Articles

Where to Apply? Smart Applications For Minnesota's Unemployment Insurance Benefits

By Brian Niemczyk and Emeric J. Dwyer

Despite assurances and indications that the worst of the economic recession are over, many people continue to apply for and receive unemployment insurance benefits from the State of Minnesota. Even in a time of high economic growth, regular turnover in employment can leave a person out of work. During these stressful times, the availability of unemployment benefits can bring a measure of comfort. This makes it important to ensure that an application for benefits is properly filed at the outset. It is much easier to secure benefits in the initial application than it is by going through the appellate process.

Oftentimes an error is made in the most basic question: Are you eligible for benefits in Minnesota? Minnesota requires that, in order to receive benefits from this state, you are either employed in the state or fall under one of a number specific exceptions. This is especially relevant to contract employees, independent contractors, and persons whose employment sees them regularly traveling to other states. Even if a resident of Minnesota, unemployment benefits may be denied if the applicant was not working in what is deemed to be "covered employment."

That vague term is defined by Minnesota Statutes Section 268.035, subd. 12. This statute lays out the various types of employment that are "covered" for purposes of unemployment benefits.

Employment Within Minnesota

If a person's work is performed entirely within Minnesota, the work is covered under the statute. Employment is also covered if the employee's work is performed primarily in Minnesota and work which is performed outside of Minnesota is simply incidental to work in Minnesota. This is helpful to persons, such as medical professionals, who may live on the border with another state but travel to assist others in a neighboring state. Nonetheless, one should be cautious of assuming that just because their office is based in Minnesota they are covered - if a majority of work is performed outside of the state, the employment may not be covered.

For those whose work is not performed primarily in any one state (truck drivers are a good example), there is an additional exception. As long as the work performed is not primarily in any one state, an employee can claim benefits if the company is headquartered out of Minnesota. In cases where no other location is appropriate, Minnesota can be considered to be the location of employment.

The final catch-all in this section occurs when a person does not perform their work primarily in any one state, and none of their work is done in the state where their employer is headquartered. In this instance, the person's work is considered covered if they live in Minnesota. This is one of the few instances where your place of residence matters; most other sections look at where a person works rather than where they live.

No Coverage While Employed By A Minnesota Company

Related to the instances in which a person's work is not primarily in one state, Minnesota will consider employment to be "covered" if no other program covers an employee. If a person is employed in the United States or Canada, and they are not covered under an unemployment insurance program of any other state or province, and the employment is "directed or controlled" from Minnesota, the employment is then "covered."

This is a useful catch-all for employees employed by Minnesota companies, but who are not eligible for benefits in another state. However, an applicant should avoid relying solely on this section unless absolutely necessary. It requires that no other state cover the employment, which can take some legwork to establish, including the possibility of applying to and being denied by another state.

This is also one of many good reasons to determine at the onset where one's employer is located. It can be very problematic to discover after termination that the employer you believed to be based in Minnesota was in fact based in another state.

Employment Outside of the United States or Canada

Employment outside of the United States or Canada is not an absolute barrier to receiving Minnesota unemployment benefits. If an employee is employed outside the U.S. or Canada (and their respective territories and possessions), their employment may still be considered to be "covered" under certain circumstances. The employer must be an American employer, i.e., either an American citizen or legal resident or an American company. The employer must also have their primary place of business in Minnesota. If the employer doesn't have a place of business in the United States, but is a resident of Minnesota or a Minnesota company, the employment is also covered.

The scenarios under which this section may be applicable are difficult to imagine, but it is important for an international employee to verify these facts so that they can be ensured of receiving unemployment benefits in this state upon termination of employment.

Maritime Employment

All employment on a vessel flying the American flag or connected to that vessel is "covered" if the operating office for the vessel is "regularly supervised, managed, directed and controlled" in Minnesota.

Again, this is an excellent reason to determine at the onset of employment where the employer is located.

Employment Which Is Not Covered

Minnesota Statutes Section 268.035, subd. 20 lists a series of jobs which are not considered "covered employment." Notably, employment with a state other than Minnesota, employment with the federal government or armed services, or employment which carries a different unemployment insurance benefit are excluded. Employment for a church or religious organization or employment while enrolled as a full-time student is also excluded.

Conclusion

While most people who will receive unemployment benefits do not need to consider where their employment is located, for those who travel or work outside Minnesota, or whose job has other unusual attributes, it can be very difficult to pin down the proper state in which to apply for benefits.

As always, you should consult an attorney if you have questions regarding your eligibility. While the cost can be difficult to bear during tight times, the assistance of an attorney can be invaluable in aiding you in securing your unemployment benefits.