Charges Resulting From Benefits Paid

Reference: Minnesota Law, §268.047 (2007)

Unemployment benefits paid to eligible applicants are paid from the Minnesota Unemployment Insurance Trust Fund and are charged to each base period employer using the same ratio as the base period wages were paid by each employer, except as provided in MN Statute §268.047, subdivision 2 and 3.

EXAMPLE: An eligible applicant worked for two employers that each paid $2,000 in the base period, each employer would be charged 50 percent of the benefits paid.

NOTE: Employees cannot waive, release or commute their rights to unemployment benefits.

In general, employer benefits paid charges are based on the reason the applicant is no longer employed. Applicants who quit employment because of a good reason caused by the employer and those who are discharged for reasons other than employment misconduct are not disqualified from benefits and the separating employer will be charged. A discharge resulting from an individual’s inability to meet the employer’s performance standards usually results in the employer being charged.

      

This handbook is based on current UI legislation; statements are intended for general information and do not have the effect of law. The Minnesota Unemployment Insurance Law - MN Statutes §268.001 to §268.23 and Administrative Rules 3310 and 3315 - can be accessed through our Web site at www.uimn.org; by clicking on the UI Law link.