Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2003, 1st Special Session
Key: (1) language to be deleted (2) new language
CHAPTER 3-S.F.No. 18
An act relating to unemployment insurance; modifying
provisions to increase the solvency of the trust fund;
making policy and technical changes; amending
Minnesota Statutes 2002, sections 268.035,
subdivisions 15, 23; 268.044, subdivision 1, by adding
a subdivision; 268.051, subdivisions 1, 2, 3, 5, 6, by
adding a subdivision; 268.052, subdivision 1; 268.057,
subdivision 5; 268.067; 268.07, subdivision 2;
268.085, subdivision 3; 268.086, subdivision 2;
268.095, subdivisions 1, 2, 6, 11; 268.105,
subdivision 7; 268.18, subdivisions 1, 4; proposing
coding for new law in Minnesota Statutes, chapter 268;
repealing Minnesota Rules, part 3315.1015, subpart 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
SOLVENCY
Section 1. Minnesota Statutes 2002, section 268.051,
subdivision 1, is amended to read:
Subdivision 1. [PAYMENTS.] (a) Taxes and any additional
assessments, fees, or surcharges shall accrue and become payable
by each employer for each calendar year that the employer paid
wages to employees in covered employment, except for:
(1) nonprofit organizations that elect to make payments in
lieu of taxes reimbursements as provided in section 268.053; and
(2) the state of Minnesota and political subdivisions that
make reimbursements, unless they elect to pay taxes as provided
in section 268.052.
Each employer shall pay taxes quarterly, at the employer's
assigned tax rate, on the taxable wages paid to each employee.
The taxes and any additional assessments, fees, or surcharges
shall be paid to the trust fund on or before the last day of the
month following the end of the calendar quarter.
(b) The tax total payment due may be paid in an amount to
the nearest whole dollar.
(c) When the tax total payment due for any calendar quarter
is less than $1, the tax it shall be disregarded.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 2. Minnesota Statutes 2002, section 268.051,
subdivision 2, is amended to read:
Subd. 2. [COMPUTATION OF TAX RATES; ADDITIONAL
ASSESSMENTS.] (a) For each calendar year the commissioner shall
compute the tax rate of each taxpaying employer that qualifies
for an experience rating by adding the base tax rate to the
employer's experience rating.
(b) The base tax rate shall be six-tenths of one percent if
the amount in the fund is less than $200,000,000 on June 30 of
the prior calendar year; or five-tenths of one percent if the
fund is more than $200,000,000 but less than $225,000,000; or
four-tenths of one percent if the fund is more than $225,000,000
but less than $250,000,000; or three-tenths of one percent if
the fund is more than $250,000,000 but less than $275,000,000;
or two-tenths of one percent if the fund is $275,000,000 but
less than $300,000,000; or one-tenth of one percent if the fund
is $300,000,000 or more.
(b) The base tax rate for the calendar year and any
additional assessments under this subdivision shall be
determined based upon the amount in the trust fund on March 31
of the prior year as a percentage of total wages paid in covered
employment. The base tax rate shall be:
(1) one-tenth of one percent if the trust fund is equal to
or more than 0.75 percent;
(2) two-tenths of one percent if the trust fund is less
than 0.75 percent but equal to or more than 0.65 percent;
(3) three-tenths of one percent if the trust fund is less
than 0.65 percent but equal to or more than 0.55 percent; or
(4) four-tenths of one percent if the trust fund is less
than 0.55 percent.
(c) There shall be a "falling fund adjustment" to the base
tax rate for the calendar year if the amount in the trust fund
on March 31 of the prior year is less than 0.75 percent of total
wages paid in covered employment and:
(1) the amount in the trust fund on March 31 of the prior
year is ten percent or more below the amount in the trust fund
on March 31 of the year prior to that; or
(2) the amount in the trust fund on March 31 of the prior
year is greater than the amount in the trust fund on June 30 of
that same year.
If a "falling fund adjustment" is applicable, then the base tax
rate shall be 0.1 percent greater than otherwise provided for
under paragraph (b).
(d) In addition to the base tax rate under paragraph (b),
there shall be an additional assessment for the calendar year on
all quarterly unemployment taxes due from every taxpaying
employer if the amount in the trust fund on March 31 of the
prior year is less than .55 percent of total wages paid in
covered employment. The assessment shall be as follows:
(1) a five percent assessment if the trust fund is less
than 0.55 percent but equal to or more than 0.45 percent;
(2) a ten percent assessment if the trust fund is less than
0.45 percent but equal to or more than 0.35 percent; or
(3) a 14 percent assessment if the trust fund is less than
0.35 percent.
(c) (e) For the purposes of this subdivision the trust fund
shall not include any money borrowed from the federal
unemployment trust fund pursuant to section 268.194, subdivision
6.
(f) For the purposes of this subdivision, total wages paid
in covered employment shall be those wages paid to all employees
in covered employment during the calendar year prior to the
March 31 date used in paragraph (b).
(g) The commissioner may compute any assessment under this
subdivision, and any assessment under subdivision 8, as a
percentage of the employer's experience rating and the base tax
rate, rounded to the nearest hundredth of a percent.
On tax rate notices sent under subdivision 6, any
assessments under this subdivision may be combined with any
special assessments for interest on federal loans provided for
in subdivision 8 into a single combined assessment.
[EFFECTIVE DATE.] Paragraph (c) is effective January 1,
2005. The remainder of this section is effective the day
following final enactment.
Sec. 3. Minnesota Statutes 2002, 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 paying unemployment taxes 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 required
under section 268.047 to be used in computing the employer's tax
rate during the 60 48 calendar months ending on June 30 of the
prior calendar year, by the employer's total taxable payroll for
that same period.
(c) For purposes of paragraph (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.
(d) The experience rating shall be computed to the nearest
one-tenth of a percent, to a maximum of 8.9 percent.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 4. Minnesota Statutes 2002, section 268.051,
subdivision 5, is amended to read:
Subd. 5. [TAX RATE FOR NEW EMPLOYERS.] (a) Each new
taxpaying employer that does not qualify for an experience
rating under subdivision 3, paragraph (a), except new employers
in a high experience rating industry, shall be assigned, for a
calendar year, a tax rate the higher of (1) one percent, or (2)
the state's average cost rate. For purposes of this paragraph,
the state's average cost tax rate shall be computed annually by
dividing the total amount of unemployment benefits paid all
applicants during the 60 48 calendar months prior to July 1 of
each ending on June 30 of the prior calendar year by the total
taxable wages of all taxpaying employers during the same period,
plus the applicable base tax rate. This rate for new employers
shall be applicable for the calendar year following the
computation date.
(b) Each new taxpaying employer in a high experience rating
industry that does not qualify for an experience rating under
subdivision 3, paragraph (a), shall be assigned, for a calendar
year, a tax rate of 8.0 percent, plus the applicable base tax
rate.
An employer is considered to be in a high experience rating
industry if:
(1) the employer is engaged in residential, commercial, or
industrial construction, including general contractors;
(2) the employer is engaged in sand, gravel, or limestone
mining;
(3) the employer is engaged in the manufacturing of
concrete, concrete products, or asphalt; or
(4) the employer is engaged in road building, repair, or
resurfacing, including bridge and tunnels and residential and
commercial driveways and parking lots.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 5. Minnesota Statutes 2002, section 268.051,
subdivision 6, is amended to read:
Subd. 6. [NOTICE OF TAX RATE.] (a) The commissioner shall
notify each employer by mail or electronic transmission of the
employer's tax rate, along with any additional assessments,
fees, or surcharges, as determined for any calendar year. The
notice shall contain the tax rate and the factors used in
determining the employer's experience rating. Unless a protest
of the rate is made, the assigned rate shall be final except for
fraud and shall be the rate at which taxes shall be paid. The
tax rate shall not be subject to collateral attack by way of
claim for a credit adjustment or refund, or otherwise.
(b) If the legislature, subsequent to the sending of the
tax rate, changes any of the factors used to determine the rate,
the earlier notice shall be void. A new tax rate based on the
new factors shall be computed and sent to the employer.
(c) A review of an employer's tax rate may be obtained by
the employer filing, in a manner prescribed by the commissioner,
a protest within 30 calendar days from the date the tax rate
notice was sent to the employer. Upon receipt of the protest,
the commissioner shall review the tax rate to determine whether
or not there has been any clerical error or error in
computation. The commissioner shall either affirm or make a
redetermination of the rate and a notice of the affirmation or
redetermination shall be sent to the employer by mail or
electronic transmission. 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) The commissioner may at any time upon the
commissioner's own motion correct any error in the computation
or the assignment of an employer's tax rate.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 6. Minnesota Statutes 2002, section 268.051, is
amended by adding a subdivision to read:
Subd. 9. [ASSESSMENTS, FEES, AND SURCHARGES;
TREATMENT.] Any assessment, fee, or surcharge imposed under the
Minnesota Unemployment Insurance Law shall be treated the same
as, and considered as, a tax. Any assessment, fee, or surcharge
shall be subject to the same collection procedures that apply to
past due taxes.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 7. Minnesota Statutes 2002, 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 50 45 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;
or
(2) 26 times the applicant's weekly unemployment benefit
amount.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 8. Minnesota Statutes 2002, section 268.085,
subdivision 3, is amended to read:
Subd. 3. [DEDUCTIBLE PAYMENTS THAT DELAY UNEMPLOYMENT
BENEFITS.] (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) severance 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, but only
if the money payment is considered wages at the time of payment
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 all the first four
weeks of payment and to one-half of the total number of any
additional weeks of payment. This clause and 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. This clause shall not apply to vacation pay
paid by an employer upon permanent separation from employment;
(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
(3) holiday pay.
(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.
[EFFECTIVE DATE.] This section is effective for benefit
accounts established August 3, 2003, and thereafter.
Sec. 9. [MAXIMUM BENEFIT AMOUNT.]
Notwithstanding Minnesota Statutes, section 268.07,
subdivision 2, paragraph (b), clause (2), the maximum amount of
weekly unemployment benefits available based upon the high
quarter calculation shall not be less than $350.
[EFFECTIVE DATE.] This section is effective the day
following enactment and sunsets September 1, 2006.
ARTICLE 2
POLICY AND TECHNICAL CHANGES
Section 1. Minnesota Statutes 2002, section 268.035,
subdivision 15, is amended to read:
Subd. 15. [EMPLOYMENT.] "Employment" means service
performed by:
(1) an individual who is considered an employee under the
common law of employer-employee and not considered an
independent contractor;
(2) an officer of a corporation;
(3) a member of a limited liability company who has less
than a 25 percent ownership share and is considered an employee
under the common law of employer-employee; or
(4) an individual who performs services for a person for
compensation, as:
(i) an agent-driver or commission-driver engaged in
distributing meat products, vegetable products, fruit products,
beverages, or laundry or dry cleaning services; or
(ii) a traveling or city salesperson, other than as an
agent-driver or commission-driver, engaged full-time in the
solicitation on behalf of the person, of orders from
wholesalers, retailers, contractors, or operators of hotels,
restaurants, or other similar establishments for merchandise for
resale or supplies for use in their business operations.
This clause shall apply only if the contract of service
provides that substantially all of the services are to be
performed personally by the individual, and the services are
part of a continuing relationship with the person for whom the
services are performed, and the individual does not have a
substantial investment in facilities used in connection with the
performance of the services, other than facilities for
transportation.
Sec. 2. Minnesota Statutes 2002, section 268.035,
subdivision 23, is amended to read:
Subd. 23. [STATE'S AVERAGE ANNUAL AND AVERAGE WEEKLY
WAGE.] (a) On or before June 30 of each year, the commissioner
shall calculate the state's average annual wage and the state's
average weekly wage in the following manner:
(1) The sum of the total monthly covered employment
reported by all employers for the prior calendar year shall be
divided by 12 to calculate the average monthly covered
employment.
(2) The sum of the total wages paid for all covered
employment reported by all employers for the prior calendar year
shall be divided by the average monthly covered employment to
calculate the state's average annual wage.
(3) The state's average annual wage shall be divided by 52
to calculate the state's average weekly wage.
(b) For purposes of calculating the amount of taxable
wages, the state's average annual wage shall apply to the
calendar year following the calculation.
(c) For purposes of calculating the state's maximum weekly
unemployment benefit amount payable available on any benefit
account under section 268.07, subdivision 2, the state's average
weekly wage shall apply to the 12-month one-year period
beginning the first Sunday in August 1 of the calendar year of
the calculation.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 3. Minnesota Statutes 2002, section 268.044,
subdivision 1, is amended to read:
Subdivision 1. [WAGE DETAIL REPORT.] (a) Each employer
that has employees in covered employment shall provide the
commissioner with file a quarterly wage detail report, in a
manner and format prescribed by the commissioner. The report
shall include for each employee in covered employment, the
employee's name, social security number, the total wages paid to
the employee, and total number of paid hours worked. For
employees exempt from the definition of employee in section
177.23, subdivision 7, clause (6), the employer shall report 40
hours worked for each week any duties were performed by a
full-time employee and shall report a reasonable estimate of the
hours worked for each week duties were performed by a part-time
employee. If the information required is not filed in a manner
and format prescribed by the commissioner, it shall not be
considered a wage detail report. The report is due and must be
filed on or before the last day of the month following the end
of the calendar quarter.
(b) The employer may report the wages paid to the nearest
whole dollar amount.
(c) An employer need not include the name of the employee
or other required information on the wage detail report if
disclosure is specifically exempted by federal law.
Sec. 4. Minnesota Statutes 2002, section 268.044, is
amended by adding a subdivision to read:
Subd. 1a. [ELECTRONIC TRANSMISSION OF REPORT
REQUIRED.] Each employer that has 50 or more employees to report
for a calendar quarter under subdivision 1 must file the
quarterly wage detail report by electronic transmission in a
format prescribed by the commissioner. The commissioner shall
have the discretion to accept wage detail reports by magnetic
media, in a format prescribed by the commissioner. Wage detail
reports from an employer with 50 or more employees to report for
a calendar quarter that are filed by any other means may be
returned to the employer, and reports returned shall be
considered as not filed and the penalties under subdivision 2
may be imposed.
Sec. 5. Minnesota Statutes 2002, 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 reimburse the trust fund the amount
of unemployment benefits charged to its reimbursable account
under section 268.047. Payments Reimbursements 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 paid is sent pursuant to section 268.047, subdivision
5. Past due payments in lieu of taxes reimbursements shall be
subject to the same interest charges and collection procedures
that apply to past due taxes.
Sec. 6. Minnesota Statutes 2002, section 268.057,
subdivision 5, is amended to read:
Subd. 5. [INTEREST ON PAST DUE TAXES.] If any taxes or
payments in lieu of taxes to the fund, reimbursements, fees,
assessments, surcharges, or any penalties under section 268.184,
are not paid on the date due the unpaid balance shall bear
interest at the rate of one and one-half percent per month or
any part thereof. Taxes or Any payments in lieu of taxes
received by mail postmarked on a day following the date due
shall be considered to have been paid on the due date if there
is substantial evidence that the payment was actually deposited
in the United States mail properly addressed to the department
with postage prepaid thereon on or before the due date.
Interest collected shall be credited to the contingent account.
Interest may be waived by rules adopted by the
commissioner under section 268.067.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 7. Minnesota Statutes 2002, section 268.067, is
amended to read:
268.067 [COMPROMISE.]
(a) The commissioner may compromise in whole or in part any
action, determination, or decision that affects only an employer
and not an applicant, and that has occurred during the prior 24
months. This paragraph may apply if it is determined by a court
of law, or a confession of judgment, that an applicant, while
employed, wrongfully took from the employer $500 or more, in
money or property.
(b) The commissioner may at any time compromise delinquent
employer taxes, payments in lieu of taxes reimbursements,
interest, penalties, and costs.
(c) Any compromise shall be by written order signed by an
attorney who is a classified employee of the department
designated by the commissioner for that purpose.
(d) Any compromise order must set out all the terms and the
reason for the order and must be in the best interest of the
state of Minnesota.
Sec. 8. Minnesota Statutes 2002, 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 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 an applicant's weekly unemployment benefit amount and
maximum amount of unemployment benefits available shall be
rounded down to the next lowest whole dollar. The state's
maximum weekly benefit amount, computed in accordance with
section 268.035, subdivision 23, shall apply to a benefit
account established effective on or after the first Sunday in
August. Once established, an applicant's weekly unemployment
benefit amount shall not be affected by the first Sunday in
August change in the state's maximum weekly unemployment benefit
amount.
(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;
or
(2) 26 times the applicant's weekly unemployment benefit
amount.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 9. [268.084] [PERSONAL IDENTIFICATION NUMBER;
PRESUMPTION.]
(a) Each applicant shall be issued a personal
identification number (PIN) for the purpose of filing continued
biweekly requests for unemployment benefits, accessing
information, and engaging in other transactions with the
department.
(b) If a PIN assigned to an applicant is used in the filing
of a continued biweekly request for unemployment benefits under
section 268.086 or any other type of transaction, the applicant
shall be presumed to have been the individual using that PIN and
presumed to have received any unemployment benefit payment
issued. This presumption may be rebutted by a preponderance of
the evidence showing that the applicant assigned the PIN was not
the individual who used that PIN in the transaction.
(c) The commissioner shall notify each applicant of this
section.
Sec. 10. Minnesota Statutes 2002, section 268.086,
subdivision 2, is amended to read:
Subd. 2. [CONTINUED BIWEEKLY REQUEST FOR UNEMPLOYMENT
BENEFITS DEFINED.] A continued biweekly request for unemployment
benefits is a certification by an applicant, done on a weekly or
biweekly basis as prescribed by the commissioner, on that the
applicant's applicant is unemployed and meets the ongoing
eligibility requirements for unemployment benefits under section
268.085 for a specific week or two-week period. A
continued biweekly request shall include information on possible
issues of disqualification in accordance with section 268.101,
subdivision 1, paragraph (c).
Sec. 11. Minnesota Statutes 2002, 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;
(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 and
no reasonable accommodation is made available.
If the applicant's serious illness is chemical dependency,
the applicant has not made reasonable efforts to remain in that
employment this exception shall not apply if the applicant
has was previously been diagnosed as chemically dependent, or
has previously had treatment for chemical dependency, and since
that diagnosis or treatment 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 written statement that
the applicant or the applicant's minor child is a victim of the
domestic abuse, provided by a social worker, member of the
clergy, shelter worker, attorney at law, or other professional
who has assisted the applicant in dealing with the domestic
abuse.
Domestic abuse for purposes of this clause shall be defined
under section 518B.01.
Sec. 12. Minnesota Statutes 2002, 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 within five
calendar days after completion of a suitable temporary job
assignment from a staffing service employer, (1) fails without
good cause to affirmatively request an additional job
assignment, or (2) refuses without good cause an additional
suitable job assignment offered, 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, (1)
to fail to contact the staffing service employer, or (2) to
refuse an offered assignment. 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 job assignment workers to clients of the staffing service.
Sec. 13. Minnesota Statutes 2002, section 268.095,
subdivision 6, is amended to read:
Subd. 6. [EMPLOYMENT MISCONDUCT DEFINED.] (a) Employment
misconduct means:
(1) any intentional, negligent, or indifferent conduct, on
the job or off the job, (1) that disregards evinces a serious
violation of the standards of behavior that an the employer has
the right to reasonably expect of the employee or disregards the
employee's duties and obligations to the employer;, or (2)
negligent or indifferent conduct, on the job or off the job,
that demonstrates a substantial lack of concern for the
employment.
(b) Inefficiency, inadvertence, simple unsatisfactory
conduct, a single incident that does not have a significant
adverse impact on the employer, conduct an average reasonable
employee would have engaged in under the circumstances, poor
performance because of inability or incapacity, good faith
errors in judgment if judgment was required, or absence because
of illness or injury with proper notice to the employer, are not
employment misconduct.
(c) Any conduct in violation of paragraph (a), clause (1)
or (2), (b) Conduct that was a direct result of the applicant's
chemical dependency is not employment misconduct if unless the
applicant has was previously been diagnosed chemically dependent
or had treatment for chemical dependency, and since that
diagnosis or treatment has failed to make consistent efforts to
control the chemical dependency.
(c) Conduct that was a result of the applicant, or the
applicant's minor child, being a victim of domestic abuse as
defined under section 518B.01, is not employment misconduct.
Domestic abuse shall be shown as provided for in section
268.095, subdivision 1, clause (8).
(d) A driving offense in violation of sections 169A.20,
169A.31, or 169A.50 to 169A.53 that interferes with or adversely
affects the employment is employment misconduct.
(e) The definition of employment misconduct provided by
this subdivision shall be exclusive.
Sec. 14. Minnesota Statutes 2002, section 268.095,
subdivision 11, is amended to read:
Subd. 11. [APPLICATION.] (a) This section shall apply to
all covered employment, full time or part time, temporary or of
limited duration, permanent or of indefinite duration, that
occurred in Minnesota during the base period, the period between
the end of the base period and the effective date of the benefit
account, or the benefit year, except as provided for in
subdivision 1, clause (5). Subdivision 8 shall only apply to
offers of suitable employment made during the applicant's
benefit year.
(b) Paragraph (a) shall also apply to employment covered
under an unemployment insurance program of any other state or
established by an act of Congress.
Sec. 15. Minnesota Statutes 2002, 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. The commissioner may be represented by
an attorney who is a classified an employee of the department
designated by the commissioner for that purpose.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 16. Minnesota Statutes 2002, section 268.18,
subdivision 1, is amended to read:
Subdivision 1. [NONFRAUD OVERPAYMENT DUE TO ERROR.] (a)
Any applicant who (1) by reason of the applicant's own mistake,
or (2) because of an error by any employee of the department, or
(3) because of a determination, redetermination, or amended
determination issued pursuant to section 268.07 or 268.101, or
(4) because of an appeal decision under section 268.105, has
received any unemployment benefits that the applicant was not
entitled to, shall promptly repay the unemployment benefits to
the trust fund. If the applicant fails to repay the
unemployment benefits, The commissioner shall, as soon as the
erroneous payment overpayment is discovered, determine the
amount due and notify the applicant in writing to repay the
unemployment benefits.
(b) Unless the applicant files an appeal within 30 calendar
days after the mailing of the determination of overpayment to
the applicant's last known address, the determination shall
become final. Proceedings on the appeal shall be conducted in
accordance with section 268.105. An applicant may not
collaterally attack, by way of an appeal to an overpayment
determination, any prior determination issued pursuant to
section 268.07 or 268.101, or decision issued pursuant to
section 268.105, that has become final.
(c) If the applicant fails to repay the unemployment
benefits determined overpaid under this subdivision, the
commissioner may offset from any future unemployment benefits
otherwise payable the amount of the overpayment. Except when
the overpayment resulted because the applicant failed to report
deductible earnings or deductible or benefit delaying payments,
no single offset shall exceed 50 percent of the amount of the
payment from which the offset is made. The overpayment may also
be collected by the same methods as delinquent taxes. A
determination of overpayment shall state the methods of
collection the commissioner may use to recover the overpayment.
(d) If an applicant has been overpaid unemployment benefits
under the law of another state because of an error, due to a
reason other than fraud, and that state certifies that the
applicant is liable under its law to repay the unemployment
benefits and requests the commissioner to recover the
overpayment, the commissioner may offset from future
unemployment benefits otherwise payable the amount of
overpayment, except that no single offset shall exceed 50
percent of the amount of the payment from which the offset is
made.
(e) Unemployment benefits paid for weeks more than three
years prior to the discovery of error overpayment under this
subdivision are not overpaid unemployment benefits.
Sec. 17. Minnesota Statutes 2002, section 268.18,
subdivision 4, is amended to read:
Subd. 4. [CANCELLATION OF OVERPAYMENTS.] (a) If
unemployment benefits paid because of an error determined
overpaid under subdivision 1 are not repaid or offset from
subsequent unemployment benefits as provided for in subdivision
1 within six years after the date of the determination of
overpayment, the commissioner shall cancel the overpayment
balance, and no administrative or legal proceedings shall be
used to enforce collection of those amounts.
(b) If unemployment benefits paid as a result of
fraud determined overpaid under subdivision 2 including
penalties and interest are not repaid or offset from subsequent
unemployment benefits as provided for in subdivision 2 within
ten years after the date of the determination of overpayment by
fraud, the commissioner shall cancel the overpayment balance and
any penalties and interest due, and no administrative or legal
proceeding shall be used to enforce collection of those amounts.
(c) The commissioner may cancel at any time any
overpayment, including penalties and interest, that the
commissioner determines is uncollectible due to death or
bankruptcy.
Sec. 18. [GATE PILOT PROJECT.]
The commissioner of economic security may implement a pilot
project involving unemployment benefit applicants who are
participating in the Growing America Through Entrepreneurship,
(GATE) program, a joint initiative of the Small Business
Administration and the United States Department of Labor, to
help create, support, and expand small business opportunities in
diverse communities. The commissioner may waive all or part of
the ongoing eligibility requirements under Minnesota Statutes,
sections 268.085 and 268.086 for GATE participants.
A maximum of 200 unemployment benefit applicants may be
involved in this pilot project at any one time.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 19. [SUNSET.]
Section 18 expires on June 30, 2008.
Sec. 20. [REVISOR'S INSTRUCTION.]
(a) The revisor of statutes shall change the term
"unemployment insurance benefits program" to "unemployment
insurance program" throughout Minnesota Statutes.
(b) The revisor of statutes shall change the term "payments
in lieu of taxes" to "reimbursements" in Minnesota Statutes,
sections 268.01 to 268.23.
(c) The revisor of statutes shall change the term
"continued request" to "continued biweekly request" in Minnesota
Statutes, sections 268.029 to 268.23.
(d) The revisor of statutes shall change the term
"unemployment insurance program law" to "unemployment insurance
law" in Minnesota Statutes, sections 268.029 to 268.23.
(e) The revisor of statutes shall change the term
"unemployment insurance program trust fund" to "unemployment
insurance trust fund" in Minnesota Statutes, sections 268.029 to
268.23.
(f) The revisor of statutes shall change the term
"experience rating record" to "experience rating" in Minnesota
Statutes, sections 268.029 to 268.23.
(g) The revisor of statutes shall change the term "this
subdivision shall be exclusive" to "this subdivision shall be
exclusive and no other definition shall apply" in Minnesota
Statutes, sections 268.029 to 268.23.
(h) The revisor of statutes shall change the term
"applicants" to "unemployment benefit applicants" in Minnesota
Statutes, section 268.26.
(i) The revisor of statutes shall change the term
"benefits" to "unemployment benefits" in Minnesota Statutes,
sections 268.07, subdivision 3, paragraph (b); 268.101,
subdivision 1; and 268.18, subdivision 3a.
(j) The revisor of statutes shall change the term
"disqualified from" to "ineligible for" and change the term
"disqualified" to "ineligible" in Minnesota Statutes, section
268.095, subdivision 12.
(k) 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
268.095, subd. 12 268.085, subd. 13b
268.035, subd. 18 268.035, subd. 25a
(l) The revisor of statutes shall change the term "fund" to
"trust fund" in Minnesota Statutes, sections 268.029 to 268.23.
Sec. 21. [REPEALER.]
Minnesota Rules, part 3315.1015, subpart 4, is repealed.
Presented to the governor May 27, 2003
Signed by the governor May 30, 2003, 3:47 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes