What Minnesota unemployment compensation covers and who can receive it

Minnesota unemployment compensation is a temporary income replacement program run by the state's Department of Employment and Economic Development (DEED). The program pays weekly benefits to workers who have lost a job through no fault of their own — typically layoffs, business closures, or reduction in hours. You do not receive a lump sum; instead, the state sends you a weekly payment for a set number of weeks, usually up to 26 weeks in a standard benefit year.

The amount you receive each week depends on your earnings during a specific 12-month period called the base period. Minnesota calculates your weekly benefit amount by taking your highest-earning quarter in that base period and dividing it by 26. The state then caps that amount at a maximum weekly rate, which changes each year. For 2024, the maximum weekly benefit is $863, though most workers receive less.

You must have earned enough wages during the base period to open a claim — Minnesota requires a minimum of $1,200 in total wages, with at least $300 earned in one quarter. If you worked part-time or had gaps in employment, you may still meet this threshold. Self-employed workers, independent contractors, and gig workers do not ordinarily may have access to unless they elected to pay into the system.

Key Takeaways

  • Minnesota pays weekly benefits for up to 26 weeks if you lost your job through no fault of your own and earned at least $1,200 in the base period.
  • Your weekly amount is based on your highest-earning quarter during the base period, capped at the state maximum of $863 per week in 2024.
  • You must file your claim with DEED within a set timeframe after your job ends, and you can file online, by phone, or by mail.
  • You are required to report your work search activities each week and tell DEED when ready if you return to work or receive severance pay.
  • If DEED denies your claim, you have the right to request a hearing before an administrative law judge within 30 days of the denial letter.

How to file your claim with DEED

File your claim as soon as possible after your job ends. The sooner you file, the sooner your benefits can begin — there is a one-week waiting period before payments start, so filing when ready means you do not lose additional weeks. You can file online at uimn.org, by phone at 1-888-337-8466, or by mail to the address listed on DEED's website.

Before you file, gather these documents: your Social Security number, driver's license or state ID, the names and dates of employment for all jobs you held in the past 18 months, your most recent pay stub, and your employer's name and address. If you were laid off, have the separation letter or notice ready. If you quit or were fired, be prepared to explain the reason — DEED will contact your employer to verify the circumstances.

When you file online, the system walks you through a series of questions about your employment history, reason for separation, and current work status. Answer each question carefully and honestly; inconsistencies between your account and your employer's account can delay or deny your claim. After you submit, DEED sends you a confirmation number and tells you when to expect a decision.

What happens after you file: the waiting period and first payment

Minnesota has a one-week unpaid waiting period. This means your first week of unemployment does not receive a payment — it is a "waiting week" that all claimants must serve. Your benefits begin in the second week after you file, assuming DEED approves your claim without issues.

DEED typically makes a decision within one to three weeks. If approved, you receive a debit card (not a check) in the mail with your first payment loaded onto it. The card works like a regular debit card at ATMs and stores. If DEED needs more information, they send you a letter asking you to respond within a important date — usually 10 days. If you miss that important date, your claim may be denied.

Once approved, you must file a weekly claim every week you want to receive a payment. Minnesota requires you to file your weekly claim by Sunday at 11:59 p.m. each week. You can file online, by phone, or by mail. In your weekly claim, you report whether you worked, earned any income, or received severance or vacation pay. You also certify that you are actively searching for work.

Work search requirements and reporting obligations

To receive benefits, you must be actively searching for work each week. Minnesota does not require you to document every job process or contact, but you must be prepared to describe your search activities if DEED asks. This means explore for jobs, attending interviews, contacting employers, using job boards, or working with a career counselor — activities that a reasonable person would do to find employment.

You must report any work you do, even part-time or temporary work, in your weekly claim. If you earn money during a week, DEED reduces your benefit by a portion of what you earned. The state allows you to earn up to one-third of your weekly benefit amount before the reduction kicks in; earnings above that threshold reduce your payment dollar-for-dollar. For example, if your weekly benefit is $600 and you earn $200, you owe back $0 because $200 is less than one-third of $600. If you earn $400, you owe back $100.

You must also report severance pay, vacation pay, bonuses, or any lump-sum payment from your former employer. These payments count as income and reduce or eliminate your benefits for the weeks they cover. If your employer pays you two weeks of severance, DEED may reduce your benefits for two weeks or longer, depending on how the payment is structured.

Reasons DEED may deny or stop your benefits

DEED denies claims most often because the claimant quit without good reason, was fired for misconduct, or did not meet the wage requirement. If you left your job voluntarily, you must show that you had good cause — a reason a reasonable person would quit, such as unsafe working conditions, wage theft, or a substantial change in job duties. straightforward disliking your job or wanting higher pay is not good cause.

If you were fired, DEED looks at whether the employer had just cause — a legitimate business reason for the termination. Attendance problems, poor performance, or violation of company policy can be just cause. However, if you were fired for discriminatory reasons or retaliation, that may not be just cause, and you could still receive benefits.

DEED stops benefits if you refuse suitable work without good reason, fail to report your weekly claim, or provide false information on your claim. If you return to full-time work, your benefits end. If you return to part-time work, your benefits continue but are reduced based on your earnings. If you receive a job offer and turn it down, DEED may investigate whether the job was suitable — factors include pay, hours, location, and whether it matches your skills and experience.

What to do if DEED denies your claim or stops your benefits

If DEED denies your claim, you receive a written decision letter explaining the reason. You have 30 days from the date of the letter to request a hearing. Do not wait — if you miss this important date, you lose your right to appeal. To request a hearing, contact DEED's Appeals Section by phone at 1-888-337-8466 or by mail using the address on your denial letter.

At the hearing, an administrative law judge listens to your account and your employer's account, then decides whether you meet the law's requirements. You can represent yourself or bring a lawyer, union representative, or other advocate. The hearing is usually held by phone or video conference. After the hearing, the judge issues a written decision. If you disagree with that decision, you can appeal to the Minnesota Unemployment Insurance Appeals Board within 30 days.

If your claim was approved but DEED later stops your benefits or reduces them, you also have the right to request a hearing. This often happens when DEED receives information from your employer that contradicts what you reported, or when you report earnings that DEED believes you should have reported earlier. Request a hearing within 30 days of the letter that notifies you of the change.

How benefits end and what happens if you return to work

Your benefits end when you exhaust your 26 weeks of may be able to access, when you return to full-time work, or when you reach the end of your benefit year — whichever comes first. A benefit year runs 52 weeks from the date you filed your initial claim. If you have not used all 26 weeks by the end of your benefit year, those unused weeks are gone; you cannot carry them forward.

If you return to part-time work while still receiving benefits, report your earnings each week. Your benefit payment is reduced based on what you earn, but you continue to receive a partial payment as long as you meet the work search requirement and remain unemployed for part of the week. Once you work full-time hours consistently, notify DEED so they can close your claim.

If you exhaust your 26 weeks of regular benefits and are still unemployed, you may be able to extend your benefits through a federal program — but this is only available during periods of high unemployment and requires separate approval. Check with DEED to see whether an extension is available in your situation.

Frequently Asked Questions

Can I receive unemployment if I quit my job?

Only if you quit for good cause — a reason a reasonable person would leave. Examples include unsafe working conditions, wage theft, or a major change in job duties without your consent. Quitting because you dislike your boss or want higher pay is not good cause. DEED will contact your employer to verify your reason.

What if I was fired?

You may still receive benefits if you were not fired for just cause. Just cause means the employer had a legitimate business reason — such as repeated absences or poor performance. If you were fired for discriminatory reasons or retaliation, that is not just cause. DEED investigates both your account and your employer's account before deciding.

Do I have to report part-time work or gig work?

Yes. You must report all income, including part-time jobs, freelance work, and gig economy earnings. Your benefit is reduced based on what you earn, but you may still receive a partial payment. Failing to report income is fraud and can result in overpayment demands and penalties.

What if I disagree with DEED's decision?

You have 30 days from the date of the decision letter to request a hearing before an administrative law judge. Contact DEED's Appeals Section by phone or mail — do not wait. The judge will hear both sides and issue a written decision. You can appeal that decision to the Minnesota Unemployment Insurance Appeals Board within 30 days.

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

You can receive benefits while in school only if you are not in full-time school and you are actively searching for work. If you are enrolled in a full-time training program approved by DEED, you may be able to receive benefits during the training, but you must meet other requirements. Contact DEED to discuss your specific situation.