Bill Text: MN HF2443 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Unemployment benefit eligibility and duration modified, wage support provided for persons with disabilities, exceptions provided for persons who are starting a business, and money appropriated.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2012-02-22 - Introduction and first reading, referred to Jobs and Economic Development Finance [HF2443 Detail]
Download: Minnesota-2011-HF2443-Introduced.html
1.2relating to unemployment benefits; modifying benefit eligibility and duration;
1.3providing wage support for persons with disabilities; providing exceptions for
1.4certain persons who are starting a business; appropriating money;amending
1.5Minnesota Statutes 2010, sections 268.07, subdivision 2a; 268.085, subdivisions
1.61, 5, 16; Minnesota Statutes 2011 Supplement, section 268.085, subdivision 3.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 268.07, subdivision 2a, is amended to read:
1.9 Subd. 2a. Weekly unemployment benefit amount and maximum amount of
1.10unemployment benefits available. (a) If an applicant has established a benefit account
1.11under subdivision 2, the weekly unemployment benefit amount available during the
1.12applicant's benefit year is the higher of:
1.13 (1) 50 percent of the applicant's average weekly wage during the base period, to a
1.14maximum of 66-2/3 percent of the state's average weekly wage; or
1.15 (2) 50 percent of the applicant's average weekly wage during the high quarter, to a
1.16maximum of 43 percent of the state's average weekly wage.
1.17 The applicant's average weekly wage under clause (1) is computed by dividing
1.18the total wage credits by 52. The applicant's average weekly wage under clause (2) is
1.19computed by dividing the high quarter wage credits by 13.
1.20 (b) The state's maximum weekly benefit amount, computed in accordance with
1.21section268.035, subdivision 23 , applies to a benefit account established effective on or
1.22after the last Sunday in October. Once established, an applicant's weekly unemployment
1.23benefit amount is not affected by the last Sunday in October change in the state's maximum
1.24weekly unemployment benefit amount.
2.1 (c) The maximum amount of unemployment benefits available on any benefit
2.2account is the lower of:
2.3 (1) 33-1/3 percent of the applicant's total wage credits; or
2.4 (2)26 (i) four times the applicant's weekly unemployment benefit amount if the
2.5statewide unemployment rate is at least three percent;
2.6(ii) ten times the applicant's weekly unemployment benefit amount if the statewide
2.7unemployment rate is at least four percent;
2.8(iii) 18 times the applicant's weekly unemployment benefit amount if the statewide
2.9unemployment rate is at least five percent; or
2.10(iv) 26 times the applicant's weekly unemployment benefit amount if the statewide
2.11unemployment rate is at least six percent.
2.12(d) Benefits are available under paragraph (c), clause (2), items (ii), (iii), and (iv),
2.13only if the applicant is eligible under section 268.085, subdivision 1, paragraph (b).
2.14 Sec. 2. Minnesota Statutes 2010, section 268.085, subdivision 1, is amended to read:
2.15 Subdivision 1. Eligibility conditions. (a) An applicant may be eligible to receive
2.16unemployment benefits for any week if:
2.17 (1) the applicant has filed a continued request for unemployment benefits for that
2.18week under section268.0865 ;
2.19 (2) the week for which unemployment benefits are requested is in the applicant's
2.20benefit year;
2.21 (3) the applicant was unemployed as defined in section268.035, subdivision 26 ;
2.22 (4) the applicant was available for suitable employment as defined in subdivision
2.2315. The applicant's weekly unemployment benefit amount is reduced one-fifth for each
2.24day the applicant is unavailable for suitable employment. This clause does not apply to
2.25an applicant who is in reemployment assistance training, or each day the applicant is on
2.26jury duty or serving as an election judge;
2.27 (5) the applicant was actively seeking suitable employment as defined in subdivision
2.2816. This clause does not apply to an applicant who is in reemployment assistance training
2.29or who was on jury duty throughout the week;
2.30(6) the applicant has served a nonpayable period of one week that the applicant is
2.31otherwise entitled to some amount of unemployment benefits. This clause does not apply
2.32if the applicant would have been entitled to federal disaster unemployment assistance
2.33because of a disaster in Minnesota, but for the applicant's establishment of a benefit
2.34account under section268.07 ; and
3.1 (7) the applicant has been participating in reemployment assistance services, such
3.2as job search and resume writing classes, if the applicant has been determined in need
3.3of reemployment assistance services by the commissioner, unless the applicant has good
3.4cause for failing to participate.
3.5(b) An applicant may be eligible to receive unemployment benefits for any week
3.6if, for the purpose of benefits under section 268.07, subdivision 2a, paragraph (c), clause
3.7(2), items (ii), (iii), and (iv), the applicant is participating in an education, training, or
3.8entrepreneurship program, or has earned income for the benefit week.
3.9 Sec. 3. Minnesota Statutes 2011 Supplement, section 268.085, subdivision 3, is
3.10amended to read:
3.11 Subd. 3. Payments that delay unemployment benefits. (a) An applicant is not
3.12eligible to receive unemployment benefits for any week with respect to which the applicant
3.13is receiving, has received, or has filed for payment, equal to or in excess of the applicant's
3.14weekly unemployment benefit amount, in the form of:
3.15 (1) vacation pay, sick pay, or personal time off pay, also known as "PTO," paid
3.16upon temporary, indefinite, or seasonal separation. This clause does not apply to (i)
3.17vacation pay, sick pay, or personal time off pay, paid upon a permanent separation from
3.18employment, or (ii) vacation pay, sick pay, or personal time off pay, paid from a vacation
3.19fund administered by a union or a third party not under the control of the employer;
3.20 (2) severance pay, bonus pay, and any other payments, except earnings under
3.21subdivision 5, and back pay under subdivision 6, paid by an employer because of, upon,
3.22or after separation from employment, but only if the payment is considered wages at the
3.23time of payment under section268.035, subdivision 29 ; or
3.24 (3) pension, retirement, or annuity payments from any plan contributed to by a base
3.25period employer including the United States government, except Social Security benefits
3.26that are provided for in subdivision 4. The base period employer is considered to have
3.27contributed to the plan if the contribution is excluded from the definition of wages under
3.28section268.035, subdivision 29 , clause (1). If the pension, retirement, or annuity payment
3.29is paid in a lump sum, an applicant is not considered to have received a payment if (i) the
3.30applicant immediately deposits that payment in a qualified pension plan or account, or
3.31(ii) that payment is an early distribution for which the applicant paid an early distribution
3.32penalty under the Internal Revenue Code, United States Code, title 26, section 72(t)(1); or
3.33(4) payments or benefits received under section 116L.17 for education or training.
4.1 (b) This subdivision applies to all the weeks of payment. Payments under paragraph
4.2(a), clause (1), are applied to the period immediately following the last day of employment.
4.3The number of weeks of payment is determined as follows:
4.4 (1) if the payments are made periodically, the total of the payments to be received is
4.5divided by the applicant's last level of regular weekly pay from the employer; or
4.6 (2) if the payment is made in a lump sum, that sum is divided by the applicant's last
4.7level of regular weekly pay from the employer.
4.8 (c) If the payment is less than the applicant's weekly unemployment benefit amount,
4.9unemployment benefits are reduced by the amount of the payment.
4.10 Sec. 4. Minnesota Statutes 2010, section 268.085, subdivision 5, is amended to read:
4.11 Subd. 5. Deductible earnings. (a) If the applicant has earnings, including holiday
4.12pay, with respect to any week, from employment, covered employment, noncovered
4.13employment, self-employment, or volunteer work, equal to or in excess of 125 percent
4.14of the applicant's weekly unemployment benefit amount, the applicant is ineligible for
4.15unemployment benefits for that week.
4.16 (b) If the applicant has earnings, with respect to any week, that is less than 125
4.17percent of the applicant's weekly unemployment benefit amount, from employment,
4.18covered employment, noncovered employment, self-employment, or volunteer work,55
4.1950 percent of the earnings are deducted from the weekly unemployment benefit amount.
4.20 (c) No deduction is made from an applicant's weekly unemployment benefit amount
4.21for earnings from service in the National Guard or a United States military reserve unit or
4.22from direct service as a volunteer firefighter or volunteer ambulance service personnel.
4.23This exception to paragraphs (a) and (b) does not apply to on-call or standby pay provided
4.24to a volunteer firefighter or volunteer ambulance service personnel. No deduction is made
4.25for jury duty pay or for pay as an election judge.
4.26 (d) The applicant may report deductible earnings on continued requests for
4.27unemployment benefits at the next lower whole dollar amount.
4.28 (e) Deductible earnings does not include any money considered a deductible
4.29payment under subdivision 3, but includes all compensation considered wages under
4.30section268.035, subdivision 29 , and any other compensation considered earned income
4.31under state and federal law for income tax purposes.
4.32 Sec. 5. Minnesota Statutes 2010, section 268.085, subdivision 16, is amended to read:
4.33 Subd. 16. Actively seeking suitable employment defined. (a) "Actively seeking
4.34suitable employment" means those reasonable, diligent efforts an individual in similar
5.1circumstances would make if genuinely interested in obtaining suitable employment under
5.2the existing conditions in the labor market area. An applicant must document at least five
5.3reasonable, diligent efforts to seek suitable employment for each week that an application
5.4or continued request for unemployment benefits is made. Limiting the search to positions
5.5that are not available or are above the applicant's training, experience, and qualifications is
5.6not "actively seeking suitable employment."
5.7 (b) To be considered "actively seeking suitable employment" an applicant must,
5.8when reasonable, contact those employers from whom the applicant was laid off because
5.9of lack of work and request suitable employment.
5.10 (c) If reasonable prospects of suitable employment in the applicant's usual or
5.11customary occupation do not exist, the applicant must actively seek other suitable
5.12employment to be considered "actively seeking suitable employment." This applies to an
5.13applicant who is seasonally unemployed.
5.14 (d) Actively seeking a suitable job assignment or other employment with a staffing
5.15service is considered actively seeking suitable employment.
5.16(e) An applicant who is seeking employment only through a union is considered
5.17actively seeking suitable employment if the applicant is in an occupation where hiring
5.18in that locality is done through the union. If the applicant is a union member who is
5.19restricted to obtaining employment among signatory contractors in the construction
5.20industry, seeking employment only with those signatory contractors is considered actively
5.21seeking employment. The applicant must be a union member in good standing, registered
5.22with the union for employment, and in compliance with other union rules to be considered
5.23"actively seeking suitable employment."
5.24 Sec. 6. SPECIAL WAGE SUPPORT FOR PERSONS WITH DISABILITIES;
5.25APPROPRIATION.
5.26Notwithstanding any other law to the contrary, $3,000,000 each year is appropriated
5.27from the unemployment insurance contingent account under Minnesota Statutes, section
5.28268.199, for wage supports for persons with disabilities under this section. For the
5.29purposes of this section, "wage supports" means a payment to an employer that hires a
5.30person with a disability. A wage support payment is equal to $3 per hour. For the purposes
5.31of this section, "person with a disability" has the meaning given in Minnesota Statutes,
5.32section 268A.01, subdivision 5. An employer must certify to the commissioner that the
5.33person with a disability would not have been hired but for the wage support under this
5.34section. Employment counselors and other support personnel under Minnesota Statutes,
6.1chapter 268A, shall assist employers in applying for wage supports on behalf of persons
6.2with disabilities under this section.
6.3 Sec. 7. ENTREPRENEURSHIP FOR DISLOCATED WORKERS.
6.4(a) The commissioner is authorized to waive:
6.5(1) the availability for suitable employment requirements under Minnesota Statutes,
6.6section268.085, subdivision 1 , clause (5); and
6.7(2) the 32 hours of work limitation under Minnesota Statutes, section268.085,
6.8subdivision 2 , clause (6).
6.9(b) The waiver in paragraph (a) is available to applicants eligible to receive benefits
6.10under section 268.085, subdivision 1, who are starting a business.
6.11For the purposes of this section, "starting a business" has the meaning used in the
6.12administration of the Growing America Through Entrepreneurship Program under Laws
6.132009, chapter 78, article 3, section 16, as amended by Laws 2011, chapter 84, article
6.141, section 10.
6.15EFFECTIVE DATE.This section is effective July 1, 2013, and expires June 30,
6.162016.
1.3providing wage support for persons with disabilities; providing exceptions for
1.4certain persons who are starting a business; appropriating money;amending
1.5Minnesota Statutes 2010, sections 268.07, subdivision 2a; 268.085, subdivisions
1.61, 5, 16; Minnesota Statutes 2011 Supplement, section 268.085, subdivision 3.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 268.07, subdivision 2a, is amended to read:
1.9 Subd. 2a. Weekly unemployment benefit amount and maximum amount of
1.10unemployment benefits available. (a) If an applicant has established a benefit account
1.11under subdivision 2, the weekly unemployment benefit amount available during the
1.12applicant's benefit year is the higher of:
1.13 (1) 50 percent of the applicant's average weekly wage during the base period, to a
1.14maximum of 66-2/3 percent of the state's average weekly wage; or
1.15 (2) 50 percent of the applicant's average weekly wage during the high quarter, to a
1.16maximum of 43 percent of the state's average weekly wage.
1.17 The applicant's average weekly wage under clause (1) is computed by dividing
1.18the total wage credits by 52. The applicant's average weekly wage under clause (2) is
1.19computed by dividing the high quarter wage credits by 13.
1.20 (b) The state's maximum weekly benefit amount, computed in accordance with
1.21section
1.22after the last Sunday in October. Once established, an applicant's weekly unemployment
1.23benefit amount is not affected by the last Sunday in October change in the state's maximum
1.24weekly unemployment benefit amount.
2.1 (c) The maximum amount of unemployment benefits available on any benefit
2.2account is the lower of:
2.3 (1) 33-1/3 percent of the applicant's total wage credits; or
2.4 (2)
2.5statewide unemployment rate is at least three percent;
2.6(ii) ten times the applicant's weekly unemployment benefit amount if the statewide
2.7unemployment rate is at least four percent;
2.8(iii) 18 times the applicant's weekly unemployment benefit amount if the statewide
2.9unemployment rate is at least five percent; or
2.10(iv) 26 times the applicant's weekly unemployment benefit amount if the statewide
2.11unemployment rate is at least six percent.
2.12(d) Benefits are available under paragraph (c), clause (2), items (ii), (iii), and (iv),
2.13only if the applicant is eligible under section 268.085, subdivision 1, paragraph (b).
2.14 Sec. 2. Minnesota Statutes 2010, section 268.085, subdivision 1, is amended to read:
2.15 Subdivision 1. Eligibility conditions. (a) An applicant may be eligible to receive
2.16unemployment benefits for any week if:
2.17 (1) the applicant has filed a continued request for unemployment benefits for that
2.18week under section
2.19 (2) the week for which unemployment benefits are requested is in the applicant's
2.20benefit year;
2.21 (3) the applicant was unemployed as defined in section
2.22 (4) the applicant was available for suitable employment as defined in subdivision
2.2315. The applicant's weekly unemployment benefit amount is reduced one-fifth for each
2.24day the applicant is unavailable for suitable employment. This clause does not apply to
2.25an applicant who is in reemployment assistance training, or each day the applicant is on
2.26jury duty or serving as an election judge;
2.27 (5) the applicant was actively seeking suitable employment as defined in subdivision
2.2816. This clause does not apply to an applicant who is in reemployment assistance training
2.29or who was on jury duty throughout the week;
2.30(6) the applicant has served a nonpayable period of one week that the applicant is
2.31otherwise entitled to some amount of unemployment benefits. This clause does not apply
2.32if the applicant would have been entitled to federal disaster unemployment assistance
2.33because of a disaster in Minnesota, but for the applicant's establishment of a benefit
2.34account under section
3.1 (7) the applicant has been participating in reemployment assistance services, such
3.2as job search and resume writing classes, if the applicant has been determined in need
3.3of reemployment assistance services by the commissioner, unless the applicant has good
3.4cause for failing to participate.
3.5(b) An applicant may be eligible to receive unemployment benefits for any week
3.6if, for the purpose of benefits under section 268.07, subdivision 2a, paragraph (c), clause
3.7(2), items (ii), (iii), and (iv), the applicant is participating in an education, training, or
3.8entrepreneurship program, or has earned income for the benefit week.
3.9 Sec. 3. Minnesota Statutes 2011 Supplement, section 268.085, subdivision 3, is
3.10amended to read:
3.11 Subd. 3. Payments that delay unemployment benefits. (a) An applicant is not
3.12eligible to receive unemployment benefits for any week with respect to which the applicant
3.13is receiving, has received, or has filed for payment, equal to or in excess of the applicant's
3.14weekly unemployment benefit amount, in the form of:
3.15 (1) vacation pay, sick pay, or personal time off pay, also known as "PTO," paid
3.16upon temporary, indefinite, or seasonal separation. This clause does not apply to (i)
3.17vacation pay, sick pay, or personal time off pay, paid upon a permanent separation from
3.18employment, or (ii) vacation pay, sick pay, or personal time off pay, paid from a vacation
3.19fund administered by a union or a third party not under the control of the employer;
3.20 (2) severance pay, bonus pay, and any other payments, except earnings under
3.21subdivision 5, and back pay under subdivision 6, paid by an employer because of, upon,
3.22or after separation from employment, but only if the payment is considered wages at the
3.23time of payment under section
3.24 (3) pension, retirement, or annuity payments from any plan contributed to by a base
3.25period employer including the United States government, except Social Security benefits
3.26that are provided for in subdivision 4. The base period employer is considered to have
3.27contributed to the plan if the contribution is excluded from the definition of wages under
3.28section
3.29is paid in a lump sum, an applicant is not considered to have received a payment if (i) the
3.30applicant immediately deposits that payment in a qualified pension plan or account, or
3.31(ii) that payment is an early distribution for which the applicant paid an early distribution
3.32penalty under the Internal Revenue Code, United States Code, title 26, section 72(t)(1); or
3.33(4) payments or benefits received under section 116L.17 for education or training.
4.1 (b) This subdivision applies to all the weeks of payment. Payments under paragraph
4.2(a), clause (1), are applied to the period immediately following the last day of employment.
4.3The number of weeks of payment is determined as follows:
4.4 (1) if the payments are made periodically, the total of the payments to be received is
4.5divided by the applicant's last level of regular weekly pay from the employer; or
4.6 (2) if the payment is made in a lump sum, that sum is divided by the applicant's last
4.7level of regular weekly pay from the employer.
4.8 (c) If the payment is less than the applicant's weekly unemployment benefit amount,
4.9unemployment benefits are reduced by the amount of the payment.
4.10 Sec. 4. Minnesota Statutes 2010, section 268.085, subdivision 5, is amended to read:
4.11 Subd. 5. Deductible earnings. (a) If the applicant has earnings, including holiday
4.12pay, with respect to any week, from employment, covered employment, noncovered
4.13employment, self-employment, or volunteer work, equal to or in excess of 125 percent
4.14of the applicant's weekly unemployment benefit amount, the applicant is ineligible for
4.15unemployment benefits for that week.
4.16 (b) If the applicant has earnings, with respect to any week, that is less than 125
4.17percent of the applicant's weekly unemployment benefit amount, from employment,
4.18covered employment, noncovered employment, self-employment, or volunteer work,
4.1950 percent of the earnings are deducted from the weekly unemployment benefit amount.
4.20 (c) No deduction is made from an applicant's weekly unemployment benefit amount
4.21for earnings from service in the National Guard or a United States military reserve unit or
4.22from direct service as a volunteer firefighter or volunteer ambulance service personnel.
4.23This exception to paragraphs (a) and (b) does not apply to on-call or standby pay provided
4.24to a volunteer firefighter or volunteer ambulance service personnel. No deduction is made
4.25for jury duty pay or for pay as an election judge.
4.26 (d) The applicant may report deductible earnings on continued requests for
4.27unemployment benefits at the next lower whole dollar amount.
4.28 (e) Deductible earnings does not include any money considered a deductible
4.29payment under subdivision 3, but includes all compensation considered wages under
4.30section
4.31under state and federal law for income tax purposes.
4.32 Sec. 5. Minnesota Statutes 2010, section 268.085, subdivision 16, is amended to read:
4.33 Subd. 16. Actively seeking suitable employment defined. (a) "Actively seeking
4.34suitable employment" means those reasonable, diligent efforts an individual in similar
5.1circumstances would make if genuinely interested in obtaining suitable employment under
5.2the existing conditions in the labor market area. An applicant must document at least five
5.3reasonable, diligent efforts to seek suitable employment for each week that an application
5.4or continued request for unemployment benefits is made. Limiting the search to positions
5.5that are not available or are above the applicant's training, experience, and qualifications is
5.6not "actively seeking suitable employment."
5.7 (b) To be considered "actively seeking suitable employment" an applicant must,
5.8when reasonable, contact those employers from whom the applicant was laid off because
5.9of lack of work and request suitable employment.
5.10 (c) If reasonable prospects of suitable employment in the applicant's usual or
5.11customary occupation do not exist, the applicant must actively seek other suitable
5.12employment to be considered "actively seeking suitable employment." This applies to an
5.13applicant who is seasonally unemployed.
5.14 (d) Actively seeking a suitable job assignment or other employment with a staffing
5.15service is considered actively seeking suitable employment.
5.16(e) An applicant who is seeking employment only through a union is considered
5.17actively seeking suitable employment if the applicant is in an occupation where hiring
5.18in that locality is done through the union. If the applicant is a union member who is
5.19restricted to obtaining employment among signatory contractors in the construction
5.20industry, seeking employment only with those signatory contractors is considered actively
5.21seeking employment. The applicant must be a union member in good standing, registered
5.22with the union for employment, and in compliance with other union rules to be considered
5.23"actively seeking suitable employment."
5.24 Sec. 6. SPECIAL WAGE SUPPORT FOR PERSONS WITH DISABILITIES;
5.25APPROPRIATION.
5.26Notwithstanding any other law to the contrary, $3,000,000 each year is appropriated
5.27from the unemployment insurance contingent account under Minnesota Statutes, section
5.28268.199, for wage supports for persons with disabilities under this section. For the
5.29purposes of this section, "wage supports" means a payment to an employer that hires a
5.30person with a disability. A wage support payment is equal to $3 per hour. For the purposes
5.31of this section, "person with a disability" has the meaning given in Minnesota Statutes,
5.32section 268A.01, subdivision 5. An employer must certify to the commissioner that the
5.33person with a disability would not have been hired but for the wage support under this
5.34section. Employment counselors and other support personnel under Minnesota Statutes,
6.1chapter 268A, shall assist employers in applying for wage supports on behalf of persons
6.2with disabilities under this section.
6.3 Sec. 7. ENTREPRENEURSHIP FOR DISLOCATED WORKERS.
6.4(a) The commissioner is authorized to waive:
6.5(1) the availability for suitable employment requirements under Minnesota Statutes,
6.6section
6.7(2) the 32 hours of work limitation under Minnesota Statutes, section
6.8subdivision 2
6.9(b) The waiver in paragraph (a) is available to applicants eligible to receive benefits
6.10under section 268.085, subdivision 1, who are starting a business.
6.11For the purposes of this section, "starting a business" has the meaning used in the
6.12administration of the Growing America Through Entrepreneurship Program under Laws
6.132009, chapter 78, article 3, section 16, as amended by Laws 2011, chapter 84, article
6.141, section 10.
6.15EFFECTIVE DATE.This section is effective July 1, 2013, and expires June 30,
6.162016.
