What Minnesota Unemployment Insurance Covers
Minnesota Unemployment Insurance (UI) is a joint federal-state program that pays weekly benefits to workers who lose their job through no fault of their own. The state Department of Employment and Economic Development (DEED) runs the program. You fund it through payroll taxes your employer pays — you do not pay into it directly as an employee.
The program covers most private-sector workers and some public employees. It does not cover self-employed people, independent contractors, or gig workers. If you were fired for misconduct, quit without good cause, or are between jobs by choice, you will not receive benefits. The program is designed for involuntary job loss: layoffs, business closures, reduction in hours, or being let go for reasons unrelated to your performance.
Minnesota benefits are among the higher-paying in the country, but the amount you receive depends on your earnings in the base period — typically the first four of the last five calendar quarters before you file. DEED calculates your weekly benefit amount as a percentage of your average weekly wage, up to a state maximum that changes each year.
Key Takeaways
- You must file your claim with DEED within a specific window after job loss, and the date you file determines when benefits can start.
- Minnesota requires you to actively search for work each week and report your job search activities when you file your weekly claim.
- You can file online through DEED's website, by phone, or by mail, and online filing is the fastest route to a decision.
- If your employer contests your claim or DEED denies you, you have the right to a hearing before an administrative law judge.
- Benefits last up to 26 weeks in most years, though Congress sometimes extends the duration during recessions or high unemployment.
How to File Your Claim with DEED
File your claim as soon as possible after your job ends. You can file online at uimn.org, by phone at 1-888-337-8846, or by mail. Online filing is fastest — DEED typically processes online claims within one to three business days. Phone and mail claims take longer.
When you file, have these documents ready: your Social Security number, driver's license or state ID, your most recent pay stub, and your employer's name and address. If you were laid off, have the separation notice or letter if you received one. If you quit, be ready to explain why — DEED will ask whether you had good cause connected to your work.
The date you file is important. Benefits cannot start before the week you file, even if you lost your job weeks earlier. However, there is a one-week waiting period in Minnesota — your first week of unemployment is not paid. Your benefits start in the second week after you file, assuming DEED approves your claim.
Weekly Benefit Amounts and Maximum Duration
Your weekly benefit is calculated from your earnings in the base period. DEED divides your total base-period wages by 52 to find your average weekly wage, then pays you a percentage of that amount. The exact percentage varies slightly year to year, but it is roughly 50 percent of your average weekly wage.
There is a state maximum weekly benefit amount, which changes each January. In 2024, the maximum was $863 per week, but this figure changes annually based on state wage data. There is also a minimum benefit, typically around $38 per week, which means even workers with very low base-period earnings receive at least that amount.
Benefits last up to 26 weeks in most years. During periods of high unemployment, Congress may pass a federal extension that adds weeks beyond the state maximum. These extensions are temporary and require separate action by Congress — they do not happen automatically. Check DEED's website or call to learn whether an extension is currently in effect.
Work Search Requirements and Weekly Reporting
Minnesota requires you to actively search for work each week you receive benefits. You must make at least three job contacts per week — explore for jobs, attending interviews, or speaking with employers about openings. Contacts must be genuine attempts to find work, not just filling out forms.
Each week, you file a weekly claim form through the same online portal or by phone. In that form, you report your job search activities: the names of employers you contacted, the dates, and the type of contact. You also report any wages you earned that week — part-time work or gig work counts. DEED reduces your benefit by a portion of any wages you report.
If you do not report your weekly claim or do not meet the work search requirement, DEED will stop your benefits for that week. If the pattern continues, your entire claim can be denied. Some workers are exempt from work search — for example, those on temporary layoff expecting to return to the same employer within a set period — but you must request that exemption and DEED must approve it.
What Happens If Your Employer Contests Your Claim
When you file, DEED sends a notice to your employer asking whether they contest your claim. Employers often do, especially if you were fired. The employer must state their reason — usually that you were terminated for misconduct, or that you quit. DEED reviews both your account and the employer's account before making a decision.
If DEED denies your claim, you receive a written decision explaining why. You then have 30 days to file an appeal. The appeal goes to an administrative law judge (ALJ) who holds a hearing — you can attend by phone. At the hearing, you and your employer (or their representative) present your accounts of what happened. The judge decides whether you were separated for a reason that disqualifies you from benefits.
Many workers win on appeal because the employer's account is incomplete or the judge finds that the reason for termination does not meet the legal definition of misconduct. Misconduct in Minnesota means deliberate or willful violation of reasonable employer rules, not straightforward poor performance or a single mistake. If you lose at the ALJ level, you can appeal further to the Minnesota Court of Appeals, though this is rare and requires legal representation in most cases.
Reporting Wages and Part-Time Work
If you earn wages while receiving benefits, you must report them on your weekly claim. Minnesota allows you to earn a portion of your weekly benefit without losing all of it. The exact calculation depends on your total weekly earnings and your benefit amount, but generally you can earn roughly one-third of your weekly benefit before your payment is reduced dollar-for-dollar.
This matters if you find part-time work or gig work while searching for full-time employment. Report all earnings honestly — DEED cross-checks with employers and payment platforms. Underreporting wages is fraud and can result in overpayment demands, benefit disqualification, and criminal charges in serious cases.
Self-employment income and gig work (Uber, DoorDash, freelance work) count as wages. If you are unsure whether something counts, report it. It is better to report and have DEED clarify than to omit it and face an overpayment later.
Tax Withholding and Overpayments
Unemployment benefits are taxable income. DEED does not withhold federal income tax automatically, but you can request it. If you do not withhold, you may owe taxes when you file your return. Many workers choose to have 10 percent of their weekly benefit withheld to avoid a large tax bill later.
If DEED overpays you — because you were ineligible, did not report wages, or made a mistake on your claim — you will receive a notice of overpayment. You then have the right to a hearing to dispute it. If the overpayment is upheld, DEED can recover it by reducing future benefits, intercepting tax refunds, or referring the debt to a collection agency. Overpayments do not disappear, so address them promptly if you receive a notice.
Frequently Asked Questions
Can I receive benefits if I was fired?
Only if you were not fired for misconduct. Misconduct in Minnesota means you deliberately or willfully violated a reasonable employer rule. Being fired for poor performance, a single mistake, or inability to do the job does not disqualify you. If your employer contests and DEED denies you, you can appeal to an administrative law judge who will review the facts.
What if I quit my job?
You can receive benefits only if you quit for good cause connected to your work — unsafe conditions, wage theft, harassment, or a substantial change in job duties. Quitting because you disliked the job, wanted better pay elsewhere, or had personal reasons does not may have access to. DEED will ask you to explain why you left, and your employer will be asked to respond.
How long does it take to get my first payment?
If you file online and DEED approves your claim with no employer contest, you can receive your first payment within one to two weeks. There is a one-week waiting period, so benefits start in the second week after you file. If your employer contests or DEED needs more information, approval takes longer — sometimes three to four weeks.
Can I receive benefits while I am in school or training?
You can receive benefits while in part-time school or training, but full-time enrollment usually disqualifies you. DEED considers whether your school schedule allows you to meet the work search requirement and be available for work. Contact DEED to discuss your specific situation before enrolling.
What if I move out of Minnesota while receiving benefits?
You can continue to receive Minnesota benefits if you move, but you must report your move to DEED and continue to meet all requirements, including work search. Some states have reciprocal agreements with Minnesota, meaning you can file your weekly claim in your new state. Contact DEED to update your address and learn about your options.