Whether or not a person can collect Social Security benefits and unemployment benefits in Minnesota at the same time is a complicated issue. If you are trying to decide whether or not you are eligible to collect Social Security benefits and unemployment benefits at the same time, please consider seeking the opinion of an unemployment lawyer to prevent an issue like that recently reviewed by the Minnesota Court of Appeals. Otherwise, if unemployment benefits and social security benefits are fraudulently collected at the same time, Minnesota is able to assess a 40% penalty.
In Hasledalen v. Minnesota Department of Employment and Economic Development (“DEED”), the Minnesota Court of Appeals decided an unemployment issue related to social security. The issue was whether or not a person’s unemployment benefits shall be reduced by an amount equal to fifty percent (50%) of his Social Security old age benefit calculated on a weekly basis.
In Minnesota, a person aged 62 or older who applies for unemployment benefits must disclose if he has applied or intends to apply for Social Security old age benefits for any week during the benefit year. This unemployment disclosure for Social Security benefits in Minnesota must also be made when filing continued requests for benefits. If the applicant receives Social Security, files for Social Security, or intends to file for Social Security benefits when collecting unemployment benefits in Minnesota, an amount equal to 50% of the Social Security benefit measured on a weekly basis must be subtracted from the weekly unemployment benefit.
However, an exception to this rule Social Security and unemployment benefits rule is when the applicant for unemployment benefits was already receiving Social Security benefits while employed. The purpose for this Social Security and unemployment benefits exception is to ensure that the applicant seeking unemployment benefits and Social Security benefits at the same time has demonstrated a desire and an ability to work.
Under Hasledalen v. DEED, the applicant trying to collect unemployment benefits and Social Security benefits at the same time because they did not demonstrate a desire and an ability to work nor did they meet the exception to the general rule regarding Minnesota unemployment benefits and Social Security benefits.
Therefore, the person under Hasledalen v. DEED was denied unemployment benefits and was ordered to repay their overpayment.
