Month: January 2022

  • Tips & Unemployment Go Bad

    Tips & Unemployment Go Bad

    Tips and unemployment benefits have a long history. Of course, by tips I mean money given to a waiter, bartender, server, driver, hair stylist, or just about anybody else for providing a service.

    When we start linking money gifted by a customer to an unemployment benefit, things go bad very quickly. Whether applicants start thinking about their worst case scenario, sometimes there are accusations of misrepresentation. This problem can multiply when you consider the IRS’ interest in the matter.

    If you ask an employer for help, they will often run the other way. Rightfully so, because they hardly know themselves. Thinking about asking the unemployment office for help? You might incur consequences.

    Finding Out That There Was a Problem

    Generally, a person becomes aware of an unemployment claim and a gratuitous tip problem in one of a handful of ways. This includes:

    • Receiving a letter stating there was an overpayment,
    • Learning about an audit,
    • Hearing from past co-workers,
    • Learning that the Department of Labor is auditing wage and hour issues,
    • Receiving a letter from Minnesota’s Department of Revenue,
    • Getting notice of a Federal Overpayment, and
    • Seeing the phrase “misrepresentation” inside one’s online unemployment account.

    All of these methods are scary and require a different legal response. Thus, take their notices seriously.

    Unemployment Laws for Tips

    The word tip appears next to the definition of wages. As a result, consider looking at the 30 plus Minnesota unemployment cases that interpret tip law. Unfortunately, the difference between a tip and wage can be very confusing.

    In the meantime, take a look at Minnesota Statute 268.035 and look at the dozens of unemployment tips I shared in other blog posts.

  • Unemployed and Homeless

    Unemployed and Homeless

    Unemployed and Homeless – Audio

    Being unemployed is a scary process. The fear of becoming homeless or without food, creeps into the picture. Unfortunately, I hear this alot in my practice.

    I think the solution to an unemployment dilemma is keeping it simple and to strategize each step accordingly. Anxiety triggers fear and fear can cause a person to make bad choices. Even worse, anxiety can cause a person to make no choice at all, which can be even more damaging.

    Jumping from a job loss and into poverty is not the general rule. For those overcome by the thought of losing everything while weighing the unemployment process, consider organizing a game plan. Consider using this as a starter to your said plan:

    • Review unemployment eligibility requirements,
    • Obtain a copy of your Personnel File,
    • Track your job search process,
    • Prepare your claim for benefits, as if there was an appeal, and
    • Approach each day as a separate and exclusive mission.

    Whether this is your first time or last time of engaging the unemployment process, fear and anxiety is normal. On the other hand, consider taking each day or perhaps each hour as your mission for benefits and ultimately finding work.

    As a side note, you can see this fight firsthand by following one of my public cases serving the unemployed. Otherwise, I wish you the very best.