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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Employment Law
Satisfied Customers: 110506
Experience:  20+ Years of Employment Law Experience
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I'm a small seasonal business owner in Minnesota. Being

Customer Question

I'm a small seasonal business owner in Minnesota. Being seasonal I'm at a 10% UI rate.
The UI law in Minnesota clearly states that high school students are INELIGIBLE to receive benefits until they graduate, approx. 80% of my staff are students, that I am paying 10% UI on their wages, for something they are certainly not able to receive! Is this legal for the state to do?
The amount I am paying is obscene and is putting the hurt on the business, I do have two employees that do get benefits each year, but it amounts to less than 50% of what I'm paying into the state UI fund!
Any suggestions would be greatly appreciated, Thank You!!!!
Submitted: 6 months ago.
Category: Employment Law
Expert:  Law Educator, Esq. replied 6 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Unfortunately, the law does not exempt an employer from having to pay the unemployment rates even if they have seasonal high school employees who cannot collect. I am afraid that you are stuck with what the MI law says, so you have to keep complying and paying them even though your high school students cannot collect the benefit. This is exactly how government hurts small business owners, but you need to get your legislature to pass some exemption for small businesses in your situation and until they do, it would continue to hurt you and other small business owners.
Customer: replied 6 months ago.
Just a quick question, are you referring to MI (Michigan) Law or MN. (Minnesota) law? I'm in Minnesota.
Expert:  Law Educator, Esq. replied 6 months ago.
Thank you for your reply.
No, Minnesota, that was a typo. I was referring to Minnesota law.
Customer: replied 6 months ago.
what is the part of the statute you found that requires payment? I've scoured the statute and can't find anything other than they are ineligible for benefits!! It's like having to pay taxes on something that's not yours! In your thoughts, how would one get a crystal clear definition of this, short of brining a lawsuit against the state! I did at one time call the DLI and asked the question to the person on the line and was told that was a good question and couldn't answer it, thus bringing my frustration to the next level!!!
Expert:  Law Educator, Esq. replied 6 months ago.

Thank you for your reply.

The law is only that you must pay unemployment based on your employees, what is missing from the law is an exclusion from paying for people who are not eligible to collect benefits such as high school students. The law says you have to pay on the employees and employee means anyone who works for you regardless of their status unless exempt. The students are not exempt under the statute and there is nothing in the law that exempts them from being excluded from payment of unemployment taxes.

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