What Minnesota Unemployment Compensation Covers

Minnesota unemployment compensation is a weekly cash payment from the state if you lose your job through no fault of your own. The state's Department of Employment and Economic Development (DEED) runs the program. You fund it through payroll taxes your employer pays — not from your own wages.

The program covers job loss due to lack of work, business closure, or being laid off. It does not cover quitting, being fired for misconduct, or being self-employed. You must have worked in Minnesota and earned a minimum amount in the past year to receive payments. The weekly amount varies based on your past earnings, and the number of weeks you can collect depends on the state's unemployment rate at the time you file.

Payments are deposited into a debit card account that DEED sends you, or you can choose direct deposit to your bank. You must report your income and job search activity every two weeks to keep receiving payments.

Key Takeaways

  • You must have earned at least $1,500 in Minnesota during the past year and worked for a covered employer to receive unemployment compensation.
  • Weekly payments are based on your past earnings and are capped at a maximum amount that changes each year.
  • You must file a new claim within two weeks of losing your job, or you will lose the weeks you could have been paid.
  • You report your work search and any income every two weeks through DEED's online system or by phone.
  • If DEED denies your claim, you have the right to request a hearing before an administrative law judge.

How to File Your Claim in Minnesota

File your claim as soon as you lose your job — do not wait. You have up to two weeks from your last day of work, but filing when ready protects your payment start date. DEED accepts claims online through its website, by phone, or in person at a local DEED office.

To file online, go to uimn.org and create an account. You will need your Social Security number, driver's license or state ID number, and information about your last employer: the company name, address, phone number, and the dates you worked there. Have your most recent pay stub handy so you can confirm your earnings. The online form takes about 20 minutes.

If you file by phone, call the DEED Unemployment Insurance Division at 1-888-337-6657. Have the same information ready. If you cannot file online or by phone, visit a local DEED office — you can find the nearest one on the DEED website by entering your zip code.

After you file, DEED sends you a notice with your claim number and the week your benefits start. Keep this notice. You will use your claim number every time you report your work search activity.

What Information You Must Provide

When you file, DEED asks for details about your job loss. Be specific: if you were laid off, say "lack of work" or "business closure." If you quit, you must explain why — DEED only pays if you quit for "good cause," which means a reason directly related to your job (unsafe conditions, wage theft, harassment) rather than personal reasons.

DEED also asks about any severance pay, vacation payout, or final paycheck you received. These amounts may delay your benefits or reduce them, depending on when you received the money. Report the exact date and amount.

You must list all employers you worked for in the past 18 months, even if you only worked a few weeks. DEED contacts them to verify your earnings and the reason you left. If an employer disputes that you were laid off, DEED may deny your claim — this is why the hearing process exists.

Your Biweekly Reporting Requirements

Every two weeks, you must report your work search activity and any income you earned. DEED calls this your "claim report." You file it online through uimn.org or by phone. You have a important date each week — DEED tells you which day in your initial notice.

On your report, you list the jobs you searched for, the dates you searched, and how you searched (online process, in-person visit, phone call, job fair). You do not need to provide the names of companies unless DEED asks. You also report any wages you earned that week, including gig work, part-time jobs, or self-employment income. DEED subtracts a portion of your earnings from your weekly benefit — usually 25 percent of what you earned above $25 per week.

If you miss a report important date, DEED stops your payments until you file it. If you miss two weeks in a row without contacting DEED, your claim may be closed. If you have a legitimate reason for missing a important date (illness, emergency), call DEED as soon as you can and explain. They may reopen your claim.

How Much You Receive and for How Long

Your weekly benefit amount is based on your highest earnings in any quarter (three-month period) during the past year. DEED divides that amount by 26 and pays you roughly one-quarter of that weekly amount. The state sets a minimum and maximum weekly payment each year — these amounts change annually.

The number of weeks you can collect depends on Minnesota's unemployment rate when you file. In most years, you can collect for 26 weeks (six months). When the state's unemployment rate is high, you may be able to collect for up to 34 weeks. DEED tells you the exact number of weeks in your initial notice.

Your benefits have an expiration date. Once you reach the end of your weeks, payments stop, even if you have not found work. You cannot extend benefits beyond the number DEED assigns unless the federal government creates an emergency extension program, which happens only during severe recessions.

What Happens If DEED Denies Your Claim

DEED may deny your claim if you quit without good cause, were fired for misconduct, did not earn enough in the past year, or worked for an employer not covered by unemployment insurance (some nonprofits and government agencies are exempt). DEED sends you a written notice explaining the reason.

You have 30 days from the date on the notice to request a hearing. File your request online through uimn.org, by mail, or by phone. At the hearing, an administrative law judge listens to your side and your employer's side. You can represent yourself or bring a lawyer. The judge decides whether you are may have access to to benefits.

If the judge rules against you, you can appeal to the Minnesota Unemployment Insurance Appeals Board. This process takes several months. While you wait, you do not receive payments, so many people file the hearing request even if they are uncertain they will win.

Common Mistakes That Delay or Stop Your Payments

The most common mistake is not reporting work search activity on time. Missing even one biweekly report stops your payments when ready. Set a phone reminder for your report important date each week.

The second mistake is not reporting all income. If you earn money and do not report it, DEED discovers it when they review your employer records or tax returns. They then demand repayment of all benefits you received while hiding the income, plus penalties. Report everything, even small gig work or cash jobs.

The third mistake is not responding to DEED's requests for information. If DEED asks you to verify something — your work search, your earnings, the reason you left your job — respond within the important date they give you. If you do not, they deny your claim or stop your payments.

The fourth mistake is not updating your address or phone number. If DEED cannot reach you, they cannot send you notices or ask for information. Update your contact information on uimn.org whenever you move or change your phone number.

Frequently Asked Questions

Can I collect unemployment if I was laid off due to a business closure?

Yes. A business closure counts as lack of work, which is a covered reason. You must have worked there and earned the minimum amount. DEED contacts the business to verify it closed. If the business reopened under a new owner or name, DEED may investigate further, but closure itself qualifies you.

What counts as work search activity I can report?

Submitting an online process, calling a company about a job, visiting a business in person to ask about work, attending a job fair, and meeting with a job counselor all count. Updating your resume or taking a free online course does not count unless DEED specifically requires it as part of your claim. You need at least one work search activity per week to keep your benefits.

If I get a part-time job, do I lose all my unemployment benefits?

No. DEED reduces your weekly benefit by roughly 25 percent of what you earn above $25 per week. If you earn $100 in a week, DEED subtracts about $19 from your benefit. You still receive the rest. This continues until you earn enough that your benefit is reduced to zero, at which point you stop collecting.

How long does it take to receive my first payment?

If you file online and DEED approves your claim with no issues, your first payment arrives within one to two weeks. If DEED needs to verify information with your employer or investigate your claim, it may take three to four weeks. You do not receive payment for the week you file — your benefits start the week after DEED approves your claim.

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

You can collect unemployment while in part-time school or training, but full-time enrollment may disqualify you. DEED considers you unavailable for work if you are a full-time student. If you are in a DEED-approved retraining program, different rules may explore. Contact DEED to discuss your specific situation before enrolling.