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Nonprofit unemployment plan doesn’t change eligibility

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in Compensation and Benefits,Human Resources

Some nonprofit Minnesota em­­ployers can opt into an alternative unemployment compensation plan that allows skipping quarterly unemployment taxes in exchange for reimbursing the state for any benefits paid.

Good news for those employers: The alternative plan doesn’t affect unemployment eligibility. Employees still have to show they quit for reasons attributable to their employers.

Recent case: Renee quit her job with a religious nonprofit and moved to North Dakota. She applied for unemployment benefits, arguing that even though her decision was purely voluntary, she should get the benefits because her former em­­ployer opted into the alternative program.

The court tossed out her case, concluding that the same eligibility rules apply no matter which system a nonprofit opts to use. (Carlson v. The Episcopal Diocese, No. A12-0473, Court of Appeals of Minnesota, 2012)

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