Unemployment Insurance Program

Purpose
This program provides a temporary partial wage replacement to those Minnesota workers who become unemployed through no fault of their own. It is an economic stabilizer and stimulator during economic downturns and helps maintain an available skilled workforce. Workers may be paid up to 50 percent of their average weekly wage, subject to a state maximum (currently $585) for up to 26 weeks. There are also several federal and state programs that extended or supplemented regular state unemployment benefits. In calendar year 2009, just over $2.8 billion in unemployment benefits (including extended benefits) were paid to over 350,000 Minnesotans.

Customers and Services
Primary customers are the Minnesotans who apply for benefits. Employers subject to the unemployment insurance (UI) law provide wage information that is used to calculate benefit entitlement and UI taxes. Applicant services include benefit entitlement determinations, weekly benefit payments to eligible applicants, and—for individuals likely to remain unemployed longer—referrals to WorkForce Centers for job-seeking assistance, job training, or other help. The program determines if employers are subject to the law, collects revenues, and audits employer accounts to ensure proper payments are made; and also provides impartial due process hearings for applicants and employers who appeal initial decisions. The UI system is based on an insurance model, with employers' premiums based on their “experience” with the system; those with more layoffs have a higher tax rate.

Measures - Reporting period is state fiscal year (SFY), July 1 - June 30

Funding Source and Expenditure (in thousands)*

*Benefit payments are excluded.

Statutory Authority
-- U.S. Code, Title 42, Chap. 7; U.S. Code, Title 26, Chap. 23; Minn. Stat., Chap. 268

Contact Information
Kathy Nelson, Director
Phone: 651.259.7225; TTY: 651.296.3900

This information current as of January 2010.