Minnesota Statutes Section 268.085, subdivision 9, describes an applicant's eligibility for unemployment benefits when the applicant is laid off from a company that he or she owns or controls. Wages from the business used to establish an unemployment benefit account become unavailable after five weeks of benefits have been paid to an applicant:

a) who individually, jointly, or in combination with the applicant's spouse, parent, or child owns or controls directly or indirectly 25 percent or more interest in the business; or

b) who is the spouse, parent or minor child of any individual who owns or controls directly or indirectly 25 percent or more interest in the business.

In such circumstances, the applicant may use wages earned from that employer as the basis for establishing an unemployment benefit account, but only until he or she has received five times his or her weekly benefit amount in unemployment benefits. After that, wage credits from the business may no longer be used for unemployment benefit purposes. This means that an applicant who is separated from a business that he or she owns or controls can only collect up to five full weeks worth of unemployment benefits, unless he or she has other employment on which to establish a benefit account.

However, there is one exception to the five week limitation. This exception applies if the applicant earned $7,500 or more from the employer during each of the 16 calendar quarters prior to the effective date of his or her unemployment benefit account.

The application for an unemployment benefit account asks the following question: "In the last 18 months have you worked for a business you or a family member owned or partially owned?" If the applicant answers "Yes" to this question, the UI customer service center will request additional information.

A written determination will be mailed to the applicant if their wage credits will be unavailable after five weeks of benefits are paid. If the applicant disagrees with the decision, he or she can file an appeal within 20 days.