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Unemployment Benefits Severance Pay

cassiejohnson//December 11, 2015//

Unemployment Benefits Severance Pay

cassiejohnson//December 11, 2015//

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Relator worked for respondent for approximately five years until his employment was terminated pursuant to a separation agreement. The separation agreement obligated respondent to make a lump-sum severance payment to relator in an amount that was equivalent to six weeks of his regular pay. Consequently, the Department of Employment and Economic Development determined that relator was ineligible for unemployment benefits during the six-week period immediately following his termination, and an unemployment-law judge agreed. The Court of Appeals held that an applicant for unemployment benefits is temporarily ineligible if the applicant is entitled to severance pay in an amount that exceeds the weekly amount of unemployment benefits. Pursuant to Minn. Stat. § 268.085, subd. 3(b), the period of ineligibility is the period immediately following the later of the date of separation from employment or the date the applicant first becomes aware that the employer will be making a severance payment, regardless of the date the payment is actually made or received. Affirmed.

A15-0797 Menyweather v. Fedtech, Inc. (Dep’t of Emp’t & Econ. Dev.)


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