employment with a base period employer while continuing
full-time employment if the individual attempted to return to
part-time employment after being separated from the full-time
employment, and if substantially the same part-time employment
with the base period employer was not available for the
individual;
(8) the individual is separated from employment based
solely on a provision in a collective bargaining agreement by
which an individual has vested discretionary authority in
another to act on behalf of the individual. Except as provided
in paragraph (d), separations from part-time employment will not
be disqualifying when the claim is based on sufficient full-time
employment to establish a valid claim from which the claimant
has been separated for nondisqualifying reasons.
(3) (d) [DISCHARGE FOR GROSS MISCONDUCT.] The individual
was discharged for gross misconduct connected with work or gross
misconduct which interferes with and adversely affects the
individual's employment. For a separation under this clause,
the commissioner shall impose a total disqualification for the
benefit year and cancel all of the wage credits from the last
employer from whom the individual was discharged for gross
misconduct connected with work.
For the purpose of this clause paragraph "gross misconduct"
is defined as misconduct involving assault and battery or the
malicious destruction of property or arson or sabotage or
embezzlement or any other act, including theft, the commission
of which amounts to a felony or gross misdemeanor. For an
employee of a health care facility, gross misconduct also
includes misconduct involving an act of patient or resident
abuse as defined in section 626.557, subdivision 2, clause (d).
If an individual is convicted of a felony or gross
misdemeanor for the same act or acts of misconduct for which the
individual was discharged, the misconduct is conclusively
presumed to be gross misconduct if it was connected with the
individual's work.
(4) (e) [LIMITED OR NO CHARGE OF BENEFITS.] Benefits paid
subsequent to an individual's separation under any of the
foregoing clauses paragraphs, excepting clauses (2)(c) and
(2)(e) paragraphs (c)(3), (c)(5), and (c)(8), shall not be used
as a factor in determining the future contribution rate of the
employer from whose employment such individual separated.
Benefits paid subsequent to an individual's failure,
without good cause, to accept an offer of suitable re-employment
shall not be used as a factor in determining the future
contribution rate of the employer whose offer of re-employment
was not accepted or whose offer of re-employment was refused
solely due to the distance of the available work from the
individual's residence, the individual's own serious illness or,
the individual's other employment at the time of the offer, or
if the individual is in training with the approval of the
commissioner.
(5) (f) [ACTS OF OMISSIONS.] An individual who was employed
by an employer shall not be disqualified for benefits under this
subdivision for any acts or omissions occurring after separation
from employment with the employer.
(6) (g) [DISCIPLINARY SUSPENSIONS.] An individual shall be
disqualified for waiting week credit and benefits for the
duration of any disciplinary suspension of 30 days or less
resulting from the individual's own misconduct. Disciplinary
suspensions of more than 30 days shall constitute a discharge
from employment.
Sec. 24. Minnesota Statutes 1986, section 268.09,
subdivision 3, is amended to read:
Subd. 3. [LABOR DISPUTE.] (a) An individual who has left
or partially or totally lost employment with an employer because
of a strike or other labor dispute at the establishment in which
the individual is or was employed shall be disqualified for
benefits:
(a) (1) For each week during which the strike or labor
dispute is in progress; or
(b) (2) For one week following the commencement of the
strike or labor dispute if the individual is not participating
in or directly interested in the strike or labor dispute.
Participation includes the failure or refusal of an
individual to accept and perform available and customary work at
the establishment.
(b) An individual who has left or partially or totally lost
employment with an employer because of a jurisdictional
controversy between two or more labor organizations at the
establishment in which the individual is or was employed shall
be disqualified for benefits for each week during which the
jurisdictional controversy is in progress.
(c) For the purpose of this subdivision the term "labor
dispute" shall have the same definition as provided in the
Minnesota labor relations act. Nothing in this subdivision
shall be deemed to deny benefits to any employee:
(a) (1) who becomes unemployed because of a strike or
lockout caused by an employer's willful 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 and state laws involving occupational safety and health;
provided, however, that benefits paid in accordance with this
provision shall not be charged to the employer's experience
rating account if, following official appeal proceedings, it is
held that there was no willful failure on the part of the
employer,; or
(b) (2) who becomes unemployed because of a lockout,; or
(c) (3) who is dismissed during the period of negotiation
in any labor dispute and prior to the commencement of a strike.
Provided, however, that (d) A voluntary separation during
the time that the strike or other labor dispute is in progress
at the establishment shall not be deemed to terminate the
individual's participation in or direct interest in such strike
or other labor dispute for purposes of this subdivision.
(e) Benefits paid to an employee who has left or partially
or totally lost employment because of a strike or other labor
dispute at the employee's primary place of employment shall not
be charged to the employer's account unless the employer was a
party to the particular strike or labor dispute.
(f) Notwithstanding any other provision of this section, an
individual whose last separation from employment with an
employer occurred prior to the commencement of the strike or
other labor dispute and was permanent or for an indefinite
period, shall not be denied benefits or waiting week credit
solely by reason of failure to apply for or to accept recall to
work or re-employment with the employer during any week in which
the strike or other labor dispute is in progress at the
establishment in which the individual was employed.
Sec. 25. Minnesota Statutes 1986, section 268.12,
subdivision 8, is amended to read:
Subd. 8. [RECORDS; REPORTS.] (1) Each employing unit shall
keep true and accurate work records for such periods of time and
containing such information as the commissioner may
prescribe. Such records shall be open to inspection, audit, and
verification, and be subject to being copied by any authorized
representative of the commissioner at any reasonable time and as
often as may be necessary. The commissioner, appeal referee, or
any other duly authorized representative of the commissioner,
may require from any employing unit any sworn or unsworn
reports, with respect to persons employed by it, which the
commissioner, appeal referee, or any other duly authorized
representative of the commissioner deems necessary for the
effective administration of sections 268.03 to 268.24, provided
that quarterly contribution and wage report forms shall include
the employee's name, social security number, and total wages
paid to the employee For the purpose of determining compliance
with this chapter, or for the purpose of collection of any
amounts due under this chapter, the commissioner or any
authorized representative of the commissioner has the power to
examine, or cause to be examined or copied, any books,
correspondence, papers, records, or memoranda which are relevant
to making these determinations, whether the books,
correspondence, papers, records, or memoranda are the property
of or in the possession of the employing unit or any other
person or corporation at any reasonable time and as often as may
be necessary.
(2) The commissioner or any other duly authorized
representative of the commissioner may cause to be made such
summaries, compilations, photographs, duplications, or
reproductions of any records, reports, or transcripts thereof as
the commissioner may deem advisable for the effective and
economical preservation of the information contained therein,
and such summaries, compilations, photographs, duplications or
reproductions, duly authenticated, shall be admissible in any
proceeding under sections 268.03 to 268.24 this chapter, if the
original record or records would have been admissible therein.
Notwithstanding any restrictions contained in section 16B.50,
except restrictions as to quantity, the commissioner is hereby
authorized to duplicate, on equipment furnished by the federal
government or purchased with funds furnished for that purpose by
the federal government, records, reports, summaries,
compilations, instructions, determinations, or any other written
matter pertaining to the administration of the Minnesota
economic security law.
(3) Notwithstanding any inconsistent provisions elsewhere,
the commissioner may provide for the destruction or disposition
of any records, reports, transcripts, or reproductions thereof,
or other papers in the commissioner's custody, which are more
than two years old, the preservation of which is no longer
necessary for the establishment of contribution liability or
benefit rights or for any purpose necessary to the proper
administration of sections 268.03 to 268.24 this chapter,
including any required audit thereof, provided, that the
commissioner may provide for the destruction or disposition of
any record, report, or transcript, or other paper in the
commissioner's custody which has been photographed, duplicated,
or reproduced in the manner provided in clause (2).
(4) Notwithstanding the provisions of the Minnesota State
Archives Act the commissioner shall with the approval of the
legislative auditor destroy all benefit checks and benefit check
authorization cards that are more than two years old and no
person shall make any demand, bring any suit or other proceeding
to recover from the state of Minnesota any sum alleged to be due
on any claim for benefits after the expiration of two years from
the date of filing such claim.
Sec. 26. Minnesota Statutes 1986, section 268.121, is
amended to read:
268.121 [WAGE REPORTING.]
Beginning on April 1, 1984, each employer subject to this
chapter shall provide the commissioner with a quarterly report
of the wages, as defined in section 268.04, subdivision 25, paid
to each employee of that employer covered by this chapter. The
commissioner shall provide the legislature with recommendations
for statutory changes to fully implement this section no later
than January 1, 1983 The report must include the employee's
name, social security number, and total wages paid to the
employee. The report shall be due and filed at the same time as
the contribution report in accordance with rules established by
the commissioner for filing of quarterly contribution reports.
Sec. 27. Minnesota Statutes 1986, section 268.15,
subdivision 3, is amended to read:
Subd. 3. [CONTINGENT ACCOUNT.] There is hereby created in
the state treasury a special account, to be known as the
economic security contingent account, which shall not lapse nor
revert to any other fund. Such account shall consist of all
moneys appropriated therefor by the legislature, all moneys in
the form of interest and penalties collected pursuant to section
268.16 and all moneys received in the form of voluntary
contributions to this account and interest thereon. All moneys
in such account shall be supplemental to all federal moneys that
would be available to the commissioner but for the existence of
this account. Moneys in this account are hereby appropriated to
the commissioner and shall be expended in accordance with the
provisions of section 3.30, in connection with the
administration of sections 268.03 to 268.24 available to the
commissioner for such expenditures as the commissioner may deem
necessary in connection with the administration of sections
268.04 to 268.24. Whenever the commissioner expends moneys from
said contingent account for the proper and efficient
administration of the Minnesota economic security law for which
funds have not yet been made available by the federal
government, such moneys so withdrawn from the contingent account
shall be replaced as hereinafter provided. Upon the deposit in
the economic security administration fund of moneys which are
received in reimbursement of payments made as above provided for
said contingent account, the commissioner shall certify to the
state treasurer the amount of such reimbursement and thereupon
the state treasurer shall transfer such amount from the economic
security administration fund to said contingent account. All
moneys in this account shall 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. The state treasurer shall be
liable on the treasurer's official bond for the faithful
performance of duties in connection with the economic security
contingent account provided for herein. Notwithstanding
anything to the contrary contained herein, on June 30 of each
year, except 1982, all amounts in excess of $300,000 in this
account shall be paid over to the unemployment compensation fund
established under section 268.05 and administered in accordance
with the provisions set forth therein.
Sec. 28. Minnesota Statutes 1986, section 268.16, is
amended by adding a subdivision to read:
Subd. 1a. [INTEREST ON JUDGMENTS.] Notwithstanding section
549.09, if judgment is or has been entered upon any past due
contribution or reimbursement which has not been paid within the
time specified by law for payment, the unpaid judgment shall
bear interest at the rate specified in subdivision 1 until the
date of payment. The rate will be effective after July 1, 1987,
on any unpaid judgment balances and all new judgments docketed
after that date.
Sec. 29. Minnesota Statutes 1986, section 268.16,
subdivision 2, is amended to read:
Subd. 2. [REPORTS; DELINQUENCIES; PENALTIES.] (1) (a) Any
employer who knowingly fails to make and submit to the
department of jobs and training any contribution report of wages
paid by or due from the employer for insured work in the manner
and at the time such the report is required by rules prescribed
by the commissioner shall pay to the department of jobs and
training for the contingent account a penalty in the amount of
1-1/2 percent of contributions accrued during the period for
which such the report is required, for each month from and after
such the due date until such the report is properly made and
submitted to the department of jobs and training. In no case
shall the amount of the penalty imposed hereby be less than $5
per month. The maximum penalty imposed hereby shall be $25 or
the amount determined at the rate of 1-1/2 percent per month,
whichever is greater. Any employing unit which fails to make
and submit to the commissioner any report, other than one of
wages paid or payable for insured work, as and when required by
the rules of the commissioner, shall be subject to a penalty in
the sum of $10 payable to the department of jobs and training
for the contingent account. All such penalties shall be in
addition to interest and any other penalties provided for by
sections 268.03 to 268.24 and shall be collected as provided by
section 268.161.
(2) (b) If any employing unit required by sections 268.03
to 268.24 to make and submit contribution reports shall fail to
do so within the time prescribed by these sections or by rules
under the authority thereof, or shall make, willfully or
otherwise, an incorrect, false or fraudulent contribution
report, it shall, on the written demand of the commissioner,
make such contribution report, or corrected report, within ten
days after the mailing of such written demand and at the same
time pay the whole contribution, or additional contribution, due
on the basis thereof. If such employer shall fail within that
time to make such report, or corrected report, the commissioner
shall make a report, or corrected report, from the
commissioner's own knowledge and from such information as the
commissioner can obtain through testimony, or otherwise, and
assess a contribution on the basis thereof, which contribution,
plus penalties and interest which thereafter accrued (less any
payments theretofore made) shall be paid within ten days after
the commissioner has mailed to such employer a written notice of
the amount thereof and demand for its payment. Any such
contribution report or assessment made by the commissioner on
account of the failure of the employer to make a report or
corrected report shall be prima facie correct and valid, and the
employer shall have the burden of establishing its incorrectness
or invalidity in any action or proceeding in respect thereto.
Whenever such delinquent employer shall file a report or
corrected report, the commissioner may, on finding it
substantially correct, substitute it for the commissioner's
report.
(c) Any employer who fails to file the wage detail report
required by section 268.121 shall pay to the department for each
month the report is delinquent a penalty of one-half of one
percent of total wages paid. The penalty shall not be assessed
if the wage detail report is properly made and filed within 30
days after a demand for the report is mailed to the employer's
address of record. In no case shall the amount of the penalty,
if assessed, be less than $25. Penalties due under this
subdivision may be waived where good cause for late filing is
found by the commissioner.
(d) Any employer who files the wage detail report required
by section 268.121 but knowingly fails to include any of the
required information or knowingly enters erroneous information
shall be subject to a penalty of $25 for each individual for
whom the information is missing or erroneous.
(e) Any employing unit which fails to make and submit to
the commissioner any report, other than a contribution report or
wage detail report, as and when required by rule, shall be
subject to a penalty of $50 payable to the department.
(f) Penalties provided for in paragraphs (a), (c), (d), and
(e) are in addition to interest and any other penalties imposed
by sections 268.03 to 268.24 and shall be collected as provided
by section 268.161 and shall be credited to the contingent
account.
Sec. 30. Minnesota Statutes 1986, section 268.16, is
amended by adding a subdivision to read:
Subd. 3a. [COSTS.] Any employing unit which fails to make
and submit reports or pay any contributions or reimbursement
when due is liable to the department for any recording fees,
sheriff fees, or litigation costs incurred in the collection of
the amounts due or obtaining the reports.
If any check or money order, in payment of any amount due
under this chapter, is not honored when presented for payment,
the employing unit will be assessed a fee of $20 which is in
addition to any other fees provided by this chapter. The fee
shall be assessed regardless of the amount of the check or money
order or the reason for nonpayment with the exception of
processing errors made by a financial institution.
Costs due under this subdivision shall be paid to the
department and credited to the administration fund.
Sec. 31. Minnesota Statutes 1986, section 268.161,
subdivision 1, is amended to read:
Subdivision 1. [LIEN.] (a) Any contributions, benefit
overpayments, or reimbursements due under sections 268.03 to
268.24 this chapter and interest and penalties imposed with
respect thereto, shall become a lien upon all the property,
within this state, both real and personal, of the person liable
therefor, except the person's homestead, from and after the
filing by the commissioner of a notice of lien in the office of
the county recorder of the county in which the property is
situated, or in the case of personal property belonging to an
individual who is not a resident of this state, or which is a
corporation, partnership, or other organization, in the office
of the secretary of state. When the filing of the notice of
lien is made in the office of the county recorder, the fee for
filing and indexing shall be as prescribed in sections 272.483
and 272.484 the date of assessment of the contribution, benefit
overpayment, or reimbursement. The term "date of assessment"
means the date a report was due or the payment due date of the
notice of benefits charged to a reimbursable account.
The lien created under this section shall become effective
with respect to personal property from and after the date of
filing by the commissioner of a notice of the lien describing
the property to which the lien attaches in the office of the
county recorder of the county in which the commissioner believes
the property is located at the time the lien is filed, and with
the secretary of state (b) The lien imposed by this section 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 by the commissioner in the office of the
county recorder of the county in which the property is situated,
or in the case of personal property belonging to an individual
who is not a resident of the state, or which is a corporation,
partnership, or other organization, in the office of the
secretary of state. When the filing of the notice of lien is
made in the office of the county recorder, the fee for filing
and indexing shall be as prescribed in sections 272.483 and
272.484.
(c) The lien imposed on personal property by this section,
even though properly filed, shall not be valid as is not
enforceable against a purchaser with respect to tangible
personal property purchased at retail or as against the personal
property listed as exempt in sections 550.37, 550.38 and 550.39.
(d) A notice of tax lien filed pursuant to this section has
priority over any security interest arising under chapter 336,
article 9, which is perfected prior in time to the lien imposed
by this section, but only if:
(1) the perfected security interest secures property not in
existence at the time the notice of tax lien is filed; and
(2) the property comes into existence after the 45th day
following the day on which the notice of tax lien is filed, or
after the secured party has actual notice or knowledge of the
tax lien filing, whichever is earlier.
(e) The lien imposed by this section shall be 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 by
the commissioner before the expiration of the ten-year period
for an additional ten years. The delinquent employer must
receive notice of the renewal.
(f) The lien imposed by this section shall be enforceable
by levy as authorized in subdivision 8 or by judgment lien
foreclosure as authorized in chapter 550.
Sec. 32. Minnesota Statutes 1986, section 268.161, is
amended by adding a subdivision to read:
Subd. 1a. [LIMITATION FOR HOMESTEAD PROPERTY.] The lien
imposed by this section is a lien upon property defined as
homestead property in chapter 510. The lien may be enforced
only upon the sale, transfer, or conveyance of the homestead
property.
Sec. 33. Minnesota Statutes 1986, section 268.161,
subdivision 8, is amended to read:
Subd. 8. [LEVY.] (a) If any contribution or reimbursement
payable to the department is not paid when due, the amount may
be collected by the commissioner, a duly authorized
representative, or by the sheriff of any county to whom the
commissioner has issued a warrant, who may levy upon all
property and rights of property of the person liable for the
contribution or reimbursement, (except that which is exempt from
execution pursuant to section 550.37), or property on which
there is a lien provided by subdivision 1. The terms
"contribution or reimbursement" shall include any penalty,
interest, and costs. The term "levy" includes the power of
distraint and seizure by any means. Before a levy is made or
warrant issued, notice and demand for payment of the amount due
shall be given to the person liable for the contribution or
reimbursement at least ten days prior to the levy or issuing of
a warrant.
(b) Upon the commissioner issuing a warrant, the sheriff
shall proceed within 60 days to levy upon the rights to property
of the employer within the employer's county, except the
homestead and household goods of the employer and property of
the employer not liable to attachment, garnishment, or sale on
any final process issued from any court under the provisions of
section 550.37, and shall sell so much thereof as is required to
satisfy the contribution, reimbursement, interest, and
penalties, together with the commissioner's costs. The sales
shall, as to their manner, be governed by the law applicable to
sales of like property on execution issued against property upon
a judgment of a court of record. The proceeds of the sales,
less the sheriff's costs, shall be turned over to the
commissioner, who shall retain a part thereof as is required to
satisfy the contribution, reimbursement, interest, penalties,
and costs, and pay over any balance to the employer.
(c) If the commissioner has reason to believe that
collection of the contribution or reimbursement is in jeopardy,
notice and demand for immediate payment of the amount may be
made by the commissioner. If the contribution or reimbursement
is not paid, the commissioner may proceed to collect by levy or
issue a warrant without regard to the ten-day period provided
herein.
(d) In making the execution of the levy and in collecting
the contribution or reimbursement due, the commissioner shall
have all of the powers provided in chapter 550 and in any other
law for purposes of effecting an execution against property in
this state. The sale of property levied upon and the time and
manner of redemption therefrom shall be as provided in chapter
550. The seal of the court, subscribed by the court
administrator, as provided in section 550.04, shall not be
required. The levy for collection of contributions or
reimbursements may be made whether or not the commissioner has
commenced a legal action for collection of the amount.
(e) Where a jeopardy assessment or any other assessment has
been made by the commissioner, the property seized for
collection of the contribution or reimbursement shall not be
sold until any determination of liability, rate or benefit
charges has become final. No sale shall be made unless the
contribution or reimbursement remain unpaid for a period of more
than 30 days after the determination becomes final. Seized
property may be sold at any time if:
(1) the employer 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.
(f) Where a levy has been made to collect contributions or
reimbursements pursuant to this subdivision 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 shall not be sold until
the probate proceedings are completed or until the court so
orders.
(g) The property seized shall be returned by the
commissioner if the owner gives a surety bond equal to the
appraised value of the owner's interest in the property, as
determined by the commissioner, or deposits with the
commissioner security in a form and amount as the commissioner
deems necessary to insure payment of the liability, but not more
than twice the liability.
(h) Notwithstanding any other law to the contrary, if a
levy or sale pursuant to this section would irreparably injure
rights in property which the court determines to be superior to
rights of the state in the property, the district court may
grant an injunction to prohibit the enforcement of the levy or
to prohibit the sale.
(i) Any person who fails or refuses to surrender without
reasonable cause any property or rights to property subject to
levy upon demand by the commissioner shall be personally liable
to the department in an amount equal to the value of the
property or rights not so surrendered, but not exceeding the
amount of contribution or reimbursement for the collection of
which the levy has been made. Any amount recovered under this
subdivision shall be credited against the contribution or
reimbursement liability for the collection of which the levy was
made. The term "person" includes an officer or employee of a
corporation or a member or employee of a partnership who, as an
officer, employee, or member is under a duty to surrender the
property or rights to property or to discharge the obligation.
(j) Any action taken by the commissioner pursuant to this
subdivision shall not constitute an election by the department
to pursue a remedy to the exclusion of any other remedy.
(k) After the commissioner has seized the property of any
person, that person 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
to the employer upon terms and conditions as the court may deem
equitable.
(l) Any person in possession of (or obligated with respect
to) property or rights to property subject to levy upon which a
levy has been made who, upon demand by the commissioner,
surrenders the property or rights to property or who pays a
liability under this subdivision shall be discharged from any
obligation or liability to the person liable for the payment of
the delinquent contribution or reimbursement with respect to the
property or rights to property so surrendered or paid.
(m) Notwithstanding any other provisions of law to the
contrary, the notice of any levy authorized by this section may
be served by certified or registered mail or by delivery by an
employee or agent of the department of jobs and training.
(n) It shall be lawful for the commissioner to 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
shall not operate to prevent any subsequent levy. If the
commissioner determines that property has been wrongfully levied
upon, it shall be lawful for the commissioner to 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) Notwithstanding section 52.12, a levy by the
commissioner made pursuant to the provisions of this section
upon an employer's funds on deposit in a financial institution
located in this state, shall have 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 employer to the financial institution. A claim by the
financial institution that it exercised its right to setoff
prior to the levy by the commissioner must be substantiated by
evidence of the date of the setoff, and shall be verified by the
sworn statement of a responsible corporate officer of the
financial institution. Furthermore, for purposes of determining
the priority of any levy made under this section, the levy shall
be treated as if it were an execution made pursuant to chapter
550.
Sec. 34. Minnesota Statutes 1986, section 268.161,
subdivision 9, is amended to read:
Subd. 9. [PERSONAL LIABILITY.] Any officer, director, or
any employee having 20 percent ownership interest of a
corporation which is an employer under sections 268.03 to 268.24
who has control of or supervision over the filing of and
responsibility for filing contribution reports or of making
payment of contributions under these sections, and who willfully
fails to file the reports or to make payments as required, shall
be personally liable for contributions or reimbursement,
including interest, penalties, and costs in the event the
corporation does not pay to the department those amounts for
which the employer is liable.
Any personal representative of the estate of a decedent or
fiduciary who voluntarily distributes the assets filed therein
without reserving a sufficient amount to pay the contributions,
interest, and penalties due pursuant to this chapter shall be
personally liable for the deficiency.
The personal liability of any person as provided herein
shall survive dissolution, reorganization, bankruptcy,
receivership, or assignment for the benefit of creditors. For
the purposes of this subdivision, all wages paid by the
corporation shall be considered earned from the person
determined to be personally liable.
An official designated by the commissioner shall make an
initial determination as to the personal liability under this
section. The determination shall be final unless the person
found to be personally liable shall within 30 days after mailing
of notice of determination to the person's last known address
file a written appeal. Proceedings on the appeal shall be
conducted in the same manner as an appeal from a determination
of employer liability under section 268.12, subdivision 13.
Sec. 35. [268.162] [LIABILITY OF SUCCESSOR.]
Subdivision 1. [ACQUISITION OF ORGANIZATION, TRADE, OR
BUSINESS.] Any individual or organization, whether or not an
employing unit, which acquires all or part of the organization,
trade, or business or all or part of the assets thereof from an
employer, is jointly and severally liable, in an amount not to
exceed the reasonable value of that part of the organization,
trade, or business or assets acquired, for the contributions due
and unpaid by the employer, and the amount of liability shall,
in addition, be a lien against the property or assets so
acquired which shall be prior to all other unrecorded liens.
Subd. 2. [REASONABLE VALUE.] An official, designated by
the commissioner, upon the official's own motion or upon
application of the potential successor, shall determine the
reasonable value of the organization, trade, or business or
assets acquired by the successor based on available
information. The determination shall be final unless the
successor, within 30 days after the mailing of notice of the
determination to the successor's last known address, files a
written appeal from it. Any appeals of a determination under
this subdivision shall be conducted in the same manner as an
appeal under section 268.12, subdivision 13.
Subd. 3. [STATEMENT OF AMOUNT DUE.] Prior to the date of
acquisition, the commissioner shall furnish the potential
successor with a written statement of the predecessor's
contributions due and unpaid, on record as of the date of
issuance, only upon the written request of the potential
successor and the written release of the predecessor. No
release is required after the date of acquisition.
Subd. 4. [ADDITIONAL REMEDY.] The remedy provided by this
section is in addition to all other existing remedies against
the employer or his successor and is not an election by the
department to pursue this remedy to the exclusion of any other
remedy.
Sec. 36. [268.163] [LIABILITY OF THIRD PARTIES TO ASSURE
PAYMENT OF AMOUNTS DUE FROM CONTRACTORS, SUBCONTRACTORS, AND
EMPLOYEE LEASING FIRMS.
Subdivision 1. [CONTRACTORS.] A contractor, who is or
becomes an employer under this chapter, who contracts with any
subcontractor, who is or becomes an employer under this chapter,
is directly liable for the payment of all the contributions,
interest, penalties, and collection costs which are due or
become due from the subcontractor with respect to wages paid for
employment on the contract, unless the contractor requires the
subcontractor to provide a good and sufficient bond guaranteeing
the payment of all contributions, interest, penalties, and
collection costs which may become due. The words "contractor"
and "subcontractor" includes individuals, partnerships, firms,
or corporations, or other association of persons engaged in the
construction industry.
Subd. 2. [EMPLOYEE LEASING FIRMS.] A person whose
workforce consists of 50 percent or more of workers provided by
employee leasing firms, is directly liable for the payment of
all the contributions, penalties, interest, and collection costs
which are due or become due from wages paid for employment on
the contract, unless the contract requires the employee leasing
firm to provide a good and sufficient bond guaranteeing the
payment of all contributions, penalties, interest, and
collection costs which may become due. "Employee leasing firm"
means an employing unit that provides its employees to other
firms, persons, and employing units without severing its
employer-employee relationship with the worker for the services
performed for the lessee.
Subd. 3. [DETERMINATION OF LIABILITY.] An official
designated by the commissioner shall make an initial
determination as to the liability under this section. The
determination shall be final unless the contractor or person
found to be liable files a written appeal within 30 days after
mailing of notice of determination to the person's last known
address. Proceedings on the appeal shall be conducted in the
same manner as an appeal from a determination of employer
liability under section 268.12, subdivision 13.
Sec. 37. [268.164] [UNEMPLOYMENT TAX CLEARANCES; ISSUANCES
OF LICENSES.]
Subdivision 1. [UNEMPLOYMENT CLEARANCE REQUIRED.] The
state or a political subdivision of the state may not issue,
transfer, or renew a license for the conduct of any profession,
trade, or business, if the commissioner notifies the licensing
authority that the applicant owes the state delinquent
contributions, reimbursements, or benefit overpayments. The
commissioner may not notify the licensing authority unless the
applicant owes $500 or more to the unemployment compensation
fund. A licensing authority that has received a notice from the
commissioner may issue, transfer, or renew the applicant's
license only if (a) the commissioner issues an unemployment tax
clearance certificate; and (b) the commissioner or the applicant
forwards a copy of the clearance to the licensing authority.
Subd. 2. [ISSUANCE OF CLEARANCE.] The commissioner may
issue an unemployment tax clearance certificate only if (a) the
applicant does not owe the state any delinquent contributions,
reimbursements, or benefit overpayments; or (b) the applicant
has entered into a payment agreement to liquidate the delinquent
contributions, reimbursements, or benefit overpayments and is
current with all the terms of that payment agreement.
For the purposes of this section, "applicant" means: (a)
an individual if the license is issued to or in the name of an
individual or the corporation or partnership if the license is
issued to or in the name of a corporation or partnership; or (b)
an officer of a corporation or a member of a partnership who is
liable for the delinquent contributions, reimbursements, or
benefit overpayments.
Subd. 3. [NOTICE AND RIGHT TO HEARING.] At least 30 days
before the commissioner notifies a licensing authority pursuant
to subdivision 1, a notice and demand for payment of the amount
due shall be given to the applicant. If the applicant disputes
the amount due, the applicant must request a hearing in writing
within 30 days after the mailing of the notice and demand for
payment to the applicant's last known address. Proceedings on
the appeal of the amount due shall be conducted in the same
manner as an appeal from a determination of employer liability
under section 268.12, subdivision 13.
Subd. 4. [LICENSING AUTHORITY; DUTIES.] Upon request of
the commissioner, the licensing authority must provide the
commissioner with a list of all applicants, including the name,
address, business name and address, social security number, and
business identification number of each applicant. The
commissioner may request from a licensing authority a list of
the applicants no more than once each calendar year.
Notwithstanding section 268.12, the commissioner may release
information necessary to accomplish the purpose of this section.
Subd. 5. [OTHER REMEDIES.] Any action taken by the
commissioner pursuant to this section is not an election by the
commissioner to pursue a remedy to the exclusion of any other
remedy.
Sec. 38. [268.165] [WITHHOLDING OF BENEFITS FOR UNPAID
CONTRIBUTIONS.]
Subdivision 1. [WITHHOLDING OF UNEMPLOYMENT
BENEFITS.] Notwithstanding section 268.17, the commissioner may
deduct and withhold up to 50 percent of each unemployment
compensation payment payable to an individual under this chapter
for unpaid contributions, interest, penalties, and costs which
the individual has been determined liable to pay.
Subd. 2. [EFFECT OF PAYMENTS.] Any amounts deducted and
withheld under this section shall be treated as if paid to the
individual as benefits and paid by the individual to the
department in satisfaction of the individual's delinquent
contributions, interest, penalties, and costs.
Subd. 3. [PRIORITY OF WITHHOLDING.] Any amounts deducted
and withheld under this section have priority over any other
levy, garnishment, attachment, execution, or setoff, except for
the recoupment of benefit overpayments allowed under section
268.18.
Sec. 39. [268.166] [CANCELLATION OF DELINQUENT
CONTRIBUTIONS.]
Notwithstanding section 10.12, the commissioner may cancel
as uncollectible any contributions, reimbursements, penalties,
or the interest or costs thereon, which remain unpaid six years
after the amounts have been determined by the commissioner to be
due and payable. This section does not prohibit the
commissioner from collecting any amounts secured by a notice of
lien or a judgment which are older than six years.
Sec. 40. Minnesota Statutes 1986, section 268.18,
subdivision 1, is amended to read:
Subdivision 1. [ERRONEOUS PAYMENTS.] Any claimant for
benefits who, by reason of the claimant's own mistake or through
the error of any individual engaged in the administration of
sections 268.03 to 268.24 or because of a determination or
redetermination issued pursuant to section 268.10, subdivision
2, has received any sum as benefits to which the claimant was
not entitled under these sections, shall promptly return such
benefits in cash to the nearest office of the Minnesota
department of jobs and training. If such claimant fails to
return such benefits, the department of jobs and training shall,
as soon as it discovers such erroneous payment, determine the
amount thereof and notify said individual to return the same.
Unless the claimant files a written appeal with the department
of jobs and training within 15 days after the mailing of the
notice of determination to the claimant's last known address or
personal delivery of the notice, the determination shall become
final. If the claimant files an appeal with the department in
writing within the time aforesaid the matter shall be set for
hearing before a referee of the department and heard as other
benefit matters are heard in accordance with section 268.10 with
the same rights of review as outlined for benefit cases in that
section. The commissioner of the department of jobs and
training is hereby authorized to deduct from any future benefits
payable to the claimant under these sections in either the
current or any subsequent benefit year an amount equivalent to
the overpayment determined, except that no single deduction
shall exceed 50 percent of the amount of the payment from which
the deduction is made, or the overpayment may be collected
without interest by civil action in the name of the commissioner
the same as contributions or reimbursements under section
268.161. If a claimant has been overpaid benefits under the law
of another state due to error and that state certifies to the
department the facts involved and that the individual is liable
under its law to repay the benefits and requests the department
to recover the overpayment, the commissioner is authorized to
deduct from future benefits payable to the claimant in either
the current or any subsequent benefit year an amount equivalent
to the amount of overpayment determined by that state, except
that no single deduction shall exceed 50 percent of the amount
of the payment from which the deduction is made. Benefits paid
for weeks more than three years prior to the discovery of error
are not erroneous payments.
Sec. 41. Minnesota Statutes 1986, section 268.18,
subdivision 2, is amended to read:
Subd. 2. [FRAUD.] Any claimant who files a claim for or
receives benefits by knowingly and willfully misrepresenting or
misstating any material fact or by knowingly and willfully
failing to disclose any material fact which would make the
claimant ineligible for benefits under sections 268.03 to 268.24
is guilty of fraud. After the discovery of facts by the
commissioner indicating fraud in claiming or obtaining benefits
under sections 268.03 to 268.24, the commissioner is hereby
authorized to make a determination that the claimant was
ineligible for each week with reference to which benefits were
claimed or obtained by fraud for the amount as was in excess of
what the claimant would have been entitled to had the claimant
not made the fraudulent statements or failed to disclose any
material facts. The commissioner also may disqualify an
individual from benefits for one to 52 weeks in which the
claimant is otherwise eligible for benefits following the week
in which the fraud was determined. A disqualification imposed
for fraud shall not be removed by subsequent insured work or the
expiration of a benefit year but shall not apply to any week
more than 104 weeks after the week in which the fraud was
determined. The claimant shall promptly repay in cash to the
department of jobs and training any benefits fraudulently
obtained. Unless the claimant files a written appeal with the
department of jobs and training within 15 days after the mailing
of the notice of determination to the claimant's last known
address or personal delivery of the notice, the determination
shall become final. If the claimant appeals from the
determination within the time above specified the matter shall
be referred to a referee for a hearing as in other benefit cases
and thereafter the procedure for review shall be the same as set
forth in section 268.10. The commissioner is hereby authorized
to deduct from future benefits payable to the claimant in either
the current or any subsequent benefit year an amount equivalent
to the amount of overpayment determined disregarding the 50
percent limitation provided for in subdivision 1 or the
overpayment may be collected without interest by civil action in
the name of the commissioner the same as contributions or
reimbursements under section 268.161. If a claimant has been
overpaid benefits under the law of another state due to fraud
and that state certifies to the department the facts involved
and that the individual is liable to repay the benefits and
requests the department to recover the overpayment, the
commissioner is authorized to deduct from future benefits
payable to the claimant in either the current or any subsequent
benefit year an amount equivalent to the amount of overpayment
determined by that state disregarding the 50 percent limitation
provided for in subdivision 1. A determination of fraud may be
made at any time.
Sec. 42. Minnesota Statutes 1986, section 268.18, is
amended by adding a subdivision to read:
Subd. 2a. [OFFSET OF STATE AND FEDERAL UNEMPLOYMENT
BENEFITS.] To the extent permissible under the laws and
constitution of the United States, the commissioner is
authorized to enter into or cooperate in arrangements or
reciprocal agreements with the United States Secretary of Labor,
whereby, overpayments of unemployment benefits as determined
under applicable federal law, with respect to benefits or
allowances for unemployment provided under a federal program
administered by this state under an agreement with the United
States Secretary of Labor, may be recovered by offset from
unemployment benefits otherwise payable under this chapter or
any such federal program. As provided by reciprocal agreement,
benefit overpayments as determined under subdivisions 1 and 2
may be recovered by offset from benefits or allowances for
unemployment otherwise payable under a federal program
administered by this state.
Sec. 43. Minnesota Statutes 1986, section 268.18,
subdivision 3, is amended to read:
Subd. 3. [FALSE REPRESENTATIONS; CONCEALMENT OF FACTS;
PENALTY.] Whoever makes a false statement or representation
knowing it to be false or knowingly fails to disclose a material
fact to obtain or increase any benefit or other payment (a)
Whoever obtains, or attempts to obtain, or aids or abets any
person to obtain by means of a willfully false statement or
representation, by intentional concealment of a material fact,
or by impersonation or other fraudulent device, benefits to
which the person is not entitled or benefits greater than that
to which the person is entitled under sections 268.03 to 268.24
this chapter, or under the employment security law of any state
or of the federal government or of a foreign government, either
personally or for any other person, shall be guilty of a gross
misdemeanor theft and shall be sentenced pursuant to section
609.52, subdivision 3, clauses (1), (2), and (5). The amount of
the benefits incorrectly paid shall be the difference between
the amount of benefits actually received and the amount which
the person would have been entitled under state and federal law
had the department been informed of all material facts.
(b) Any employing unit or any officer or agent of an
employing unit or any other person who makes a false statement
or representation knowing it to be false, or who knowingly fails
to disclose a material fact, to prevent or reduce the payment of
benefits to any individual entitled thereto, or to avoid
becoming or remaining a subject employer or to avoid or reduce
any contribution or other payment required from an employing
unit under those sections this chapter or under the employment
security law of any state or of the federal government, or who
willfully fails or refuses to make any such contributions or
other payment or to furnish any reports at the time when
required hereunder or shall be guilty of a gross misdemeanor
unless the benefit underpayment, contribution, or other payment
involved exceeds $250, in which event the person is guilty of a
felony.
(c) Any person who willfully fails to produce or permit the
inspection or copying of books, papers, records, or memoranda as
required hereunder, or when requested under section 268.12,
subdivision 8, or to furnish any required reports other than
contribution reports shall be guilty of a gross misdemeanor.
Sec. 44. Minnesota Statutes 1986, section 268.18,
subdivision 4, is amended to read:
Subd. 4. [CANCELLATION OF BENEFITS PAID THROUGH ERROR OR
FRAUD.] When benefits paid through error or fraud are not repaid
or deducted from subsequent benefit amounts as provided for in
subdivisions 1 and 2 within six years after the date of the
determination that benefits were paid through error or fraud
irrespective of subsequent partial recovery dates, the
commissioner may, in a manner the commissioner prescribes by
rule, shall cancel as uncollectible the overpayment balance, and
no administrative or legal proceedings shall be instituted under
the Minnesota economic security law to enforce collection of
those amounts. The commissioner may cancel at any time benefits
paid through error or fraud which the commissioner determines
are uncollectible due to death or bankruptcy.
Sec. 45. Minnesota Statutes 1986, section 268.18,
subdivision 5, is amended to read:
Subd. 5. [ERRONEOUS PAYMENTS; CHARGING.] The amount of
benefits paid and subsequently determined to have been paid:
(a) erroneously by the claimant's own mistake; (b) through error
by any individual engaged in the administration of sections
268.03 to 268.24; or (c) based upon the claimant's fraudulent
statements or failure to disclose any material facts, shall not
be charged to or will be removed from an employer's experience
rating account for all subsequent rate computations which have
not become final under section 268.06, and shall not be charged
to employers electing to reimburse the unemployment fund in
accordance with section 268.06, for all benefits paid, based
upon wages for services performed with the employer.
Sec. 46. Minnesota Statutes 1986, section 268.65,
subdivision 5, is amended to read:
Subd. 5. [EMPLOYER PENALTY.] An employer who enters into
an on-the-job training agreement with the commissioner and who
terminates the trainee in a manner other than provided in this
subdivision shall repay 70 percent of the amount of unemployment
insurance benefits paid to the individual while in the training
program with that employer if the termination occurs during the
training period. If the termination occurs during the 12-month
period of guaranteed employment, the employer receives a
proportional reduction in the amount it must repay. Penalties
assessed under this subdivision are in addition to any other
penalties provided for by this chapter and are subject to the
same collection procedures that apply to past due contributions
under this chapter. Penalties under this subdivision shall be
paid to the commissioner and credited to the job search and
relocation fund. When it is determined to be in the best
interest of the state, the commissioner may waive all or part of
the employer penalty. The commissioner shall use any money
collected under this paragraph for job search and relocation
expenses of structurally unemployed workers participating in the
training program.
Sec. 47. [268.001] [CITATION; JOBS AND TRAINING LAW.]
Chapter 268 shall be known and may be cited as the
"Minnesota Jobs and Training Law."
Sec. 48. Minnesota Statutes 1986, section 270A.09, is
amended by adding a subdivision to read:
Subd. 1a. Notwithstanding subdivision 1, any debtor
contesting a setoff claim by the department of jobs and training
shall have a hearing conducted in the same manner as an appeal
under section 268.12, subdivision 13.
Sec. 49. Minnesota Statutes 1986, section 508.25, is
amended to read:
508.25 [RIGHTS OF PERSON HOLDING CERTIFICATE OF TITLE.]
Every person receiving a certificate of title pursuant to a
decree of registration and every subsequent purchaser of
registered land who receives a certificate of title in good
faith and for a valuable consideration shall hold it free from
all encumbrances and adverse claims, excepting only the estates,
mortgages, liens, charges, and interests as may be noted in the
last certificate of title in the office of the registrar, and
also excepting any of the following rights or encumbrances
subsisting against it, if any:
(1) Liens, claims, or rights arising or existing under the
laws or the constitution of the United States, which this state
cannot require to appear of record;
(2) The lien of any real property tax or special assessment
for which the land has not been sold at the date of the
certificate of title;
(3) Any lease for a period not exceeding three years when
there is actual occupation of the premises thereunder;
(4) All rights in public highways upon the land;
(5) The right of appeal, or right to appear and contest the
application, as is allowed by this chapter;
(6) The rights of any person in possession under deed or
contract for deed from the owner of the certificate of title;
(7) Any outstanding mechanics lien rights which may exist
under sections 514.01 to 514.17.
(8) Liens or judgments, notwithstanding section 508.63,
arising under the laws of this state for the nonpayment of any
amounts due under chapter 268 or any tax administered by the
commissioner of revenue.
Sec. 50. [REPEALER.]
Minnesota Statutes 1986, section 268.24, is repealed.
Approved June 2, 1987
Official Publication of the State of Minnesota
Revisor of Statutes