SF4134

Purpose

Provide additional unemployment benefits to workers in the iron ore mining industry who were laid off for lack of work during a specific period, and to certain related workers, funded from Minnesota’s unemployment insurance trust fund.

Who is eligible for the additional benefits

• Workers laid off for lack of work between January 15, 2026 and March 15, 2026 from an iron ore mining employer that laid off 50% or more of its workforce, or
• Workers laid off due to cessation or substantial reduction in operations of an iron ore mining employer, with an explosive manufacturing employer that provides goods or services to that iron ore mining employer involved in the layoff.

Eligibility is limited to weeks through March 19, 2027 and requires meeting regular unemployment eligibility rules.

How eligibility is determined (key requirements)

• The worker must have a benefit account established under Minnesota law with 50% or more of wage credits from the relevant iron ore mining employer.
• The worker must have exhausted the maximum regular unemployment benefits on that benefit account.
• The worker must meet the standard requirements to qualify for regular unemployment benefits (as defined by state law).

Benefit amount and duration

• The weekly amount of the additional benefits is the same as the weekly amount the worker would receive for regular unemployment benefits on the applicable benefit account.
• The total number of additional weeks available is capped at 26 weeks.
• If the worker qualifies for a new regular benefit account (under the state’s regular unemployment rules) before receiving all additional benefits, the weekly amount from the new regular account will apply if it is equal to or higher than the weekly additional benefit; otherwise, the worker continues to receive the additional benefits. If the new regular account’s weekly amount is lower, the worker must continue with the additional benefits until exhausted.

Transition to a new regular benefit account

• After exhausting the maximum regular benefits on the original layoff, if the worker qualifies for a new regular benefit account, they must apply for and establish it.
• If the new regular benefit account’s weekly amount is equal to or higher than the weekly additional benefit, the worker must request benefits under the new regular account.
• If the new regular benefit account’s weekly amount is less than the weekly additional benefit, the worker must request additional unemployment benefits (and cannot switch to the new regular account until the additional benefits are exhausted).

Charging and tax treatment

• Benefits paid under this program generally cannot be used to determine a employer’s future unemployment tax rate, and cannot be charged to the reimbursing accounts of government or nonprofit employers.
• This protection does not apply to an employer described in the iron ore mining clause (and related explosive manufacturing scenario), meaning charges could apply to those specific employers.

Interaction with federal programs

• If an applicant is deemed eligible for federal Trade Readjustment Allowance (TRA) benefits, they are not eligible for these additional Minnesota unemployment benefits.

Significant changes to existing law

• Creates a targeted, time-limited (through March 19, 2027) expansion of unemployment benefits for a specific industry (iron ore mining) and related suppliers, triggered by specific layoff events in early 2026.
• Ties the new benefits to the regular unemployment benefit framework (benefit accounts and weekly amounts), with explicit rules for when to switch between additional benefits and new regular benefit accounts.
• Establishes a charging/tax treatment exception that does not apply to the targeted iron ore mining and related explosive manufacturing employers, potentially affecting those employers’ unemployment tax or reimbursements.

Relevant terms - unemployment benefits - additional unemployment benefits - Minnesota unemployment insurance trust fund - iron ore mining industry - explosive manufacturing industry - laid off / lack of work - 50 percent or more of the workforce - cessation or substantial reduction in operations - benefit account - regular unemployment benefits - weekly benefit amount - 26 weeks - new regular benefit account - Minnesota Statutes section 268.07 - Minnesota Statutes section 268.069 - 268.07 / 268.069 (regular criteria) - Trader Readjustment Allowance (TRA) - federal TRA benefits - charging of benefits - unemployment tax rate - reimbursing account - government or nonprofit employers