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Court says delayed commissions can reduce unemployment comp

by on
in Employee Benefits Program,Human Resources

A Minnesota court of appeals has ruled that ex-employees who are collecting unemployment can have their benefits reduced if they are due to receive commissions from their former employers.

The court made the ruling in the case of James Meder, who worked as a salesman for Rapid Sports Center. When Meder lost his job in a reduction in force, he applied for and received unemployment compensation benefits.

But the book wasn’t closed on Meder’s employment. Several sales he made hadn’t been finalized at the time he left Rapid Sports, but closed several weeks later. Under Meder’s contract with Rapid Sports, those sales were worth a $2,300 commission.

By then, he was collecting unemployment benefits and was in the unusual position of receiving commission while still being unemployed.

The Department of Employment and Economic Development successfully sought to reduce the benefits by the amount of the commission, arguing that Meder had been overpaid $1,323 in benefits while still receiving income.

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