UNEMPLOYMENT UPDATE:
Minnesota Laborers' Vacation Fund withdrawals are NOT "Vacation Pay"
When applying for unemployment benefits in Minnesota, the application form asks whether an applicant has received “vacation pay”. In the past, there has been some confusion by Minnesota Laborers’ who receive their annual or special payouts from the Minnesota Laborers’ Vacation Fund around the same time that they apply for unemployment benefits. When completing the application form, if a Laborer answers, yes, that they have received vacation pay their unemployment benefits are delayed or denied. However, in the recent decision, Auren v DEED, A05-606 (March 28, 2006), the Minnesota Court of Appeals determined that a withdrawal from the Minnesota Laborers’ Vacation Fund does not affect eligibility for unemployment benefits because:
Laborers’ Vacation Fund withdrawals are made at the request of the member
Laborers’ Vacation Fund withdrawals are made out of the member’s own account
Laborers’ Vacation Fund withdrawals are wages already earned by the employee and already taxed
Laborers’ Vacation Fund withdrawals are made regardless of whether the member is laid off or working
Therefore, Laborers’ Vacation Fund withdrawals do not meet the definition of “vacation pay” under Minnesota law. We encourage members to carefully complete applications for unemployment benefits. If you have received a withdrawal from your Minnesota Laborers’ Vacation Fund, you have not received “vacation pay” for unemployment purposes.