Bill Text: MN SF924 | 2013-2014 | 88th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Unemployment insurance shared work program federal law conformance; converting layoffs into Minnesota businesses (CLIMB) program creation

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Engrossed - Dead) 2013-04-23 - Senate file first reading, referred to Jobs and Economic Development Finance and Policy [SF924 Detail]

Download: Minnesota-2013-SF924-Introduced.html

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A bill for an act

relating to unemployment insurance; making federal conformity, policy, and
housekeeping changes;amending Minnesota Statutes 2012, sections 116L.17,
subdivision 4, by adding a subdivision; 268.033; 268.035, subdivisions 2, 4,
11, 12, 15, 22, 29; 268.042, subdivision 1; 268.043; 268.051, subdivisions 4a,
5; 268.057, subdivisions 5, 7; 268.0625, subdivision 4; 268.069, subdivision
3; 268.07, subdivisions 1, 3b; 268.085, subdivisions 3, 4, 5, 6; 268.0865,
subdivisions 3, 4; 268.095, subdivisions 2, 3; 268.103, subdivision 2a;
268.105; 268.131, subdivision 1; 268.136, subdivisions 1, 2, 3, 4, 5, by adding
subdivisions; 268.18, subdivisions 1, 2b; 268.184, subdivision 1a; 268.186;
268.192, subdivision 1a; 268.194, subdivision 1; 268.196, subdivision 1;
268.215; 268.23; Laws 2012, chapter 201, article 1, section 3; proposing coding
for new law in Minnesota Statutes, chapter 268; repealing Minnesota Rules, parts
3310.2905, subpart 2; 3310.2910; 3310.2914, subpart 1; 3310.2916; 3310.2919;
3310.2920; 3315.0200, subpart 1; 3315.0203; 3315.0211; 3315.0212; 3315.0213;
3315.0501, subparts 1, 2; 3315.0555, subpart 1; 3315.0801; 3315.0805;
3315.0810; 3315.0815; 3315.0820; 3315.0825; 3315.0830; 3315.0835;
3315.0840; 3315.0845; 3315.0901; 3315.0905; 3315.1001; 3315.1010.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

FEDERAL CONFORMITY

    Section 1. Minnesota Statutes 2012, section 268.136, subdivision 1, is amended to read:
    Subdivision 1. Shared work agreement plan requirements. (a) An employer
may submit a proposed shared work plan for an employee group to the commissioner
for approval in a manner and format set by the commissioner. The proposed agreement
shared work plan must include:
(1) a certified statement that the normal weekly hours of work of all of the proposed
participating employees were full time or regular part time but are now reduced, or will be
reduced, with a corresponding reduction in pay, in order to prevent layoffs;
(2) the name and Social Security number of each participating employee;
(3) the number of layoffs that would have occurred absent the employer's ability to
participate in a shared work plan;
(4) a certified statement of when that each participating employee was first hired by
the employer, which must be at least one year before the proposed agreement shared work
plan is submitted and is not a seasonal, temporary, or intermittent worker;
(4) (5) the hours of work each participating employee will work each week for the
duration of the agreement shared work plan, which must be at least 20 one-half the normal
weekly hours and but no more than 32 hours per week, except that the agreement plan
may provide for a uniform vacation shutdown of up to two weeks;
(6) a certified statement that any health benefits and any pension benefits provided
by the employer to participating employees will continue to be provided under the same
terms and conditions as though the participating employees' hours of work each week had
not been reduced;
(7) a certified statement that the terms and implementation of the shared work plan is
consistent with the employer's obligations under state and federal law;
(8) an acknowledgement that the employer understands that unemployment benefits
paid under a shared work plan will be used in computing the future tax rate of a taxpaying
employer or charged to the reimbursable account of a nonprofit or government employer;
(5) (9) the proposed duration of the agreement shared work plan, which must be
at least two months and not more than one year, although an agreement a plan may be
extended for up to an additional year upon approval of the commissioner;
(6) (10) a starting date beginning on a Sunday at least 15 calendar days after the date
the proposed agreement shared work plan is submitted; and
(7) (11) a signature of an owner or officer of the employer who is listed as an owner
or officer on the employer's account under section 268.045.
(b) An agreement may not be approved for an employer that:
(1) has any unemployment tax or reimbursements, including any interest, fees,
or penalties, due but unpaid; or
(2) has the maximum experience rating provided for under section 268.051,
subdivision 3.

    Sec. 2. Minnesota Statutes 2012, section 268.136, subdivision 2, is amended to read:
    Subd. 2. Agreement Approval by commissioner. (a) The commissioner must
promptly review a proposed agreement shared work plan and notify the employer, by mail
or electronic transmission, within 15 days of receipt, whether the proposal satisfies the
requirements of this section and has been approved. If the proposal does not comply
with this section, the commissioner must specifically state why the proposal is not in
compliance. If a proposed agreement complies with this section shared work plan has
been approved, it must be implemented according to its terms.
(b) The commissioner may reject an agreement not approve a proposed shared work
plan if the commissioner has cause to believe the proposal is not was submitted for the a
purpose of other than preventing layoffs due to lack of work.
(c) The commissioner may not approve a proposed shared work plan if the employer
has any unemployment tax or reimbursements, including any interest, fees, or penalties,
due but unpaid.
(d) A shared work plan that has been approved by the commissioner is considered
a contract that is binding on the employer and the department. This contract may be
canceled or modified under subdivision 5.

    Sec. 3. Minnesota Statutes 2012, section 268.136, is amended by adding a subdivision
to read:
    Subd. 2a. Notice to participating employee. The employer must provide written
notification to each participating employee that the employer has submitted a proposed
shared work plan. The notification must be provided to the employee no later than at
the time the commissioner notifies the employer that a proposed shared work plan has
been approved. The notification must inform the employee of the proposed terms of the
shared work plan along with notice to the employee of the employee's right to apply for
unemployment benefits.

    Sec. 4. Minnesota Statutes 2012, section 268.136, subdivision 3, is amended to read:
    Subd. 3. Applicant requirements. (a) An applicant, in order to be paid
unemployment benefits under this section, must meet all of the requirements under section
268.069, subdivision 1 . The following provisions of section 268.085 do not apply to an
applicant under this section in an approved shared work plan:
(1) the deductible earnings provision of section 268.085, under subdivision 5;
(2) the restriction under section 268.085, subdivision 6 2, clause (6), if the applicant
works exactly 32 hours in a week;
(3) the requirement of being available for suitable employment under subdivision 1,
clause (4), but only if the applicant is (i) available for the normal hours of work per week
with the shared work employer, or (ii) is in a training program when not working; and
(4) the requirement of actively seeking suitable employment under subdivision
1, clause (5).
(b) An applicant is ineligible for unemployment benefits under this section for
any week, if:
(1) the applicant works more than 32 hours in a week in employment with one or
more employer; or.
(2) the applicant works more hours in a week for the shared work employer than
the reduced weekly hours provided for in the agreement.

    Sec. 5. Minnesota Statutes 2012, section 268.136, subdivision 4, is amended to read:
    Subd. 4. Amount of unemployment benefits available. (a) The weekly benefit
amount and maximum amount of unemployment benefits available are computed
according to section 268.07, except that an applicant is paid the amount of benefits
available is a reduced amount in direct proportion to the reduction in hours set out in the
shared work plan from the normal weekly hours.
(b) Regardless of paragraph (a), if the applicant works more hours in a week for the
shared work employer than the reduced weekly hours provided for in the shared work
plan, the amount of unemployment benefits available is a reduced amount in direct
proportion to the reduction in hours actually worked from the normal weekly hours.
(c) If an applicant works fewer hours in a week for the shared work employee than
set out in the shared work plan, the amount of unemployment benefits are available in
accordance with paragraph (a).

    Sec. 6. Minnesota Statutes 2012, section 268.136, subdivision 5, is amended to read:
    Subd. 5. Cancellation; modification. (a) An employer may cancel an agreement a
shared work plan at any time upon seven calendar days' notice to the commissioner in a
manner and format prescribed by the commissioner. The cancellation must be signed by
an owner or officer of the employer.
(b) An employer may request that the commissioner allow modification of the shared
work plan as to the hours of work each participating employee will work each week. The
request must be sent in a manner and form prescribed by the commissioner. The request
must be signed by an owner or officer of the employer. The commissioner must notify the
employer as soon as possible if the modification is allowed.
(b) (c) An employer that cancels an agreement or requests modification of a shared
work plan must provide written notice to each participating employee in the group of the
cancellation or requested modification at the time notice is sent to the commissioner.
(c) (d) If an employer cancels an agreement a shared work plan before the expiration
date provided for in subdivision 1, a new agreement shared work plan may not be entered
into with approved for that employer under this section for at least 60 calendar days.
(d) (e) The commissioner may immediately cancel any agreement shared work plan
if the commissioner determines the agreement plan was based upon false information or
the employer is in breach has failed to adhere to the terms of the contract shared work plan.
The commissioner must immediately send written notice of cancellation to the employer.
An employer that receives notice of cancellation by the commissioner must provide
written notice to each participating employer in the group employee of the cancellation.

    Sec. 7. Minnesota Statutes 2012, section 268.136, is amended by adding a subdivision
to read:
    Subd. 6. Federal law. This section is enacted to comply with the "short time
compensation" requirements of the Federal Unemployment Tax Act, United States Code,
title 26, section 3306 (v).

    Sec. 8. Minnesota Statutes 2012, section 268.23, is amended to read:
268.23 SEVERABLE.
    In the event that If the United States Department of Labor determines that any
provision of the Minnesota Unemployment Insurance Law, or any other provision of
Minnesota Statutes relating to the unemployment insurance program, is not in conformity
with, or is inconsistent with, the requirements of federal law, the provision has no force
or effect; but. If only a portion of the provision, or the application to any person or
circumstances, is held determined not in conformity, or determined inconsistent, the
remainder of the provision and the application of the provision to other persons or
circumstances are not affected.

    Sec. 9. COMMISSIONER AUTHORIZED TO REQUEST SHARED WORK
FUNDS.
The commissioner of employment and economic development is authorized to
request federal funding for Minnesota's "shared work" unemployment benefit program
under Minnesota Statutes, section 268.136. Federal funding is available under the Middle
Class Tax Relief and Job Creation Act of 2012, Public Law 112-96. Federal funding
provided under that act for the "shared work" program must be immediately deposited
in the Minnesota Unemployment Insurance Trust Fund. The exception under Minnesota
Statutes, section 268.047, subdivision 2, clause (10), does not apply to the federal money.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 10. EFFECTIVE DATE.
Unless otherwise specified, this article is effective for shared work plans approved
on or after July 1, 2013.

ARTICLE 2

HOUSEKEEPING AND POLICY

    Section 1. Minnesota Statutes 2012, section 116L.17, subdivision 4, is amended to read:
    Subd. 4. Use of funds. Funds granted by the board under this section may be used
for any combination of the following, except as otherwise provided in this section:
    (1) employment transition services such as developing readjustment plans for
individuals; outreach and intake; early readjustment; job or career counseling; testing;
orientation; assessment of skills and aptitudes; provision of occupational and labor market
information; job placement assistance; job search; job development; prelayoff assistance;
relocation assistance; and programs provided in cooperation with employers or labor
organizations to provide early intervention in the event of plant closings or substantial
layoffs; and entrepreneurial training and business consulting;
    (2) support services, including assistance to help the participant relocate to employ
existing skills; out-of-area job search assistance; family care assistance, including child
care; commuting assistance; emergency housing and rental assistance; counseling
assistance, including personal and financial; health care; emergency health assistance;
emergency financial assistance; work-related tools and clothing; and other appropriate
support services that enable a person to participate in an employment and training program
with the goal of reemployment;
    (3) specific, short-term training to help the participant enhance current skills
in a similar occupation or industry; entrepreneurial training, customized training, or
on-the-job training; basic and remedial education to enhance current skills; and literacy
and work-related English training for non-English speakers; and
    (4) long-term training in a new occupation or industry, including occupational skills
training or customized training in an accredited program recognized by one or more
relevant industries. Long-term training shall only be provided to dislocated workers
whose skills are obsolete and who have no other transferable skills likely to result in
employment at a comparable wage rate. Training shall only be provided for occupations or
industries with reasonable expectations of job availability based on the service provider's
thorough assessment of local labor market information where the individual currently
resides or is willing to relocate. This clause shall not restrict training in personal services
or other such industries.

    Sec. 2. Minnesota Statutes 2012, section 116L.17, is amended by adding a subdivision
to read:
    Subd. 11. Converting layoffs into Minnesota businesses (CLIMB). Converting
layoffs into Minnesota businesses (CLIMB) is created to assist dislocated workers in
starting or growing a business. CLIMB must offer entrepreneurial training, business
consulting, and technical assistance to dislocated workers seeking to start or grow a
business. The commissioner, in cooperation with local workforce councils, must provide
the assistance in this subdivision by:
(1) encouraging closer ties between the Small Business Development Center
network, Small Business Development Center training providers; and workforce centers,
as well as other dislocated worker program service providers; and
(2) eliminating grantee performance data disincentives that would otherwise prevent
enrollment of dislocated workers in entrepreneurship-related training.

    Sec. 3. Minnesota Statutes 2012, section 268.033, is amended to read:
268.033 COMPUTATION OF TIME.
The computation of time provisions of section sections 645.15 and 645.151 apply
to this chapter.

    Sec. 4. Minnesota Statutes 2012, section 268.035, subdivision 2, is amended to read:
    Subd. 2. Agricultural employment. "Agricultural employment" means services:
the same as the definition of "agricultural labor" under United States Code, title 26, section
3306(k) of the Federal Unemployment Tax Act, and Code of Federal Regulations, title 26,
section 31.3121(G)-1, further defining agricultural labor.
(1) on a farm, in the employ of any person or family farm corporation in connection
with cultivating the soil, or in connection with raising or harvesting any agricultural or
horticultural commodity, including the raising, shearing, feeding, caring for, training, and
management of livestock, bees, poultry, fur-bearing animals, and wildlife;
(2) in the employ of the owner or tenant or other operator of a farm, in connection
with the operation, management, conservation, improvement, or maintenance of the farm
and its tools and equipment, or in salvaging timber or clearing land of brush and other debris
left by a tornado-like storm, if the major part of the employment is performed on a farm;
(3) in connection with the production or harvesting of any commodity defined as
an agricultural product in United States Code, title 7, section 1626 of the Agricultural
Marketing Act, or in connection with cotton ginning, or in connection with the operation
or maintenance of ditches, canals, reservoirs, or waterways, not owned or operated for
profit, used exclusively for supplying and storing water for farming purposes;
(4) in the employ of the operator of a farm in handling, planting, drying, packing,
packaging, processing, freezing, grading, storing, or delivering to storage or to market
or to a carrier for transportation to market, in its unmanufactured state, any agricultural
or horticultural commodity; but only if the operator produced more than one-half of the
commodity with respect to which the employment is performed, or in the employ of a
group of operators of farms or a cooperative organization of which the operators are
members, but only if the operators produced more than one-half of the commodity with
respect to which the employment is performed; however, this clause is not applicable to
employment performed in connection with commercial canning or commercial freezing
or in connection with any agricultural or horticultural commodity after its delivery to a
terminal market for distribution for consumption; or
(5) on a farm operated for profit if the employment is not in the course of the
employer's trade or business.
For purposes of this subdivision, the term "farm" includes stock, dairy, poultry, fruit,
fur-bearing animals, and truck farms, plantations, ranches, nurseries, orchards, ranges,
greenhouses, or other similar structures used primarily for the raising of agricultural or
horticultural commodities.

    Sec. 5. Minnesota Statutes 2012, section 268.035, subdivision 4, is amended to read:
    Subd. 4. Base period. (a) "Base period," unless otherwise provided in this
subdivision, means the most recent four completed calendar quarters before the effective
date of an applicant's application for unemployment benefits if the application has an
effective date occurring after the month following the most recent completed calendar
quarter. The base period defined in this paragraph is considered the primary base period.
The base period under this paragraph is as follows:

		If the application for unemployment benefits is effective on or between these dates:		The base period is the prior:
		February 1 - March 31		January 1 - December 31
		May 1 - June 30		April 1 - March 31
		August 1 - September 30		July 1 - June 30
		November 1 - December 31		October 1 - September 30

    (b) If an application for unemployment benefits has an effective date that is during
the month following the most recent completed calendar quarter, then the base period is
the first four of the most recent five completed calendar quarters before the effective
date of an applicant's application for unemployment benefits. The base period defined
in this paragraph is considered the secondary base period. The base period under this
paragraph is as follows:

		If the application for unemployment benefits is effective on or between these dates:		The base period is the prior:
		January 1 - January 31		October 1 - September 30
		April 1 - April 30		January 1 - December 31
		July 1 - July 31		April 1 - March 31
		October 1 - October 31		July 1 - June 30

The base period in this paragraph is used when the wage detail report on the most
recent completed calendar quarter is not yet available. According to section 268.044,
subdivision 1, the wage detail report is due the last day of the month following the end
of the calendar quarter.
    (c) If the applicant has insufficient wage credits to establish a benefit account under
paragraph (a) or (b), but during the base period under paragraph (a) or (b) an applicant
received workers' compensation for temporary disability under chapter 176 or a similar
federal law or similar law of another state, or if an applicant whose own serious illness
caused a loss of work for which the applicant received compensation for loss of wages
from some other source, the applicant may request an extended a base period as follows:
    (1) if an applicant was compensated for a loss of work of seven to 13 weeks, the
base period is the first four of the most recent six completed calendar quarters before the
effective date of the application for unemployment benefits;
    (2) if an applicant was compensated for a loss of work of 14 to 26 weeks, the base
period is the first four of the most recent seven completed calendar quarters before the
effective date of the application for unemployment benefits;
    (3) if an applicant was compensated for a loss of work of 27 to 39 weeks, the base
period is the first four of the most recent eight completed calendar quarters before the
effective date of the application for unemployment benefits; and
    (4) if an applicant was compensated for a loss of work of 40 to 52 weeks, the base
period is the first four of the most recent nine completed calendar quarters before the
effective date of the application for unemployment benefits.
(d) If the applicant applies for unemployment benefits with an effective date that
is during the month following the most recent completed calendar quarter, but has
insufficient wage credits to establish a benefit account using the secondary base period
under paragraph (b), an alternate of the first four of the most recent five completed
calendar quarters, then a base period of the most recent four completed calendar quarters
before the effective date of the applicant's application for unemployment benefits will be
used. This base period is used even though the wage detail report on the most recent
completed quarter has not yet been filed. In that circumstance, obtaining necessary wage
credit information for establishment of a benefit account is done in accordance with
section 268.07, subdivision 2 1, paragraph (c).
    (e) No base period under paragraph (a), (b), (c), or (d) may include wage credits
upon which a prior benefit account was established.
(f) Regardless of paragraph (a), the secondary if an applicant applies for
unemployment benefits with an effective date occurring after the month following the
most recent calendar quarter, a base period in paragraph (b) of the first four of the most
recent five completed calendar quarters must be used if the applicant has would have more
wage credits under that base period than under the primary a base period in paragraph
(a) of the four most recent completed calendar quarters.

    Sec. 6. Minnesota Statutes 2012, section 268.035, subdivision 11, is amended to read:
    Subd. 11. Covered agricultural employment. (a) "Covered agricultural
employment" means agricultural employment where:
    (1) The agricultural employment is performed for a person who:
    (i) during any calendar quarter in either the current or the prior calendar year paid
wages of $20,000 or more to employees in agricultural employment; or
    (ii) employed at least four employees in agricultural employment who each worked
for some portion of a day in each of 20 different calendar weeks, whether or not the weeks
were consecutive, in either the current or prior calendar year employed in agricultural
employment four or more employees, regardless of whether they were employed at the
same time.;
    (2) any employee who is a member of a crew furnished by a crew leader to be
employed in agricultural employment for any other person is treated as an employee
of the crew leader:
    (i) if the crew leader holds a valid certificate of registration under United States
Code, title 29, section 1802, the Migrant and Seasonal Agricultural Worker Protection
Act; or substantially all of the members of the crew operate or maintain tractors,
mechanized harvesting or crop dusting equipment, or any other mechanized equipment,
that is provided by the crew leader; and
    (ii) if the employee is not an employee of another person.; and
    (3) any employee who is furnished by a crew leader to be employed in agricultural
employment for any other person and who is not treated as an employee of the crew
leader under clause (2):
    (i) the other person and not the crew leader is treated as the employer of the
employee; and
    (ii) the other person is treated as having paid wages to the employee in an amount
equal to the amount of wages paid to the employee by the crew leader (either on the
crew leader's behalf or on behalf of the other person) for the agricultural employment
performed for the other person.
    (4) (b) The term "crew leader" under this subdivision means an individual who:
    (i) (1) furnishes employees to be employed in agricultural employment for any
other person;
    (ii) (2) pays, (either on the crew leader's own behalf or on behalf of the other
person), the employees furnished by the crew leader for the agricultural employment
performed by them; and
    (iii) (3) has not entered into a written agreement with the other person under which
the furnished employee is designated as an employee of the other person.
    (5) (c) For purposes of paragraph (a), clause (1), item (ii), employment of an
officer or shareholder of a family farm corporation is excluded from covered agricultural
employment unless the corporation is an employer under United States Code, title 26,
section 3306(a)(2) of the Federal Unemployment Tax Act.
    (6) and employment of an individual 16 years of age or under is excluded from
covered agricultural employment unless considered only if the employer is an employer
under United States Code, title 26, section 3306(a)(2) of the Federal Unemployment
Tax Act.

    Sec. 7. Minnesota Statutes 2012, section 268.035, subdivision 12, is amended to read:
    Subd. 12. Covered employment. (a) "Covered employment" means the following
unless excluded as "noncovered employment" under subdivision 20:
    (1) an employee's entire employment during the calendar quarter if:
    (i) the employment is performed entirely in Minnesota;
    (ii) (i) the employment during the quarter is performed primarily in Minnesota,
and the employment performed outside Minnesota is incidental to the employment in
Minnesota; or
    (iii) (ii) the employment during the quarter is not performed primarily in Minnesota
or any one other state but some of the employment is performed in Minnesota and the
base of operations or the place from which the employment is directed or controlled
is in Minnesota; or
    (iii) the employment during the quarter is not performed primarily in Minnesota
or any other state and the base of operations or place from which the employment is
directed or controlled is not in any state where part of the employment is performed, but
the employee's residence is in Minnesota;
    (2) an employee's employment during the calendar quarter wherever performed
within the United States or Canada, if:
    (i) the employment is not covered under the unemployment insurance program of
any other state or Canada; and
    (ii) the place from which the employment is directed or controlled is in Minnesota;
The term "performed primarily" for purposes of this clause means more than 50 percent
as measured by the wages paid;
    (3) (2) the employment during the calendar quarter of, performed entirely outside
of the United States and Canada, by an employee who is a United States citizen of the
United States, performed outside the United States, except in Canada, in the employ of
an American employer if:
    (i) the employer's principal place of business in the United States is located in
Minnesota;.
    (ii) the employer has no place of business in the United States, but the employer
is an individual who is a resident of Minnesota, or the employer is a corporation that is
organized under the laws of Minnesota, or the employer is a partnership or a trust and the
number of partners or trustees who are residents of Minnesota is greater than the number
who are residents of any one other state;
    (iii) none of the criteria of items (i) and (ii) is met but the employer has elected
coverage in Minnesota, or the employer having failed to elect coverage in any state,
an applicant has made an application for unemployment benefits under section 268.07,
based on the employment;
    (iv) An "American employer," for the purposes of this subdivision clause, means
an individual who is a resident of the United States, or a partnership if two-thirds or
more of the partners are residents of the United States, or a trust, if all of the trustees are
residents of the United States, or a corporation organized under the laws of the United
States, or the law of any state; or and
    (v) as used in this subdivision, the term "United States" includes the states, the
District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands;
    (4) (3) all employment during the calendar quarter performed by an officer or
member of the crew of an American vessel on or in connection with the vessel, if the
operating office from which the operations of the vessel operating on navigable waters
within, or within and without, the United States are ordinarily and regularly supervised,
managed, directed, and controlled is in Minnesota; and.
    (5) (b) For the purposes of satisfying the period of ineligibility under section
268.095, subdivision 10 , "covered employment" includes covered employment under an
unemployment insurance program:
    (1) of any other state or employment covered under an unemployment insurance
program;
    (2) established by an act of Congress.; or
(3) under the law of Canada.

    Sec. 8. Minnesota Statutes 2012, section 268.035, subdivision 15, is amended to read:
    Subd. 15. Employment. (a) "Employment" means service performed by:
    (1) an individual who is considered an employee under the common law of
employer-employee and not considered an independent contractor under (i) subdivision
9a or 25b or (ii) the common law of employer-employee;
    (2) an officer of a corporation;
    (3) a member of a limited liability company who is considered an employee under
the common law of employer-employee;
    (4) product demonstrators in retail stores or other locations to aid in the sale of
products. The person that pays the wages is considered the employer; or
    (5) an individual who performs services for a person for compensation, as:
    (i) an agent-driver or commission-driver engaged in distributing meat products,
vegetable products, fruit products, beverages, or laundry or dry cleaning services; or
    (ii) a traveling or city salesperson, other than as an agent-driver or commission-driver,
engaged full-time in the solicitation on behalf of the person, of orders from wholesalers,
retailers, contractors, or operators of hotels, restaurants, or other similar establishments for
merchandise for resale or supplies for use in their business operations.
    This clause applies only if the contract of service provides that substantially all of
the services are to be performed personally by the individual, and the services are part of
a continuing relationship with the person for whom the services are performed, and the
individual does not have a substantial investment in facilities used in connection with the
performance of the services, other than facilities for transportation.
    (b) Employment does not include service as a juror.

    Sec. 9. Minnesota Statutes 2012, section 268.035, subdivision 22, is amended to read:
    Subd. 22. State and United States. "State" and "United States" includes, in
addition to the states of the United States, the Commonwealth of Puerto Rico, the District
of Columbia, and the Virgin Islands.

    Sec. 10. Minnesota Statutes 2012, section 268.035, subdivision 29, is amended to read:
    Subd. 29. Wages. (a) "Wages" means all compensation for services, including
commissions; bonuses, awards, and prizes; severance payments; standby pay; vacation
and holiday pay; back pay as of the date of payment; tips and gratuities paid to an
employee by a customer of an employer and accounted for by the employee to the
employer; sickness and accident disability payments, except as otherwise provided in
this subdivision; and the cash value, but not less than the fair market value, of housing,
utilities, meals, exchanges of services, and any other goods and services provided to
compensate for an employee's services, except:
    (1) the amount of any payment made to, or on behalf of, an employee under a plan
established by an employer that makes provision for employees generally or for a class or
classes of employees, including any amount paid by an employer for insurance or annuities,
or into a plan, to provide for a payment, on account of (i) retirement or (ii) medical and
hospitalization expenses in connection with sickness or accident disability, or (iii) death;
    (2) the payment by an employer of the tax imposed upon an employee under United
States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect
to compensation paid to an employee for domestic employment in a private household of
the employer or for agricultural employment;
    (3) any payment made to, or on behalf of, an employee or beneficiary (i) from or
to a trust described in United States Code, title 26, section 401(a) of the federal Internal
Revenue Code, that is exempt from tax under section 501(a) at the time of the payment
unless the payment is made to an employee of the trust as compensation for services as an
employee and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at
the time of the payment, is a plan described in section 403(a);
    (4) the value of any special discount or markdown allowed to an employee on goods
purchased from or services supplied by the employer where the purchases are optional and
do not constitute regular or systematic payment for services;
    (5) customary and reasonable directors' fees paid to individuals who are not
otherwise employed by the corporation of which they are directors;
    (6) the payment to employees for reimbursement of meal expenses when employees
are required to perform work after their regular hours;
    (7) the payment into a trust or plan for purposes of providing legal or dental services
if provided for all employees generally or for a class or classes of employees;
    (8) the value of parking facilities provided or paid for by an employer, in whole or in
part, if provided for all employees generally or for a class or classes of employees;
    (9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral,
or other right;
    (10) advances or reimbursements for traveling or other bona fide ordinary and
necessary expenses incurred or reasonably expected to be incurred in the business of the
employer. Traveling and other reimbursed expenses must be identified either by making
separate payments or by specifically indicating the separate amounts where both wages
and expense allowances are combined in a single payment;
    (11) residual payments to radio, television, and similar artists that accrue after
the production of television commercials, musical jingles, spot announcements, radio
transcriptions, film sound tracks, and similar activities;
    (12) payments made to supplement unemployment benefits under a plan established
by an employer, that makes provisions for employees generally or for a class or classes of
employees under the written terms of an agreement, contract, trust arrangement, or other
instrument. The plan must provide supplemental payments solely for the supplementing
of weekly state or federal unemployment benefits. The plan must provide supplemental
payments only for those weeks the applicant has been paid regular, extended, or additional
unemployment benefits. The supplemental payments, when combined with the applicant's
weekly unemployment benefits paid, may not exceed the applicant's regular weekly pay.
The plan must not allow the assignment of supplemental payments or provide for any type
of additional payment. The plan must not require any consideration from the applicant
and must not be designed for the purpose of avoiding the payment of Social Security
obligations, or unemployment taxes on money disbursed from the plan;
    (13) sickness or accident disability payments made by the employer after the
expiration of six calendar months following the last calendar month that the individual
worked for the employer;
    (14) disability payments made under the provisions of any workers' compensation
law;
    (15) sickness or accident disability payments made by a third-party payer such as
an insurance company; or
    (16) payments made into a trust fund, or for the purchase of insurance or an annuity,
to provide for sickness or accident disability payments to employees under a plan or
system established by the employer that provides for the employer's employees generally
or for a class or classes of employees.
    (b) Nothing in this subdivision excludes from the term "wages" any payment
made under any type of salary reduction agreement, including payments made under a
cash or deferred arrangement and cafeteria plan, as defined in United States Code, title
26, sections 401(k) and 125 of the federal Internal Revenue Code, to the extent that the
employee has the option to receive the payment in cash.
    (c) Wages includes the total payment to the operator and supplier of a vehicle or
other equipment where the payment combines compensation for personal services as well
as compensation for the cost of operating and hiring the equipment in a single payment.
This paragraph does not apply if:
(1) there is a preexisting written agreement providing for allocation of specific
amounts; or
(2) at the time of each payment there is a written acknowledgement indicating
the separate allocated amounts.
    (d) Wages includes payments made for services as a caretaker. Unless there is a
contract or other proof to the contrary, compensation is considered as being equally
received by a married couple where the employer makes payment to only one spouse, or
by all tenants of a household who perform services where two or more individuals share
the same dwelling and the employer makes payment to only one individual.
    (d) (e) Wages includes payments made for services by a migrant family. Where
services are performed by a married couple or a family and an employer makes payment
to only one individual, each worker is considered as having received an equal share of the
compensation unless there is a contract or other proof to the contrary.
    (e) (f) Wages includes advances or draws against future earnings, when paid, unless
the payments are designated as a loan or return of capital on the books of the employer
at the time of payment.
    (f) (g) Wages includes payments made by a subchapter "S" corporation, as organized
under the Internal Revenue Code, to or on behalf of officers and shareholders that are
reasonable compensation for services performed for the corporation.
    For a subchapter "S" corporation, wages does not include:
    (1) a loan for business purposes to an officer or shareholder evidenced by a
promissory note signed by an officer before the payment of the loan proceeds and recorded
on the books and records of the corporation as a loan to an officer or shareholder;
    (2) a repayment of a loan or payment of interest on a loan made by an officer to the
corporation and recorded on the books and records of the corporation as a liability;
    (3) a reimbursement of reasonable corporation expenses incurred by an officer and
documented by a written expense voucher and recorded on the books and records of
the corporation as corporate expenses; and
    (4) a reasonable lease or rental payment to an officer who owns property that is
leased or rented to the corporation.

    Sec. 11. Minnesota Statutes 2012, section 268.042, subdivision 1, is amended to read:
    Subdivision 1. Employer registration. (a) Each employer must, upon or before
the submission of its first wage detail report under section 268.044, register with the
commissioner for a tax account or a reimbursable account, by electronic transmission
in a format prescribed by the commissioner. The employer must provide all required
information for registration, including the actual physical street and city address of the
employer.
    (b) Within 30 calendar days, each employer must notify the commissioner by
electronic transmission, in a format prescribed, of a change in legal entity, of the
transfer, sale, or acquisition of a business conducted in Minnesota, in whole or in part,
if the transaction results in the creation of a new or different employer or affects the
establishment of employer accounts, the assignment of tax rates, or the transfer of
experience rating history.
    (c) Except as provided in subdivision 3, any person that is or becomes an employer
subject to the Minnesota Unemployment Insurance Law within any calendar year is
considered to be subject to this chapter the entire calendar year.
    (d) Within 30 calendar days of the termination of business, an employer that has
been assigned a tax account or reimbursable account must notify the commissioner by
electronic transmission, in a format prescribed by the commissioner, if that employer does
not intend or expect to pay wages to any employees in covered employment during the
current or the next calendar year. Upon notification, the employer is no longer required
to file wage detail reports under section 268.044, subdivision 1, paragraph (d), and the
employer's account must be terminated.
    (e) The commissioner, after notifying the employer, may terminate an employer's
tax account if the employer has not filed a wage detail report as required under section
268.044 for eight consecutive calendar quarters.
    (f) An employer that has its account terminated regains its previous tax account
under section 268.045, with the experience rating history of that account, if the employer
again commences business and again pays wages in covered employment if:
    (1) less than 14 calendar quarters have elapsed in which no wages were paid for
covered employment;
    (2) the experience rating history regained contains taxable wages; and
    (3) the experience rating history has not been transferred to a successor under
section 268.051, subdivision 4.
If the experience rating history is not regained under this paragraph, the employer must be
assigned the new employer tax rate under section 268.051, subdivision 5.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 12. Minnesota Statutes 2012, section 268.043, is amended to read:
268.043 DETERMINATIONS OF COVERAGE.
    (a) The commissioner, upon the commissioner's own motion or upon application of a
person, must determine if that person is an employer or whether services performed for it
constitute employment and covered employment, or whether any compensation constitutes
wages, and notify. The commissioner must send to the person of the a determination of
coverage. The determination of coverage is final unless the person files an appeal within
20 calendar days after the commissioner sends the determination by mail or electronic
transmission. Proceedings on the appeal are conducted in accordance with section 268.105.
    (b) No person may be initially determined an employer, or that services performed
for it were in employment or covered employment, for periods more than four years before
the year in which the determination of coverage is made, unless the commissioner finds
that there was fraudulent action to avoid liability under this chapter.

    Sec. 13. Minnesota Statutes 2012, section 268.051, subdivision 4a, is amended to read:
    Subd. 4a. Actions that avoid taxes or reimbursements. (a) If the commissioner
determines that any action was done, in whole or in part, to avoid:
    (1) an experience rating history;
    (2) the transfer of an experience rating history; or
    (3) the assignment of a tax rate for new employers under subdivision 5, paragraph
(a) or (b),; or
    (4) reimbursement required from a nonprofit or government employer, the
commissioner, to insure that the trust fund receives all the taxes and reimbursements that
would have been received had the action not occurred, may, effective the date of the
action, transfer all or part of an experience rating history and recompute the tax rate or,
assign the appropriate new employer tax rate, or assess a reimbursement.
    (b) This subdivision applies to any action between persons regardless of whether
there is any commonality of ownership, management, or control between the persons. The
authority granted to the commissioner under this subdivision is in addition to any other
authority granted to the commissioner.

    Sec. 14. Minnesota Statutes 2012, section 268.051, subdivision 5, is amended to read:
    Subd. 5. Tax rate for new employers. (a) Each new taxpaying employer that does
not qualify for an experience rating under subdivision 3, except new employers in a high
experience rating industry, must be assigned, for a calendar year, a tax rate the higher of
(1) one percent, or (2) the tax rate computed, to the nearest 1/100 of a percent, by dividing
the total amount of unemployment benefits paid all applicants during the 48 calendar
months ending on June 30 of the prior calendar year by the total taxable wages of all
taxpaying employers during the same period, plus the applicable base tax rate and any
additional assessments under subdivision 2, paragraph (c).
    (b) Each new taxpaying employer in a high experience rating industry that does not
qualify for an experience rating under subdivision 3, must be assigned, for a calendar year,
a tax rate the higher of (1) that assigned under paragraph (a), or (2) the tax rate, computed
to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits
paid to all applicants from high experience rating industry employers during the 48
calendar months ending on June 30 of the prior calendar year by the total taxable wages
of all high experience rating industry employers during the same period, to a maximum
provided for under subdivision 3, paragraph (b), plus the applicable base tax rate and any
additional assessments under subdivision 2, paragraph (c).
    (c) An employer is considered to be in a high experience rating industry if:
    (1) the employer is engaged in residential, commercial, or industrial construction,
including general contractors;
    (2) the employer is engaged in sand, gravel, or limestone mining;
    (3) the employer is engaged in the manufacturing of concrete, concrete products,
or asphalt; or
    (4) the employer is engaged in road building, repair, or resurfacing, including bridge
and tunnels and residential and commercial driveways and parking lots.
(d) Regardless of any law to the contrary, a taxpaying employer must be assigned a
tax rate under this subdivision if:
(1) the employer registers for a tax account under section 268.042 and for each of
the five calendar quarters after registering files a "no wages paid" report on wage detail
under section 268.044; or had no taxable wages during the experience rating period under
subdivision 3.
(2) the employer has filed 14 consecutive quarterly "no wages paid" reports on
wage detail under section 268.044.
    (e) The commissioner must send to the new employer, by mail or electronic
transmission, a determination of tax rate. An employer may appeal the determination of
tax rate in accordance with the procedures in subdivision 6, paragraph (c).
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 15. Minnesota Statutes 2012, section 268.057, subdivision 5, is amended to read:
    Subd. 5. Interest on amounts past due. If any amounts due from an employer
under this chapter or section 116L.20, except late fees under section 268.044, are not
received on the date due the unpaid balance bears interest at the rate of one and one-half
percent per month or any part thereof of a month. Interest collected under this subdivision
is credited to the contingent account.
EFFECTIVE DATE.This section applies to all interest assessed after January
1, 2014.

    Sec. 16. Minnesota Statutes 2012, section 268.057, subdivision 7, is amended to read:
    Subd. 7. Credit adjustments, refunds. (a) If an employer makes an application
for a credit adjustment of any amount paid under this chapter or section 116L.20 within
four years of the date that the payment was due, in a manner and format prescribed by
the commissioner, and the commissioner determines that the payment or any portion was
erroneous, the commissioner must make an adjustment and issue a credit without interest.
If a credit cannot be used, the commissioner must refund, without interest, the amount
erroneously paid. The commissioner, on the commissioner's own motion, may make a
credit adjustment or refund under this subdivision.
    Any refund returned to the commissioner is considered unclaimed property under
chapter 345.
    (b) If a credit adjustment or refund is denied in whole or in part, a notice determination
of denial must be sent to the employer by mail or electronic transmission. The notice
determination of denial is final unless an employer files an appeal within 20 calendar days
after sending. Proceedings on the appeal are conducted in accordance with section 268.105.

    Sec. 17. Minnesota Statutes 2012, section 268.0625, subdivision 4, is amended to read:
    Subd. 4. Notice Determination and right to hearing. At least 30 calendar days
before the commissioner notifies a licensing authority, a notice determination of action
under this section must be sent to the licensee by mail or electronic transmission. If the
licensee disputes the action, the licensee must appeal within 20 calendar days after the
sending of the notice determination of action to the licensee. The only issue on any
appeal is whether the commissioner has complied with the requirements of this section.
Proceedings on the appeal are conducted in accordance with section 268.105.

    Sec. 18. Minnesota Statutes 2012, section 268.069, subdivision 3, is amended to read:
    Subd. 3. Common law. (a) There is no equitable or common law denial or
allowance of unemployment benefits.
(b) The equitable and common law concepts of constructive quit and constructive
discharge do not apply to this chapter.

    Sec. 19. Minnesota Statutes 2012, section 268.07, subdivision 1, is amended to read:
    Subdivision 1. Application for unemployment benefits; determination of benefit
account. (a) An application for unemployment benefits may be filed in person, by mail,
or by electronic transmission as the commissioner may require. The applicant must be
unemployed at the time the application is filed and must provide all requested information
in the manner required. If the applicant is not unemployed at the time of the application
or fails to provide all requested information, the communication is not considered an
application for unemployment benefits.
    (b) The commissioner must examine each application for unemployment benefits to
determine the base period and the benefit year, and based upon all the covered employment
in the base period the commissioner must determine the weekly unemployment benefit
amount available, if any, and the maximum amount of unemployment benefits available, if
any. The determination, which is a document separate and distinct from a document titled
a determination of eligibility or determination of ineligibility issued under section 268.101,
must be titled determination of benefit account. A determination of benefit account must
be sent to the applicant and all base period employers, by mail or electronic transmission.
    (c) If a base period employer did not provide wage detail information for the
applicant as required under section 268.044, or provided erroneous information, or
wage detail is not yet due and the applicant is using an alternate a base period under
section 268.035, subdivision 4, paragraph (d), the commissioner may accept an applicant
certification of wage credits, based upon the applicant's records, and issue a determination
of benefit account.
(d) An employer must provide wage detail information on an applicant within five
calendar days of request by the commissioner, in a manner and format requested, when:
(1) the applicant is using an alternate a base period under section 268.035,
subdivision 4 , paragraph (d); and
(2) wage detail under section 268.044 is not yet required to have been filed by
the employer.
    (e) The commissioner may, at any time within 24 months from the establishment of
a benefit account, reconsider any determination of benefit account and make an amended
determination if the commissioner finds that the wage credits listed in the determination
were incorrect for any reason. An amended determination of benefit account must be
promptly sent to the applicant and all base period employers, by mail or electronic
transmission. This subdivision does not apply to documents titled determinations of
eligibility or determinations of ineligibility issued under section 268.101.
    (f) If an amended determination of benefit account reduces the weekly
unemployment benefit amount or maximum amount of unemployment benefits available,
any unemployment benefits that have been paid greater than the applicant was entitled
is considered an overpayment of unemployment benefits. A determination or amended
determination issued under this section that results in an overpayment of unemployment
benefits must set out the amount of the overpayment and the requirement under section
268.18, subdivision 1 , that the overpaid unemployment benefits must be repaid.

    Sec. 20. Minnesota Statutes 2012, section 268.07, subdivision 3b, is amended to read:
    Subd. 3b. Limitations on applications and benefit accounts. (a) An application for
unemployment benefits is effective the Sunday of the calendar week that the application
was filed. An application for unemployment benefits may be backdated one calendar week
before the Sunday of the week the application was actually filed if the applicant requests
the backdating at the time the application is filed. An application may be backdated only if
the applicant had no employment was unemployed during the period of the backdating.
If an individual attempted to file an application for unemployment benefits, but was
prevented from filing an application by the department, the application is effective the
Sunday of the calendar week the individual first attempted to file an application.
    (b) A benefit account established under subdivision 2 is effective the date the
application for unemployment benefits was effective.
    (c) A benefit account, once established, may later be withdrawn only if:
    (1) the applicant has not been paid any unemployment benefits on that benefit
account; and
(2) a new application for unemployment benefits is filed and a new benefit account is
established at the time of the withdrawal.
    A determination or amended determination of eligibility or ineligibility issued under
section 268.101, that was sent before the withdrawal of the benefit account, remains in
effect and is not voided by the withdrawal of the benefit account.
    (d) An application for unemployment benefits is not allowed before the Sunday
following the expiration of the benefit year on a prior benefit account. Except as allowed
under paragraph (c), an applicant may establish only one benefit account each 52 calendar
weeks.

    Sec. 21. Minnesota Statutes 2012, section 268.085, subdivision 3, is amended to read:
    Subd. 3. Payments that delay unemployment benefits. (a) An applicant is not
eligible to receive unemployment benefits for any week with respect to which the applicant
is receiving, has received, or has filed for payment will receive, equal to or in excess of the
applicant's weekly unemployment benefit amount, in the form of:
    (1) vacation pay, sick pay, or personal time off pay, also known as "PTO," paid
upon temporary, indefinite, or seasonal separation. This clause does not apply to (i)
vacation pay, sick pay, or personal time off pay, paid (i) upon a permanent separation from
employment, or (ii) vacation pay, sick pay, or personal time off pay, paid from a vacation
fund administered by a union or a third party not under the control of the employer;
    (2) severance pay, bonus pay, and any other payments, except earnings under
subdivision 5, and back pay under subdivision 6, paid by an employer because of, upon,
or after a separation from employment, but only such as severance pay and retention
pay, if the payment is considered wages at the time of payment under section 268.035,
subdivision 29 . This clause does not apply to back pay under subdivision 6 or to vacation
pay, sick pay, or personal time off pay under clause (1); or
    (3) pension, retirement, or annuity payments from any plan contributed to by a base
period employer including the United States government, except Social Security benefits
that are provided for in subdivision 4. The base period employer is considered to have
contributed to the plan if the contribution is excluded from the definition of wages under
section 268.035, subdivision 29, paragraph (a), clause (1). This clause does not apply to
Social Security benefits under subdivision 4.
    If the pension, retirement, or annuity payment is paid in a lump sum, an applicant is
not considered to have received a payment if (i) the applicant immediately deposits, within
60 calendar days, makes a rollover contribution of that payment in a qualified pension
plan or account, or (ii) that payment is an early distribution for which the applicant paid
an early distribution penalty under the Internal Revenue Code, United States Code, title
26, section 72(t)(1).
    (b) This subdivision applies to all the weeks of payment. Payments under paragraph
(a), clause (1), are applied to the period immediately following the last day of employment.
Payments under paragraph (a), clause (2), made within 13 weeks of the last day of
employment, are applied to the period immediately following the last day of employment.
The number of weeks of payment is determined as follows:
    (1) if the payments are made periodically, the total of the payments to be received is
divided by the applicant's last level of regular weekly pay from the employer; or
    (2) if the payment is made in a lump sum, that sum is divided by the applicant's last
level of regular weekly pay from the employer.
    (c) If the payment is less than the applicant's weekly unemployment benefit amount,
unemployment benefits are reduced by the amount of the payment.
EFFECTIVE DATE. The amendments to paragraph (a) are effective July 1, 2013.
The amendments to paragraph (b) are effective for determinations and decisions issued
after June 30, 2013.

    Sec. 22. Minnesota Statutes 2012, section 268.085, subdivision 4, is amended to read:
    Subd. 4. Social Security old age benefits. (a) Any applicant aged 62 or over is
required to state when filing an application for unemployment benefits and when filing
continued requests for unemployment benefits if the applicant is receiving, has filed
for, or intends to file for, primary Social Security old age benefits for any week during
the benefit year.
    Unless paragraph (b) applies, 50 percent of the weekly equivalent of the primary
Social Security old age benefit the applicant has received, has filed for, or intends to file
for, with respect to that week must be deducted from an applicant's weekly unemployment
benefit amount.
    (b) If all of the applicant's wage credits were earned while the applicant was claiming
Social Security old age benefits, there is no deduction from the applicant's weekly
unemployment benefit amount. The purpose of this paragraph is to ensure that an applicant
who is claiming Social Security benefits has demonstrated a desire and ability to work.
(c) Information from the Social Security Administration is considered conclusive,
absent specific evidence showing that the information was erroneous.
(d) This subdivision does not apply to Social Security survivor benefits.
    Subd. 4a. Social Security disability benefits. (c) (a) An applicant who is receiving,
has received, or has filed applied for primary Social Security disability benefits for any
week during the benefit year must be determined unavailable for suitable employment is
ineligible for unemployment benefits for that week, unless:
    (1) the Social Security Administration approved the collecting of primary Social
Security disability benefits each month the applicant was employed during the base
period; or
    (2) the applicant provides a statement from an appropriate health care professional
who is aware of the applicant's Social Security disability claim and the basis for that claim,
certifying that the applicant is available for suitable employment.
    (b) If an applicant meets the requirements of paragraph (a), clause (1), there is no
deduction from the applicant's weekly benefit amount for any Social Security disability
benefits.
    (c) If only an applicant meets the requirements of paragraph (a), clause (2) applies,
then, there must be deducted from the applicant's weekly unemployment benefit amount
50 percent of the weekly equivalent of the primary Social Security disability benefits
the applicant is receiving, has received, or has filed applied for, with respect to that
week; provided, however, that. If the Social Security Administration determines that
an individual the applicant is not entitled to receive primary Social Security disability
benefits for any week the applicant has applied for those benefits, the 50 percent deduction
then this paragraph does not apply to that week.
    (d) Information from the Social Security Administration is considered conclusive,
absent specific evidence showing that the information was erroneous.
    (e) This subdivision does not apply to Social Security survivor benefits.

    Sec. 23. Minnesota Statutes 2012, section 268.085, subdivision 5, is amended to read:
    Subd. 5. Deductible earnings. (a) If the applicant has earnings, including holiday
pay, with respect to any week, from employment, covered employment, noncovered
employment, self-employment, or volunteer work, equal to or in excess of the applicant's
weekly unemployment benefit amount, the applicant is ineligible for unemployment
benefits for that week.
    (b) If the applicant has earnings, including holiday pay, with respect to any week,
that is less than the applicant's weekly unemployment benefit amount, from employment,
covered employment, noncovered employment, self-employment, or volunteer work, 50
percent of the earnings are deducted from the weekly unemployment benefit amount.
    (c) No deduction is made from an applicant's weekly unemployment benefit amount
for earnings from service in the National Guard or a United States military reserve unit or
from direct service as a volunteer firefighter or volunteer ambulance service personnel.
This exception to paragraphs (a) and (b) does not apply to on-call or standby pay provided
to a volunteer firefighter or volunteer ambulance service personnel. No deduction is made
for jury duty pay or for pay as an election judge.
    (d) The applicant may report deductible earnings on continued requests for
unemployment benefits at the next lower whole dollar amount.
    (e) Deductible earnings does not include any money considered a deductible
payment under subdivision 3, but includes all compensation considered wages under
section 268.035, subdivision 29, and any other compensation considered earned income
under state and federal law for income tax purposes.

    Sec. 24. Minnesota Statutes 2012, section 268.085, subdivision 6, is amended to read:
    Subd. 6. Receipt of back pay. (a) Back pay received by an applicant within 24
months of the establishment of the benefit account with respect to any week occurring
during the benefit year must be deducted from unemployment benefits paid for that week,
and the applicant is considered to have been overpaid the unemployment benefits for the
purposes of section 268.18, subdivision 1.
    If the back pay is not paid with respect to a specific period, the back pay must be
applied to the period immediately following the last day of employment.
    (b) If the back pay is reduced by the amount of unemployment benefits that have
been paid, the amount of back pay withheld and not paid the applicant must be:
    (1) paid by the taxpaying or reimbursing employer to the trust fund within 30
calendar days and is subject to the same collection procedures that apply to past due
taxes and reimbursements; and
    (2) when received by the trust fund:
(i) an overpayment of unemployment benefits must be created which, under section
268.047, subdivision 2, clause (8), clears the employer's tax or reimbursable account
of any effect; and
    (ii) the back pay must then be applied to the unemployment benefit overpayments
resulting from the payment of the back pay; and overpayment, eliminating any effect on
the applicant.
    (3) credited to the maximum amount of unemployment benefits available to the
applicant in a benefit year that includes the weeks for which back pay was deducted.
When implemented, this paragraph must produce the following results: (1) that
an employer neither overpays nor underpays the employer's proper portion of the
unemployment benefit costs; and (2) that the applicant is placed in the same position as
never having been paid the unemployment benefits.
    (c) The unemployment benefits paid considered overpaid the applicant must be
under this subdivision are, according to section 268.047, subdivision 2, clause (8),
removed from the computation of the tax rate for taxpaying employers and removed from
the reimbursable account for nonprofit and government employers that have elected to be
liable for reimbursements in the calendar quarter the trust fund receives payment.
    (d) Payments to the trust fund under this subdivision are considered as made by
the applicant.

    Sec. 25. Minnesota Statutes 2012, section 268.0865, subdivision 3, is amended to read:
    Subd. 3. Continued request for unemployment benefits by electronic
transmission. (a) A continued request for unemployment benefits by electronic
transmission must be filed to that electronic mail address, telephone number, or Internet
address prescribed by the commissioner for that applicant. In order to constitute a
continued request, all information asked for, including information authenticating that the
applicant is sending the transmission, must be provided in the format required. If all of the
information asked for is not provided, the communication does not constitute a continued
request for unemployment benefits.
    (b) The electronic transmission communication must be filed on the date and during
the time of day designated for the applicant for filing a continued request by electronic
transmission during the week following the week for which payment is requested.
    (c) If the electronic transmission continued request is not filed on the date and
during the time of day designated as required under paragraph (b), a continued request
by electronic transmission must be accepted if the applicant files the continued request
by electronic transmission within two three calendar weeks following the week in which
the date designated occurred for which payment is requested. If the continued request by
electronic transmission is not filed within two three calendar weeks following the week
in which the date designated occurred for which payment is requested, the electronic
continued request will not be accepted and the applicant is ineligible for unemployment
benefits for the period covered by the continued request, unless the applicant shows good
cause for failing to file the continued request by electronic transmission within the time
period required.

    Sec. 26. Minnesota Statutes 2012, section 268.0865, subdivision 4, is amended to read:
    Subd. 4. Continued request for unemployment benefits by mail. (a) A
continued request for unemployment benefits by mail must be on a form prescribed by
the commissioner. The form, in order to constitute a continued request, must be totally
completed and signed by the applicant. The form must be filed on the date required for the
applicant for filing a continued request by mail, in an envelope with postage prepaid, and
sent to the address designated during the week following the week for which payment is
requested.
    (b) If the mail continued request for unemployment benefits is not filed on the date
designated as required under paragraph (a), a continued request must be accepted if the
form is filed by mail within two three calendar weeks following the week in which the
date designated occurred for which payment is requested. If the form is not filed within
two three calendar weeks following the week in which the date designated occurred for
which payment is required, the form will not be accepted and the applicant is ineligible for
unemployment benefits for the period covered by the continued request for unemployment
benefits, unless the applicant shows good cause for failing to file the form by mail within
the time period required.
    (c) If the applicant has been designated to file a continued request for unemployment
benefits by mail, an applicant may submit the form by facsimile transmission on the day
otherwise required for mailing, or within two three calendar weeks following the week in
which the date designated occurred for which payment is requested. A form submitted by
facsimile transmission must be sent only to the telephone number assigned for that purpose.
    (d) An applicant who has been designated to file a continued request by mail may
personally deliver a continued request form only to the location to which the form was
otherwise designated to be mailed.

    Sec. 27. Minnesota Statutes 2012, section 268.095, subdivision 2, is amended to read:
    Subd. 2. Quit defined. (a) A quit from employment occurs when the decision to
end the employment was, at the time the employment ended, the employee's. A notice of
quitting is not considered a quit at the time the notice is given. A notice of quitting is an
expression of the employee's intention to quit the employment at a future time.
    (b) An employee who has been notified that the employee will be discharged in the
future, who chooses to end the employment while employment in any capacity is still
available, is considered to have quit the employment.
    (c) An employee who seeks to withdraw a previously submitted notice of quitting
is considered to have quit the employment, as of the intended date of quitting, if the
employer does not agree that the notice may be withdrawn.
    (d) An applicant who, within five calendar days after completion of a suitable job
assignment from a staffing service (1) fails without good cause to affirmatively request an
additional suitable job assignment, (2) refuses without good cause an additional suitable
job assignment offered, or (3) accepts employment with the client of the staffing service, is
considered to have quit employment with the staffing service. Accepting employment with
the client of the staffing service meets the requirements of the exception to ineligibility
under subdivision 1, clause (2).
    This paragraph applies only if, at the time of beginning of employment with the
staffing service, the applicant signed and was provided a copy of a separate document
written in clear and concise language that informed the applicant of this paragraph and
that unemployment benefits may be affected.
    For purposes of this paragraph, "good cause" is a reason that is significant and would
compel an average, reasonable worker, who would otherwise want an additional suitable
job assignment with the staffing service (1) to fail to contact the staffing service, or (2)
to refuse an offered assignment.

    Sec. 28. Minnesota Statutes 2012, section 268.095, subdivision 3, is amended to read:
    Subd. 3. Good reason caused by the employer defined. (a) A good reason caused
by the employer for quitting is a reason:
    (1) that is directly related to the employment and for which the employer is
responsible;
    (2) that is adverse to the worker; and
    (3) that would compel an average, reasonable worker to quit and become
unemployed rather than remaining in the employment.
    (b) The analysis required in paragraph (a) must be applied to the specific facts
of each case.
    (c) If an applicant was subjected to adverse working conditions by the employer, the
applicant must complain to the employer and give the employer a reasonable opportunity
to correct the adverse working conditions before that may be considered a good reason
caused by the employer for quitting. This paragraph does not apply to unilateral reductions
in wages or hours.
    (d) A reason for quitting employment is not considered a good reason caused by
the employer for quitting if the reason for quitting occurred because of the applicant's
employment misconduct.
    (e) Notification of discharge in the future, including a layoff because of lack of work,
is not considered a good reason caused by the employer for quitting.
    (f) An applicant has a good reason caused by the employer for quitting if it results
from sexual harassment of which the employer was aware, or should have been aware,
and the employer failed to take timely and appropriate action. Sexual harassment means
unwelcome sexual advances, requests for sexual favors, sexually motivated physical
contact or other conduct or communication of a sexual nature when:
    (1) the applicant's submission to the conduct or communication is made a term
or condition of the employment;
    (2) the applicant's submission to or rejection of the conduct or communication is the
basis for decisions affecting employment; or
    (3) the conduct or communication has the purpose or effect of substantially
interfering with an applicant's work performance or creating an intimidating, hostile, or
offensive working environment.
    (g) The definition of a good reason caused by the employer for quitting employment
provided by this subdivision is exclusive and no other definition applies.

    Sec. 29. Minnesota Statutes 2012, section 268.103, subdivision 2a, is amended to read:
    Subd. 2a. Employer-agent appeals filed online. (a) If an agent, including an
attorney-at-law, files an appeal on behalf of an employer, the appeal must be filed online.
The appeal must be filed through the electronic address provided on the determination
being appealed. Use of another method of filing does not constitute an appeal. This
paragraph does not apply to an employee filing an appeal on behalf of an employer.
(b) All information requested when the appeal is filed must be supplied or the
communication does not constitute an appeal.

    Sec. 30. Minnesota Statutes 2012, section 268.105, is amended to read:
268.105 APPEALS.
    Subdivision 1. Evidentiary Notice of hearing by unemployment law judge.
    (a) Upon a timely appeal to a determination having been filed, the department chief
unemployment law judge must send, by mail or electronic transmission, a notice of appeal
hearing to all involved parties that an appeal has been filed, and that a de novo due process
evidentiary hearing will be scheduled conducted by an unemployment law judge.
    (b) The notice of hearing must include materials that set out the parties' rights and
responsibilities regarding the hearing. The notice materials must explain that the facts
will be determined by the unemployment law judge based upon a preponderance of the
evidence. The notice must presented at the hearing and explain in clear and simple
language the meaning of the term "preponderance of the evidence."
    (c) The department notice of hearing must set a time and place for a de novo due
process evidentiary hearing and send date and must state the issues to be considered
and the method by which the hearing will be conducted. The notice to any involved
applicant and any involved employer, by mail or electronic transmission, must be sent
not less than ten calendar days before the date of the hearing. The parties may waive the
ten-calendar-day notice requirement. Rescheduled hearings and continued hearings do not
require an additional ten-calendar-day notice.
    Subd. 1a. Definitions. The words and terms used in this subdivision have, for
purposes of the Minnesota Unemployment Insurance Law, the following meaning:
(1) "Decision" means a written ruling by an unemployment law judge on a particular
issue. Decisions under subdivision 1c are subject to request for reconsideration and
decisions under subdivision 2 are subject to review by the Minnesota Court of Appeals.
A decision must be specifically identified as a "decision."
(2) "Hearing" means the de novo evidentiary hearing under subdivision 1.
(3) "Order" means a written directive by an unemployment law judge dealing with
a matter of procedure. Orders are not subject to appeal. An order must be specifically
identified as an "order." An order is not a "decision" under the Minnesota Unemployment
Insurance Law.
(4) "Party" means an involved applicant or involved employer whose legal rights will
be directly determined in a hearing or on request for reconsideration. The department is not
a party to any proceedings before an unemployment law judge. The department becomes a
party, and is the primary responding party, before the Court of Appeals under subdivision 7.
    Subd. 1b. Conduct of hearing. (b) (a) The evidentiary hearing is conducted by an
unemployment law judge de novo as an evidence gathering inquiry. At the beginning of
the hearing the unemployment law judge must fully explain:
    (1) how the hearing will be conducted, and the role of the judge in developing
the record;
(2) that the information obtained will be used to decide the parties' rights under the
Minnesota Unemployment Insurance Law;
(3) that certain other government officials may have access to information provided
at the hearing if allowed by statute and that the information provided may be disclosed
under a district court order;
    (4) that the applicant has parties have the right to request that the hearing be
rescheduled continued so that documents or witnesses can be subpoenaed,; and
    (5) that the facts will be determined based on a preponderance of the evidence, and,
in clear and simple language, the meaning of the term "preponderance of the evidence."
    (b) The unemployment law judge must ensure that all relevant facts are clearly and
fully developed and must assist all parties in the presentation of the evidence.
    (c) The department may adopt rules on evidentiary hearings. The rules need
not conform to common law or statutory rules of evidence and other technical rules of
procedure.
    (d) The department chief unemployment law judge has discretion regarding the
method by which the evidentiary hearing is conducted. A report of any employee of the
department, except a determination, made in the regular course of the employee's duties, is
competent evidence of the facts contained in it. An affidavit or written statement based on
personal knowledge and signed under penalty of perjury is competent evidence of the facts
contained in it; however, the veracity of statements contained within the document or the
credibility of the witness making the statement may be disputed with other documents or
testimony and production of such documents or testimony may be compelled by subpoena.
    Subd. 1c. Decisions. (c) (a) After the conclusion of the hearing, upon the evidence
obtained, the unemployment law judge must make findings of fact and decision and send
those, by mail or electronic transmission, to all involved parties. When the credibility of
an involved party or a witness testifying in an evidentiary a hearing has a significant effect
on the outcome of a decision, the unemployment law judge must set out the reason for
crediting or discrediting that testimony. The unemployment law judge's decision is final
unless a request for reconsideration is filed under subdivision 2.
    (d) Regardless of paragraph (c), (b) If the appealing party fails to participate in the
evidentiary hearing, the unemployment law judge has the discretion to dismiss the appeal
by summary order decision. By failing to participate, the appealing party is considered to
have failed to exhaust available administrative remedies unless the appealing party files
a request for reconsideration under subdivision 2 and establishes good cause for failing
to participate in the evidentiary hearing under subdivision 2, paragraph (d). Submission
of a written statement does not constitute participation. The applicant must participate
personally and appearance solely by a representative does not constitute participation.
    (e) (c) The unemployment law judge must issue a decision dismissing the appeal
as untimely if the judge decides the appeal to the determination was not filed within the
20-calendar-day limit. The unemployment law judge may dismiss the appeal by summary
decision, or the judge may conduct a hearing to obtain evidence on the timeliness of
the appeal.
    Subd. 1d. Unemployment law judges. (a) Only employees of the department who
are attorneys licensed to practice law in Minnesota may serve as the chief unemployment
law judge, senior unemployment law judges who are supervisors, or unemployment law
judges. The commissioner must designate a chief unemployment law judge.
    (b) The chief unemployment law judge must assign the unemployment law judge
to conduct the hearing. The chief unemployment law judge may transfer to another
unemployment law judge any proceedings pending before an unemployment law a judge
under this section.
(f) (c) A full-time unemployment law judge must be paid a salary within a range
directly tied to the salary set under section 15A.083, subdivision 7, for a workers'
compensation judge. The salary paid within that range to any single unemployment law
judge is based on experience and performance.
    Subd. 1e. Consolidation of issues; consideration of additional issues. Upon
request of a party or on the unemployment law judge's own motion, the judge may
consolidate for hearing issues involving the same parties. The unemployment law judge
may take testimony and render a decision on issues not listed on the notice of hearing if
each party is notified on the record, is advised of the right to object, and does not object. If
a party objects, the unemployment law judge must:
(1) continue the hearing to allow the party to prepare for consideration of the
additional issue; or
(2) direct that the department make and send to the parties, by mail or electronic
transmission, a determination on the issue.
    Subd. 2. Request for reconsideration. (a) Any involved applicant, involved
employer party, or the commissioner, may, within 20 calendar days of the sending
of the unemployment law judge's decision under subdivision 1 1c, file a request for
reconsideration asking the unemployment law judge to reconsider that decision. Section
268.103 applies to a request for reconsideration. If a request for reconsideration is timely
filed, the unemployment law judge must issue an order:
    (1) a decision modifying the findings of fact and decision issued under subdivision
1 1c;
    (2) an order setting aside the decision issued under subdivision 1 1c and directing
that an additional evidentiary hearing be conducted under subdivision 1; or
    (3) a decision affirming the findings of fact and decision issued under subdivision 1 1c.
    (b) Upon a timely request for reconsideration having been filed, the department
chief unemployment law judge must send a notice, by mail or electronic transmission,
to all involved parties that a request for reconsideration has been filed. The notice must
inform the involved parties:
    (1) that reconsideration is the procedure for the unemployment law judge to correct
any factual or legal errors in the decision, as well as correct any procedural errors,
including ordering an additional hearing when appropriate;
    (2) of the opportunity to provide comment on the request for reconsideration, and
the right under subdivision 5 to obtain a copy of any recorded testimony and exhibits
offered or received into evidence at the evidentiary hearing;
    (2) (3) that providing specific comments as to a perceived factual or legal error in the
decision, or a perceived error in procedure during the evidentiary hearing, will assist the
unemployment law judge in deciding the request for reconsideration;
    (3) (4) of the right to obtain any comments and submissions provided by the any
other involved party regarding the request for reconsideration; and
    (4) (5) of the provisions of paragraph (c) regarding additional evidence.
This paragraph does not apply if paragraph (d) is applicable. Sending the notice does
not mean the unemployment law judge has decided the request for reconsideration was
timely filed.
    (c) In deciding a request for reconsideration, the unemployment law judge must not,
except for purposes of determining whether to order an additional evidentiary hearing,
consider any evidence that was not submitted at the evidentiary hearing conducted under
subdivision 1. The unemployment law judge must order an additional evidentiary hearing if
an involved a party shows that evidence which was not submitted at the evidentiary hearing:
    (1) would likely change the outcome of the decision and there was good cause for
not having previously submitted that evidence; or
    (2) would show that the evidence that was submitted at the evidentiary hearing was
likely false and that the likely false evidence had an effect on the outcome of the decision.
    (d) If the involved applicant or involved employer party who filed the request for
reconsideration failed to participate in the evidentiary hearing conducted under subdivision
1, an order setting aside the decision and directing that an additional evidentiary hearing
be conducted must be issued if the party who failed to participate had good cause for
failing to do so. In the notice that a request for reconsideration has been filed, The party
who failed to participate in the hearing must be informed, in the notice that a request for
reconsideration has been filed, of the requirement, and provided the opportunity, to show
good cause for failing to participate. If the unemployment law judge determines that good
cause for failure to participate has not been shown, the unemployment law judge must
state make that finding in the order decision issued under paragraph (a).
    Submission of a written statement at the evidentiary hearing under subdivision 1
does not constitute participation for purposes of this paragraph.
    All involved parties must be informed of this paragraph with the notice of appeal
and notice of hearing provided for in subdivision 1.
    "Good cause" for purposes of this paragraph is a reason that would have prevented a
reasonable person acting with due diligence from participating at in the evidentiary hearing.
    (e) A request for reconsideration must be decided by the unemployment law judge
who issued the decision under subdivision 1 1c unless that unemployment law judge:
    (1) is no longer employed by the department;
    (2) is on an extended or indefinite leave; or
    (3) has been disqualified from the proceedings on the judge's own motion; or
    (4) (3) has been removed from the proceedings by the chief unemployment law judge.
    (f) A request for reconsideration that is filed more than 20 calendar days after the
sending of the decision under subdivision 1c must be dismissed by a decision as untimely.
    (f) (g) The unemployment law judge must send to any involved applicant or involved
employer all parties, by mail or electronic transmission, the decision or order issued
under this subdivision. An order A decision affirming or modifying the previously issued
findings of fact and decision or an order affirming the previously issued findings of fact
and decision, or a decision dismissing the request for reconsideration as untimely, is the
final department decision on the matter and is final and binding on the involved applicant
and involved employer parties unless judicial review is sought under subdivision 7.
    Subd. 3. Withdrawal of appeal and request for reconsideration. (a) Any appeal
or request for reconsideration that is pending before an unemployment law judge may be
withdrawn by the appealing person party, or an authorized representative of that person
party, upon filing of a notice of withdrawal.
    (b) The appeal or request for reconsideration must, by order, be dismissed if a notice
of withdrawal is filed, unless an unemployment law judge directs that further adjudication
is proceedings are required for a proper result. The withdrawal of the appeal or request for
reconsideration is, unless the unemployment law judge orders further proceedings, treated
as if an appeal or request for reconsideration had not been filed.
    (c) A notice of withdrawal may be filed by mail or by electronic transmission.
    Subd. 3a. Effect of decisions. (a) If an unemployment law judge's decision or order
allows unemployment benefits to an applicant, the unemployment benefits must be paid
regardless of any request for reconsideration or any appeal a petition to the Minnesota
Court of Appeals having been filed.
    (b) If an unemployment law judge's decision or order modifies or reverses a
determination, or on reconsideration, the decision modifies or reverses a prior decision
of the unemployment law judge, allowing unemployment which allowed benefits to an
applicant, any benefits paid in accordance with the determination, or prior decision of the
unemployment law judge, is are considered an overpayment of those unemployment
benefits. A decision or order issued under this section that results in an overpayment of
unemployment benefits must set out the amount of the overpayment and the requirement
under section 268.18, subdivision 1, that the overpaid unemployment benefits must be
repaid.
    (c) If an unemployment law judge's order decision under subdivision 2 allows
unemployment benefits to an applicant under section 268.095 because of a quit or
discharge and the unemployment law judge's decision is reversed by the Minnesota Court
of Appeals or the Supreme Court of Minnesota, the applicant cannot be held ineligible
for any of the unemployment benefits paid the applicant and it is not considered an
overpayment of those unemployment benefits under section 268.18, subdivision 1 prior to
the date of the court's reversal. The effect of the court's reversal is:
    (1) that the applicant may only be held ineligible for future unemployment benefits;
and
    (2) the application of section 268.047, subdivision 3, in computing the future tax
rate of the a taxpaying employer.
    (d) If an unemployment law judge, under subdivision 2, orders the taking of an
additional evidence hearing, the unemployment law judge's prior decision must continue
to be enforced until new findings of fact and decision are made by the unemployment
law judge.
    Subd. 4. Oaths; subpoenas and affirmations. An unemployment law judge has
authority to administer oaths and affirmations, take depositions, and. Before testifying in a
hearing, every witness is required to declare to testify truthfully, by oath or affirmation.
The form of oath or affirmation is in sections 358.07 and 358.08.
    Subd. 4a. Subpoenas. (a) The unemployment law judge has authority to issue
subpoenas to compel the attendance of witnesses and the production of documents and other
personal property considered necessary as evidence in connection with the subject matter
of an evidentiary a hearing. A party may request issuance of a subpoena by contacting the
chief unemployment law judge, by mail or electronic transmission, sufficiently in advance
of the hearing to allow for service of the subpoena. A request must identify the subject
matter and necessity of the evidence sought. The unemployment law judge must give full
consideration to a request for a subpoena and must not unreasonably deny a request for a
subpoena. If a subpoena request is initially denied, the unemployment law judge must, on
the unemployment law judge's own motion, reconsider that request during the evidentiary
hearing and rule on whether the request was properly denied. If the request was not
properly denied, the evidentiary hearing must be continued for issuance of the subpoena.
(b) The subpoenas are enforceable through the district court in Ramsey County.
(c) Witnesses subpoenaed, other than an involved applicant or involved employer a
party or officers and employees of an involved employer, must be paid by the department
the same witness fees as in a civil action in district court.
    Subd. 5. Use of evidence; data privacy. (a) All testimony at any evidentiary
hearing conducted under subdivision 1 must be recorded. A copy of any recorded
testimony and exhibits offered or received into evidence at the hearing must, upon request,
be furnished to a party at no cost:
    (1) during the time period for filing a request for reconsideration or;
    (2) while a request for reconsideration is pending.;
    (b) Regardless of any provision of law to the contrary, if recorded testimony and
exhibits received into evidence at the evidentiary hearing are not requested during the time
period for filing a request for reconsideration, while a request for reconsideration is pending,
    (3) during the time for filing any appeal a petition under subdivision 7, or during the
pendency thereof, that; or
    (4) while a petition is pending.
Regardless of any law to the contrary, recorded testimony and other evidence may later
be made available only under a district court order. A subpoena is not considered a
district court order.
    (c) (b) Testimony obtained under subdivision 1, at a hearing may not be used
or considered for any purpose, including impeachment, in any civil, administrative, or
contractual proceeding, except by a local, state, or federal human rights agency with
enforcement powers, unless the proceeding is initiated by the department. This paragraph
does not apply to criminal proceedings.
    Subd. 5a. No collateral estoppel. No findings of fact or decision or order issued by
an unemployment law judge may be held conclusive or binding or used as evidence in
any separate or subsequent action in any other forum, be it contractual, administrative, or
judicial, except proceedings provided for under this chapter,. This subdivision applies
regardless of whether the other action involves the same or related parties or involves
the same facts.
    Subd. 6. Representation; fees before an unemployment law judge. (a) In any
proceeding under subdivision 1 or 2, an applicant or involved employer a party may
be represented by any agent. Except for an attorney-at-law, no person may charge an
applicant a fee of any kind for representing, assisting, or advising the applicant in a
hearing or on reconsideration.
(b) An unemployment law judge may refuse to allow any person to represent a party
in any proceeding before a judge if that person repeatedly fails to follow the instructions
of the judge or acts in an unethical manner.
    Subd. 6a. No fees. (a) Except for services provided by an attorney-at-law, an
applicant may not be charged fees, costs, or disbursements of any kind in a proceeding
before an unemployment law judge, the Minnesota Court of Appeals, or the Supreme
Court of Minnesota.
(b) No attorney fees may be awarded against the department as a result of any
proceedings under this chapter.
    Subd. 7. Judicial review. (a) The Minnesota Court of Appeals must, by writ of
certiorari to the department, review the unemployment law judge's decision issued under
subdivision 2, provided a petition for the writ is filed with the court and a copy is served
upon the chief unemployment law judge or the commissioner and any other involved party
within 30 calendar days of the sending of the unemployment law judge's order under
subdivision 2 decision on reconsideration.
    (b) Any employer petitioning for a writ of certiorari must pay to the court the required
filing fee, and, upon the service of the writ, must furnish a cost bond to the department
in accordance with the Rules of Civil Appellate Procedure. If the employer requests a
written transcript of the testimony received at the evidentiary hearing conducted under
subdivision 1, the employer must pay the cost of preparing the transcript to the department
the cost of preparing the transcript. That money is credited to the administration account.
    (c) Upon issuance by the Minnesota Court of Appeals of a writ of certiorari as a result
of an applicant's petition, the department must furnish to the applicant at no cost a written
transcript of any testimony received at the evidentiary hearing conducted under subdivision
1, and, if requested, a copy of all exhibits entered into evidence. No filing fee or cost bond is
required of an applicant petitioning the Minnesota Court of Appeals for a writ of certiorari.
    (d) The Minnesota Court of Appeals may affirm the decision of the unemployment
law judge or remand the case for further proceedings; or it may reverse or modify the
decision if the substantial rights of the petitioner may have been prejudiced because the
findings, inferences, conclusion, or decision are:
    (1) in violation of constitutional provisions;
    (2) in excess of the statutory authority or jurisdiction of the department;
    (3) made upon unlawful procedure;
    (4) affected by other error of law;
    (5) unsupported by substantial evidence in view of the entire record as submitted; or
    (6) arbitrary or capricious.
    (e) The department is considered the primary responding party to any judicial action
involving an unemployment law judge's decision, because unemployment benefits are,
under section 268.069, subdivision 2, paid from state funds. The department may be
represented by an attorney licensed to practice law in Minnesota who is an employee
of the department.

    Sec. 31. Minnesota Statutes 2012, section 268.131, subdivision 1, is amended to read:
    Subdivision 1. Cooperation with other states on combining wages. (a) In
accordance with the requirements of United States Code, title 26, section 3304(a)(9)(B),
the Federal Unemployment Tax Act, the commissioner must participate in reciprocal
arrangements with other states for the payment of unemployment benefits on the basis
of combining an applicant's wages from multiple states for the purposes of collecting
unemployment benefits from a single state. The reciprocal agreement must include
provisions for applying the base period of a single state law to a benefit account involving
the combining of an applicant's wages and employment and avoiding the duplicate use of
wages by reason of such combining. The commissioner may not enter into any reciprocal
arrangement unless it contains provisions for reimbursements to the trust fund, by the
other state, for unemployment benefits paid from the trust fund to applicants based upon
wages and employment covered under the laws of the other state.
    (b) The commissioner is authorized to pay unemployment benefits based upon
an applicant's wages paid in covered employment in another state only if the applicant
is combining Minnesota wage credits with the wages paid in covered employment from
another state or states.
    (c) Section 268.23 does not apply to this subdivision.
(d) Section 268.07, subdivision 3b, paragraph (d), limiting an applicant to one
benefit account every 52 calendar weeks, includes combined wage benefit accounts
authorized under this section.
    (d) (e) On any reciprocal arrangement, the wages paid an applicant from employment
covered under an unemployment insurance program of another state are considered
wages from covered employment for the purpose of determining the applicant's rights to
unemployment benefits under the Minnesota Unemployment Insurance Law.

    Sec. 32. [268.133] UNEMPLOYMENT BENEFITS WHILE IN
ENTREPRENEURIAL TRAINING.
Unemployment benefits are available to dislocated workers participating in the
converting layoffs into Minnesota businesses (CLIMB) program under section 116L.17,
subdivision 11. Applicants participating in CLIMB are considered in reemployment
assistance training under section 268.035, subdivision 21c. All requirements under section
268.069, subdivision 1, must be met, except the commissioner may waive:
(1) the earnings deductible provisions in section 268.085, subdivision 5; and
(2) the 32 hours of work limitation in section 268.085, subdivision 2, clause (6). A
maximum of 500 applicants may receive a waiver at any given time.

    Sec. 33. Minnesota Statutes 2012, section 268.18, subdivision 1, is amended to read:
    Subdivision 1. Nonfraud overpayment. (a) Any applicant who (1) because of a
determination or amended determination issued under section 268.07 or 268.101, or any
other section of this chapter, or (2) because of an appeal unemployment law judge's decision
or order under section 268.105, has received any unemployment benefits that the applicant
was held not entitled to, must promptly repay the unemployment benefits to the trust fund.
    (b) If the applicant fails to repay the unemployment benefits overpaid, the
commissioner may offset the amount of the overpayment from any future unemployment
benefits otherwise payable the amount of the overpayment. Except when the overpayment
resulted because the applicant failed to report deductible earnings or deductible or benefit
delaying payments, no single offset may exceed 50 percent of the amount of the payment
from which the offset is made. The overpayment may also be collected by the methods
allowed under state and federal law.
    (c) If an applicant has been overpaid unemployment benefits under the law of
another state, because of a reason other than fraud, and that state certifies that the applicant
is liable under its law to repay the unemployment benefits and requests the commissioner
to recover the overpayment, the commissioner may offset from future unemployment
benefits otherwise payable the amount of overpayment, except that no single offset may
exceed 50 percent of the amount of the payment from which the offset is made.

    Sec. 34. Minnesota Statutes 2012, section 268.18, subdivision 2b, is amended to read:
    Subd. 2b. Interest. (a) On any unemployment benefits fraudulently obtained, and
any penalty amounts assessed under subdivision 2, the commissioner must assess interest
at the rate of 1-1/2 one percent per month on any amount that remains unpaid beginning
30 calendar days after the date of the determination of overpayment by fraud. Interest is
assessed in the same manner as employer debt under section 268.057, subdivision 5. A
determination of overpayment by fraud must state that interest will be assessed.
    (b) If the determination did not state that interest will be assessed, interest is assessed
beginning 30 calendar days after notification, by mail or electronic transmission, to the
applicant that interest is now assessed.
    (c) Interest payments under this section are credited to the trust fund.

    Sec. 35. Minnesota Statutes 2012, section 268.184, subdivision 1a, is amended to read:
    Subd. 1a. Notification and misreporting penalties. (a) If the commissioner finds
that any employer or agent of an employer failed to meet the notification requirements of
section 268.051, subdivision 4, the employer must be assessed a penalty of $5,000 or two
percent of the first full quarterly payroll acquired, whichever is higher. Payroll is wages
paid as defined in section 268.035, subdivision 30. The penalty under this paragraph
must be canceled if the commissioner determines that the failure occurred because of
ignorance or inadvertence.
    (b) If the commissioner finds that any individual advised an employer to violate the
employer's notification requirements under section 268.051, subdivision 4, the individual,
and that individual's employer, must each be assessed the penalty in paragraph (a).
    (c) If the commissioner finds that any person or agent of a person violated the
reporting requirements of section 268.046, the person must be assessed a penalty of $5,000
or two percent of the quarterly payroll reported in violation of section 268.046, whichever
is higher. Payroll is wages paid as defined in section 268.035, subdivision 30.
    (d) Penalties under this subdivision are in addition to any other penalties and subject
to the same collection procedures that apply to past due amounts from an employer.
Penalties must be paid within 30 calendar days after sending of the determination of
penalty and credited to the trust fund.
    (e) The determination of penalty is final unless the person assessed files an appeal
within 20 calendar days after sending of the determination of penalty by mail or electronic
transmission. Proceedings on the appeal are conducted in accordance with section 268.105.

    Sec. 36. Minnesota Statutes 2012, section 268.186, is amended to read:
268.186 RECORDS; AUDITS, RECORD KEEPING.
    Subdivision 1. Audits. (a) Each employer must keep true and accurate records for
the periods of time and containing the information the commissioner may require by rule.
For the purpose of administering this chapter, the commissioner has the power to audit,
examine, or cause to be supplied or copied, any books, correspondence, papers, records,
or memoranda that are relevant, whether the books, correspondence, papers, records, or
memoranda are the property of or in the possession of the an employer or any other person
at any reasonable time and as often as may be necessary. Subpoenas may be issued under
section 268.188, as are necessary, for an audit.
    (b) Any An employer or other person that refuses to allow an audit of its records by
the department, or that fails to make all necessary records available for audit in Minnesota
upon request of the commissioner, may be assessed an administrative penalty of $500.
The penalty collected is credited to the trust fund.
    (b) An employer or other person that fails to provide a weekly breakdown of money
earned by an applicant upon request of the commissioner, information necessary for the
detection of applicant fraud under section 268.18, subdivision 2, may be assessed an
administrative penalty of $100. Any notice requesting a weekly breakdown must clearly
state that a $100 penalty may be assessed for failure to provide the information. The
penalty collected is credited to the trust fund.
    (c) The commissioner may make summaries, compilations, photographs,
duplications, or reproductions of any records, or reports that the commissioner considers
advisable for the preservation of the information contained therein. Any summaries,
compilations, photographs, duplications, or reproductions is admissible in any proceeding
under this chapter. The commissioner may duplicate records, reports, summaries,
compilations, instructions, determinations, or any other written or recorded matter
pertaining to the administration of this chapter.
    (d) Regardless of any law to the contrary, the commissioner may provide for the
destruction of any records, reports, or reproductions, or other papers that are no longer
necessary for the administration of this chapter, including any required audit. In addition,
the commissioner may provide for the destruction or disposition of any record, report,
or other paper from which the information has been electronically captured and stored,
or that has been photographed, duplicated, or reproduced.
    Subd. 2. Record keeping. (a) Each person must establish, maintain, and preserve
records on individuals performing services for the person as employees or as independent
contractors. The records must be preserved for a period of not less than four years after
the calendar year in which the compensation for the services was paid or was payable.
(b) Each employer must maintain records on each employee, in covered and
noncovered employment, showing the following:
    (1) the employee's name and complete resident address;
(2) the employee's Social Security number;
(3) the days in which the employee performed services;
(4) the location where the employee performed services;
(5) the wages paid to the employee and wages due but not paid for services;
(6) the employee's rate of pay; and
(7) the amounts paid to the employee as allowances or reimbursement for travel
or other activity that were not included as wages. The records must show each item of
expense incurred during each pay period or calendar month.
(c) For each employee who performs services both in Minnesota and outside of
Minnesota, the records required to be maintained, in addition to paragraph (b), include:
(1) a list of the states in which the employee performs services other than temporary
or incidental services, and the dates services were performed in each state;
(2) the state in which the employer maintains a base of operations used by the
employee; and
(3) the state from which the services are directed and controlled.

    Sec. 37. [268.187] DEPARTMENT RECORDS; DESTRUCTION.
(a) The commissioner may make summaries, compilations, duplications, or
reproductions of any records pertaining to this chapter that the commissioner considers
advisable for the preservation of the information.
(b) Regardless of any law to the contrary, the commissioner may destroy any
records that are no longer necessary for the administration of this chapter. In addition, the
commissioner may destroy any record from which the information has been electronically
captured and stored.

    Sec. 38. Minnesota Statutes 2012, section 268.192, subdivision 1a, is amended to read:
    Subd. 1a. Agreements not allowed. (a) An employer may not make an agreement
that in exchange for the employer agreeing not to contest the payment of unemployment
benefits, including agreeing not to provide information to the department, an employee will:
(1) quit the employment;
(2) take a leave of absence;
(3) leave the employment temporarily or permanently; or
(4) withdraw a grievance or appeal of a termination.
(b) Paragraph (a) does not apply if the parties to the agreement acknowledge in
writing that they are aware of sections 268.069, subdivision 2, and 268.182, subdivision 2.
(c) An agreement that violates this subdivision has no effect under this chapter.

    Sec. 39. Minnesota Statutes 2012, section 268.194, subdivision 1, is amended to read:
    Subdivision 1. Establishment. There is established as a special state trust fund,
separate and apart from all other public money or funds of this state, an unemployment
insurance trust fund, that is administered by the commissioner exclusively for the payment
of unemployment benefits. This trust fund consists of:
    (1) all taxes collected;
    (2) interest earned upon any money in the trust fund;
    (3) reimbursements paid by nonprofit organizations and the state and political
subdivisions;
    (4) tax rate buydown payments under section 268.051, subdivision 7;
    (5) any money received as a loan from the federal unemployment trust fund in
accordance with United States Code, title 42, section 1321, of the Social Security Act;
    (6) any other money received under a reciprocal unemployment benefit arrangement
with the federal government or any other state;
    (7) money recovered on overpaid unemployment benefits except, if allowed by
federal law, five percent of any recovered amount is credited to the administration account;
    (8) all money credited to the account under this chapter;
    (9) all money credited to the account of Minnesota in the federal unemployment
trust fund under United States Code, title 42, section 1103, of the Social Security Act,
also known as the Reed Act; and
    (10) all money received for the trust fund from any other source.

    Sec. 40. Minnesota Statutes 2012, section 268.196, subdivision 1, is amended to read:
    Subdivision 1. Administration account. (a) There is created in the state treasury a
special account to be known as the administration account. All money that is deposited
into this account is continuously available to the commissioner for expenditure to
administer the Minnesota unemployment insurance program, and does not lapse at any
time. The administration account consists of:
    (1) all money received from the federal government to administer the Minnesota
unemployment insurance program, or any federal unemployment insurance program, or
assistance provided to any other state to administer that state's unemployment insurance
program;
    (2) five percent of any money recovered on overpaid unemployment benefits as
provided for in section 268.194, subdivision 1, clause (7), which must be used for
deterring, detecting, and collecting overpaid unemployment benefits;
    (3) (2) any money received as compensation for services or facilities supplied to
the federal government or any other state;
    (4) (3) any money credited to this account under this chapter;
(5) (4) any amounts received for losses sustained by this account or by reason of
damage to equipment or supplies; and
    (6) (5) any proceeds from the sale or disposition of any equipment or supplies that
may no longer be necessary for the proper administration of those sections the Minnesota
unemployment insurance program.
    (b) All money in this account must be deposited, administered, and disbursed in the
same manner and under the same conditions and requirements as are provided by law for
the other special accounts in the state treasury. The commissioner of management and
budget, as treasurer and custodian of this account, is liable for the faithful performance
of duties in connection with this account.
    (c) All money in this account must only be spent for the purposes and in the amounts
found necessary by the United States Secretary of Labor for the proper and efficient
administration of the Minnesota unemployment insurance program.

    Sec. 41. Minnesota Statutes 2012, section 268.215, is amended to read:
268.215 DAY OF THE WEEK AND DATE REQUIREMENT.
    (a) Every determination issued under this chapter that is subject to an appeal to an
unemployment law judge must indicate the day of the week and the date, for example,
Tuesday, August 1, 2006, that the determination is final and no longer subject to an appeal.
    (b) Every decision issued by an unemployment law judge under section 268.105,
subdivision 1 1c, must indicate the day of the week and the date, for example, Tuesday,
August 1, 2006, that the decision is final and no longer subject to reconsideration.

    Sec. 42. Laws 2012, chapter 201, article 1, section 3, the effective date, is amended to
read:
EFFECTIVE DATE.This section is effective July 1, 2012, except the amendments
to paragraph (d) are effective for penalties imposed credited on or after July 1, 2013.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 43. REPEALER.
Minnesota Rules, parts 3310.2905, subpart 2; 3310.2910; 3310.2914, subpart
1; 3310.2916; 3310.2919; 3310.2920; 3315.0200, subpart 1; 3315.0203; 3315.0211;
3315.0212; 3315.0213; 3315.0501, subparts 1 and 2; 3315.0555, subpart 1; 3315.0801;
3315.0805; 3315.0810; 3315.0815; 3315.0820; 3315.0825; 3315.0830; 3315.0835;
3315.0840; 3315.0845; 3315.0901; 3315.0905; 3315.1001; and 3315.1010, are repealed.

    Sec. 44. EFFECTIVE DATE.
Unless otherwise specified, this article is effective July 1, 2013.