What Minnesota Unemployment Insurance Covers

Minnesota Unemployment Insurance (UI) is a program run by the state's Department of Employment and Economic Development (DEED). It pays weekly benefits to workers who lose their job through no fault of their own — meaning you were laid off, your position was eliminated, or your employer closed. The program does not cover people who quit, were fired for misconduct, or are self-employed.

The money comes from taxes your employer paid into the state fund, not from general tax revenue. You do not pay into it directly. Benefits are meant to replace part of your lost wages while you search for work, typically covering about 40 to 50 percent of your previous earnings, up to a maximum weekly amount that changes each year.

Minnesota requires you to actively search for work and report your job search efforts to stay on benefits. You must also report any income you earn while receiving UI, because benefits are reduced or stopped if you work enough hours or earn enough money.

Key Takeaways

  • You must have lost your job through no fault of your own — layoffs and position eliminations count, but quitting or being fired for misconduct do not.
  • Minnesota requires you to search for work and report your job search activities each week to keep receiving benefits.
  • You file through DEED's online system or by phone, and the state will contact your former employer to verify the reason you left.
  • Benefits typically arrive within two to three weeks of approval, though the initial information can take longer if your employer disputes your claim.
  • You must report any wages you earn while on UI, because benefits are reduced or stopped based on how much you work.

Who Can Receive Minnesota Unemployment Insurance

To receive benefits, you must meet four basic conditions. First, you must have worked in Minnesota or for a Minnesota employer during the past 18 months. Second, you must have earned at least $4,800 in that time (this amount can change yearly). Third, you must have lost your job through no fault of your own — the state will ask your employer why you left, and their answer matters. Fourth, you must be able and willing to work, which means you cannot be in school full-time, caring for a child with no childcare, or unavailable for work.

The phrase "no fault of your own" has a specific meaning in Minnesota law. Layoffs, position eliminations, and temporary shutdowns all count. So do some cases where your employer reduced your hours so much that you could not survive on the wages. Quitting does not count, even if you had a good reason — the state treats voluntary departure differently. Being fired for misconduct (breaking rules, poor performance, or dishonesty) also disqualifies you, though being fired for a single mistake usually does not.

If you are not sure whether your situation counts, file anyway. DEED will contact your employer and ask them to explain why you left. If there is a disagreement, you can appeal and present your side of the story.

How to File Your Claim

You file through DEED's online portal at uimn.org, or by phone at 1-888-313-DEED (1-888-313-3333). The online system is faster and lets you upload documents right away. You will need your Social Security number, driver's license or ID number, and information about your last job — employer name, address, phone number, and the dates you worked there.

The state will also ask why you left your job, when you last worked, and how much you earned in the past 18 months. Have your final pay stub or a record of your earnings ready. If you were laid off, have the layoff notice if you have one. If your hours were cut, be ready to explain how much they dropped and when.

After you file, DEED sends a notice to your former employer asking them to respond within 10 days. Your employer will be asked whether you quit, were fired, or were laid off, and whether there were any issues with your work. If your employer does not respond, the state usually approves your claim. If they dispute it, you will receive a notice and can request a hearing to explain your side.

When Benefits Start and How Much You Receive

There is a one-week waiting period before benefits begin. This means if you file on a Monday, your first week of benefits does not start until the following Monday. After that, benefits are paid weekly, usually by direct deposit or debit card, depending on what you choose when you file.

The amount you receive depends on your earnings in the past 18 months. Minnesota calculates your "benefit year earnings" and divides by 52 to find your weekly benefit amount. The state then pays you roughly 40 to 50 percent of that amount, up to a maximum. The maximum weekly benefit amount changes each year — in 2024 it was $863, but you should check the current amount on uimn.org because it increases annually.

You can receive benefits for up to 26 weeks in a benefit year, which runs from the week you file through 52 weeks later. If you exhaust your 26 weeks and are still out of work, you may be able to extend benefits through a federal program, but that is only available during times of high unemployment and requires separate action.

Work Search Requirements and Reporting

Minnesota requires you to search for work and report your activities each week. You must look for work that matches your skills and experience, and you must be willing to accept a job if offered. The state does not require you to take any job at any wage — you can turn down work that pays significantly less than your previous job or is outside your field — but you must be actively searching.

Each week, you will receive a notice asking you to report your work search activities. You can do this online through the same portal where you filed, or by phone. You will be asked how many employers you contacted, what jobs you applied for, and any interviews you had. Keep a straightforward log of your applications and contacts so you can answer accurately.

If you miss a week of reporting, your benefits stop until you report. If you report that you did not search for work, your benefits may be denied for that week. If you turn down a job offer without a good reason, you may lose benefits. The state takes work search seriously because the program is designed to help you return to work, not to replace your income permanently.

Reporting Wages and How Work Affects Your Benefits

If you find part-time work or a temporary job while receiving benefits, you must report the wages. Minnesota reduces your weekly benefit by a portion of what you earn. The exact reduction depends on how much you make, but generally, for every dollar you earn above a small threshold, your benefit is reduced by about 50 cents.

This means you can work part-time and still receive some UI benefits, which can help you bridge the gap to full-time work. However, if you earn enough in a week, your benefit for that week drops to zero. If you return to full-time work, you should report it when ready so the state stops your benefits and you do not have to repay money later.

Report your wages when you do your weekly work search report. Be honest about the amount — the state will cross-check with employers and tax records. If you underreport wages and the state finds out, you may have to repay benefits and face penalties.

What Disqualifies You or Stops Your Benefits

Beyond the initial reason you left your job, several things can disqualify you or end your benefits. If you quit without good cause, you lose benefits. If you are fired for misconduct — breaking rules, being dishonest, or repeated poor performance — you lose benefits. If you refuse a job offer without a legitimate reason, you lose benefits for that week and possibly longer.

If you are convicted of a crime related to your work, you may lose benefits. If you are receiving workers' compensation for a work injury, you cannot also receive UI for the same period. If you are in school full-time, you are not considered able to work and cannot receive benefits. If you move out of state and cannot work in Minnesota, your benefits end.

If you miss work search reporting important date, your benefits stop until you report. If you fail to respond to a request from DEED for information, your claim may be denied. If you do not cooperate with the state's investigation into your claim, you can lose benefits.

If Your Claim Is Denied or Disputed

If DEED denies your claim, you will receive a written notice explaining why. Common reasons include that your employer says you quit, that you were fired for misconduct, or that you did not meet the earnings requirement. You have 30 days from the date of the notice to request a hearing.

A hearing is conducted by an administrative law judge who listens to both you and your employer. You can bring documents, witnesses, or a representative. The judge will ask questions about why you left your job and whether you meet the other requirements. After the hearing, the judge issues a decision, which you can appeal to the Minnesota Unemployment Insurance Appeals Board if you disagree.

Many people win on appeal because they can explain their side in detail. If your employer did not respond to the initial notice, or if they did not show up for the hearing, that works in your favor. Keep records of everything — emails, texts, pay stubs, layoff notices — because these documents can prove your case.

Frequently Asked Questions

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

Yes. Lack of work or a temporary shutdown is considered a layoff, which means you lost your job through no fault of your own. File your claim and report the reason as a layoff. Your employer will confirm this when DEED contacts them.

What if I quit because my employer cut my hours in half?

You may still be able to receive benefits if the hour reduction made it impossible to live on the wages. This is called "constructive discharge." When you file, explain that your hours were cut and you could not survive on the reduced pay. DEED will investigate, and if they agree the reduction was severe, you may be approved.

How long does it take to get my first payment?

There is a one-week waiting period, so your first week of benefits does not start until the week after you file. After that, payments usually arrive within 7 to 10 days of your weekly report. If your employer disputes your claim, approval can take several weeks while DEED investigates.

Can I receive unemployment while I am looking for a new job in another state?

You can receive Minnesota benefits while searching for work anywhere, but if you move to another state and are no longer available to work in Minnesota, your benefits end. Some states have reciprocal agreements, but you would need to file in the state where you now live.

What happens if I do not report my work search activities one week?

Your benefits stop for that week. You can restart them by reporting as soon as possible, but you will not receive payment for the missed week. If you miss multiple weeks, you may need to contact DEED to reactivate your claim.