Charges Resulting From Benefits Paid
Reference: Minnesota Law, §268.047
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 that were paid by each employer, except as provided in MN Statute 268.047, subdivision 2 and 3.
EXAMPLE: If 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. The employer will usually be charged when an applicant is eligible for unemployment benefits if they:
- Quit employment because of a good reason caused by the employer
- Were discharged for a reason other than employment misconduct
- Were discharged due to their inability to meet the employer’s performance standards
Refer to MN Statute 268.095 for definitions of quits, discharges, and misconduct.
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 website at www.uimn.org by clicking Employers & Agents, Help and Support, then the UI Law link.
