SF4806

Purpose

Clarify when wage credits from work at schools or colleges can be used to apply for unemployment benefits, specifically for the periods between academic years or terms.

Main Provisions

• Scope of wage credits denial between terms

  • Wage credits from employment with an educational institution may not be used for unemployment benefit purposes for weeks in the period between two successive academic years or terms if the applicant had such employment in the prior year and there is a reasonable assurance of future employment with an educational institution in the following year or term.
  • The same rule applies to periods between two regular but not successive terms if there is a scheduled agreement between the applicant and the school.

• Exceptions and special cases

  • The denial does not apply if the subsequent employment is substantially less favorable than the prior employment.
  • The denial also does not apply during a vacation period or holiday recess if the applicant was employed before the break and there is a reasonable assurance of employment after the break, including those in roles other than instructional, research, or principal administrative capacity.

• Definitions and capacity rules

  • The rule does not apply to weeks where the applicant worked in a capacity other than instructional, research, or principal administrative capacity.
  • An educational institution includes schools, colleges, universities, or other entities operated by a state or nonprofit body.

• Reasonable assurance details

  • Reasonable assurance can be written, oral, implied, or established by custom or practice.
  • For teaching or research positions at higher education institutions, reasonable assurance is limited unless:
  • the offer for the following year is written and not contingent on enrollment funding or program changes, or
  • the institution has a contract promising payment equal to 50% of what the applicant would have earned if the job continued.

• Involvement of different types of employers

  • The rule also covers employment with an educational service agency (a government entity that provides services to educational institutions).
  • It covers employment with Minnesota political subdivisions or nonprofit organizations if the services are provided to or on behalf of an educational institution.

• Aggregation and on-call work

  • If an applicant has multiple educational jobs, all employment is to be aggregated when applying the rule.
  • If all prior-year work was on-call and there is a reasonable assurance of on-call work next year, it is not considered substantially less favorable.

• Special exclusions

  • An instructional, research, or principal administrative capacity does not include an educational assistant.

Significant Changes to Existing Law

• Expands which employers and types of work are covered (educational service agencies, political subdivisions, and nonprofit organizations serving educational institutions).
• Tightens and clarifies what counts as "reasonable assurance" of ongoing employment, including written contracts and guaranteed pay provisions.
• Introduces aggregation across multiple institutions for assessing eligibility.
• Adds explicit exceptions for less favorable future employment and for on-call arrangements.
• Provides specific rules about vacation periods/holiday recess and how continuity of employment is evaluated.
• Distinguishes which roles are included or excluded from the instructional/research/principal administrative categories (excluding educational assistants).

Practical Implications

• Teachers, researchers, and other school staff may see changes in whether their wage credits can be used during summer breaks or between terms, depending on whether there is a clear, credible plan for continuing work.
• More situations could qualify for continued eligibility if there is guaranteed or clearly defined future work, or if the jobs are with agencies or organizations connected to schools.

Relevant Terms - unemployment benefit - wage credits - educational institution - between terms / between academic years - reasonable assurance - instructional capacity - research capacity - principal administrative capacity - educational assistant - educational service agency - political subdivision - nonprofit organization - on-call employment - aggregate employment - substantially less favorable - vacation period / holiday recess - written/oral/implied/custom-based assurance