HF4889

Purpose

Clarify when wage credits earned from working for a Minnesota educational institution(s) can be used to claim unemployment benefits, specifically during periods between academic years or terms.

Main Provisions

• Wage credits from employment with an educational institution may not be used for unemployment benefits for weeks between two successive academic years or terms if the applicant had prior employment with an educational institution and there is a reasonable expectation of current-year employment with an educational institution.
• The restriction also applies to the period between two regular but non-successive terms if there is a schedular agreement between the applicant and the institution.
• Exceptions:
  • If the subsequent employment is substantially less favorable than the prior year/term, or the prior employment occurred before a vacation or holiday recess, the rule does not apply.
  • If the applicant worked in a capacity other than instructional, research, or principal administrative capacity, the restriction does not apply.
• There are special rules for vacation periods:
  • The restriction applies to vacation periods only if there is a reasonable expectation of employment immediately after the vacation, including for those who worked in non-instructional, non-research, or non-principal-administrative roles.
• Scope of applicability:
  • Applies to employment with educational service agencies (government entities that provide services to schools).
  • Applies to employment with Minnesota political subdivisions or nonprofit organizations if the services are provided to or on behalf of an educational institution.
• Timing and aggregation:
  • The restriction starts on the Sunday of the week when there is reasonable assurance of employment.
  • If the applicant has multiple educational employer commitments, those employments must be combined (aggregated) when applying this rule.
• On-call employment:
  • If all prior employment with any educational institution was on-call and there is reasonable assurance of any on-call employment in the following year, the arrangement is not considered substantially less favorable.
• What counts as reasonable assurance:
  • May be written, oral, implied, or established by custom or practice.
  • For higher-education instructional or research positions, there is no reasonable assurance unless: 1) the offer for the following year is written and not contingent on funding/program changes, or 2) the institution has a contract that requires payment equal to 50% of the next year’s earnings if the employment does not continue.
• Definitions:
  • An educational institution includes schools, colleges, universities, or other educational entities operated by a Minnesota political subdivision, its instrumentality, or a nonprofit organization.
  • An instructional, research, or principal administrative capacity does not include an educational assistant.

Significant Changes to Existing Law

• Establishes a clearer rule tying unemployment wage credits to whether there is a reasonable assurance of future employment with an educational institution, and it sets specific exceptions and conditions.
• Expands the scope to include educational service agencies, Minnesota political subdivisions, and certain nonprofit organizations that provide services to educational institutions.
• Introduces aggregation of multiple institutions’ employment for purposes of applying the rule.
• Specifically outlines the treatment of on-call employment and provides stricter conditions for what counts as a reasonable assurance for higher-education instructional or research roles.

Practical Implications

• Applicants who work for schools or related entities between terms may face narrower eligibility for unemployment benefits, especially if they have a reasonable expectation of returning to work.
• People in non-instructional roles or with on-call employment may have more favorable treatment under the new rules.
• Institutions must consider how offers or contracts to continue employment are structured to avoid unintended benefit disallowances.

Definitions and Key Concepts (Reminders)

• Wage credits
• Unemployment benefits
• Reasonable assurance
• Educational service agency
• Educational institution
• On-call employment
• Instructional capacity
• Research capacity
• Principal administrative capacity
• Aggregation of employment

Relevant Terms - wage credits - unemployment benefits - educational institution - reasonable assurance - between terms - vacation period - instructional capacity - research capacity - principal administrative capacity - educational service agency - on-call employment - aggregate - substantial or not substantially favorable - written/oral/implied assurance