What Minnesota unemployment benefits are and who can receive them

Minnesota unemployment benefits are weekly cash payments from the state for workers who have lost a job through no fault of their own. The program is called Unemployment Insurance (UI), and it is funded by taxes employers pay into a state account — not by income taxes or general revenue.

To receive payments, you must have worked in Minnesota long enough to build up a claim history, have lost your job for a covered reason (layoff, business closure, lack of work), and be actively looking for work. The state does not pay benefits for quitting, being fired for misconduct, or refusing suitable work.

The amount you receive depends on your earnings during a specific 12-month period called the base period. Minnesota uses your earnings from the first four of the last five completed calendar quarters before you file. The weekly benefit amount is roughly 50 percent of your average weekly wage, up to a maximum that changes each year.

Key Takeaways

  • You must file a claim with the Minnesota Department of Employment and Economic Development (DEED) within two weeks of losing your job to protect your benefit start date.
  • The state pays benefits for up to 26 weeks in most cases, though federal extensions may add weeks during periods of high unemployment.
  • You must report your income and job search activity every two weeks to keep receiving payments.
  • Employers can contest your claim, and you have the right to a hearing if the state denies you.
  • Part-time work, self-employment income, and severance pay all affect how much you receive each week.

How to file a claim and what documents you need

You file your claim online through the DEED website at uimn.org, or by phone at 1-888-209-8124. You can also file in person at a DEED office, though online is fastest. Have your Social Security number, driver's license or ID, and information about your last employer ready when you start.

The state will ask for your work history for the past 18 months, including employer names, addresses, dates you worked, and your job title. You will also need to provide your reason for separation — whether you were laid off, the business closed, your hours were cut, or another reason. If you were fired, be prepared to explain the circumstances, because the state will contact your employer to verify what happened.

You do not need to upload documents to file, but keep copies of your separation notice, final paystub, and any written communication from your employer. If DEED asks for proof later, you will need these on hand. The state typically makes a decision within one to three weeks, though contested claims take longer.

Weekly benefit amounts and how long payments last

Your weekly benefit amount is calculated from your earnings during the base period. The state divides your total earnings in the two highest-earning quarters by 26 to get your average weekly wage, then pays you roughly 50 percent of that amount. The maximum weekly benefit amount changes each year — in 2024 it was $863 per week, but this increases annually based on state wage trends.

Standard benefits last for up to 26 weeks in a benefit year. A benefit year runs for 52 weeks starting from the week you file your claim. If you exhaust your 26 weeks and are still unemployed, you may be able to file a new claim if you have worked enough hours since your last claim ended, or you may be able to access federal extended benefits if the state's unemployment rate is high enough.

Part-time work reduces your weekly payment. Minnesota allows you to earn up to 30 percent of your weekly benefit amount without losing any payment. Above that threshold, the state deducts dollar-for-dollar from your benefit. For example, if your weekly benefit is $400 and you earn $150 in part-time work, you lose $0 because $150 is less than 30 percent of $400. If you earn $200, you lose $50 from your benefit that week.

Reporting requirements and how to stay in compliance

Every two weeks, you must file a continued claim to report your work and job search activity. You do this online through your DEED account or by phone. The state will ask whether you worked, how much you earned, and whether you looked for work during that two-week period.

You are required to actively search for work to keep your benefits. Minnesota does not specify an exact number of job applications you must submit, but you must be able to show that you are making a genuine effort. Keep a record of employers you contacted, dates, and the position you applied for. If DEED asks for proof, you will need this documentation.

If you miss a continued claim important date, your benefits will stop. You can file late, but there is a gap in your payments. If you fail to report earnings or misreport your income, the state may overpay you, and you will be required to repay the difference. Intentional misreporting can result in fraud charges.

What happens if your employer contests your claim

When you file, DEED sends a notice to your employer asking them to confirm the reason you left. If your employer says you quit without good cause or were fired for misconduct, they are contesting your claim. The state will then investigate by reviewing what both you and your employer reported.

If DEED denies your claim based on the employer's statement, you will receive a written decision explaining why. You have the right to request a hearing before an administrative law judge within 30 days of that decision. At the hearing, you can present evidence and witnesses, and your employer can do the same. The judge will make a final decision, which either side can appeal to the Minnesota Unemployment Insurance Appeals Board.

Many claims are approved without contest. Layoffs and business closures are almost never contested because they clearly meet the definition of job loss through no fault of the worker. Contested claims typically involve disputes over whether you quit for good cause or were fired for misconduct — terms that have specific legal meanings in Minnesota law.

Income, severance, and other factors that affect your payment

Wages from part-time work reduce your benefit as described above. Severance pay also affects your claim. If your employer paid you severance, DEED counts it as wages and may delay your benefits until the severance period ends. For example, if you received four weeks of severance pay, your benefits may not start until week five.

Vacation pay, sick leave payout, and bonuses are all treated as wages and reduce your benefit for the weeks they cover. Pension income, Social Security, and workers' compensation do not reduce your unemployment benefit, though some federal programs do have offsets. If you are receiving other state or federal benefits, ask DEED whether they interact with unemployment.

Self-employment income is not covered by Minnesota unemployment insurance. If you are self-employed or become self-employed while receiving benefits, you cannot claim unemployment for weeks you are working in your own business. However, you can continue to receive benefits for weeks you have no self-employment income, as long as you meet the job search requirement.

Federal extensions and what to do if your benefits run out

During periods when the state's unemployment rate is high, federal law allows Minnesota to offer Extended Benefits (EB) — additional weeks of payment beyond the standard 26 weeks. These are not automatic. DEED must trigger them based on specific unemployment thresholds, and they are only available if you have exhausted your regular benefits.

If you have used all 26 weeks of your regular benefit and EB is not available, you have limited options within the unemployment system. You can file a new claim if you have worked enough hours since your last claim to rebuild your may be able to access. Otherwise, you may be able to access other information programs — food support, housing help, or job training — through DEED or your county.

Check the DEED website or call 1-888-209-8124 to find out whether extended benefits are currently available in Minnesota. The status changes as economic conditions change, and it is updated weekly.

Frequently Asked Questions

Can I receive unemployment if I was laid off due to lack of work?

Yes. Lack of work is a covered reason for unemployment in Minnesota. You do not need to have been formally "laid off" — if your employer reduced your hours or stopped calling you in, that counts as job loss through no fault of your own. File your claim and explain the situation to DEED.

What if I was fired but I think it was unfair?

Fairness is not the legal standard. DEED looks at whether you were fired for misconduct — which means deliberate or negligent violation of reasonable employer rules. Being fired for poor performance, making a mistake, or not fitting the job usually does not disqualify you. Request a hearing if DEED denies your claim, and explain your side of what happened.

Do I have to take the first job I am offered?

You must accept work that is suitable — meaning it matches your skills, experience, and prior wage level, and the commute is reasonable. You can refuse work that is unsuitable without losing benefits. However, if you refuse suitable work, DEED can deny your claim. When in doubt, ask DEED whether a specific job is considered suitable before you refuse it.

How long does it take to get my first payment?

DEED typically processes claims within one to three weeks if there is no contest. Your first payment arrives one week after your claim is approved. If your employer contests the claim, the timeline extends to four to eight weeks or longer, depending on whether a hearing is needed. File as soon as you lose your job to avoid delays.

Can I receive unemployment while I am in school or training?

You can receive unemployment while in part-time training or school, as long as you are still actively looking for work and available to work. Full-time school enrollment may disqualify you because the state considers you unavailable for work. Ask DEED about your specific situation before you enroll.