268.04 Definitions. 

    Subdivision 1.    Scope.  Unless the language or context 
 clearly indicates that a different meaning is intended, the 
 following words, terms and phrases, for the purposes of sections 
 268.03 to 268.23, shall be given the meanings subjoined to them. 

    Subd. 2.    Base period.  "Base period" means the first 
 four of the last five completed calendar quarters immediately 
 preceding the first day of a claimant's benefit year; except:  
 (a) if during the base period a claimant received workers' 
 compensation for temporary disability under chapter 176 or a 
 similar law of the United States, or if a claimant whose own 
 serious illness caused a loss of work for which the claimant 
 received compensation due to the illness from some other source 
 or under a law of this state other than chapter 176 or a similar 
 law of the United States, the claimant's base period shall be 
 lengthened to the extent stated as follows: 

    (1) if a claimant was compensated, as described above, for 
 a loss of work of seven to 13 weeks, the original base period 
 shall be extended to include one calendar quarter preceding the 
 original base period; or 

    (2) if a claimant was compensated, as described above, for 
 a loss of work of 14 to 26 weeks, the original base period shall 
 be extended to include two calendar quarters preceding the 
 original base period; or 

    (3) if a claimant was compensated, as described above, for 
 a loss of work of 27 to 39 weeks, the original base period shall 
 be extended to include the first three calendar quarters 
 preceding the original base period; or 

    (4) if a claimant was compensated, as described above, for 
 a loss of work of 40 to 52 weeks, the original base period shall 
 be extended to include the first four quarters preceding the 
 original base period; or 

    (b) if the commissioner finds that, during the base period 
 described above, the claimant subject to clause (a) has 
 insufficient wage credits to establish a reemployment insurance 
 account, the claimant may request a determination of a 
 reemployment insurance account using an alternate base period of 
 the last four completed calendar quarters preceding the first 
 day of a claimant's benefit year.  This alternate base period 
 may be used by a claimant only once during any five calendar 
 year period to establish a reemployment insurance account. 

    In no instance shall the base period be extended to include 
 more than four additional calendar quarters. 

    No base period, extended base period, or alternate base 
 period under paragraph (b) shall include wage credits upon which 
 a claim was established and benefits were paid with respect to 
 that reemployment insurance account. 

    Subd. 3.    Benefits.  "Benefits" means the money 
 payments payable to an individual, as provided in sections 
 268.03 to 268.23, with respect to the individual's unemployment. 

    Subd. 4.    Benefit year.  "Benefit year" with respect 
 to any claimant means the period of 52 calendar weeks beginning 
 with the first day of the first week with respect to which the 
 claimant establishes a reemployment insurance account.  For 
 claimants with a reemployment insurance account established 
 effective January 1, April 1, July 1, or October 1, the benefit 
 year will be a period of 53 weeks beginning with the first week 
 with respect to which the claimant establishes a reemployment 
 insurance account.  

    Subd. 5.    Calendar quarter.  "Calendar quarter" means 
 the period of three consecutive calendar months ending on March 
 31, June 30, September 30, or December 31. 

    Subd. 5a.    Claimant.  "Claimant" means an individual 
 who has made an application for a reemployment insurance account 
 and has established or is actively pursuing the establishment of 
 a reemployment insurance account. 

    Subd. 6.    Contributions.  "Contributions" means the 
 money payments required by sections 268.03 to 268.23 to be made 
 by any employing unit on account of having individuals in its 
 employ. 

    Subd. 7.    Corporation.  "Corporation" includes 
 associations, joint-stock companies, and insurance companies.  
 This definition shall not be exclusive. 

    Subd. 8. Repealed, 1997 c 66 s 81 

    Subd. 9.    Employing unit.  "Employing unit" means any 
 individual or type of organization, including any partnership, 
 limited liability company, association, trust, estate, 
 joint-stock company, insurance company, or corporation, whether 
 domestic or foreign, or the receiver, trustee in bankruptcy, 
 trustee or successor of any of the foregoing, or the legal 
 representative of a deceased person, which has or subsequent to 
 January 1, 1936, had in its employ one or more individuals 
 performing services for it.  All individuals performing services 
 within this state for any employing unit which maintains two or 
 more separate establishments within this state shall be deemed 
 to be employed by a single employing unit.  Each individual 
 employed to perform or assist in performing the work of any 
 agent or individual employed by an employing unit shall be 
 deemed to be employed by such employing unit whether such 
 individual was hired or paid directly by such employing unit or 
 by such agent or individual, provided the employing unit had 
 actual or constructive knowledge of such work.  Any private or 
 nonprofit organization or government agency providing or 
 authorizing the hiring of homeworkers, personal care attendants, 
 or other individuals performing similar services in the private 
 home of an individual is the employing unit of the homeworker, 
 attendant or similar worker whether the agency pays the employee 
 directly or provides funds to the recipient of the services to 
 pay for the services.  

    Subd. 10.    Employer.  "Employer" means:  (1) Any 
 employing unit which, after December 31, 1995, has one or more 
 individuals performing services in employment for which there 
 were wages paid, within either the current or preceding calendar 
 year, except as provided in clause (17); 

    (2) Any employing unit (whether or not an employing unit at 
 the time of acquisition) which acquired the organization, trade, 
 or business, or substantially all of the assets thereof, of 
 another employing unit which at the time of such acquisition was 
 an employer subject to this law; or which acquired a part of the 
 organization, trade, or business of another employing unit which 
 at the time of such acquisition was an employer subject to this 
 law; 

    (3) For purposes of clause (1), employment shall include 
 service which would constitute employment but for the fact that 
 such service is deemed to be performed entirely within another 
 state pursuant to an election under an arrangement entered into 
 (in accordance with section 268.13, subdivision 1) by the 
 commissioner and an agency charged with the administration of 
 any other state or federal unemployment compensation law; 

    (4) Any employing unit which acquired the organization, 
 trade, or business, or substantially all the assets thereof, of 
 another employing unit, and which, if treated as a single unit 
 with such other employing unit, would be an employer under 
 clause (1); 

    (5) Any employing unit which, together with one or more 
 other employing units, is owned or controlled (by legally 
 enforceable means or otherwise) directly or indirectly by the 
 same interests, or which owns or controls one or more other 
 employing units (by legally enforceable means or otherwise) and 
 which, if treated as a single unit with such other employing 
 units or interests or both, would be an employer under clause 
 (1), except as provided in clause (17); 

    (6) Any joint venture composed of one or more employers as 
 otherwise defined herein; 

    (7) Any nonresident employing unit which employs within 
 this state one or more employees for one or more weeks; 

    (8) Any employing unit for which service in employment, as 
 defined in subdivision 12, clause (9), is performed; 

    (9) Any employing unit which, having become an employer 
 under the preceding clauses or clause (14), (15), or (16), has 
 not, under section 268.042, ceased to be an employer subject to 
 these sections; 

    (10) For the effective period of its election pursuant to 
 section 268.042, subdivision 3, any other employing unit which 
 has elected to become subject to sections 268.03 to 268.23; 

    (11) Notwithstanding any inconsistent provisions of 
 sections 268.03 to 268.23, any employing unit not an employer by 
 reason of any other clause of this subdivision for which service 
 is performed with respect to which such employing unit is liable 
 for any federal tax against which credit may be taken for 
 contributions required to be paid into a state unemployment 
 compensation fund or which, as a condition for the approval of 
 this law for full tax credit against the tax imposed by the 
 federal unemployment tax act, is required pursuant to such act, 
 to be an "employer" under the law; 

    (12) Except as provided in clause (11), and notwithstanding 
 any other provisions of sections 268.03 to 268.23, no employing 
 unit shall be initially determined a subject employer on the 
 basis of covered employment performed more than four years prior 
 to the year in which such determination is made, unless the 
 commissioner finds that the records of such employment 
 experience were fraudulently concealed or withheld for the 
 purpose of escaping liability under said sections; 

    (13) Any employing unit for which service in employment, as 
 defined in subdivision 12, clause (7), is performed; 

    (14) Any employing unit for which service in employment as 
 defined in subdivision 12, clause (8), is performed; 

    (15) Any employing unit for which agricultural labor as 
 defined in subdivision 12, clause (13), is performed; 

    (16) Any employing unit for which domestic service in 
 employment as defined in subdivision 12, clause (14), is 
 performed; 

    (17) (a) In determining whether or not an employing unit 
 for which domestic service and other than domestic service is 
 performed is an employer under clause (1) or (5), the wages 
 earned or the employment of an employee performing domestic 
 service shall not be taken into account. 

    (b) In determining whether or not an employing unit for 
 which agricultural labor and other than agricultural labor is 
 performed is an employer under clause (1), (8) or (16), the 
 wages earned or the employment of an employee performing service 
 in agricultural labor after December 31, 1977, shall not be 
 taken into account.  If an employing unit is an employer of 
 agricultural labor the determination of whether it is an 
 "employer" shall be governed by clause (1). 

    Subd. 11.    Employee.  "Employee" means every 
 individual, whether male, female, citizen, alien, or minor, who 
 is performing, or subsequent to January 1, 1936, has performed 
 services in insured work. 

    Subd. 12.    Employment.  "Employment" means: 

    (1) Any service performed, including service in interstate 
 commerce, by; 

    (a) any officer of any corporation; 

    (b) any member of a limited liability company who is a 
 servant under the law of master and servant; 

    (c) any individual who performs services for remuneration 
 for any person as an agent-driver or commission-driver engaged 
 in distributing meat products, vegetable products, fruit 
 products, bakery products, beverages, or laundry or dry cleaning 
 services, for a principal, or as a traveling or city 
 salesperson, other than as an agent-driver or commission-driver, 
 engaged upon a full-time basis in the solicitation on behalf of, 
 and the transmission to, a principal (except for sideline sales 
 activities on behalf of some other person) of orders from 
 wholesalers, retailers, contractors, or operators of hotels, 
 restaurants, or other similar establishments for merchandise for 
 resale or supplies for use in their business operations; or 

    (d) any individual who is a servant under the law of master 
 and servant or who performs services for any employing unit, 
 unless such services are performed by an independent contractor. 

    Provided, that for purposes of clause (1)(c), the term 
 "employment" shall include services described above only if the 
 contract of service contemplates that substantially all of the 
 services are to be performed personally by such individual, the 
 individual does not have a substantial investment in facilities 
 used in connection with the performance of the services (other 
 than in facilities for transportation), and the services are not 
 in the nature of a single transaction that is not part of a 
 continuing relationship with the person for whom the services 
 are performed. 

    (2) The term "employment" shall include an individual's 
 entire service, performed within or both within and without this 
 state if (a) the service is localized in this state; or (b) the 
 service is not localized in any state but some of the service is 
 performed in this state and (1) the base of operations, or, if 
 there is no base of operations, then the place from which such 
 service is directed or controlled, is in this state; or (2) the 
 base of operations or place from which such service is directed 
 or controlled is not in any state in which some part of the 
 service is performed, but the individual's residence is in this 
 state. 

    (3) Service shall be deemed to be localized within a state 
 if (a) the service is performed entirely within such state; or 
 (b) the service is performed both within and without such state, 
 but the service performed without such state is incidental to 
 the individual's service within the state, for example, is 
 temporary or transitory in nature or consists of isolated 
 transactions. 

    (4) The term "employment" shall include an individual's 
 service wherever performed within the United States or Canada, 
 if 

    (a) such service is not covered under the unemployment 
 compensation law of any other state or Canada; and 

    (b) the place from which the service is directed or 
 controlled is in this state. 

    (5)(a) Service covered by an election pursuant to section 
 268.042, subdivision 3; and 

    (b) service covered by an arrangement pursuant to section 
 268.13 between the commissioner and the agency charged with the 
 administration of any other state or federal employment security 
 law, pursuant to which all service performed by an individual 
 for an employing unit is deemed to be performed entirely within 
 this state, shall be deemed to be employment if the commissioner 
 has approved an election of the employing unit for which such 
 service is performed, pursuant to which the entire service of 
 such individual during the period covered by such election is 
 deemed to be employment. 

    (6) Notwithstanding any inconsistent provisions of sections 
 268.03 to 268.23, the term "employment" shall include any 
 services which are performed by an individual with respect to 
 which an employing unit is liable for any federal tax against 
 which credit may be taken for contributions required to be paid 
 into a state reemployment insurance fund or which as a condition 
 for full tax credit against the tax imposed by the Federal 
 Unemployment Tax Act is required to be covered under this law. 

    (7) Service performed by an individual in the employ of the 
 state of Minnesota or any instrumentality which is wholly owned 
 by the state of Minnesota or in the employ of this state and one 
 or more other states or an instrumentality of this state and one 
 or more of its political subdivisions or an instrumentality of 
 this state and another state or an instrumentality of this state 
 and one or more political subdivisions of another state if such 
 service is excluded from "employment" as defined by section 
 3306(c)(7) of the Federal Unemployment Tax Act and is not 
 excluded from "employment" under clause (10). 

    (8) Service performed by an individual in the employ of any 
 political subdivision of the state of Minnesota or 
 instrumentality thereof or an instrumentality of two or more 
 political subdivisions of this state or any instrumentality of a 
 political subdivision of this state and another state or 
 political subdivisions of another state if such service is 
 excluded from "employment" as defined by section 3306(c)(7) of 
 the Federal Unemployment Tax Act and is not excluded from 
 "employment" under clause (10). 

    (9) Service performed by an individual in the employ of a 
 religious, charitable, educational or other organization but 
 only if the following conditions are met: 

    (a) the service is excluded from "employment" as defined in 
 the Federal Unemployment Tax Act solely by reason of section 
 3306(c)(8) of that act; and 

    (b) the organization had one or more individuals in 
 employment for some portion of a day in each of 20 different 
 weeks, whether or not such weeks were consecutive, within either 
 the current or preceding calendar year, regardless of whether 
 they were employed at the same moment of time. 

    (10) For the purposes of clauses (7), (8), and (9), the 
 term "employment" does not apply to service performed: 

    (a) in the employ of a church or convention or association 
 of churches, or an organization which is operated primarily for 
 religious purposes and which is operated, supervised, 
 controlled, or principally supported by a church or convention 
 or association of churches; or 

    (b) by a duly ordained, commissioned, or licensed minister 
 of a church in the exercise of a ministry or by a member of a 
 religious order in the exercise of duties required by such 
 order; or 

    (c) in a facility conducted for the purpose of carrying out 
 a program of rehabilitation for individuals whose earning 
 capacity is impaired by age or physical or mental deficiency or 
 injury or a program providing remunerative work for individuals 
 who because of an impaired physical or mental capacity cannot be 
 readily absorbed in the competitive labor market, by an 
 individual receiving the rehabilitation or remunerative work.  
 This exclusion applies only to services performed in a facility 
 which is certified by the Minnesota department of economic 
 security, division of rehabilitative services or in day training 
 and habilitation programs licensed by the department of human 
 services, and is limited to the effective period of the 
 certificate or license; or 

    (d) as part of an unemployment work relief or work training 
 program assisted or financed in whole or in part by any federal 
 agency or an agency of a state or political subdivision thereof, 
 by an individual receiving such work relief or work training.  
 This exclusion shall not apply to programs that provide for and 
 require unemployment insurance coverage for the participants; or 

    (e) by an inmate of a custodial or penal institution; or 

    (f) in the employ of governmental entities referred to in 
 clauses (7) and (8) if such service is performed by an 
 individual in the exercise of duties: 

    (i) as an elected official, 

    (ii) as a member of a legislative body, or a member of the 
 judiciary, 

    (iii) as a member of the Minnesota national guard or air 
 national guard, 

    (iv) as an employee serving only on a temporary basis in 
 case of fire, storm, snow, earthquake, flood or similar 
 emergency, 

    (v)(a) in a position with the state of Minnesota which is a 
 major nontenured policy making or advisory position in the 
 unclassified service, or 

    (b) a policy making position with the state of Minnesota or 
 a political subdivision the performance of the duties of which 
 ordinarily does not require more than eight hours per week; or 

    (c) in a position with a political subdivision which is a 
 major nontenured policy making or advisory position. 

    (11) The term "employment" shall include the service of an 
 individual who is a citizen of the United States, performed 
 outside the United States, except in Canada, in the employ of an 
 American employer (other than service which is deemed 
 "employment" under the provisions of clause (2), (3), or (4) or 
 the parallel provisions of another state's law) if: 

    (a) The employer's principal place of business in the 
 United States is located in this state; or 

    (b) The employer has no place of business in the United 
 States, but the employer is an individual who is a resident of 
 this state, or the employer is a corporation which is organized 
 under the laws of this state, or the employer is a partnership 
 or a trust and the number of partners or trustees who are 
 residents of this state is greater than the number who are 
 residents of any one other state; or 

    (c) None of the criteria of clauses (a) and (b) is met but 
 the employer has elected coverage in this state, or the employer 
 having failed to elect coverage in any state, the individual has 
 filed a claim for benefits, based on such service, under the law 
 of this state. 

    (d) An "American employer," for the purposes of this 
 subdivision, means a person who is an individual who is a 
 resident of the United States, or a partnership if two-thirds or 
 more of the partners are residents of the United States, or a 
 trust, if all of the trustees are residents of the United 
 States, or a corporation organized under the laws of the United 
 States or of any state; 

    (e) As used in this subdivision, the term "United States" 
 includes the states, the District of Columbia, the Commonwealth 
 of Puerto Rico, and the Virgin Islands. 

    (12) Notwithstanding clause (2), all service performed by 
 an officer or member of the crew of an American vessel on or in 
 connection with such vessel, if the operating office, from which 
 the operations of such vessel operating on navigable waters 
 within, or within and without, the United States are ordinarily 
 and regularly supervised, managed, directed, and controlled is 
 within this state. 

    (13) Service performed by an individual in agricultural 
 labor as defined in clause (15)(a) when: 

    (a) Such service is performed for a person who: 

    (i) during any calendar quarter in either the current or 
 the preceding calendar year paid wages of $20,000 or more to 
 individuals employed in agricultural labor, or 

    (ii) for some portion of a day in each of 20 different 
 calendar weeks, whether or not such weeks were consecutive, in 
 either the current or preceding calendar year employed in 
 agricultural labor four or more individuals regardless of 
 whether they were employed at the same time. 

    (b) For the purpose of this clause (13) any individual who 
 is a member of a crew furnished by a crew leader to perform 
 service in agricultural labor for any other person shall be 
 treated as an employee of the crew leader: 

    (i) if the crew leader holds a valid certificate of 
 registration under the Migrant and Seasonal Agricultural Worker 
 Protection Act; or substantially all of the members of the crew 
 operate or maintain tractors, mechanized harvesting or crop 
 dusting equipment, or any other mechanized equipment, which is 
 provided by the crew leader; and 

    (ii) if the individual is not an employee of another person 
 as determined by clause (1). 

    (c) For the purpose of this clause (13) in the case of any 
 individual who is furnished by a crew leader to perform service 
 in agricultural labor for any other person and who is not 
 treated as an employee of the crew leader under subclause 
 (13)(b): 

    (i) such other person and not the crew leader shall be 
 treated as the employer of such individual; and 

    (ii) such other person shall be treated as having paid 
 wages to such individual in an amount equal to the amount of 
 wages paid to such individual by the crew leader (either on the 
 crew leader's behalf or on behalf of such other person) for the 
 service in agricultural labor performed for such other person. 

    (d) For the purposes of this clause (13) the term "crew 
 leader" means an individual who: 

    (i) furnishes individuals to perform service in 
 agricultural labor for any other person, 

    (ii) pays (either on the crew leader's own behalf or on 
 behalf of such other person) the individuals so furnished by the 
 crew leader for the service in agricultural labor performed by 
 them, and 

    (iii) has not entered into a written agreement with such 
 other person under which such furnished individual is designated 
 as an employee of such other person. 

    (e) For the purposes of this clause (13) services performed 
 by an officer or shareholder of a family farm corporation shall 
 be excluded from agricultural labor and employment unless said 
 corporation is an employer as defined in section 3306(a)(2) of 
 the Federal Unemployment Tax Act. 

    (f) For the purposes of this clause (13), services 
 performed by an individual 16 years of age or under shall be 
 excluded from agricultural labor and employment unless the 
 employer is an employer as defined in section 3306(a)(2) of the 
 Federal Unemployment Tax Act. 

    (14) Domestic service in a private home, local college 
 club, or local chapter of a college fraternity or sorority 
 performed for a person who paid wages of $1,000 or more in any 
 calendar quarter in either the current or preceding calendar 
 year to individuals employed in domestic service. 

    "Domestic service" includes all service for an individual 
 in the operation and maintenance of a private household, for a 
 local college club, or local chapter of a college fraternity or 
 sorority as distinguished from service as an employee in the 
 pursuit of an employer's trade, occupation, profession, 
 enterprise, or vocation. 

    (15) The term "employment" shall not include: 

    (a) Agricultural labor.  Service performed by an individual 
 in agricultural labor, except as provided in clause (13).  The 
 term "agricultural labor" includes all services performed: 

    (1) On a farm, in the employ of any person or family farm 
 corporation, in connection with cultivating the soil, or in 
 connection with raising or harvesting any agricultural or 
 horticultural commodity, including the raising, shearing, 
 feeding, caring for, training, and management of livestock, 
 bees, poultry, fur-bearing animals and wildlife; 

    (2) In the employ of the owner or tenant or other operator 
 of a farm, in connection with the operation, management, 
 conservation, improvement, or maintenance of such farm and its 
 tools and equipment, or in salvaging timber or clearing land of 
 brush and other debris left by a tornadic-like storm, if the 
 major part of such service is performed on a farm; 

    (3) In connection with the production or harvesting of any 
 commodity defined as an agricultural commodity in section 15(g) 
 of the Agricultural Marketing Act, as amended (46 Statutes 1550, 
 section 3; United States Code, title 12, section 1141j) or in 
 connection with the ginning of cotton, or in connection with the 
 operation or maintenance of ditches, canals, reservoirs, or 
 waterways, not owned or operated for profit, used exclusively 
 for supplying and storing water for farming purposes; 

    (4) In the employ of the operator of a farm in handling, 
 planting, drying, packing, packaging, processing, freezing, 
 grading, storing, or delivering to storage or to market or to a 
 carrier for transportation to market, in its unmanufactured 
 state, any agricultural or horticultural commodity; but only if 
 such operator produced more than one-half of the commodity with 
 respect to which such service is performed, or in the employ of 
 a group of operators of farms (or a cooperative organization of 
 which such operators are members) in the performance of service 
 described herein, but only if such operators produced more than 
 one-half of the commodity with respect to which such service is 
 performed; however, the provisions of this paragraph shall not 
 be deemed to be applicable with respect to service performed in 
 connection with commercial canning or commercial freezing or in 
 connection with any agricultural or horticultural commodity 
 after its delivery to a terminal market for distribution for 
 consumption; or 

    (5) On a farm operated for profit if such service is not in 
 the course of the employer's trade or business. 

    As used herein, the term "farm" includes stock, dairy, 
 poultry, fruit, fur-bearing animal, and truck farms, 
 plantations, ranches, nurseries, ranges, greenhouses or other 
 similar structures used primarily for the raising of 
 agricultural or horticultural commodities, and orchards. 

    (b) Casual labor not in the course of the employing unit's 
 trade or business; 

    (c) Service performed on the navigable waters of the United 
 States as to which this state is prohibited by the constitution 
 and laws of the United States of America from requiring 
 contributions of employers with respect to wages as provided in 
 sections 268.03 to 268.23; 

    (d) Service performed by an individual in the employ of a 
 son, daughter, or spouse, and service performed by a child under 
 the age of 18 in the employ of the child's father or mother; 

    (e) Service performed in the employ of the United States 
 government, or any instrumentality of the United States exempt 
 under the Constitution of the United States from the 
 contributions imposed by sections 268.03 to 268.23, except that 
 with respect to such service and to the extent that the Congress 
 of the United States shall permit states to require any 
 instrumentalities of the United States to make payments into a 
 reemployment insurance fund under a state reemployment insurance 
 act; then, to the extent permitted by Congress, and from and 
 after the date as of which such permission becomes effective, 
 all of the provisions of these sections shall be applicable to 
 such instrumentalities and to services performed for such 
 instrumentalities in the same manner, to the same extent, and on 
 the same terms as to all other employers, employing units, 
 individuals, and services; provided, that if this state shall 
 not be certified for any year by the United States Department of 
 Labor under section 3304(c) of the federal Internal Revenue 
 Code, the payments required of such instrumentalities with 
 respect to such year shall be refunded by the commissioner from 
 the fund in the same manner and within the same period as is 
 provided in section 268.057, subdivision 7, with respect to 
 contributions erroneously collected; 

    (f) Service with respect to which reemployment insurance is 
 payable under an unemployment compensation system established by 
 an act of Congress; 

    (g)(1) Service performed in any calendar quarter in the 
 employ of any organization exempt from income tax under section 
 501(a) (other than an organization described in section 401(a)) 
 or section 521 of the federal Internal Revenue Code, if the 
 remuneration for such service is less than $50; or 

    (2) Service performed in the employ of a school, college, 
 or university, if such service is performed by a student who is 
 enrolled and is regularly attending classes at such school, 
 college, or university; or 

    (3) Service performed by an individual who is enrolled at a 
 nonprofit or public educational institution which normally 
 maintains a regular faculty and curriculum and normally has a 
 regularly organized body of students in attendance at the place 
 where its educational activities are carried on as a student in 
 a full-time program, taken for credit at such institution, which 
 combines academic instruction with work experience, if such 
 service is an integral part of such program, and such 
 institution has so certified to the employer, except that this 
 paragraph shall not apply to service performed in a program 
 established for or on behalf of an employer or group of 
 employers; 

    (h) Service performed in the employ of a foreign government 
 (including service as a consular or other officer or employee or 
 a nondiplomatic representative); 

    (i) Service performed in the employ of an instrumentality 
 wholly owned by a foreign government, if 

    (1) The service is of a character similar to that performed 
 in foreign countries by employees of the United States 
 government or of an instrumentality thereof; and 

    (2) The commissioner finds that the United States Secretary 
 of State has certified to the United States Secretary of the 
 Treasury that the foreign government, with respect to whose 
 instrumentality exemption is claimed, grants an equivalent 
 exemption with respect to similar service performed in the 
 foreign country by employees of the United States government and 
 of instrumentalities thereof. 

    (j) Service covered by an arrangement between the 
 commissioner and the agency charged with the administration of 
 any other state or federal employment security law pursuant to 
 which all services performed by an individual for an employing 
 unit during the period covered by such employing unit's duly 
 approved election, are deemed to be performed entirely within 
 such agency's state; 

    (k) Service performed in the employ of a hospital, if such 
 service is performed by a patient of the hospital, as defined in 
 clause (17); 

    (l) Service performed as a student nurse in the employ of a 
 hospital or a nurses' training school by an individual who is 
 enrolled and is regularly attending classes in a nurses' 
 training school chartered and approved pursuant to state law; 
 and service performed as an intern in the employ of a hospital 
 by an individual who has completed a four years' course in a 
 medical school chartered and approved pursuant to state law; 

    (m) Service performed by an individual other than a 
 corporate officer, for a person as an insurance agent or as an 
 insurance solicitor, if all such service performed by such 
 individual for such person is performed for remuneration solely 
 by way of commission (the word "insurance" as used in this 
 subdivision shall include an annuity and an optional annuity); 

    (n) Service performed by an individual under the age of 18 
 in the delivery or distribution of newspapers or shopping news, 
 not including delivery or distribution to any point for 
 subsequent delivery or distribution; 

    (o) Service performed by an individual other than a 
 corporate officer, for a person as a real estate salesperson, if 
 all such service performed by such individual for such person is 
 performed for remuneration solely by way of commission; 

    (p) If the service performed during one-half or more of any 
 pay period by an individual for the person employing the 
 individual constitutes employment, all the service of such 
 individual for such period shall be deemed to be employment; but 
 if the service performed during more than one-half of any such 
 pay period by an individual for the person employing the 
 individual does not constitute employment, then none of the 
 service of such individual for such period shall be deemed to be 
 employment.  As used in this subdivision, the term "pay period" 
 means a period of not more than a calendar month for which a 
 payment or remuneration is ordinarily made to the individual by 
 the person employing the individual. 

    (q) Services performed for a state, other than the state of 
 Minnesota, or an instrumentality wholly owned by such other 
 state or political subdivision of such other state; 

    (r) Services performed as a direct seller as defined in 
 United States Code, title 26, section 3508; 

    (s) Notwithstanding clauses (1)(a) and (15)(m), services 
 performed as an officer of a township mutual insurance company 
 or farmer's mutual insurance company operating pursuant to 
 chapter 67A.  

    (16) "Institution of higher education," for the purposes of 
 this chapter, means an educational institution which: 

    (a) Admits as regular students only individuals having a 
 certificate of graduation from a high school, or the recognized 
 equivalent of such a certificate; 

    (b) Is legally authorized in this state to provide a 
 program of education beyond high school; 

    (c) Provides an educational program for which it awards a 
 bachelor's or higher degree, or provides a program which is 
 acceptable for credit toward such a degree, a program of 
 postgraduate or postdoctoral studies, or a program of training 
 to prepare students for gainful employment in a recognized 
 occupation; and 

    (d) Is a public or other nonprofit institution. 

    (e) Notwithstanding any of the foregoing provisions of this 
 clause, all colleges and universities in this state are 
 institutions of higher education for purposes of this section. 

    (17) "Hospital" means an institution which has been 
 licensed, certified or approved by the department of health as a 
 hospital. 

    Subd. 12a.    Independent contractor/construction.  A 
 worker doing commercial or residential building construction or 
 improvement, in the public or private sector, performing 
 services in the course of the trade, business, profession, or 
 occupation of the employing unit, shall be considered an 
 employee under the law of master and servant and not an 
 "independent contractor" under subdivision 12, clause (1)(d) 
 unless the worker meets all the following conditions: 

    (1) maintains a separate business with the independent 
 contractor's own office, equipment, materials, and other 
 facilities; 

    (2) holds or has applied for a federal employer 
 identification number; 

    (3) operates under contracts to perform specific services 
 or work for specific amounts of money under which the 
 independent contractor controls the means of performing the 
 services or work; 

    (4) incurs the main expenses related to the service or work 
 that the independent contractor performs under contract; 

    (5) is responsible for the satisfactory completion of work 
 or services that the independent contractor contracts to perform 
 and is liable for a failure to complete the work or service; 

    (6) receives compensation for work or service performed 
 under a contract on a commission or per job or competitive bid 
 basis and not on any other basis; 

    (7) may realize a profit or suffer a loss under contracts 
 to perform work or service; 

    (8) has continuing or recurring business liabilities or 
 obligations; and 

    (9) the success or failure of the independent contractor's 
 business depends on the relationship of business receipts to 
 expenditures. 

    Subd. 13. Repealed, 1997 c 66 s 81 

    Subd. 14. Repealed, 1997 c 66 s 81 

    Subd. 15.    Filing; filed.  "Filing" or "filed" means 
 the delivery of any document to the commissioner or any of the 
 commissioner's agents, or the depositing of the document in the 
 United States mail properly addressed to the department with 
 postage prepaid, in which case the document shall be considered 
 filed on the day indicated by the cancellation mark of the 
 United States Postal Service. 

    If, where allowed, an application, protest, appeal, or 
 other required action is made by telephone or electronic 
 transmission, it shall be considered filed on the day received 
 by the department. 

    Subd. 16.    Fund.  "Fund" means the reemployment 
 insurance fund established by sections 268.03 to 268.23. 

    Subd. 17.    Insured work.  "Insured work" means 
 employment for employers as defined in this section, except that 
 for the purposes of satisfying of disqualifications, the term 
 "insured work" shall include insured work under a similar law of 
 any other state or employment covered under the Railroad 
 Unemployment Compensation Act, and United States Code, title 5, 
 chapter 85.  Periods for which an individual receives back pay 
 are periods of insured work for benefit purposes, except for the 
 satisfying of disqualifications.  

    Subd. 18. Repealed, 1996 c 417 s 32 

    Subd. 19.    Person.  "Person" means an individual, 
 trust or estate, a partnership or a corporation. 

    Subd. 20. Repealed, 1997 c 66 s 81 

    Subd. 21. Repealed, 1997 c 66 s 81 

    Subd. 22.    State.  "State" includes, in addition to 
 the states of the United States of America, Puerto Rico, the 
 District of Columbia and the Virgin Islands. 

    Subd. 22a.    State's average annual and average weekly 
 wage.  (a) On or before June 30 of each year, the commissioner 
 shall calculate the state's average annual wage and the state's 
 average weekly wage in the following manner: 

    (1) The sum of the total monthly employment reported by all 
 employers subject to this law for the previous calendar year 
 shall be divided by 12 to calculate the average monthly 
 employment. 

    (2) The sum of the total wages reported by all employers 
 subject to this law for the previous calendar year shall be 
 divided by the average monthly employment to calculate the 
 state's average annual wage. 

    (3) The state's average annual wage shall be divided by 52 
 to calculate the state's average weekly wage. 

    (b) For purposes of contributions under section 268.06, 
 subdivision 1, the state's average annual wage shall apply to 
 the calendar year succeeding the calculation. 

    (c) For purposes of calculating the maximum weekly benefit 
 amount payable on any reemployment insurance account under 
 section 268.07, subdivision 2, paragraph (c), the state's 
 average weekly wage shall apply to the 12-month period beginning 
 July 1 of the calendar year of the calculation. 

    Subd. 23.    Unemployment.  An individual shall be 
 deemed "unemployed" in any week during which the individual 
 performs no service and with respect to which no wages are 
 payable to the individual, or in any week of less than full-time 
 work if the wages payable with respect to such week are less 
 than the individual's weekly benefit amount.  Any individual 
 unemployed as a result of a uniform vacation shutdown shall not 
 be deemed to be voluntarily unemployed.  The commissioner may, 
 prescribe rules relating to the payment of benefits to such 
 unemployed individuals. 

    Subd. 24. Repealed, 1996 c 417 s 32 

    Subd. 25.    Wages.  "Wages" means all remuneration for 
 services, including commissions; bonuses; back pay as of the 
 date of payment; tips and gratuities paid to an employee by a 
 customer of an employer and accounted for by the employee to the 
 employer; sickness and accident disability payments, except as 
 otherwise provided in this subdivision; and the cash value of 
 all remuneration in any medium other than cash, except that the 
 term shall not include: 

    (a) The amount of any payment made to, or on behalf of, an 
 employee under a plan or system established by an employer that 
 makes provision for employees generally or for a class or 
 classes of employees (including any amount paid by an employer 
 for insurance or annuities, or into a fund, to provide for a 
 payment), on account of (1) retirement or (2) medical and 
 hospitalization expenses in connection with sickness or accident 
 disability, or (3) death, provided the employee has not the 
 option to receive, instead of provision for a death benefit, any 
 part of the payment, or if the death benefit is insured, any 
 part of the insurance premium paid by the employer and has no 
 right, under the provisions of the plan or system or policy of 
 insurance to assign the benefit, or to receive cash in lieu of a 
 benefit either upon withdrawal from the plan or system or upon 
 termination of the plan or system or policy of insurance or of 
 employment with the employer; 

    (b) The payment by an employer (without deduction from the 
 remuneration of the employee) (1) of the tax imposed upon an 
 employee under section 3101 of the federal Internal Revenue 
 Code, or (2) of any payment required from an employee under a 
 state reemployment insurance law, with respect to remuneration 
 paid to an employee for domestic service in a private home of 
 the employer or for agricultural labor; 

    (c) Any payments made to a former employee during the 
 period of active military service in the armed forces of the 
 United States by the employer, whether legally required or not; 

    (d) Any payment made to, or on behalf of, an employee or 
 beneficiary (1) from or to a trust described in section 401(a) 
 of the federal Internal Revenue Code that is exempt from tax 
 under section 501(a) of the code at the time of the payment 
 unless the payment is made to an employee of the trust as 
 remuneration for services rendered as an employee and not as a 
 beneficiary of the trust, or (2) under or to an annuity plan 
 that, at the time of the payment is a plan described in section 
 403(a) of the federal Internal Revenue Code; 

    (e) Sickness or accident disability payments made by the 
 employer after the expiration of six calendar months following 
 the last calendar month in which the individual worked for the 
 employer; 

    (f) Disability payments made under the provisions of any 
 workers' compensation law; 

    (g) Sickness or accident disability payments made by a 
 third party payer such as an insurance company; 

    (h) Payments made into a fund, or for the purchase of 
 insurance or an annuity, to provide for sickness or accident 
 disability payments to employees pursuant to a plan or system 
 established by the employer that provides for the employer's 
 employees generally or for a class or classes of employees; 

    (i) Nothing in this subdivision shall exclude from the term 
 "wages" any payment made under any type of salary reduction 
 agreement, including payments made under a cash or deferred 
 arrangement and cafeteria plan, as defined in sections 401(k) 
 and 125, respectively, of the federal Internal Revenue Code, to 
 the extent that the employee has the option to receive the 
 payment in cash. 

    Subd. 25a.    Wages paid.  "Wages paid" means the amount 
 of wages which have been actually paid or which have been 
 credited to or set apart for the employee so that payment and 
 disposition is under the control of the employee.  Wage payments 
 delayed beyond their regularly scheduled pay date are considered 
 "actually paid" on the missed pay date.  Any wages earned but 
 not paid with no scheduled date of payment shall be considered 
 "actually paid" on the last day services are performed in 
 employment before separation. 

    Wages paid shall not include wages earned but not paid 
 except as provided for in this subdivision. 

    Subd. 25b.    Taxable wages.  (a) "Taxable wages" means 
 those wages paid to an employee each calendar year up to an 
 amount equal to 60 percent of the state's average annual wage, 
 rounded to the nearest $100. 

    (b) Taxable wages includes the amount of wages paid by the 
 employer's predecessor in this state or under the reemployment 
 insurance law of any other state.  Any credit given for amounts 
 reported under the reemployment insurance law of another state 
 shall be limited to that state's taxable wage base. 

    Subd. 26.    Wage credits.  "Wage credits" mean the 
 amount of wages paid within the base period for insured work. 

    Subd. 27.    Week.  "Week" means calendar week, ending 
 at midnight Saturday, or the equivalent thereof, as determined 
 in accordance with rules prescribed by the commissioner. 

    Subd. 28.    Weekly benefit amount.  "Weekly benefit 
 amount" with respect to any particular week of total 
 unemployment means the amount of benefits computed in accordance 
 with the provisions of section 268.07, which an individual would 
 be entitled to receive for such week, if totally unemployed and 
 eligible. 

    Subd. 29. Repealed, 1987 c 362 s 27 

    Subd. 30. Repealed, 1987 c 362 s 27 

    Subd. 31.    Family farm corporation.  "Family farm 
 corporation" has the meaning given to it in section 500.24, 
 subdivision 2. 

    Subd. 32. Repealed, 1997 c 66 s 81 

    Subd. 33.    Back pay.  "Back pay" means a retroactive 
 payment of money by an employer to an employee or former 
 employee for lost wages because of the employer's noncompliance 
 with a state or federal law or a collective bargaining agreement 
 as determined in an arbitration award, administrative or 
 judicial decision, or negotiated settlement.  The period to 
 which the payment shall be applied shall commence immediately 
 following the last day of work or as specified in the 
 arbitration award, administrative or judicial decision, or 
 negotiated settlement.  

    Subd. 34.    Contribution report.  "Contribution report" 
 means the summary report of wages paid and employment used to 
 determine the amount of contributions due by employers on a 
 calendar quarter basis.  An auxiliary report broken down by 
 business locations, when required by the commissioner, is part 
 of the contribution report.  The auxiliary report shall contain 
 the number of employees for each month, and the quarterly total 
 wages, excess wages, taxable wages, and tax for each location. 

    Subd. 35. Repealed, 1997 c 66 s 81 

    Subd. 36.    High quarter.  "High quarter" means the 
 calendar quarter in an individual's base period for which the 
 individual's total wage credits during that quarter are equal to 
 or greater than the individual's total wage credits during any 
 other calendar quarter in the individual's base period. 

    HIST: (4337-22) Ex1936 c 2 s 2; 1937 c 43 s 1; 1937 c 306; 
 1939 c 443 s 1; 1941 c 554 s 1; 1943 c 650 s 1; 1945 c 376 s 1; 
 1947 c 432 s 1,2; 1947 c 574 s 1; 1949 c 605 s 1; 1951 c 442 s 
 1; 1953 c 97 s 1,2; 1953 c 603 s 1; 1955 c 380 s 1; 1957 c 467 s 
 1; 1957 c 873 s 1; 1957 c 883 s 1; 1959 c 595 s 1,2; 1959 c 702 
 s 1; 1963 c 562 s 1; 1963 c 588 s 1; 1965 c 45 s 39; 1965 c 741 
 s 1-5; 1967 c 439 s 1,2; 1967 c 573 s 1,2; 1969 c 567 s 3; 1969 
 c 585 s 1; 1969 c 854 s 1-5; 1969 c 1129 art 10 s 2; 1971 c 942 
 s 1,2; 1973 c 65 s 1; 1973 c 123 art 5 s 7; 1973 c 254 s 3; 1973 
 c 431 s 1; 1973 c 599 s 1; 1973 c 725 s 51; 1975 c 143 s 1; 1975 
 c 336 s 1-5; 1976 c 2 s 90; 1976 c 43 s 1,2; 1977 c 4 s 1-3; 
 1977 c 297 s 1-5; 1977 c 430 s 24; 1978 c 688 s 1; 1978 c 722 s 
 3; 1979 c 181 s 1-3; 1979 c 212 s 1; 1980 c 508 s 1; 1Sp1982 c 1 
 s 1-3; 1983 c 216 art 1 s 87; 1983 c 372 s 1-7; 1984 c 654 art 5 
 s 58; 1984 c 655 art 1 s 44; 1985 c 248 s 43,70; 1Sp1985 c 14 
 art 9 s 75; 1986 c 444; 1987 c 333 s 22; 1987 c 362 s 1-8; 1987 
 c 385 s 1-6,8,9; 1989 c 65 s 1,2; 1989 c 209 art 2 s 1,30; 1990 
 c 426 art 2 s 1; 1991 c 199 art 2 s 1; 1992 c 484 s 1-3; 1993 c 
 67 s 1,2; 1993 c 137 s 7; 1994 c 483 s 1; 1994 c 488 s 8; 1994 c 
 512 s 3; 1995 c 54 s 1; 1996 c 417 s 1-3,31; 1997 c 66 s 3-9,79