2010 LEGISLATIVE CHANGES AFFECTING UNEMPLOYMENT INSURANCE
The following is a brief summary of the changes made to Minnesota law during the 2010 legislative session which affect unemployment insurance. Effective dates are included in the session law reference links.
Special State Emergency Unemployment Compensation Extension
Amends MS 268. These sections provide for an extension of unemployment benefits which mirrors the extended benefit program under Minn. Stat. §268.115, when the individual does not otherwise qualify for that extension. They allow individuals who are on the current special state emergency unemployment compensation extension, which is scheduled to expire on June 30, 2010 to continue on that extension. Further, they provide that individuals who have exhausted regular benefit entitlement, and are required to file a new account for regular benefits rather than go on an extension, will receive a weekly benefit amount not less than 80 percent of their prior weekly benefit amount (does not provide for more total overall benefits).
Reference: Chapter 347 SF 2510, Art. 2 Section 22, and Sections 24-25
Temporary Agency Changes
Amends 268.035 and 268.095 Subd. 5. These sections provide that no employment with a temporary help agency is considered suitable employment unless 45 percent or more of the applicant’s base period wages were earned in a staffing service job, and codify a 1981 Minnesota Supreme Court decision holding that the end of a job assignment with a staffing service is considered a discharge from employment.
Reference: Chapter 347 SF 2510, Art. 2 Section 3, Section 4, Section 14 and Section 16
Construction Industry Tax Rate
Amends MS 268.051 Subd. 5. Provides that the UI tax rate for new employers in the construction industry will be the average rate that employers in that industry have earned, rather than a fixed statutory rate.
Reference: Chapter 347 SF 2510, Art. 2 Section 7
Tax Rate Buydown
The 25 percent surcharge on benefits paid charges will not apply for charges removed as a result of a tax rate buydown made in 2011, 2012, and 2013.
Reference: Chapter 347 SF 2510, Art. 2 Section 8
Falling Trust Balance
Amends 268.051 Subd. 2. Changes the “falling trust fund” increased base taxes to a straight increase if the trust fund is in deficit (does not increase actual tax rates assigned).
Reference: Chapter 347 SF 2510, Art. 2 Section 6
Personal Care Attendants
Amends MS 268.035 Subd. 20. Eliminates from unemployment insurance coverage, both for benefits and taxation, personal care attendants who are immediate family members of the recipient who received funding for the personal care attendant through the state program administered by the department of human services.
Reference: Chapter 347 SF 2510, Art. 2 Section 2
Professional Employer Organizations
Amends MS 268.046 Subd. 1. Owner/officers of company that contracts with a professional employer organization (PEO) are in covered employment for the duration of the contract, as an employee of the PEO.
Note: Owner/officer above is subject to the limitations of §268.085, subd. 9.
Reference: Chapter 347 SF 2510, Art. 2 Section 5
Government and Non-Profit Employers
Amends MS 268.052, Subd. 2 and 268.052 Subd. 1. These changes allow governmental employers and nonprofits more flexibility in meeting their unemployment insurance cost obligations.
Reference: Chapter 347 SF 2510, Art. 2 Sections 9-10
Unemployment Help Line Number
Amends MS 268.101. Requires that a special phone number be put on all determinations involving a separation from employment so an individual who has a question can call directly into a call group.
Reference: Chapter 347 SF 2510, Art. 2 Section 18
Shared Work Amendments
Amends MS 2009 268.136 Subd. 1. Provides that shared work agreements can apply to the construction industry.
Reference: Chapter 347 SF 2510, Art. 2 Section 20
False Offers of Employment
Provides that an employer can be penalized if the employer makes an offer of employment to an applicant, when in fact no employment is available, the employer doing so in an attempt to get the applicant denied unemployment benefits.
Reference: Chapter 347 SF 2510, Art. 2 Section 21
Owners/Officers Limitation on Benefits
Limitation of unemployment benefits for business owners is applied to all children of business owner, not just “minor” children.
Reference: Chapter 347 SF 2510, Art. 2 Section 13
