Employers who collude with or assist an applicant in receiving unemployment benefits illegally or who commit fraud to avoid unemployment insurance tax will be penalized $500 or the amount of unemployment benefits determined to be overpaid, whichever is greater.
Employers attempting to prevent, reduce or cause an overpayment of benefits to an applicant by: making a false statement; or, making an offer of employment when no such employment is available, may be subject to a penalty of $500 or 50 percent of the overpaid or reduced unemployment benefits or payment required, whichever is greater.
Applicants who receive unemployment benefits by knowingly misrepresenting or failing to disclose any necessary information, or by making false statements, have committed fraud. Applicants determined by the Minnesota Unemployment Insurance (UI) Program to have committed fraud, must immediately repay all fraudulently received unemployment benefits, plus an assessed penalty equal to 40 percent of the amount fraudulently obtained. Interest will be assessed on unpaid balances at a rate of 1.5 percent per month.
Violations by applicants and employers may be prosecuted as felony theft under the fraud provisions of the Minnesota Unemployment Insurance Law. Employers can help prevent fraud by reporting potential violations to the UI Program using an online Fraud Report.
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.