Category: Unemployment

Stay informed on unemployment law with insights and legal guidance.  Blog covers unemployment benefits, eligibility requirements, appeals, reconsiderations, overpayments, penalties, misrepresentation, and evidence. Get the latest updates and practical advice to navigate the unemployment claims process.

  • Unemployment Acronyms Are Turning Crazy

    Unemployment Acronyms Are Turning Crazy

    Unemployment acronyms for benefits in Minnesota are getting out of hand. Here is why. Minnesota uses a combination of numbers and letters that makes little sense.

    At a minimum, abbreviations should use letters that are easily recognizable. For example, MN for Minnesota. The reason that acronyms or UI codes are critical is because they help applicants understand the rule set assigned to their case. Unfortunately, this isn’t the case with Minnesota’s UI system. Not so in Minnesota.

    “DUA or disaster unemployment assistance is another acronym that means PUA”

    Minnesota’s online benefit system uses specific letters that align with an unemployment law assigned to an applicant’s case. For this reason, knowing the code can be extremely helpful.

    Most applicants logging into their online system do not recognize this issue because it isn’t noticeable unless you are purposely seeking it out.

    6 Categories of UI Acronyms

    In general, there are six categories of benefit programs in Minnesota. Here are the unemployment acronyms for each category:

    • Regular State Unemployment Insurance (STUI)
    • Emergency Unemployment Compensation (EUC)
    • Disaster Unemployment Assistance (DUA)
    • Trade Readjustment Assistance (TRA)
    • Alternative Trade Adjustment Assistance (ATAA)
    • Inactive Program Types

    Regular State Unemployment Insurance

    Prior to COVID-19, most benefit claims were considered regular insurance benefits and identified as STUI or Standard Unemployment Insurance.

    Really, this category is the default benefit category. Because of the Pandemic, lots of applicants have miscategorized claims.

    In other words, lots of persons applied for benefits for reasons related to COVID and incorrectly had their case identified as STUI. Thus, knowing and seeing this as an issue can be extremely helpful.

    Emergency Unemployment Compensation

    The unemployment acronym E024 is another way of saying Pandemic Emergency Unemployment Compensation or PEUC. Wow, that may look really confusing, but it is worth knowing.

    PEUC is confusing because the UI Office in Minnesota, in their infinite wisdom created three different codes to identify the same thing.

    • EUC = Emergency Unemployment Compensation
    • E024 and PEUC = Pandemic Emergency Unemployment Compensation.

    For somebody just trying to collect their benefits and move onto their job search process, this confusion can add stress. However, the key takeaway is the following: PEUC is not the same thing as Pandemic Unemployment Assistance.

    Disaster Unemployment Assistance

    DUA or disaster unemployment assistance means PUA. Pandemic Unemployment Assistance (PUA) is the process of applying for benefits because a job ended as a result of COVID-19.

    To make things even more interesting, the unemployment system also uses D002 to mean PUA. As a summary, this is what applicants may see inside their account:

    • DUA = Disaster Unemployment Assistance
    • D002 or PUA = Pandemic Unemployment Assistance

    Trade Readjustment Assistance (TRA)

    TAA and TRA benefits is an unemployment code that most applicants will not encounter. Nonetheless, here are the acronyms to know:

    • BSIC = Basic Trade Readjustment Allowance
    • ADDL = Additional Trade Readjustment Allowance
    • RMDL = Remedial Trade Readjustment Allowance
    • CMPL = Completion Trade Readjustment Allowance

    Alternative Trade Adjustment Assistance (ATAA)

    Alternative Trade Adjustment Assistance is an unemployment program limited to a select group of individuals. In general, this benefit is a wage subsidy for applicants 50 years of age and older and they do not earn more than $50,000.

    Inactive Programs in Minnesota

    Finally, the following list of acronyms are those that were formerly used by the unemployment office.

    Even though most of these programs were used between the years 2007 and 2009, they usually come up during an audit or overpayment.

    • D001 = Disaster Unemployment Assistance
    • E001 = Ainsworth Lumber Company extension
    • E002 = Clearwater County extension
    • E003 = Kanabec County extension
    • E004 = Ainsworth Lumber Company extension
    • E006 = Federal Emergency Unemployment Compensation Tier One
    • E007 = Federal Emergency Unemployment Compensation Tier Two
    • E008 = Special State Emergency Unemployment Compensation
    • E009 = Federal Emergency Unemployment Compensation Tier One
    • E010 = Federal Emergency Unemployment Compensation Tier Two
    • E011 = Federal-State Extended Benefits
    • E012 = Federal Emergency Unemployment Compensation Tier Two
    • E013 = Federal Emergency Unemployment Compensation Tier Three
    • E014 = Federal-State Extended Benefits
    • E015 = Federal-State Extended Benefits
    • E016 = Special State Extended Unemployment Insurance
    • E017 = Federal Emergency Unemployment Compensation Tier One
    • E018 = Federal Emergency Unemployment Compensation Tier One
    • E019 = State Additional Benefits – Lockout
    • E020 = Federal Emergency Unemployment Compensation Tier One
    • E023 = Iron Mining Related

  • Unemployment PUA Mistakes Keep Growing

    PUA mistakes are showing up by the dozens. Even though I am hopeful that there is relief to be had, these issues are causing tremendous stress amongst the unemployed.

    The problem is applicants near and afar do not know how to correct PUA mistakes created by Minnesota’s Unemployment Office.

    This is a problem that dates back many months when people applied for unemployment benefits when the COVID-19 pandemic started. During the early stages of this process, applicants were pushed towards the wrong online application.

    Now, applicants are appealing issues they didn’t imagine and told their account has an overpayment. Luckily, there might be an answer.

    Without getting overly technical, Unemployment Insurance Program Letter NO. 16-20 offers guidance.

    As stated in the UI letter, Minnesota must identify individuals who are potentially eligible for PUA and provide them with written notification of their potential entitlement.  This includes applicants who were found ineligible as far back as January 2020. This is significant for any person managing an overpayment due to PUA mistakes.

    With PUA mistakes running ramped, the good news is that after an applicant is disqualified from regular unemployment benefits, the PUA process supports backdated claims. On the other hand, time is of the essence.

  • Covered Individual And PUA Benefits

    Covered Individual is a point of contention for unemployed people seeking pandemic unemployment assistance or PUA benefits. Sure, receiving money today sounds great. However, things may go horribly wrong down the road. Here is why.

    Pandemic unemployment assistance benefits feels easy. And, politicians from both sides are saying things to put people at ease. But, the devil is in the details.

    The details come from a federal law called 15 USCS § 9021, which is a rule that tells us about Pandemic Unemployment Assistance. The key phrase inside this rule is “covered individual”.

    In other words, people who meet the definition of covered individuals are eligible for PUA. Those who do not meet the definition are likely ineligible or weighing an opportunity to appeal a decision.

    Who Is A Covered Individual?

    Those that are more likely to have an easier time with the unemployment office are individuals or covered individuals who meets elements under 15 USCS § 9021.

    In other words, this means a person who was:

    • Diagnosed with COVID-19,
    • A member of a household impacted by COVID-19,
    • Care for a family member impacted by COVID-19,
    • A person who lost childcare or is supporting a child that is not able to attend school,
    • An individual who cannot go to their place of work,
    • Workers who anticipated starting a job that was impacted by COVID-19, or
    • A person who’s place of work was closed due to a government mandate.

    Of course, there are a lot more opportunities for covered individuals than those highlighted above. That said, our self-employed workers, business owners, independent contractors, and gig workers are most at risk of being denied benefits. Then, the process turns onto appeal strategies.

    PUA Overpayments Will Start Again

    Right now, it feels like everybody is being told that they are eligible for benefits. Once our unemployment office moves onto the second stage of claims, overpayments will again be a hot issue. After all, these types of issues came up in 2007 too.

    For those that have followed me in the past, it was in 2007 that I sometimes used my 900 lb gorilla analogy. But, this doesn’t mean the end is near.

    Instead, the idea of sharing this feedback is to make others aware that the rules are unclear and likely will require adjudication. When they do, applicants seeking unemployment benefits have

  • [Update] COVID 19 Law for Unemployment Benefits

    The new COVID 19 law for unemployment benefits was finally posted online. For those inquiring about benefits and looking for a source of truth, please consider Chapter 71, HF No. 4531 along with other unemployment laws and rules.

    For those trying to determine the difference between a rule and a law, consider starting here.

  • COVID19 Aid Bill & Unemployment Claims

    COVID19 Aid Bill is the rule that helps people and families acquire unemployment benefits as a result of the corona virus.

    In my line of work, the best place to start is the text of the rule. The Governor’s speech was nice, but not helpful until the rule gets published.

    I agree, waiting for the text of the rule or bill is stressful. That said, once the stimulus package or rule is published, many of the questions and concerns being felt by unemployed workers, employees, independent contractors, and gig workers will hopefully get answered.

  • Corona Unemployment Claims Fall Apart When?

    Corona unemployment claims are here and my first regret is the amount of time it took to share the following. For those who recently contacted me about job loss as a result of artificial intelligence, the COV-19 virus is more imminent. As a result, lets jump right in.

    In general, there are 5 outcomes that many employees and workers will want to consider. I will discuss these outcomes below. But, before an outcome can be assessed, lets first consider the present.

    Corona Job Loss Question Number #1

    The first issue is whether or not wages have ended. If wages already ended, then the feedback described below is important.

    On the other hand, if wages have not ended, the idea of seeking or filing a claim for unemployment benefits today is probably more about fear. Because fear can be debilitating, please go your best to manage it accordingly.

    Every worker and employee trying to prepare for future corona unemployment claims should consider reading the eligibility conditions under Minnesota statute 268.085 as their first step towards the unknown.

    Corona Impact on Hourly Employees

    Very likely, hourly employees will be the first group of corona unemployment claims.

    That aside, there is hope. There is hope inside Federal and State governments granting benefits through disaster assistance programs.

    Here in Minnesota, there is hope too, especially after an applicant or hourly worker meets the one week grace period found here.

    But, a word of caution. Each and every person applying for benefits should take scrupulous notes to reduce the risk of a future audit. Why do I say this in a time of need? Because your future self is counting on it.

    To date, I am still seeing the residual impacts of unemployment audits from claims dating back to the 2007-2008 recession. If you or a loved one fell into this circle of appeals, then you already know the issues. For those managing this for the first time, consider reading on.

    Corona Impact on Salary Employees

    For the workers and employees receiving a salary, lost wages probably isn’t the first sign that an unemployment claim is imminent. Instead, I forsee salaried employees being asked to stay home, perform under different conditions, or take a paid leave of absence.

    For the salary employee who is told otherwise, then perhaps the cards are aligning for a layoff. If such is the case, future corona unemployment claims will hinge on whether the the layoff was today or sometime in the future. This sounds strange, so hear me out.

    Present and future layoffs his will get tricky because many workers and employees will get trapped by the shear emotion attached to industries getting destroyed.

    In unemployment world, a layoff comes when workers are told to go home. Leaving early before the ship sinks is usually a recipe for problems.

    Because every situation will be different, hopefully the majority of salary employees are able to acquire clear statements from their employer and affirm their layoff as a discharge.

    Mentally, very few people view a layoff as a discharge, but the distinction matter. This matters because of the term “discharge” and its application under Minnesota statute 268.095.

    5 Job Outcomes Due To the Corona Virus

    Corona unemployment claims are going to be tricky. In general, there are 5 likely outcomes:

    • Job loss due to lack of work
    • Claims as a result of unpaid wages
    • Employees who decide to quit,
    • Employers who play verbal games with their staff, and
    • Employees that remain employed.

    Unfortunately, there will be the problem of misrepresentation. Unemployment benefits get tied to taxes paid by employers. For this reason, there will be a percentage of claims tied to fabricated misconduct. Hopefully, this gets caught early on.

    In general, I like to see applicants complete their application for benefits with a specific purpose: helping Minnesota’s claim office to decide in favor of awarding benefits.

    Then, the name of the game turns to remaining eligible, assessing payments that delay awards, and seeking new employment opportunities.

    In the meantime, for those put in the position of filing an unemployment appeal impacted by the coronavirus, be proactive in your process.

  • Coronavirus Preparation 101

    Coronavirus or COVD-19 is serious. From an estate planning perspective, I encourage families, especially the young and old, to prepare for any outbreak, not just a #CoronavirusOutbreak 🤢. This goes for our frontlines too.

    ‪How Does One Prepare for A Global Virus?‬

    One’s health is most critical. For this reason, I like the idea of putting documents in place such that loved ones can act on my behalf. This starts with:

    • Updated Health Care Directives‬,
    • ‪HIPPA Authorizations‬,
    • ‪Durable POA, and
    • ‪Updating other relevant docs‬ like a Will, Trust, and transfer deeds.

    Coronavirus Frontlines

    Of course, preparation is critical for everybody. However, assisting one’s family to offer support starts with attention to our frontlines.

    This includes our:

    • Military
    • Health Care Providers
    • First Responders
    • Elderly
    • School Employees
    • Transportation Employees

    Be prepared and stay safe 🙏

  • Where is the SECURE Act?

    Where is the SECURE Act is trending on the internet. Why? Because finding the text to this new law is nearly impossible to find online.

    Even worse, the general public is left with editorial feedback on the rule change without having an accurate resource to read the law for themselves.

    Luckily, there is an answer.

    Finding the SECURE Act in Other Places

    Currently, a better way to find a copy of the SECURE Act is to review a congressional report called 165 Cong. Rec. H 10386.

    Another way of finding information about this update to our tax code is by looking at any of these federal reports:

    • H. Rept. 98-1159
    • Conf. Rept. 105-217
    • S. Rept. 114-79
    • H. Rept. 116-62
    • H. Rept. 116-78
    • H. Rept. 116-107
    • S. Rept. 116-126
    • H. Rept. 116-353

    As a reminder, this new law is a fancy way of saying our IRS rules and statues were updated.

    In the future, and hopefully sooner than later, everyone will be able to access an updated 26 U.S. Code 26, the chapter of laws devoted to the Internal Revenue Code, using free resources online. This will be significant for families and Eligible Designated Beneficiaries.

    Final Thoughts on Finding the Secure Act?

    In the meantime, the best way to find the SECURE Act is to utilize paid legal subscriptions.

    On the other hand, another option and a highly unutilized resources is visiting local law libraries open to the general public.

  • 6 Reasons why Christmas Layoffs are the Best Type of Layoff

    Christmas layoffs feel horrible, which is why I wanted to identify six reasons why things will not be as bad as you think.

    After grief, the step following a layoff is seeking unemployment benefits. If this is your first time approaching this problem, please consider these six points as you begin your search for employment.

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    Christmas Layoffs:  Best Time Reason #1

    If a job must end, being laid off is the best involuntary reason for work to end.

    Of course, when a job transition is blurred between a layoff, quit, or termination, this is generally where people seeking unemployment benefits make errors in their application process.

    That aside, when a worker with certainty experiences a Christmas layoff, generally speaking, that person has far more advantages from an unemployment perspective versus any other type of job loss.

    Part-Time: Reason #2

    The second reason being laid off during the holiday season is the best time for a layoff is given the opportunities for part-time work.

    Many people scoff at this.  After all, they want a full-time job.  However, the idea of adding part-time work to one’s job search process is intended to buying time. More on this in a second.

    But first, if you are an upper level manager or executive, perhaps you are now turned off by my reference to part-time employment. Part time jobs do not downgrade careers. And, nobody needs to know. That said, upper level employees encounter a different set of issues, which I discuss in other posts.

    Back to buying time.  What I mean is the process of finding part-time work with the intent of delaying the payment of benefits under Statute 268.085. 

    Why would a person want to do this?  Here are three reasons:

    • To get out of the house,
    • Building hope that benefits will not end after 6 months, and
    • Giving oneself a bigger window to find  the ideal full-time opportunity.

    Again, part-time work opportunities are abundant around the holidays versus the summer months.

    Over the last few years, the summer months generally see a higher unemployment rate than our winter months.  My source of truth stems from the seasonally adjusted unemployment statistics published by MN DEED.

    If this doesn’t convince you that the best layoff is a Christmas Layoff, then consider my third reason.

    Summer Job Seekers:  Reason #3

    Working with unemployed employees at all levels, it is my experience that summer layoffs are worse.  I believe this is the case because there are fewer opportunities for short-term or temporary jobs.

    Look, workers and employees who are able and willing, are going to find work.  The best job might not come along right away, but eventually, it must.

    Yes, the job search process at 45, 55, and 65 feels icky.  For that matter, the job search process at 25 and 35 feels icky too.  But, the job search process is not impossible.  Just different than the last time you were looking for a job.

    Even better, laid-off workers in Minnesota can collect unemployment benefits for 26 straight weeks.  When things get bad, our Government has the option to extend unemployment benefits even future. This isn’t guaranteed, but it helps.

    Because laid-off workers are required to wait one week before collecting, this puts most people in the month of June before benefits will end.  If my intuition is right, you are going to find a job long before June.  

    For those that disagree, might I suggest more positive thoughts. If this doesn’t convince you, then consider my fourth reason.

    Company Budgets:  Reason #4

    Most businesses and companies start over with their budget on January 1.  This generally means companies are firm on growth projections and needs.  In other words, new job postings are more likely to get posed in the new year.  Also, this means an unemployed worker is less likely to hear “we have a hiring freeze“.

    For the types of businesses that ramp up in the spring or summer, you are ahead of that curve too!

    If this doesn’t convince you, then consider my fifth reason.

    Taxes Start Over: Reason #5

    Collecting unemployment in January is better than collecting unemployment in October or November.

    On their own behalf, some of my past Clients take it upon themselves to set aside their own tax deductions.  When an applicant in Minnesota fills out their application for benefits, they will be asked whether they want taxes taken from their benefit.

    Of course, this is a personal choice and requires feedback from a tax professional.

    However, it is reassuring that the tax window for benefits after a Christmas layoff is pushed out a little further.  Combine this with the hope of landing a new job in the months to come, I view this as a positive.

    If this doesn’t convince you, then consider my sixth reason.

    Minnesota Unemployment: Reason #6

    On a week by week basis, Minnesota pays the second most in unemployment benefits.  In other words, I would rather be unemployed in Minnesota than 48 other States.

    If you are curious, Massachusetts pays the most.  If you have an hour, here is a cool website with additional UI data points.

    Final Christmas Layoff Thoughts

    I believe in Christmas Miracles.  You are one phone call from making things turn around. Whether your miracle comes this week, in four months, or thereafter, today is the goal.

    Nonetheless, I wish you and your family the very best during this holiday season.

  • Requests for Information: Unemployment Tip #17

    Requests for Information: Unemployment Tip #17

    Requests for Information from the unemployment office in Minnesota can feel repetitive. Like I was mentioning in Tip #001, this is an important topic.

    Applicants in Minnesota should rarely ignore duplicate requests for information. Here are a handful of thoughts and tips.

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    Repeat and Repeat

    Always assume questions asked on-line or by mail will get repeated. For some, a new questionnaire can come days later. For others, DEED’s repetitive requests can come months later.

    Requests for Information Will Keep Coming

    Here is what happens. Claims for benefits begin by Applicants filing claims for benefits. Once submitted, Minnesota’s unemployment office will submit a similar questionnaire to the Applicant’s former employer. Assuming the former employer provides feedback, DEED will review the answers.

    After DEED receives and reviews answers provided by the Employer, the unemployment office has the option to re-submit questions to the Applicant for further consideration or make a determination of coverage.

    Unfortunately, Applicants are hardly provided with the details from the answers provided by their former employer. Instead, this will come down the road in yellow envelopes.

    Nonetheless, the idea of keeping copies of questions and answers is to gage what was said in the past and to prevent contradiction.

    Wrong Answers Given

    Lots of Applicants believe they gave the wrong answer or feel like they contradicted themselves when asked to to respond to a request for information.

    There are lots of reasons why Applicants feel this way. Here are just a few:

    • They were under stress,
    • Misunderstood questions,
    • Memory lapse, and
    • Lack of knowledge,

    Sometimes, facts shared through this process can get clarified through the appeal process.

  • CLIMB Benefits Or Unemployment Contradiction?

    CLIMB is an unemployment program in Minnesota that supports dislocated workers. CLIMB is an acronym for Converting Layoffs Into Minnesota Businesses.

    Unfortunately, this program is incredibly new and contradicts unemployment statutes.

    As a result, MN’s CLIMB program is causing problems.

    CLIMB History

    First, a little history. Yes, CLIMB is new. Perhaps others will talk about this program as if it has been around since the beginning of time, but really, it hasn’t.

    Yes, there is more than a decade worth of bills and suggested legislation that has gone into this new rule.

    The rule that finally went into place stems from something called Sec. 116L.17.

    Details for the CLIMB Program

    Here is what the statute says:

    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.

    Really though, the program is in its infancy stage and feels a lot more like the wild wild west. Currently, the only case that even addresses the statute itself is Pernue v. Craigin Mach Shop. But, this case doesn’t help applicants navigate CLIMB.

    As a result, pinning down concrete guidelines versus the posted information found here might require additional appeals to Minnesota’s Court of Appeals.

    CLIMB Contradictions

    In my experience, workers trying to collect unemployment benefits sometimes find it difficult to meet eligibility conditions under Minn. Stat. 268.085.

    Minnesota’s Converting Layoffs Into Minnesota Businesses program has the potential of pushing applicants into problems with eligibility conditions. This is especially true when the program fails at offering clear guidelines.

    Unclear guidelines are inspiring audits. And, applicants are finding it necessary to appeal issues of concern.

    Appeal CLIMB Issues

    With most government program in Minnesota, decisions are appealable. Exactly how and when is the generally the issue.

    Right now, this law office is seeing issues being reviewed through the Unemployment Appeal Process. However, it would not be surprising if cases are eventually reviewed or pushed towards Minnesota’s Office of Administrative Hearings.

    In the meantime, applicants should be even more diligent than they normally might. This includes reading, recording, and saving everything. For those wishing to appeal, please consider contacting this law office.

  • Why Does the Unemployment Office Use Unclear Words?

    Why Does the Unemployment Office Use Unclear Words?

    The unemployment office uses words all day long. Some are described on their website. Other words are used in their letters, yellow envelopes, or by phone.

    Unfortunately, the words that get used are unclear because they encompass laws, rules, and statutes that most unemployed workers are not taking into consideration.

    Luckily, a prepared applicant seeking an appeal can help their own process by looking at other cases and examples. Generally, there isn’t going to be a perfect case just like the one being pursued.

    This shouldn’t be a surprise though. After all, everybody has a different story, a different boss, and usually a different employer cutting the check.

    What Does Unemployment Really Mean?

    When I am looking at words like employment misconduct or wages, I like the idea of turning to Minnesota’s Chapter 268.

    Minus experience, when I am trying to predict how a hearing might unfold, I start with Chapter 3310.

    Using decisions that have already been made can have a positive impact on a case. Luckily, there is a free search tool for this too. Have you heard of Google Scholar?

    Yes, every judge has a different style and every employer uses different strategies. Luckily, unemployed workers are resilient, tough, and ready for the road ahead.