Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2001, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 175-H.F.No. 655
An act relating to unemployment insurance; making
technical and substantive changes; modifying
unemployment compensation provisions for Indian
tribes; providing for workers' compensation and
disability insurance offsets of unemployment benefits
payments; providing that certain applicants on leaves
of absence are ineligible for benefits; modifying
definitions; clarifying procedures; providing
eligibility for benefits for certain victims of
domestic abuse; instructing the revisor to renumber
sections and change terms; amending Minnesota Statutes
2000, sections 268.03, subdivision 1; 268.035,
subdivisions 4, 5, 20, 29, and by adding subdivisions;
268.042, subdivision 1; 268.045; 268.047; 268.051,
subdivisions 1a, 3, 4, and 7; 268.052, subdivisions 1,
2, and by adding a subdivision; 268.053, subdivisions
1 and 3; 268.059; 268.07, subdivisions 1, 2, 3a, and
3b; 268.085, subdivisions 1, 2, 3, 6, 7, 14, 15, and
by adding subdivisions; 268.086, subdivisions 1 and 7;
268.095, subdivisions 1, 2, 8, and 11; 268.101,
subdivisions 1 and 2; 268.105, subdivision 7; 268.131,
subdivision 2; 268.18, subdivision 2b; 268.184;
268.192, subdivision 1; 268.6715; and 268.976,
subdivision 1; proposing coding for new law in
Minnesota Statutes, chapter 268; repealing Laws 1999,
chapter 107, section 22.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. [268.029] [CITATION; UNEMPLOYMENT INSURANCE
PROGRAM.]
Sections 268.029 to 268.23 shall be known and may be cited
as the "Minnesota Unemployment Insurance Program Law."
Sec. 2. Minnesota Statutes 2000, section 268.03,
subdivision 1, is amended to read:
Subdivision 1. [STATEMENT.] The public policy
underlying purpose of sections 268.03 268.029 to 268.23 is as
follows: Economic insecurity due to involuntary unemployment is
a serious threat to the well-being of the people of workers in
Minnesota. Involuntary unemployment is a subject of general
interest and concern that requires appropriate action by the
legislature to prevent its spread and to lighten its burdens.
The public good and the well-being of the citizens of Minnesota
will be promoted by providing, under the taxing powers of the
state for the compulsory setting aside of reserves to be used
for the payment of unemployment benefits to individuals workers
who are unemployed through no fault of their own. Unemployment
benefits are a temporary partial wage replacement to assist the
unemployed worker to become reemployed. This program will be
known as the "Minnesota unemployment insurance program."
Sec. 3. Minnesota Statutes 2000, section 268.035,
subdivision 4, is amended to read:
Subd. 4. [BASE PERIOD.] "Base period" means:
(1) the first four of the last five completed calendar
quarters immediately prior to the effective date of an
applicant's benefit account; as set forth below:
If the benefit account is effective The base period
on or between these dates: is the prior:
January 1 - March 31 October 1 - September 30
April 1 - June 30 January 1 - December 31
July 1 - September 30 April 1 - March 31
October 1 - December 31 July 1 - June 30
(2) if during the base period under clause (1) an applicant
received workers' compensation for temporary disability under
chapter 176 or a similar federal law of the United States or
similar law of another state, or if an applicant whose own
serious illness caused a loss of work for which the applicant
received compensation for loss of wages from some other source,
the applicant may request a base period as follows:
(i) if an applicant was compensated for a loss of work of
seven to 13 weeks, the base period shall be the first four of
the last six completed calendar quarters prior to the effective
date of the benefit account;
(ii) if an applicant was compensated for a loss of work of
14 to 26 weeks, the base period shall be the first four of the
last seven completed calendar quarters prior to the effective
date of the benefit account;
(iii) if an applicant was compensated for a loss of work of
27 to 39 weeks, the base period shall be the first four of the
last eight completed calendar quarters prior to the effective
date of the benefit account; and
(iv) if an applicant was compensated for a loss of work of
40 to 52 weeks, the base period shall be the first four of the
last nine completed calendar quarters prior to the effective
date of the benefit account;
(3) if the applicant qualifies for a base period under
clause (2), but has insufficient wage credits to establish a
benefit account, the applicant may request a base period of the
last four completed calendar quarters prior to the date the
applicant's benefit account is effective. This base period may
be used only once during any five-calendar-year period; and
(4) no base period under clause (1), (2), or (3) shall
include wage credits upon which a prior benefit account was
established.
Sec. 4. Minnesota Statutes 2000, section 268.035,
subdivision 5, is amended to read:
Subd. 5. [UNEMPLOYMENT BENEFITS.] "Unemployment benefits"
means the money payments portion of the Minnesota unemployment
insurance program available to an applicant.
Sec. 5. Minnesota Statutes 2000, section 268.035, is
amended by adding a subdivision to read:
Subd. 8a. [COMMISSIONER.] "Commissioner" means the
commissioner of economic security.
Sec. 6. Minnesota Statutes 2000, section 268.035, is
amended by adding a subdivision to read:
Subd. 12a. [DEPARTMENT.] "Department" means the department
of economic security.
Sec. 7. Minnesota Statutes 2000, section 268.035,
subdivision 20, is amended to read:
Subd. 20. [NONCOVERED EMPLOYMENT.] "Noncovered employment"
means:
(1) employment for the United States government or an
instrumentality thereof, including military service;
(2) employment for an Indian, an Indian-controlled
employer, and Indian tribe, or any wholly controlled
subsidiaries or subdivisions, if the employment is performed on
an Indian reservation or Indian Trust Land;
(3) employment for a state, other than Minnesota, or a
political subdivision or instrumentality thereof;
(4) (3) employment for a foreign government;
(5) (4) employment for an instrumentality wholly owned by a
foreign government, if the employment is of a character similar
to that performed in foreign countries by employees of the
United States government or an instrumentality thereof and the
United States Secretary of State has certified that the foreign
government grants an equivalent exemption to similar employment
performed in the foreign country by employees of the United
States government and instrumentalities thereof;
(6) (5) employment covered under United States Code, title
45, section 351, the Railroad Unemployment Insurance Act;
(7) (6) employment covered by a reciprocal arrangement
between the commissioner and another state or the federal
government which provides that all employment performed by an
individual for an employer during the period covered by the
reciprocal arrangement is considered performed entirely within
another state;
(8) (7) employment for a church or convention or
association of churches, or an organization operated primarily
for religious purposes that is operated, supervised, controlled,
or principally supported by a church or convention or
association of churches described in United States Code, title
26, section 501(c)(3) of the federal Internal Revenue Code and
exempt from income tax under section 501(a);
(9) (8) employment of a duly ordained or licensed minister
of a church in the exercise of a ministry or by a member of a
religious order in the exercise of duties required by the order,
for Minnesota or a political subdivision or an organization
described in United States Code, title 26, section 501(c)(3) of
the federal Internal Revenue Code and exempt from income tax
under section 501(a);
(10) (9) employment of an individual receiving
rehabilitation of "sheltered" work in a facility conducted for
the purpose of carrying out a program of rehabilitation for
individuals whose earning capacity is impaired by age or
physical or mental deficiency or injury or a program providing
"sheltered" work for individuals who because of an impaired
physical or mental capacity cannot be readily absorbed in the
competitive labor market. This clause applies only to services
performed for Minnesota or a political subdivision or an
organization described in United States Code, title 26, section
501(c)(3) of the federal Internal Revenue Code and exempt from
income tax under section 501(a) in a facility certified by the
rehabilitation services branch of the department or in a day
training or habilitation program licensed by the department of
human services;
(11) (10) employment of an individual receiving work relief
or work training as part of an unemployment work relief or work
training program assisted or financed in whole or in part by any
federal agency or an agency of a state or political subdivision
thereof. This clause applies only to employment for Minnesota
or a political subdivision or an organization described in
United States Code, title 26, section 501(c)(3) of the federal
Internal Revenue Code and exempt from income tax under section
501(a). This clause shall not apply to programs that require
unemployment benefit coverage for the participants;
(12) (11) employment for Minnesota or a political
subdivision as an elected official, a member of a legislative
body, or a member of the judiciary;
(13) (12) employment as a member of the Minnesota national
guard or air national guard;
(14) (13) employment for Minnesota, a political
subdivision, or instrumentality thereof, as an employee serving
only on a temporary basis in case of fire, flood, tornado, or
similar emergency;
(15) (14) employment as an election official or election
worker for Minnesota or a political subdivision, but only if the
compensation for that employment was less than $1,000 in a
calendar year;
(16) (15) employment for Minnesota that is a major policy
making or advisory position in the unclassified service,
including those positions established pursuant to section
43A.08, subdivision 1a;
(17) (16) employment for a political subdivision of
Minnesota that is a nontenured major policy making or advisory
position;
(18) (17) domestic employment in a private household, local
college club, or local chapter of a college fraternity or
sorority performed for a person, only if the wages paid in any
calendar quarter in either the current or preceding calendar
year to all individuals in domestic employment totaled less than
$1,000.
"Domestic employment" includes all service in the operation
and maintenance of a private household, for a local college
club, or local chapter of a college fraternity or sorority as
distinguished from service as an employee in the pursuit of an
employer's trade or business;
(19) (18) employment of an individual by a son, daughter,
or spouse, and employment of a child under the age of 18 by the
child's father or mother;
(20) (19) employment of an inmate of a custodial or penal
institution;
(21) (20) employment for a school, college, or university
by a student who is enrolled and is regularly attending classes
at the school, college, or university;
(22) (21) employment of an individual who is enrolled as a
student in a full-time program at a nonprofit or public
educational institution that maintains a regular faculty and
curriculum and has a regularly organized body of students in
attendance at the place where its educational activities are
carried on, taken for credit at the institution, that combines
academic instruction with work experience, if the employment is
an integral part of the program, and the institution has so
certified to the employer, except that this clause shall not
apply to employment in a program established for or on behalf of
an employer or group of employers;
(23) (22) employment of university, college, or
professional school students in an internship or other training
program with the city of St. Paul or the city of Minneapolis
pursuant to Laws 1990, chapter 570, article 6, section 3;
(24) (23) employment for a hospital by a patient of the
hospital. "Hospital" means an institution that has been
licensed by the department of health as a hospital;
(25) (24) employment as a student nurse for a hospital or a
nurses' training school by an individual who is enrolled and is
regularly attending classes in an accredited nurses' training
school;
(26) (25) employment as an intern for a hospital by an
individual who has completed a four-year course in an accredited
medical school;
(27) (26) employment as an insurance salesperson, by other
than a corporate officer, if all the compensation for the
employment is solely by way of commission. The word "insurance"
shall include an annuity and an optional annuity;
(28) (27) employment as an officer of a township mutual
insurance company or farmer's mutual insurance company operating
pursuant to chapter 67A;
(29) (28) employment as a real estate salesperson, by other
than a corporate officer, if all the compensation for the
employment is solely by way of commission;
(30) (29) employment as a direct seller as defined in
United States Code, title 26, section 3508;
(31) (30) employment of an individual under the age of 18
in the delivery or distribution of newspapers or shopping news,
not including delivery or distribution to any point for
subsequent delivery or distribution;
(32) (31) casual employment performed for an individual,
other than domestic employment under clause (18) (17), that does
not promote or advance that employer's trade or business;
(33) (32) employment in "agricultural employment" unless
considered "covered agricultural employment" under subdivision
11; or
(34) (33) if employment during one-half or more of any pay
period was covered employment, all the employment for the pay
period shall be considered covered employment; but if during
more than one-half of any pay period the employment was
noncovered employment, then all of the employment for the pay
period shall be considered noncovered employment. "Pay period"
means a period of not more than a calendar month for which a
payment or compensation is ordinarily made to the employee by
the employer.
[EFFECTIVE DATE.] This section is effective retroactive to
December 31, 2000.
Sec. 8. Minnesota Statutes 2000, section 268.035,
subdivision 29, is amended to read:
Subd. 29. [WAGES.] "Wages" means all compensation for
services, including commissions; bonuses; severance payments;
vacation and holiday pay; back pay as of the date of payment;
tips and gratuities paid to an employee by a customer of an
employer and accounted for by the employee to the employer;
sickness and accident disability payments, except as otherwise
provided in this subdivision; and the cash value of all
compensation in any medium other than cash, except:
(1) the amount of any payment made to, or on behalf of, an
employee under a plan established by an employer that makes
provision for employees generally or for a class or classes of
employees, including any amount paid by an employer for
insurance or annuities, or into a plan, to provide for a
payment, on account of (i) retirement or (ii) medical and
hospitalization expenses in connection with sickness or accident
disability, or (iii) death;
(2) the payment by an employer of the tax imposed upon an
employee under United States Code, title 26, section 3101 of the
Federal Insurance Contribution Act, with respect to compensation
paid to an employee for domestic service employment in a private
household of the employer or for agricultural employment;
(3) any payment made to, or on behalf of, an employee or
beneficiary (i) from or to a trust described in United States
Code, title 26, section 401(a) of the federal Internal Revenue
Code, that is exempt from tax under section 501(a) at the time
of the payment unless the payment is made to an employee of the
trust as compensation for services as an employee and not as a
beneficiary of the trust, or (ii) under or to an annuity plan
that, at the time of the payment, is a plan described in section
403(a);
(4) sickness or accident disability payments made by the
employer after the expiration of six calendar months following
the last calendar month that the individual worked for the
employer;
(5) disability payments made under the provisions of any
workers' compensation law;
(6) sickness or accident disability payments made by a
third party payer such as an insurance company;
(7) payments made into a fund, or for the purchase of
insurance or an annuity, to provide for sickness or accident
disability payments to employees pursuant to a plan or system
established by the employer that provides for the employer's
employees generally or for a class or classes of employees; or
(8) nothing in this subdivision shall exclude from the term
"wages" any payment made under any type of salary reduction
agreement, including payments made under a cash or deferred
arrangement and cafeteria plan, as defined in United States
Code, title 26, sections 401(k) and 125 of the federal Internal
Revenue Code, to the extent that the employee has the option to
receive the payment in cash.
Sec. 9. Minnesota Statutes 2000, section 268.042,
subdivision 1, is amended to read:
Subdivision 1. [EMPLOYER FOR PART OF YEAR.] Except as
provided in subdivision 3, any organization or person that is or
becomes an employer subject to sections 268.03 to 268.23 within
any calendar year shall be considered to be an employer during
subject to these sections the entire calendar year.
Sec. 10. Minnesota Statutes 2000, section 268.045, is
amended to read:
268.045 [EMPLOYER TAX OR REIMBURSABLE ACCOUNTS.]
(a) The commissioner shall maintain a tax account for each
taxpaying employer and a reimbursable account for each nonprofit
or government employer that is has elected to be liable for
payments in lieu of taxes if that employer has employees in
covered employment in the current or the prior calendar year,
except as provided in this section, and. The commissioner shall
assess the tax account of a taxpaying employer for all the taxes
due under section 268.051 and credit the tax account with all
taxes paid. The commissioner shall charge the reimbursable
account of a nonprofit or government employer that elects to
make payments in lieu of taxes for any unemployment benefits
determined chargeable to the employer under section 268.047
and shall credit the tax account with all the taxes paid, or if
the employer is liable for payments in lieu of taxes, shall
credit the reimbursable account with the payments made.
(b) Two or more related taxpaying corporations concurrently
employing the same employees and compensating those employees
through a common paymaster that is one of the corporations may
apply to the commissioner to establish a common paymaster tax
account that shall be the tax account of the common paymaster
corporation. If approved, the separate tax accounts shall be
maintained, but the employees compensated through the common
paymaster shall be reported as employees of the common paymaster
corporation. The corporations using the common paymaster tax
account shall be jointly and severally liable for any unpaid
taxes, penalties, and interest owing from the common paymaster
tax account.
(c) Two or more taxpaying employers having 50 percent or
more common ownership and compensating employees through a
single payer that is one of the employers may apply to the
commissioner for a merging of the experience rating records
ratings of the employers into a single experience rating and
joint tax account.
If approved, the joint tax account shall be effective on
that date assigned by the commissioner and shall remain in
effect for not less than two calendar years, and continuing
unless written notice terminating the joint tax account is filed
with the commissioner. The termination shall be effective on
January 1 next following the filing of the written notice of
termination.
The employers in the joint tax account shall be jointly and
severally liable for any unpaid taxes, penalties, and interest
owing from the joint tax account.
(d) Two or more nonprofit or government employers that are
have elected to be liable for payments in lieu of taxes may
apply to the commissioner for the establishment of a group
reimbursable account for the purpose of sharing the cost of
unemployment benefits charged based upon wage credits from all
employers in the group. The application shall identify and
authorize a group representative to act as the group's agent for
the purposes of the reimbursable account. If approved, the
commissioner shall establish a group reimbursable account for
the employers effective as of the beginning of the calendar year
that the application is received. The reimbursable account
shall remain in effect for not less than two calendar years and
thereafter until terminated at the discretion of the
commissioner or upon application by the group at least 30
calendar days prior to the end of the two year period or 30
calendar days prior to January 1 of any following calendar
year. Each nonprofit or government employer in the group shall
be jointly and severally liable for payments in lieu of taxes
for all unemployment benefits paid based upon wage credits from
all employers in the group during the period the group
reimbursable account was in effect.
Sec. 11. Minnesota Statutes 2000, section 268.047, is
amended to read:
268.047 [EFFECT ON AN EMPLOYER OF UNEMPLOYMENT BENEFITS
CHARGED TO EMPLOYER PAID.]
Subdivision 1. [GENERAL RULE.] Unemployment benefits paid
to an applicant, including extended, additional, and shared work
benefits, shall be used in computing the future tax rate of a
taxpaying base period employer or charged to the tax or
reimbursable account of the applicant's a base period nonprofit
or government employer as and when paid that has elected to be
liable for payments in lieu of taxes except as provided in
subdivisions 2 and 3. The amount of unemployment benefits used
in computing the future tax rate of taxpaying employers or
charged to each base period employer's tax or the reimbursable
account of a nonprofit or government employer that has elected
to be liable for payments in lieu of taxes shall be the same
percentage of the total amount of unemployment benefits paid as
the percentage of wage credits from the employer is of the total
amount of wage credits from all the applicant's base period
employers.
In making computations under this subdivision, the amount
of wage credits, if not a whole dollar, shall be computed to the
nearest whole dollar.
Subd. 2. [EXCEPTIONS TO CHARGES FOR ALL EMPLOYERS.]
Unemployment benefits paid shall not be charged to the tax
account used in computing the future tax rate of a taxpaying
base period employer or charged to the reimbursable account of a
base period nonprofit or government employer that is has elected
to be liable for payments in lieu of taxes when:
(1) the applicant was discharged from the employment
because of aggravated employment misconduct as determined under
section 268.095. This exception shall apply only to
unemployment benefits paid for periods after the applicant's
discharge from employment;
(2) an applicant's discharge from that employment occurred
because a law required removal of the applicant from the
position the applicant held;
(3) the employer provided regularly scheduled part-time
employment to the applicant during the applicant's base period
and continues to provide the applicant with regularly scheduled
part-time employment during the benefit year of at least 90
percent of the part-time employment provided in the base period,
and is an involved employer because of the applicant's loss of
other employment. This exception shall terminate effective the
first week that the employer fails to meet the benefit year
employment requirements. This exception shall apply to
educational institutions without consideration of the period
between academic years or terms;
(4) the employer is a fire department or firefighting
corporation or operator of a life-support transportation
service, and continues to provide employment for the applicant
as a volunteer firefighter or a volunteer ambulance service
personnel during the benefit year on the same basis that
employment was provided in the base period. This exception
shall terminate effective the first week that the employer fails
to meet the benefit year employment requirements;
(5) the applicant's unemployment from this employer was a
direct result of the condemnation of property by a governmental
agency, a fire, flood, or act of nature, where 25 percent or
more of the employees employed at the affected location,
including the applicant, became unemployed as a result. This
exception shall not apply where the unemployment was a direct
result of the intentional act of the employer or a person acting
on behalf of the employer;
(6) the unemployment benefits were paid by another state as
a result of the transferring of wage credits under a combined
wage arrangement provided for in section 268.131;
(7) the applicant stopped working because of a labor
dispute at the applicant's primary place of employment if the
employer was not a party to the labor dispute; or
(8) the unemployment benefits were determined overpaid
unemployment benefits under section 268.18; or
(9) the fund was reimbursed for the unemployment benefits
by the federal government.
Subd. 3. [EXCEPTIONS TO CHARGES FOR TAXPAYING EMPLOYERS.]
Unemployment benefits paid shall not be charged to the tax
account used in computing the future tax rate of a taxpaying
base period employer when:
(1) the applicant's wage credits from that employer are
less than $500;
(2) the applicant quit the employment, unless it was
determined under section 268.095, to have been because of a good
reason caused by the employer or because the employer notified
the applicant of discharge within 30 calendar days. This
exception shall apply only to unemployment benefits paid for
periods after the applicant's quitting the employment; or
(3) the employer discharged the applicant from employment
because of employment misconduct as determined under section
268.095. This exception shall apply only to unemployment
benefits paid for periods after the applicant's discharge from
employment.
Subd. 4. [LIMITATION ON EXCEPTIONS.] Regardless of
subdivisions 2 and 3, an exception under those subdivisions will
be limited in accordance with section 268.101, subdivision 2,
paragraph (b).
Subd. 4. [FEDERAL REIMBURSED BENEFITS NOT CHARGED.]
Regardless of subdivision 1, no employer's account shall be
charged for unemployment benefits for which the fund is
reimbursed by the federal government.
Subd. 5. [NOTICE OF UNEMPLOYMENT BENEFITS CHARGED PAID.]
(a) The commissioner shall notify each employer at least
quarterly by mail or electronic transmission of the unemployment
benefits paid that will be used in computing the future tax rate
of a taxpaying employer, or that have been charged to the
employer's reimbursable account of a nonprofit or government
employer that has elected to be liable for payments in lieu of
taxes. Unless a protest is filed in a manner prescribed by the
commissioner within 30 calendar days from the date of sending of
the notice, the charges set forth in the notice shall be final
and shall not be subject to collateral attack by way of review
of a tax rate notice, or application for a credit adjustment or
refund, or otherwise.
(b) Upon receipt of a protest, the commissioner shall
review the charges on the notice unemployment benefits to be
used in computing the future tax rate of a taxpaying employer or
charged to the reimbursable account of a nonprofit or government
employer that has elected to be liable for payments in lieu of
taxes and determine whether there has been an error in the
charging of the employer's account made. The commissioner shall
either affirm or make a redetermination of the charges
unemployment benefits paid to be used in computing the future
tax rate of a taxpaying employer or charged to the reimbursable
account of a nonprofit or government employer that has elected
to be liable for payments in lieu of taxes, and a notice of
affirmation or redetermination shall be sent to the employer by
mail or electronic transmission.
(c) The affirmation or redetermination shall be final
unless the employer files an appeal within 30 calendar days
after the date the affirmation or redetermination was sent.
Proceedings on the appeal shall be conducted in accordance with
section 268.105.
(d) An employer may not collaterally attack, by way of a
protest to a notice of unemployment benefits charged paid, any
prior determination or decision holding that unemployment
benefits paid shall be used in computing the future tax rate of
a taxpaying employer or charged to the employer's reimbursable
account, that of a nonprofit or government employer that has
elected to be liable for payments in lieu of taxes which
determination or decision has become final.
(e) The commissioner may at any time upon the
commissioner's own motion correct a clerical error that resulted
in charges to an employer's account an incorrect notice under
paragraph (a).
Sec. 12. Minnesota Statutes 2000, section 268.051,
subdivision 1a, is amended to read:
Subd. 1a. [TAX REPORTS.] (a) Every employer, except
those making nonprofit and government employers that have
elected to make payments in lieu of taxes, shall submit a tax
report on a form, or in a manner, prescribed by the commissioner
on or before the last day of the month following the end of the
calendar quarter, unless the employer meets the requirements for
submitting tax reports annually under section 268.0511. An
employer that fails to submit a tax report when due, or submits
an incorrect tax report, shall be subject to section 268.057,
subdivision 1.
(b) Each tax report shall include the total wages paid and
the taxable wages paid that quarter, the amount of tax due, and
any other information required by the commissioner.
(c) A tax report must be submitted for each calendar
quarter even though no wages were paid or no tax is due.
Sec. 13. Minnesota Statutes 2000, section 268.051,
subdivision 3, is amended to read:
Subd. 3. [COMPUTATION OF A TAXPAYING EMPLOYER'S EXPERIENCE
RATING.] (a) For each calendar year, the commissioner shall
compute an experience rating for each taxpaying employer who has
been subject to this chapter for at least the 12 calendar months
prior to July 1 of the prior calendar year.
(b) The experience rating shall be the ratio obtained by
dividing 125 percent of the total unemployment benefits charged
to the employer's tax account required under section 268.047 to
be used in computing the employer's tax rate during the period
the employer has been subject to this chapter, but not more than
the 60 calendar months ending on June 30 of the prior calendar
year, by the employer's total taxable payroll for the that same
period.
(b) (c) For purposes of paragraph (a) (b), only that
taxable payroll upon which taxes have been paid on or before
September 30 of the prior calendar year may be used in computing
an employer's experience rating.
(c) (d) The experience rating shall be computed to the
nearest one-tenth of a percent, to a maximum of 8.9 percent.
Sec. 14. Minnesota Statutes 2000, section 268.051,
subdivision 4, is amended to read:
Subd. 4. [EXPERIENCE RATING RECORD TRANSFER.] (a) When
an a taxpaying employer acquires the organization, trade or
business or substantially all the assets of another employer,
and there is 25 percent or more common ownership, directly or
indirectly, between the predecessor and successor, the
experience rating record of the predecessor employer shall be
transferred as of the date of acquisition to the successor
employer for the purpose of computing a tax rate.
(b) When an a taxpaying employer acquires a distinct
severable portion of the organization, trade, business, or
assets that is less than substantially all of the employing
enterprises of another employer, and there is 25 percent or more
common ownership, directly or indirectly, between the
predecessor and successor, the successor employer shall acquire
the experience rating record attributable to the portion it
acquired, and the predecessor employer shall retain the
experience rating record attributable to the portion that it has
retained, if (1) the successor makes a written request to apply
for the transfer of the experience rating record attributable to
the severable portion acquired from the predecessor within 180
calendar days from the date of acquisition, and (2) files an
application within the time and in the manner prescribed by the
commissioner that furnishes sufficient information to
substantiate the severable portion and to assign the appropriate
total and taxable wages and unemployment benefit charges to the
successor for portion of the experience rating purposes.
(c) The term "common ownership" for purposes of this
subdivision includes ownership by a spouse, parent, child,
brother, sister, aunt, uncle, niece, nephew, or first cousin, by
birth or by marriage.
(d) If the successor employer under paragraphs (a) and (b)
had an experience rating record at the time of the acquisition,
the transferred record experience rating of the predecessor
shall be combined with the successor's record experience rating
for purposes of computing a tax rate.
(e) If there has been a transfer of an experience rating
record under paragraph (a) or (b), employment with a predecessor
employer shall not be considered to have been terminated if
similar employment is offered by the successor employer and
accepted by the employee.
(f) The commissioner, upon the commissioner's own motion or
upon application of an employer shall determine if an employer
is a successor within the meaning of this subdivision and shall
send the determination to the employer by mail or electronic
transmission. The determination shall be final unless an appeal
is filed by the employer within 30 calendar days after the
sending of the determination. Proceedings on the appeal shall
be conducted in accordance with section 268.105.
(g) The commissioner may, as the result of any
determination or decision regarding succession or nonsuccession,
recompute the tax rate of all employers affected by the
determination or decision for any year, including the year of
the acquisition and subsequent years, that is affected by the
transfer or nontransfer of part or all of the experience rating
record. This paragraph does not apply to rates that have become
final before the filing of a written request to apply for the
transfer of a severable portion of the experience rating record
under paragraph (b).
(h) Should an employer not have been in operation long
enough to qualify for an experience rating under subdivision 3,
paragraph (a), the experience rating record for purposes of this
subdivision shall consist of those factors that normally make up
an experience rating, without the 12-month minimum required
under subdivision 3.
(i) If the commissioner finds that a transaction was done,
in whole or in part, to avoid an experience rating record or the
transfer of an experience rating record, the commissioner may
transfer all or part of the experience rating record regardless
of the requirements or limitations of paragraph (a). This shall
include the transferring of employees from the payroll of an
employer with a higher experience rating record to the payroll
of an employer with a lower experience rating record.
(j) Regardless of paragraph (a), if there is an acquisition
or merger of a publicly held corporation by or with another
publicly held corporation the experience rating records ratings
of the corporations shall be combined as of the date of
acquisition or merger for the purpose of computing a tax rate.
Sec. 15. Minnesota Statutes 2000, section 268.051,
subdivision 7, is amended to read:
Subd. 7. [TAX RATE BUYDOWN.] (a) Any taxpaying employer
who has been assigned a tax rate based upon an experience rating
may, upon the voluntary payment of an amount equivalent to any
portion or all of the unemployment benefits charged to the
employer's account, used in computing the experience rating plus
a surcharge of 25 percent, obtain a cancellation of unemployment
benefits charged to the account used equal to the payment made,
less the surcharge. Upon the payment, the commissioner shall
compute a new experience rating for the employer, and determine
a new tax rate.
(b) Voluntary payments may be made only during the 30
calendar day period immediately following the date of sending of
the notice of tax rate. This period may be extended, upon a
showing of good cause, but in no event shall a voluntary payment
be allowed after 120 calendar days from the beginning of the
calendar year for which the tax rate is effective.
(c) Voluntary payments made within the time required will
not be refunded unless a request is made in writing within 30
calendar days after sending of the notice of the new tax rate.
Sec. 16. Minnesota Statutes 2000, section 268.052,
subdivision 1, is amended to read:
Subdivision 1. [PAYMENTS.] In lieu of taxes payable on a
quarterly basis, the state of Minnesota or its political
subdivisions shall pay into the fund the amount of unemployment
benefits charged to its reimbursable account under section
268.047. Payments in the amount of unemployment benefits
charged to the reimbursable account during a calendar quarter
shall be made on or before the last day of the month following
the month that the notice of unemployment benefits charged paid
is sent pursuant to section 268.047, subdivision 5 6. Past due
payments in lieu of taxes shall be subject to the same interest
charges and collection procedures that apply to past due taxes.
Sec. 17. Minnesota Statutes 2000, section 268.052,
subdivision 2, is amended to read:
Subd. 2. [ELECTION BY STATE OR POLITICAL SUBDIVISION TO BE
A TAXPAYING EMPLOYER.] (a) The state or political subdivision
may elect to be a taxpaying employer for any calendar year if a
notice of election is filed within 30 calendar days following
January 1 of that calendar year. Upon election, the state or
political subdivision shall be assigned the new employer tax
rate under section 268.051, subdivision 5, for the calendar year
of the election and until it qualifies for an experience rating
under section 268.051, subdivision 3.
(b) An election shall be for a minimum period of three two
calendar years following the effective date of the election and
continue unless a notice terminating the election is filed not
later than 30 calendar days before the beginning of the calendar
year. The termination shall be effective at the beginning of
the next calendar year. Upon election, the commissioner shall
establish a reimbursable account for the state or political
subdivision. A termination of election shall be allowed only if
the state or political subdivision has a zero, since the
beginning of the experience rating and has no period under
section 268.051, subdivision 3, paid taxes and made voluntary
payments under section 268.051, subdivision 7, equal or more
than 125 percent of the unemployment benefit charges to its tax
account that have not yet been used in computing an benefits
used in computing the experience rating. In addition, any
unemployment benefits paid after the experience rating under
section 268.051, subdivision 3. period shall be transferred to
the new reimbursable account of the state or political
subdivision. If the amount of taxes and voluntary payments paid
since the beginning of the experience rating period exceeds 125
percent of the amount of unemployment benefits paid during the
experience rating period, that amount in excess shall be applied
against any unemployment benefits paid after the experience
rating period.
(c) The method of payments to the fund under subdivisions 3
and 4 shall apply to all taxes paid by or due from the state or
political subdivision that elects to be taxpaying employers
under this subdivision.
(d) The commissioner may allow a notice of election or a
notice terminating election to be filed by mail or electronic
transmission.
Sec. 18. Minnesota Statutes 2000, section 268.052, is
amended by adding a subdivision to read:
Subd. 5. [CONSIDERED AN ELECTION.] If the state of
Minnesota or its political subdivisions choose not to be a
taxpaying employer under subdivision 2, the state or its
political subdivision shall be considered, for purposes of the
Minnesota unemployment insurance program, to have elected to be
liable for payments in lieu of taxes under subdivision 1.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 19. [268.0525] [INDIAN TRIBES.]
(a) An Indian tribe, as defined under United States Code,
title 25, section 450b(e) of the Indian Self-Determination and
Education Assistance Act, and any subdivision, subsidiary, or
business enterprise owned by the Indian tribe, shall be treated
the same as the state of Minnesota, or a political subdivision
of the state, for all purposes of the Minnesota unemployment
insurance program law.
(b) The Indian tribe may make separate elections under
section 268.052, subdivision 2, for itself and each subdivision,
subsidiary, or business enterprise wholly owned by the Indian
tribe.
(c) If an Indian tribe, subdivision, subsidiary, or
business enterprise wholly owned by the tribe, which has elected
to be liable for payments in lieu of taxes, fails to make the
required payments within 90 days of the notice of delinquency,
the commissioner shall terminate the election to make payments
in lieu of taxes as of the beginning of the next calendar year,
unless all past due payments in lieu of taxes, and any interest
and penalties, have been paid before the beginning of the next
calendar year.
An Indian tribe, subdivision, subsidiary, or business
enterprise wholly owned by the tribe that has its election
terminated under this paragraph shall become a taxpaying
employer and assigned the new employer tax rate under section
268.051, subdivision 5, until the tribe, subdivision,
subsidiary, or business enterprise wholly owned by the Indian
tribe qualifies for an experience rating under section 268.051,
subdivision 3.
[EFFECTIVE DATE.] This section is effective retroactive to
December 31, 2000.
Sec. 20. Minnesota Statutes 2000, section 268.053,
subdivision 1, is amended to read:
Subdivision 1. [ELECTION.] (a) Any nonprofit organization
that has employees in covered employment shall pay taxes on a
quarterly basis pursuant to section 268.051 unless it elects to
make payments in lieu of taxes to the fund the amount of
unemployment benefits charged to its employer reimbursable
account under section 268.047.
The organization may elect to make payments in lieu of
taxes for a period of not less than two calendar years beginning
with the date that the organization was determined to be an
employer with covered employment by filing a notice of election
not later than 30 calendar days after the date of the
determination.
(b) Any nonprofit organization that makes an election will
continue to be liable for payments in lieu of taxes until it
files a notice terminating its election not later than 30
calendar days before the beginning of the calendar year the
termination is to be effective.
(c) A nonprofit organization that has been making payments
in lieu of taxes that files a notice of termination of election
shall be assigned the new employer tax rate under section
268.051, subdivision 5, for the calendar year of the termination
of election and until it qualifies for an experience rating
under section 268.051, subdivision 3.
(d) Any nonprofit organization that has been paying taxes
may elect to make payments in lieu of taxes by filing no less
than 30 calendar days before January 1 of any calendar year a
notice of election. Upon election, the commissioner shall
establish a reimbursable account for the nonprofit
organization. An election shall be allowed only if the
nonprofit organization has, during since the beginning of the
experience rating period under section 268.051, subdivision 3,
paid taxes or and made voluntary payments under section 268.051,
subdivision 7, equal to or more than 125 percent of the
unemployment benefit charges during benefits used in computing
the experience rating period. In addition, any
unemployment benefit charges to its tax account that come
benefits paid after the experience rating period shall be
transferred to the new reimbursable account of the nonprofit
organization. If the amount of taxes and voluntary payments
paid during since the beginning of the experience rating period
exceeds 125 percent of the amount of unemployment benefit
charges benefits paid during the experience rating period, that
amount in excess shall be applied against any
unemployment benefit charges that come benefits paid after the
experience rating period. The election shall not be terminable
by the organization for that and the next calendar year.
(e) The commissioner may for good cause extend the period
that a notice of election, or a notice of termination, must be
filed and may permit an election to be retroactive.
(f) The commissioner may allow a notice of election or
notice terminating election to be filed by mail or electronic
transmission.
Sec. 21. Minnesota Statutes 2000, section 268.053,
subdivision 3, is amended to read:
Subd. 3. [PAYMENTS.] (a) Payments in lieu of taxes, in the
amount of unemployment benefits charged to the reimbursable
account, during a calendar quarter, shall be made on or before
the last day of the month following the month that the notice of
unemployment benefits charged paid is sent pursuant to section
268.047, subdivision 5.
(b) Past due payments in lieu of taxes shall be subject to
the same interest charges and collection procedures that apply
to past due taxes.
(c) If any nonprofit organization is delinquent in making
payments in lieu of taxes, the commissioner may terminate the
organization's election to make payments in lieu of taxes as of
the beginning of the next calendar year, and the termination
shall be effective for that and the following calendar year. A
nonprofit organization that has its election terminated under
this paragraph shall be assigned the new employer tax rate under
section 268.051, subdivision 5, until the organization qualifies
for an experience rating under section 268.051, subdivision 3.
Sec. 22. Minnesota Statutes 2000, section 268.059, is
amended to read:
268.059 [GARNISHMENT FOR DELINQUENT TAXES AND UNEMPLOYMENT
BENEFIT OVERPAYMENTS.]
(a) Subdivision 1. [NOTICE.] The commissioner may give
notice to any employer that an employee owes delinquent taxes,
payments in lieu of taxes, or overpaid unemployment benefits,
including penalties, interest, and costs, and that the
obligation to the department fund should be withheld from the
employee's wages. The commissioner may proceed only if the tax,
payment in lieu of taxes, or unemployment benefit overpayment is
uncontested or if the time for any appeal has expired. The
commissioner shall not proceed until 30 calendar days after
mailing to the debtor employee, at the debtor's last known
address, a written notice of intent to garnish wages and
exemption notice. That notice shall list:
(1) the amount of taxes, payments in lieu of taxes,
overpaid unemployment benefits, interest, penalties, or costs
due from the debtor;
(2) demand for immediate payment; and
(3) the intention to serve a garnishment notice on the
debtor's employer.
The notice shall expire 180 calendar days after it has been
mailed to the debtor provided that the notice may be renewed by
mailing a new notice that is in accordance with this section.
The renewed notice shall have the effect of reinstating the
priority of the original notice. The exemption notice shall be
in substantially the same form as in section 571.72. The notice
shall inform the debtor of the right to claim exemptions
contained in section 550.37, subdivision 14. If no written
claim of exemption is received by the commissioner within 30
calendar days after mailing of the notice, the commissioner may
proceed with the garnishment. The notice to the debtor's
employer may be served by mail and shall be in substantially the
same form as in section 571.75.
Subd. 2. [EMPLOYER ACTION.] (a) Upon receipt of the
garnishment notice, the employer shall withhold from the
earnings due or to become due to the employee, the amount shown
on the notice plus accrued interest, subject to section
571.922. The employer shall continue to withhold each pay
period the amount shown on the notice plus accrued interest
until the garnishment notice is released by the commissioner.
Upon receipt of notice by the employer, the claim of the
commissioner shall have priority over any subsequent
garnishments or wage assignments. The commissioner may arrange
between the employer and employee for withholding a portion of
the total amount due the employee each pay period, until the
total amount shown on the notice plus accrued interest has been
withheld.
The "earnings due" any employee is as defined in section
571.921.
(b) The maximum garnishment allowed for any one pay period
shall be decreased by any amounts payable pursuant to any other
garnishment action served prior to the garnishment notice, and
any amounts covered by any irrevocable and previously effective
assignment of wages; the employer shall give notice to the
commissioner of the amounts and the facts relating to the
assignment within ten days after the service of the garnishment
notice on the form provided by the commissioner.
(c) Within ten calendar days after the expiration of the
pay period, the employer shall remit to the commissioner, on a
form and in the manner prescribed by the commissioner, the
amount withheld during each pay period.
(b) Subd. 3. [DISCHARGE OR DISCIPLINE PROHIBITED.] (a) If
the employee ceases to be employed by the employer before the
full amount set forth on the garnishment notice plus accrued
interest has been withheld, the employer shall immediately
notify the commissioner in writing of the termination date of
the employee and the total amount withheld. No employer may
discharge or discipline any employee because the commissioner
has proceeded under this section. If an employer discharges an
employee in violation of this section, the employee shall have
the same remedy as provided in section 571.927, subdivision 2.
(c) Within ten calendar days after the expiration of the
pay period, the employer shall remit to the commissioner, on a
form and in the manner prescribed by the commissioner, the
amount withheld during each pay period.
(d) Paragraphs (a) to (c) (b) This section shall apply if
the employer is the state of Minnesota or any political
subdivision.
(e) (c) The commissioner shall refund to the employee any
excess amounts withheld from the employee.
(f) (d) An employer that fails or refuses to comply with
this section shall be jointly and severally liable as provided
in for the total amount due from the employee. Any amount due
from the employer under this paragraph may be collected in
accordance with section 268.058, subdivision 2, paragraph (j).
Sec. 23. Minnesota Statutes 2000, section 268.07,
subdivision 1, is amended to read:
Subdivision 1. [APPLICATION FOR UNEMPLOYMENT BENEFITS;
DETERMINATION OF BENEFIT ACCOUNT.] (a) An application for
unemployment benefits may be filed in person, by mail, by
telephone, or by electronic transmission as the commissioner
shall require. The applicant must be unemployed at the time the
application is filed and must provide all requested information
in the manner required. If the applicant is not unemployed at
the time of the application or fails to provide all requested
information, the communication shall not be considered an
application for unemployment benefits.
(b) The commissioner shall examine each application for
unemployment benefits to determine the base period, and the
benefit year, and based upon all the covered employment in the
base period the commissioner shall determine the weekly
unemployment benefit amount available, if any, and the maximum
amount of unemployment benefits available, if any. The
determination shall be known as the determination of benefit
account. A determination of benefit account shall be sent to
the applicant and all base period employers, by mail or
electronic transmission.
(c) If a base period employer did not provide wage
information for the applicant as provided for in section
268.044, the commissioner shall accept an applicant
certification as to wage credits, based upon the applicant's
records, and issue a determination of benefit account.
(d) The commissioner may, at any time within 24 months from
the establishment of a benefit account, reconsider any
determination of benefit account and make a redetermination an
amended determination if the commissioner finds that the
determination was incorrect for any reason. A redetermination
An amended determination shall be promptly sent to the applicant
and all base period employers, by mail or electronic
transmission.
If a redetermination an amended determination of benefit
account reduces the weekly unemployment benefit amount or
maximum amount of unemployment benefits available, any
unemployment benefits that have been paid greater than the
applicant was redetermined entitled is considered an overpayment
of unemployment benefits under section 268.18, subdivision 1.
Sec. 24. Minnesota Statutes 2000, section 268.07,
subdivision 2, is amended to read:
Subd. 2. [BENEFIT ACCOUNT REQUIREMENTS AND WEEKLY
UNEMPLOYMENT BENEFIT AMOUNT AND MAXIMUM AMOUNT OF UNEMPLOYMENT
BENEFITS.] (a) To establish a benefit account, an applicant must
have:
(1) high quarter wage credits of at least $1,000; and
(2) wage credits, in other than the high quarter, of at
least $250.
(b) If an applicant has established a benefit account, the
weekly unemployment benefit amount available during the benefit
year shall be the higher of:
(1) 50 percent of the applicant's average weekly wage
during the base period, to a maximum of 66-2/3 percent of the
state's average weekly wage; or
(2) 50 percent of the applicant's average weekly wage
during the high quarter, to a maximum of the higher of $331 or
50 percent of the state's average weekly wage.
The applicant's average weekly wage under clause (1) shall
be computed by dividing the total wage credits by 52. The
applicant's average weekly wage under clause (2) shall be
computed by dividing the high quarter wage credits by 13.
(c) The state's maximum weekly unemployment benefit amount
and the applicant's weekly unemployment benefit amount and
maximum amount of unemployment benefits shall be rounded down to
the next lowest whole dollar.
(d) The maximum amount of unemployment benefits available
on any benefit account shall be the lower of:
(1) 33-1/3 percent of the applicant's total wage credits to
a maximum of; or
(2) 26 times the applicant's weekly unemployment benefit
amount.
[EFFECTIVE DATE.] This section is effective September 1,
2001.
Sec. 25. Minnesota Statutes 2000, section 268.07,
subdivision 3a, is amended to read:
Subd. 3a. [RIGHT OF APPEAL.] (a) A determination or
redetermination amended determination of a benefit account shall
be final unless an applicant or base period employer within 30
calendar days after the sending of the determination
or redetermination amended determination files an appeal. Every
determination or redetermination amended determination of a
benefit account shall contain a prominent statement indicating
in clear language the consequences of not appealing.
Proceedings on the appeal shall be conducted in accordance with
section 268.105.
(b) Any applicant or base period employer may appeal from a
determination or redetermination amended determination of a
benefit account on the issue of whether services performed
constitute employment and covered employment. Proceedings on
the appeal shall be conducted in accordance with section 268.105.
Sec. 26. Minnesota Statutes 2000, section 268.07,
subdivision 3b, is amended to read:
Subd. 3b. [LIMITATIONS.] (a) A benefit account shall be
established effective the Sunday of the calendar week that the
application for unemployment benefits was filed. Upon specific
request of an applicant, an application for benefits may be
backdated one calendar week prior to the Sunday of the week the
application was actually filed. An application shall be
backdated only if the applicant was unemployed throughout the
period of the backdating. If an individual attempted to file an
application for unemployment benefits, but was prevented from
filing an application by the department, the benefit account
shall be effective the Sunday of the calendar week the
individual first attempted to file an application.
(b) A benefit account, once established, may later be
withdrawn only if:
(1) a new application for unemployment benefits is filed
and a new benefit account is established at the time of the
withdrawal; and
(2) the applicant has not served a waiting week under
section 268.085, subdivision 1, clause (3).
A determination or amended determination pursuant to
section 268.101, that was issued before the withdrawal of the
benefit account, shall remain in effect and shall not be voided
by the withdrawal of the benefit account. A determination of
disqualification requiring subsequent earnings to satisfy the
disqualification under section 268.095, subdivision 10, shall
apply to the weekly unemployment benefit amount on the new
benefit account.
(c) An application for unemployment benefits shall not be
allowed prior to the Sunday following the expiration of the
benefit year on a prior benefit account. Except as allowed
under paragraph (b), a applicant may establish only one benefit
account each 52 calendar weeks.
(d) All unemployment benefits shall be available from the
fund only for weeks occurring during the applicant's benefit
year.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 27. Minnesota Statutes 2000, section 268.085,
subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY CONDITIONS.] An applicant
shall be eligible to receive unemployment benefits for any week
if:
(1) the applicant has an active benefit account and has
filed a continued request for unemployment benefits for that
week pursuant to section 268.086;
(2) the applicant was able to work and was available
for suitable employment, and was actively seeking suitable
employment. The applicant's weekly unemployment benefit amount
shall be reduced one-fifth for each day the applicant is unable
to work or is unavailable for suitable employment.
This clause shall not apply to an applicant who is in
reemployment assistance training.
The requirement that the applicant be available for
employment and actively seeking suitable employment This clause
shall not apply each day the applicant is on jury duty;
(3) the applicant has served a waiting period of one week
that the applicant is otherwise entitled to some amount of
unemployment benefits. This clause shall not apply if the
applicant would have been entitled to federal disaster
unemployment assistance because of a disaster in Minnesota, but
for the applicant's establishment of a benefit account under
section 268.07; and
(4) the applicant has been participating in reemployment
assistance services, such as job search and resume writing
classes, if the applicant has been determined in need of
reemployment assistance services by the commissioner, unless
there is good cause for the applicant's failure to participate.
Sec. 28. Minnesota Statutes 2000, section 268.085,
subdivision 2, is amended to read:
Subd. 2. [NOT ELIGIBLE.] An applicant shall not be
eligible to receive unemployment benefits for any week:
(1) that occurs before the effective date of a benefit
account;
(2) that occurs in a period when the applicant is a student
in attendance at, or on vacation from a secondary school
including the period between academic years or terms;
(3) that the applicant is incarcerated or performing court
ordered community service. The applicant's weekly unemployment
benefit amount shall be reduced by one-fifth for each day the
applicant is incarcerated or performing court ordered community
service;
(4) that the applicant is on a voluntary leave of absence,
including a requested period of paid or unpaid vacation. A
leave of absence is voluntary when work, that the applicant can
perform, is available with the applicant's employer, but the
applicant chooses not to work. An applicant who is not working
as a result of a vacation period assigned by an employer under:
(i) a uniform vacation shutdown, (ii) a collective bargaining
agreement, or (iii) an established employer policy, shall not be
ineligible under this clause that the applicant fails or refuses
to provide information on an issue of eligibility required under
section 268.101, subdivision 1, paragraph (a), or an issue of
disqualification required under section 268.101, subdivision 1,
paragraph (d);
(5) that the applicant is performing services 32 hours or
more, in employment, covered employment, noncovered employment,
or self-employment regardless of the amount of any earnings; or
(6) with respect to which the applicant is receiving, has
received, or has filed an application for unemployment benefits
under any federal law or the law of any other state. If the
appropriate agency finally determines that the applicant is not
entitled to the unemployment benefits, this clause shall not
apply.
Sec. 29. Minnesota Statutes 2000, section 268.085,
subdivision 3, is amended to read:
Subd. 3. [DEDUCTIBLE PAYMENTS.] (a) An applicant shall not
be eligible to receive unemployment benefits for any week with
respect to which the applicant is receiving, has received, or
has filed for payment in an amount equal to or in excess of the
applicant's weekly unemployment benefit amount in the form of:
(1) a severance payment. pay, bonus pay, vacation pay, sick
pay, and any other money payments, except earnings under
subdivision 5, and back pay under subdivision 6, paid by an
employer because of, upon, or after separation from employment
that are considered wages under section 268.035, subdivision 29,
or United States Code, title 26, section 3121, clause (2) of the
Federal Insurance Contribution Act. This clause shall apply to
the first four weeks of payment and to one-half of the total
number of any additional weeks of payment. This clause shall be
applied to the period immediately following the last day of
employment. The number of weeks of payment shall be determined
as follows:
(i) if the payments are made periodically, the total of the
payments to be received shall be divided by the applicant's last
level of regular weekly pay from the employer; or
(ii) if the payment is made in a lump sum, that sum shall
be divided by the applicant's last level of regular weekly pay
from the employer;.
(2) This clause shall not apply to vacation pay, paid
directly by an employer for vacation periods assigned by the
employer under: (i) a collective bargaining agreement, (ii)
established employer policy, or (iii) uniform vacation shutdown;
upon permanent separation from employment.
(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 compensation for loss of
wages under any other insurance or fund paid in whole or in part
by an employer;
(4) (2) pension, retirement, or annuity payments from any
plan contributed to by a base period employer including the
United States government, except social security benefits which
are provided for in subdivision 4. The base period employer
contributed to the plan if the contribution is excluded from the
definition of wages under section 268.035, subdivision 29,
clause (1), or United States Code, title 26, section 3121,
clause (2), of the Federal Insurance Contribution Act.
If the applicant receives a lump sum pension payment, that
sum shall be divided by the applicant's last level of regular
weekly pay to determine the number of weeks of payment. The
number of weeks of payment shall be applied to the period
immediately following the last day of employment. An applicant
shall not be considered to have received the lump sum payment if
the applicant immediately deposits that payment in a qualified
pension plan or account; or
(5) (3) holiday pay or sick pay, paid directly by an
employer.
(b) If the deductible payment is less than the applicant's
weekly unemployment benefit amount, unemployment benefits shall
be reduced by the amount of the payment. If the computation of
reduced unemployment benefits is not a whole dollar, it shall be
rounded down to the next lowest dollar.
(c) If the appropriate agency finally determines that the
applicant is not entitled to payments, this subdivision shall
not apply.
Sec. 30. Minnesota Statutes 2000, section 268.085, is
amended by adding a subdivision to read:
Subd. 3a. [WORKERS' COMPENSATION AND DISABILITY INSURANCE
OFFSET.] (a) An applicant is not eligible to receive
unemployment benefits for any week in which the applicant is
receiving or has received compensation for loss of wages equal
to or in excess of the applicant's weekly unemployment benefit
amount under:
(1) the workers' compensation law of this state;
(2) the workers' compensation law of any other state or
similar federal law; or
(3) any insurance or fund paid in whole or in part by an
employer.
(b) This subdivision shall not apply to an applicant who
has a claim pending for loss of wages under paragraph (a);
however, before unemployment benefits may be paid when a claim
is pending, the issue of the applicant being able to work, as
required under subdivision 1, clause (2), shall be determined
under section 268.101, subdivision 3. If the applicant later
receives compensation as a result of the pending claim, the
applicant is subject to the provisions of paragraph (a) and the
unemployment benefits paid shall be subject to recoupment by the
commissioner to the extent that the compensation constitutes
overpaid unemployment benefits.
(c) If the amount of compensation described under paragraph
(a) for any week is less than the applicant's weekly
unemployment benefit amount, unemployment benefits requested for
that week shall be reduced by the amount of that compensation
payment.
Sec. 31. Minnesota Statutes 2000, section 268.085,
subdivision 6, is amended to read:
Subd. 6. [RECEIPT OF BACK PAY.] (a) Back pay received by
an applicant with respect to any week occurring in the 104 weeks
prior to the payment of the back pay shall be deducted from
unemployment benefits paid for that week.
If an arbitration award, administrative or judicial
decision, or negotiated settlement that provides for back pay
does not specify the period with respect to which it is paid,
the back pay shall be applied to the period immediately
following the last day of employment.
(b) If the back pay is reduced by the amount of
unemployment benefits that have been paid, the amount of back
pay withheld shall be:
(1) paid by the employer to the fund within 30 calendar
days and subject to the same collection procedures that apply to
past due taxes;
(2) applied to unemployment benefit overpayments resulting
from the payment of the back pay; and
(3) credited to the maximum amount of unemployment benefits
available to the applicant in a benefit year that includes the
weeks for which back pay was deducted.
(c) Charges to the employer's tax or reimbursable account
under section 268.047 for Unemployment benefits paid the
applicant shall be removed from the employer's computation of
the tax rate for taxpaying employers and removed from the
reimbursable account for nonprofit and government employers that
have elected to be liable for payments in lieu of taxes in the
calendar quarter the fund receives payment.
(d) Payments to the fund under this subdivision shall be
considered as made by the applicant.
Sec. 32. Minnesota Statutes 2000, section 268.085,
subdivision 7, is amended to read:
Subd. 7. [SCHOOL EMPLOYEES.] (a) No wage credits in any
amount from any employment with any educational institution or
institutions earned in any capacity may be used for unemployment
benefit purposes for any week during the period between two
successive academic years or terms if:
(1) the applicant had employment for any educational
institution or institutions in the prior academic year or term;
and
(2) there is a reasonable assurance that the applicant will
have employment for any educational institution or institutions
in the following academic year or term, unless that subsequent
employment is not substantially less favorable than the
employment of the prior academic year or term.
(b) Paragraph (a) shall not apply to an applicant who, at
the end of the prior academic year or term, had an agreement for
a definite period of employment between academic years or terms
in other than an instructional, research, or principal
administrative capacity and the educational institution or
institutions failed to provide that employment.
(c) If unemployment benefits are denied to any applicant
under paragraph (a) who was employed in the prior academic year
or term in other than an instructional, research, or principal
administrative capacity and who was not offered an opportunity
to perform the employment in the following academic year or
term, the applicant shall be entitled to retroactive
unemployment benefits for each week during the period between
academic years or terms that the applicant filed a timely
continued request for unemployment benefits, but unemployment
benefits were denied solely because of paragraph (a).
(d) An educational assistant shall not be considered to be
in an instructional, research, or principal administrative
capacity.
(e) Paragraph (a) shall apply to any vacation period or
holiday recess if the applicant was employed immediately before
the vacation period or holiday recess, and there is a reasonable
assurance that the applicant will be employed immediately
following the vacation period or holiday recess.
(f) This subdivision shall apply to employment with an
educational service agency if the applicant performed the
services at an educational institution or institutions.
"Educational service agency" means a governmental agency or
entity established and operated exclusively for the purpose of
providing services to one or more educational institutions.
This subdivision shall also apply to employment with Minnesota
or a political subdivision, or a nonprofit organization, if the
services are provided to or on behalf of an educational
institution or institutions.
(g) Paragraphs (a) and (e) shall apply beginning the Sunday
of the week that there is a reasonable assurance of employment.
(h) Employment with multiple education institutions shall
be aggregated for purposes of application of this subdivision.
(i) If all of the applicant's employment with any
educational institution or institutions during the prior
academic year or term consisted of on-call employment, and the
applicant has a reasonable assurance of any on-call employment
with any educational institution or institutions for the
following academic year or term, it shall not be considered
substantially less favorable employment.
(j) Paragraph (a) shall also apply to the period between
two regular but not successive terms.
(k) A "reasonable assurance" may be written, oral, implied,
or established by custom or practice.
(l) An "educational institution" is an educational entity
operated by Minnesota or a political subdivision or an
instrumentality thereof, or an educational organization
described in United States Code, title 26, section 501(c)(3) of
the federal Internal Revenue Code, and exempt from income tax
under section 501(a).
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 33. Minnesota Statutes 2000, section 268.085, is
amended by adding a subdivision to read:
Subd. 13a. [LEAVE OF ABSENCE.] (a) An applicant on a
voluntary leave of absence shall be ineligible for benefits for
the duration of the leave of absence.
A leave of absence is voluntary when work that the
applicant can then perform is available with the applicant's
employer but the applicant chooses not to work.
(b) A period of vacation requested by the applicant, paid
or unpaid, shall be considered a voluntary leave of absence. A
vacation period assigned by an employer under: (1) a uniform
vacation shutdown; (2) a collective bargaining agreement; or (3)
an established employer policy, shall not be considered a
voluntary leave of absence.
(c) A leave of absence shall not be considered a quit or a
discharge from employment for purposes of section 268.095.
(d) An applicant who is on a paid leave of absence, whether
the leave of absence is voluntary or involuntary, shall be
ineligible for benefits for the duration of the leave.
(e) This subdivision shall apply to a leave of absence from
a base period employer, an employer during the period between
the end of the base period and the effective date of the benefit
account, or an employer during the benefit year.
Sec. 34. Minnesota Statutes 2000, section 268.085,
subdivision 14, is amended to read:
Subd. 14. [ABLE TO WORK DEFINED.] "Able to work" means an
applicant has the physical and mental ability to perform the
usual duties of the applicant's customary usual occupation or
the usual duties of other suitable comparable employment.
Sec. 35. Minnesota Statutes 2000, section 268.085,
subdivision 15, is amended to read:
Subd. 15. [AVAILABLE FOR SUITABLE EMPLOYMENT DEFINED.] (a)
"Available for suitable employment" means an applicant is ready
and willing to accept suitable employment in the labor market
area. The attachment to the work force must be genuine. An
applicant may restrict availability to suitable employment, but
there must be no other restrictions, either self-imposed or
created by circumstances, temporary or permanent, that prevent
accepting suitable employment.
(b) To be considered "available for suitable employment," a
student must be willing to quit school to accept suitable
employment that would conflict with school attendance.
(c) An applicant who is absent from the labor market area
for personal reasons, other than to search for work, is not
"available for suitable employment."
(d) An applicant who has restrictions on the hours of the
day or days of the week that the applicant can or will work,
that are not normal for the applicant's usual occupation or
other suitable employment, is not "available for suitable
employment." An applicant whose usual occupation is normally
performed during the daytime must be available for daytime work
employment, if suitable employment is performed during the
daytime, even though the applicant customarily previously worked
the night shift.
(e) An applicant must have transportation throughout the
labor market area to be considered "available for suitable
employment."
Sec. 36. Minnesota Statutes 2000, section 268.086,
subdivision 1, is amended to read:
Subdivision 1. [ACTIVE BENEFIT ACCOUNT.] (a) A benefit
account shall be considered active only when an applicant files
continued requests for unemployment benefits in the manner and
within the time periods prescribed. A benefit account shall be
considered inactive if an applicant stops filing a continued
request or fails to file a continued request within the time
period required. The benefit account shall be considered
inactive as of the Sunday following the last week or biweekly
period for which a continued request has been timely filed.
(b) A benefit account that is inactive shall be reactivated
the Sunday of the week that the applicant makes a contact with
the department to do so, in the manner prescribed by the
commissioner for reactivating that applicant's benefit account.
Upon specific request of an applicant, a benefit account may be
reactivated effective up to two weeks prior to the week the
applicant made contact with the department to reactivate.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 37. Minnesota Statutes 2000, section 268.086,
subdivision 7, is amended to read:
Subd. 7. [IN-PERSON CONTINUED REQUEST FOR UNEMPLOYMENT
BENEFITS.] The commissioner may require any applicant who has
been designated to make a continued request for unemployment
benefits by mail, by telephone, by electronic transmission, or
by mail to appear for a personal interview at a place, time, and
date designated, during which a written continued request for
unemployment benefits form shall be completed and submitted by
the applicant.
An applicant shall be ineligible for unemployment benefits
for the week or biweekly period covered by a continued request
and the benefit account shall be considered inactive if the
applicant fails, without good cause, to comply with the
requirement that the applicant appear for a personal interview
and at that time complete and submit a written continued request
form.
Sec. 38. Minnesota Statutes 2000, section 268.095,
subdivision 1, is amended to read:
Subdivision 1. [QUIT.] An applicant who quit employment
shall be disqualified from all unemployment benefits except when:
(1) the applicant quit the employment because of a good
reason caused by the employer;
(2) the applicant quit the employment to accept other
covered employment that provided substantially better terms and
conditions of employment, but the applicant did not work long
enough at the other employment to have sufficient subsequent
earnings to satisfy the disqualification that would otherwise be
imposed;
(3) the applicant quit the employment within 30 calendar
days of beginning the employment because the employment was
unsuitable for the applicant;
(4) the employment was unsuitable for the applicant and the
applicant quit to enter reemployment assistance training;
(5) the employment was part time and the applicant had
full-time employment in the base period, that the applicant
separated from because of nondisqualifying reasons, sufficient
to meet the minimum requirements to establish a benefit account
under section 268.07;
(6) the applicant quit because the employer notified the
applicant that the applicant was going to be laid off due to
lack of work within 30 calendar days. An applicant who quit
employment within 30 calendar days of a notified date of layoff
due to lack of work shall be disqualified from unemployment
benefits through the end of the week that includes the scheduled
date of layoff; or
(7) the applicant quit the employment because the
applicant's serious illness or injury made it medically
necessary that the applicant quit, provided that the applicant
made reasonable efforts to remain in that employment in spite of
the serious illness or injury.
Reasonable efforts to remain in that employment are those a
reasonable individual would make if interested in remaining with
the employer and require that the applicant inform the employer
of the serious illness or injury and request accommodation.
If the applicant's serious illness is chemical dependency,
the applicant has not made reasonable efforts to remain in that
employment if the applicant has previously been diagnosed as
chemically dependent, or has previously had treatment for
chemical dependency, and has failed to make consistent efforts
to control the chemical dependency.; or
(8) domestic abuse of the applicant or the applicant's
minor child, necessitated the applicant's quitting the
employment. Domestic abuse shall be shown by one or more of the
following:
(i) a court order for protection or other documentation of
equitable relief issued by a court;
(ii) a police record documenting the domestic abuse;
(iii) documentation that the perpetrator of the domestic
abuse has been convicted of the offense of domestic abuse;
(iv) medical documentation of domestic abuse; or
(v) documentation or certification of the domestic abuse
provided by a social worker, member of the clergy, shelter
worker, or other professional who has assisted the applicant in
dealing with the domestic abuse.
Domestic abuse for purposes of this clause shall be defined
under section 518B.01.
Sec. 39. Minnesota Statutes 2000, section 268.095,
subdivision 2, is amended to read:
Subd. 2. [QUIT DEFINED.] (a) A quit from employment occurs
when the decision to end the employment was, at the time the
employment ended, the employee's.
(b) An employee who has been notified that the employee
will be discharged in the future, who chooses to end the
employment while employment in any capacity is still available,
shall be considered to have quit the employment.
(c) An employee who seeks to withdraw a previously
submitted notice of quitting shall be considered to have quit
the employment if the employer does not agree that the notice
may be withdrawn.
(d) An applicant who, without good cause, fails to
affirmatively request an additional job assignment after
completion of a temporary job assignment from a staffing service
employer shall be considered to have quit employment.
This paragraph shall apply only if, at the time of
beginning of employment with the staffing service employer, the
applicant signed and was provided a copy of a separate document
written in clear and concise language that informed the
applicant of this paragraph and that unemployment benefits may
be affected.
For purposes of this paragraph, "good cause" shall be a
reason that is significant and would compel an average,
reasonable worker, who would otherwise want an additional
temporary job assignment with the staffing service employer, to
fail to contact the staffing service employer. The applicant
shall be considered to have good cause if the temporary job
assignment just completed was not suitable employment for the
applicant.
For purposes of this paragraph, a "staffing service
employer" is an employer whose business involves employing
individuals directly for the purpose of furnishing temporary
help to clients of the staffing service.
Sec. 40. Minnesota Statutes 2000, section 268.095,
subdivision 8, is amended to read:
Subd. 8. [OFFERS OF EMPLOYMENT.] (a) An applicant shall be
disqualified from all unemployment benefits if the applicant,
without good cause:
(1) failed to apply for available, suitable employment of
which the applicant was advised by the commissioner or an
employer;
(2) failed to accept suitable employment when offered; or
(3) avoided an offer of suitable employment.
(b) "Good cause" is a reason that would cause a reasonable
individual who wants suitable employment to fail to apply for,
accept, or avoid suitable employment. Good cause includes:
(1) the applicant is employed in other suitable employment;
(2) the applicant is in reemployment assistance training;
(3) the applicant formerly worked for the employer and the
loss of employment occurred prior to the commencement of a labor
dispute, was permanent or for an indefinite period, and the
applicant failed to apply for or accept the employment because a
labor dispute was in progress at the establishment; or
(4) the applicant formerly worked for the employer and quit
that employment because of a good reason caused by the employer.
(c) This subdivision only applies to offers of employment
with a new or a former employer and does not apply to any type
of job transfers, position reassignments, or changes in job
duties or responsibilities during the course of employment with
an employer.
Sec. 41. Minnesota Statutes 2000, section 268.095,
subdivision 11, is amended to read:
Subd. 11. [APPLICATION.] (a) This section shall apply to:
(1) all covered employment, full time or part time,
temporary or of limited duration, permanent or of indefinite
duration, that occurred in Minnesota during the base period, the
period between the end of the base period and the effective date
of the benefit account, or the benefit year, except as provided
for in subdivision 1, clause (5); or.
(2) all covered employment occurring in this state, and (b)
Paragraph (a) shall also apply to employment covered under an
unemployment insurance program, (i) of any other state or (ii)
established by an act of Congress.
Sec. 42. Minnesota Statutes 2000, section 268.101,
subdivision 1, is amended to read:
Subdivision 1. [NOTIFICATION.] (a) In an application for
unemployment benefits, each applicant shall report the name and
the reason for no longer working for the applicant's most recent
employer, as well as the names of all employers and the reasons
for no longer working for all employers during the applicant's
last 30 days of employment six calendar months prior to the date
of the application. If the reason reported for no longer
working for any of those employers is other than a layoff due to
lack of work, that shall raise an issue of disqualification that
the department shall determine. An applicant's failure to
report the name of an employer, or giving an incorrect reason
for no longer working for an employer, shall be considered a
violation of section 268.182, paragraph (b).
In an application, the applicant shall provide all
information necessary to determine the applicant's eligibility
for unemployment benefits under section 268.085. If the
applicant fails or refuses to provide information necessary to
determine the applicant's eligibility for benefits under section
268.085, the applicant shall be ineligible for benefits under
section 268.085, subdivision 2, until the applicant provides
this required information.
(b) Upon establishment of a benefit account, the
commissioner shall notify, by mail or electronic transmission,
all employers the applicant was employed by during the
applicant's last 30 days of employment prior to making
an required to report on the application and all base period
employers and determined successors to those employers under
section 268.051, subdivision 4. An in order to provide the
employer shall have ten calendar days after the sending of the
notice an opportunity to raise, in a manner prescribed by the
commissioner, any issue of disqualification or any issue of
eligibility. An employer shall be informed of the effect that
failure to raise an issue of disqualification within ten
calendar days after sending of the notice, as provided for under
subdivision 2, paragraph (b), may have on the employer charges
under section 268.047. An issue raised more than ten calendar
days after sending of the notice shall be considered untimely.
(c) Each applicant shall report any employment, loss of
employment, and offers of employment received, during those
weeks the applicant filed continued requests for unemployment
benefits pursuant to section 268.086. Each applicant who stops
filing continued requests during the benefit year and later
begins filing continued requests during that same benefit year
shall report the name of any employer the applicant worked for
during the period between the filing of continued requests, up
to a period of the last 30 days of employment, and the reason
the applicant stopped working for the employer. The applicant
shall report any offers of employment during the period between
the filing of continued requests for unemployment benefits.
Those employers from which the applicant has reported a loss of
employment or an offer of employment pursuant to this paragraph
shall be notified by mail or electronic transmission. An
employer shall have ten calendar days after the sending of the
notice and provided an opportunity to raise, in a manner
prescribed by the commissioner, any issue of disqualification or
any issue of eligibility. An employer shall be informed of the
effect that failure to raise an issue may have on the
employer charges under section 268.047. An issue raised more
than ten calendar days after sending of the notice shall be
considered untimely.
(d) The purpose for requiring the applicant to report the
name of all employers and the reason for no longer working for
all those employers during the applicant's "last 30 days of
employment" under paragraphs (a) and (c) is for the commissioner
to obtain information from an applicant raising all issues that
may have the potential of disqualifying the applicant from
unemployment benefits under section 268.095. If the reason
given by the applicant for no longer working for an employer is
other than a layoff due to lack of work, that shall raise an
issue of disqualification and the applicant shall be required,
as part of the determination process under subdivision 2,
paragraph (a), to state all the facts about the cause for no
longer working for the employer, if known. If the applicant
fails or refuses to provide this information, the applicant
shall be ineligible for benefits under section 268.085,
subdivision 2, until the applicant provides this required
information.
Sec. 43. Minnesota Statutes 2000, section 268.101,
subdivision 2, is amended to read:
Subd. 2. [DISQUALIFICATION DETERMINATION.] (a) The
commissioner shall determine any issue of disqualification
timely raised by an employer, and mail to the applicant and that
employer at the last known address a determination of
disqualification or a determination of nondisqualification, as
is appropriate. The determination shall state the effect on
employer charges under section 268.047.
(b) (a) The commissioner shall determine any issue of
disqualification raised by information required from an
applicant under subdivision 1, paragraph (a) or (c), and mail to
the applicant and employer at the last known address a
determination of disqualification or a determination of
nondisqualification, as is appropriate. The determination shall
state the effect on the employer charges under section 268.047.
A determination shall be made pursuant to this paragraph only on
those issues involving the applicant's last 30 days of
employment and shall be made even if a notified employer has not
raised the issue of disqualification.
(c) (b) The commissioner shall determine any untimely issue
of disqualification raised by an employer and mail to the
applicant and that employer at the last known address a
determination of disqualification or a determination of
nondisqualification as is appropriate. The determination shall
state the effect on the employer charges under section 268.047.
If the a base period employer:
(1) was not the applicant's most recent employer prior to
the application for unemployment benefits;
(2) did not employ the applicant during the applicant's
last 30 days of employment six calendar months prior to the
applicant's application for unemployment benefits, but only
employed the applicant for periods prior to that,; and
(3) did not raise an issue of disqualification within ten
calendar days of notification under subdivision 1, paragraph
(b); then any exception to employer charges under section
268.047, subdivisions 2 and 3, shall begin the Sunday two weeks
following the week that the untimely issue of disqualification
was raised by the employer.
(d) (c) If any time within 24 months from the establishment
of a benefit account the commissioner finds that an applicant
failed to report any employment, loss of employment, or offers
of employment that were required to be provided by the applicant
under this section, the commissioner shall determine any issue
of disqualification on that loss of employment or offer of
employment and mail to the applicant and involved employer at
the last known address a determination of disqualification or a
determination of nondisqualification, as is appropriate. The
determination shall state the effect on the employer charges
under section 268.047.
This paragraph shall not prevent the imposition of any
penalty under section 268.18, subdivision 2, or 268.182.
(e) (d) An issue of disqualification shall be determined
based upon that information required of an applicant, any
information that may be obtained from an applicant or employer,
and information from any other source, without regard to any
common law burden of proof.
(f) (e) A determination of disqualification or a
determination of nondisqualification shall be final unless an
appeal is filed by the applicant or notified employer within 30
calendar days after mailing. The determination shall contain a
prominent statement indicating the consequences of not appealing.
Proceedings on the appeal shall be conducted in accordance with
section 268.105.
(g) (f) An issue of disqualification for purposes of this
section shall include any reason for no longer working for an
employer other than a layoff due to lack of work, any question
of a disqualification from unemployment benefits under section
268.095, any question of an exception to disqualification under
section 268.095, any question of unemployment benefit charge to
effect on an employer under section 268.047, and any question of
an otherwise imposed disqualification that an applicant has
satisfied under section 268.095, subdivision 10.
(h) (g) Regardless of the requirements of this subdivision,
the commissioner is not required to mail to an applicant a
determination where the applicant has satisfied any otherwise
potential disqualification under section 268.095, subdivision 10.
Sec. 44. Minnesota Statutes 2000, section 268.105,
subdivision 7, is amended to read:
Subd. 7. [JUDICIAL REVIEW.] (a) The Minnesota court of
appeals shall, by writ of certiorari to the commissioner, review
the decision of the commissioner provided a petition for the
writ is filed with the court and a copy is served upon the
commissioner and any other involved party within 30 calendar
days of the mailing of the commissioner's decision.
(b) Any employer petitioning for a writ of certiorari shall
pay to the court the required filing fee and upon the service of
the writ shall furnish a cost bond to the commissioner in
accordance with the rules of civil appellate procedure. If the
employer requests a written transcript of the testimony received
at the evidentiary hearing conducted pursuant to subdivision 1,
the employer shall pay to the commissioner the cost of preparing
the transcript.
(c) Upon issuance by the Minnesota court of appeals of a
writ of certiorari as a result of an applicant's petition, the
commissioner shall furnish to the applicant at no cost a written
transcript of the testimony received at the evidentiary hearing
conducted pursuant to subdivision 1, and, if requested, a copy
of all exhibits entered into evidence. No filing fee or cost
bond shall be required of an applicant petitioning the Minnesota
court of appeals for a writ of certiorari.
(d) The commissioner shall be considered the primary
responding party to any judicial action involving the
commissioner's decision and the case title shall be, "In Re the
matter of: (named petitioner) and the commissioner of economic
security.". The commissioner may be represented by an attorney
who is a classified employee of the department designated by the
commissioner for that purpose.
Sec. 45. Minnesota Statutes 2000, section 268.131,
subdivision 2, is amended to read:
Subd. 2. [COOPERATION WITH FOREIGN GOVERNMENTS.] The
commissioner is authorized to enter into or cooperate in
arrangements whereby facilities and services provided under
sections 268.03 to 268.23 and facilities and services provided
under the unemployment insurance program of any foreign
government, may be used for the taking of applications for
unemployment benefits and continued claims requests and the
payment of unemployment benefits under this law or under a
similar law of a foreign government.
Sec. 46. Minnesota Statutes 2000, section 268.18,
subdivision 2b, is amended to read:
Subd. 2b. [INTEREST.] (a) Beginning January 1, 2002, On
any unemployment benefits fraudulently obtained, and any penalty
amounts assessed under subdivision 2, the commissioner shall may
assess interest at the rate of 1-1/2 percent per month on any
amount that remains unpaid 30 calendar days after the date of
the determination of overpayment by fraud. A determination of
overpayment by fraud shall state that interest shall be assessed.
(b) If this subdivision became effective after the date of
the determination, or the determination did not state that
interest shall be assessed, interest shall be assessed beginning
30 calendar days after written notification to the applicant.
Sec. 47. Minnesota Statutes 2000, section 268.184, is
amended to read:
268.184 [EMPLOYER MISCONDUCT; PENALTY.]
(a) If the commissioner finds that any employer or any
employee, officer, or agent of any employer, is in collusion
with any applicant for the purpose of assisting the applicant to
receive unemployment benefits illegally, the employer shall be
penalized $500 or the amount of unemployment benefits determined
to be overpaid, whichever is greater.
(b) If the commissioner finds that any employer or any
employee, officer, or agent of an employer has made (1) a false
statement or representation knowing it to be false, or (2) has
made a false statement or representation without a good faith
belief as to correctness of the statement or representation, or
(3) who knowingly fails to disclose a material fact, to prevent
or reduce the payment of unemployment benefits to any applicant
or to reduce or prevent a charge the effects of unemployment
benefits to paid on its tax or reimbursable account, the
employer shall be penalized $500.
(c) Penalties under this section shall be in addition to
any other penalties and subject to the same collection
procedures that apply to past due taxes. Penalties shall be
paid to the department within 30 calendar days of assessment and
credited to the contingent account.
(d) The assessment of the penalty shall be final unless the
employer files an appeal within 30 calendar days after the
sending of notice of the penalty to the employer by mail or
electronic transmission. Proceedings on the appeal shall be
conducted in accordance with section 268.105.
(e) Any employer or any officer or agent of an employer or
any other individual 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
unemployment benefits to any applicant, is guilty of a gross
misdemeanor unless the unemployment benefit underpayment exceeds
$500, in that case the individual is guilty of a felony.
Sec. 48. Minnesota Statutes 2000, section 268.192,
subdivision 1, is amended to read:
Subdivision 1. [WAIVER OF RIGHTS VOID.] Any agreement by
an individual to waive, release, or commute rights to
unemployment benefits or any other rights under sections 268.03
to 268.23 shall be void. Any agreement by an employee to pay
all or any portion of an employer's taxes, shall be void. No
employer shall directly or indirectly make or require or accept
any deduction from wages to pay the employer's taxes, require or
accept any waiver of any right or in any manner obstruct or
impede an application or continued claim request for
unemployment benefits. Any employer or officer or agent of any
employer who violates any portion of this subdivision shall, for
each offense, be guilty of a misdemeanor.
Sec. 49. Minnesota Statutes 2000, section 268.6715, is
amended to read:
268.6715 [1997 MINNESOTA EMPLOYMENT AND ECONOMIC
DEVELOPMENT PROGRAM.]
The 1997 Minnesota employment and economic development
program is established to assist businesses and communities to
create jobs that provide the wages, benefits, and on-the-job
training opportunities necessary to help low-wage workers and
people transitioning from public assistance to get and retain
jobs, and to help their families to move out of poverty.
Employment obtained under this program is not excluded from
included in the definition of "noncovered employment" by section
268.04 268.035, subdivision 12 20, clause (10), paragraph
(d) (11).
Sec. 50. Minnesota Statutes 2000, section 268.976,
subdivision 1, is amended to read:
Subdivision 1. [EARLY WARNING INDICATORS.] The
commissioner, in cooperation with the commissioners of revenue
and trade and economic development, shall establish and oversee
an early warning system to identify industries and businesses
likely to experience large losses in employment including a
plant closing or a substantial layoff, by collecting and
analyzing information which may include, but not be limited to,
products and markets experiencing declining growth rates,
companies and industries subject to competition from production
in low wage counties, changes in ownership, layoff and
employment patterns, payments of unemployment contributions
taxes, and state tax payments. The commissioner may request the
assistance of businesses, business organizations, and trade
associations in identifying businesses, industries, and specific
establishments that are likely to experience large losses in
employment. The commissioner may request information and other
assistance from other state agencies for the purposes of this
subdivision.
Sec. 51. [RETROACTIVE ELECTION BY INDIAN TRIBES.]
Regardless of any law to the contrary, an Indian tribe,
subdivision, subsidiary, or business enterprise wholly owned by
the tribe may elect to be liable for payments in lieu of
unemployment taxes for the calendar year 2000 or 2001, or both.
If such tribe, subdivision, subsidiary, or business enterprise
paid unemployment taxes on a quarterly basis during 2000 or
2001, and if the tribe elects by December 31, 2002, to be liable
for payments in lieu of unemployment taxes for one or both of
those calendar years, the department shall grant a refund or
credit for the amount that the total of unemployment tax
payments exceeded the total payment that would have been due if
payments in lieu of unemployment taxes had been made.
[EFFECTIVE DATE.] This section is effective December 31,
2000.
Sec. 52. [INSTRUCTIONS TO REVISOR.]
The revisor of statutes shall renumber each section of
Minnesota Statutes listed in column A with the number listed in
column B. The revisor shall also make necessary cross-reference
changes consistent with the renumbering.
Column A Column B
268.035, subd. 5 268.035, subd. 26a
268.035, subd. 8 268.035, subd. 2a
268.095, subd. 4a 268.095, subd. 6a
268.101, subd. 7 268.19, subd. 2
268.198 268.26
In Minnesota Statutes, sections 268.001 to 268.23:
The term "or the Federal Economic Security Law" shall be
changed to "or Federal Unemployment Insurance Program."
The term "section 268.03 to 268.23" shall be changed to
"the Minnesota Unemployment Insurance Program Law."
The term "administer sections 268.03 to 268.23" shall be
changed to "administer the Minnesota unemployment insurance
program and the job service."
The term "administration of sections 268.03 to 268.23"
shall be changed to "administration of the Minnesota
unemployment insurance program and the job service."
The term "economic security administration account" shall
be changed to "administration account."
The term "economic security contingent account" shall be
changed to "contingent account."
The term "notwithstanding" shall be changed to "regardless
of."
Sec. 53. [REPEALER.]
Laws 1999, chapter 107, section 22, is repealed.
Presented to the governor May 23, 2001
Signed by the governor May 25, 2001, 12:12 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes