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Minnesota Legislature

Layoff alternative now law

Published (5/1/2009)
By Kris Berggren
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Some employers facing economic hardship will have an alternative to laying off their employees.

A new law, effective Aug. 2, 2009, will allow them to participate in a Department of Employment and Economic Development shared work plan that allows them to reduce some employees’ hours while those employees become eligible for unemployment benefits in proportion to the number of their reduced hours.

Employer plans must be approved by the DEED commissioner, who may reject a proposal if it is determined the reason for the application is not to prevent layoffs. Eligible employees must have worked for the employer for one year and, under the plan, must work between 20 and 32 hours a week.

The law, signed by Gov. Tim Pawlenty April 30, is sponsored by Rep. Dean Urdahl (R-Grove City) and Sen. Kathy Saltzman (DFL-Woodbury).

HF2040/SF1454*/CH27

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