Unemployment Insurance Program

Purpose
This program provides a temporary, partial wage replacement to workers who become unemployed through no fault of their own. It is a stabilizer 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 $610) for up to 26 weeks. Since 2008, there had been several federal and state programs that extended or supplemented regular state unemployment benefits, but all of these programs phased-out during 2012. In 2012, close to $1.3 billion in unemployment benefits (including extended benefits) were paid to nearly 235,000 Minnesotans.

Customers and Services
Primary customers are the applicants who apply for benefits and employers who are subject to the unemployment insurance (UI) law. The program determines applicant eligibility for benefits, makes weekly benefit payments to eligible applicants, and—for applicants not attached to previous employment—makes 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, audits employer and applicant accounts to ensure proper payments are made, and 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 (tax rates) 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 Allocation
SFY 2012 funding was $56.723M from federal funds. 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
Rick Caligiuri, Director
Phone: 651.259.7533; TTY: 651.296.3900

This information current as of December 2012.