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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