Articles

Significant Changes to Unemployment Compensation Law

As part of the America Recovery and Reinvestment Act, the federal government appropriated a significant amount of money to Minnesota and other states to their Unemployment Insurance Trust Funds. A part of those payments were conditioned on making certain changes to the Unemployment compensation laws. Most of the changes the legislature enacted this year to the Unemployment Compensation Law were made to conform to the federal requirements.

Changes to Eligibility

Some of the changes to eligibility make it easier for an employee to qualify for unemployment compensation, while others make it more difficult.

Part-time Workers. The eligibility for unemployment compensation for persons who choose to work part-time has changed. Full-time employment is no longer considered suitable employment for an applicant if a majority of the applicant’s work during the base period includes part-time employment. That does not mean that a part-time worker cannot accept full-time employment. It means only that a part-time worker may be able to reject full-time employment and continue to receive unemployment compensation.

In addition, under the previous law, a part-time employee was no longer eligible for unemployment compensation if that person was offered a job equal to or more than 150% of the applicant’s weekly unemployment amount. Under the new law, a part-time employee must be offered part-time employment in a position with comparable skill and comparable hours that pay comparable wages, before the job will be considered suitable employment which cuts off one’s eligibility for benefits. This change is effective for applications for unemployment benefits filed on or after August 2, 2009.

Employers Obligation to Provide Wage Detail Requires Quick Response. In order to speed up the process, an employer is required to provide wage detail information within five (5) calendar days of a request by the commissioner. The information must be provided in the format requested by the Department. Employers should respond to these requests in a timely manner in order to ensure accuracy. If the employer does not timely provide the data, the information provided by the applicant will be used. This change is effective for applications for unemployment benefits filed on or after August 2, 2009.

Changes for Students. Unemployment compensation has become easier to obtain for students. Rather than requiring a student to be willing to quit school if offered suitable employment, the student who has regularly scheduled classes must be willing to discontinue those classes that interfere with the work schedule, change his or her class schedule, or make other arrangements to allow the student to be excused from class for work. This provision became effective for determinations and appeal decisions issued on or after April 9, 2009.

Eligibility for Employees Who Quit Expanded.

There are several changes concerning the determinations of whether or not an employee quit a job which become effective for determinations issued on or after August 2, 2009.

Medical reasons. Eligibility for employees who quit for medical reasons will be expanded for determinations issued on or after August 2, 2009. Under the current version of the law, if an employee has a medical problem limiting his or her ability to work, informs the employer of the medical problem and requests an accommodation, and no accommodation is provided to the employee, the employee is not disqualified from receiving benefits for quitting the job. Under the new law, that provision is expanded to an employee who seeks and is refused an accommodation to provide necessary care because of the illness, injury or disability of the “applicant’s spouse, parent, step-parent, son or daughter, step-son or step-daughter, or grandson or granddaughter.”

Domestic Abuse. The exception for domestic abuse has been expanded to immediate family members consisting of the “applicant’s spouse, parent, step-parent, son or daughter, step-son or step-daughter, or grandson or granddaughter” as well. If a quit is necessitated by domestic abuse of the applicant or an immediate family member of the applicant, the individual is not disqualified for quitting if they provide proof of the domestic abuse which can be a district court order for protection or similar court order, a police record documenting the domestic abuse, a record of conviction of domestic abuse of the perpetrator, medical documentation of domestic abuse, or a written statement of a social worker, clergy, shelter worker, attorney or other professional who has been helping the applicant in dealing with the domestic abuse. Just being the victim of abuse is not enough. The employee must be ready to explain why the abuse necessitated the quit.

Quit Caused by Spouse’s Job Location Change. The statute was expanded to allow receipt of unemployment compensation when an applicant quits in order to relocate because a spouse’s job location changes, and it impractical for the applicant to commute.

Misconduct Definition Modified.

There are several significant modifications to the definition of misconduct, most which are expected to expand eligibility, and one which is expected to make it harder to get benefits. These changes apply to determinations issued on or after August 2, 2009.

Conduct resulting from mental impairment. “Conduct that was a consequence of the applicant’s mental illness or impairment” is not a disqualifying factor. If an employee’s benefits are denied at the first stage and the employee appeals, or if the employer appeals a grant of benefits, an employee who is relying on this provision should try to obtain medical records to establish the medical diagnosis and a report or letter from his or her doctor or psychologist linking the diagnosis to the conduct for which the employee was discharged. If the employee does not do so, the employer may want to argue that the employee has not established that the illness or impairment caused the conduct.

Single incident exception. In a change that is expected to lead to greater instances of denials of benefits, the “single incident” exception to misconduct has been modified. The new provision states “if the conduct for which the applicant was discharged involved only a single incident that is an important factor that must be considered in deciding whether the conduct arises to the level of employee misconduct . . . .” The “single incident” exception had previously been utilized to allow persons who engaged in fairly serious misconduct on the job to receive unemployment compensation where the conduct itself did not have a “significant adverse impact on the employer.” With this change, a single incident of misconduct could now result in a denial of benefits, even in those situations where the employer and employee are lucky enough that the action did not cause harm. Nonetheless, the employee should still point out the lack of harm, if applicable, and the employer should be prepared to explain what harm occurred, even if it is amorphous, such as an expected deterioration of discipline and order in the workplace or diminishment of morale.

Absence due to illness of immediate family member. Consistent with the new provision relating to quitting, absence from work to provide necessary care for the illness, injury or disability of an immediate family member of the applicant is not misconduct. As with the expanded quit provisions, immediate family members include the “applicant’s spouse, parent, step-parent, son or daughter, step-son or step-daughter, or grandson or granddaughter.” To take advantage of this provision, the employee must explain to the employer the medical need and ask for accommodations. If the employee does not do so, the employer can argue that the employee’s failure to provide “proper notice” makes him or her ineligible for benefits.

Absence due to domestic abuse of immediate family member. The misconduct statute expands the domestic abuse exception, and now covers conduct that is the result not only of domestic abuse against the applicant, but also an immediate family member of the applicant being a victim of domestic abuse. As with the expanded quit provisions, immediate family members include the “applicant’s spouse, parent, step-parent, son or daughter, step-son or step-daughter, or grandson or granddaughter.”

This summary of some of the significant changes to the Unemployment Compensation Law is not legal advice, nor is it meant to be a comprehensive analysis of the Unemployment Compensation Law. Each situation must be reviewed individually. If you have any questions about an Unemployment Compensation issue, contact me or another attorney for advice specific to your situation.

Teresa J. Ayling
Mansfield, Tanick & Cohen P.A.
Attorneys at Law
1700 U.S. Bank Plaza South
220 South Sixth Street
Minneapolis, MN 55402
Tel. 800-401-6194
Fax. (612) 339-3161