Minnesota To Freeze Unemployment Tax Rates Amid Virus

Minnesota employers' unemployment tax rates for 2021 will be set at their 2020 levels to provide relief from coronavirus pandemic-related unemployment, under a bill signed by the governor.

On Friday Democratic Gov. Tim Walz signed S.F. 192, which allows the state Department of Employment and Economic Development to set employer experience ratings, used to calculate unemployment tax rates, at their calendar year 2020 levels for 2021. According to the department website, the law will ensure pandemic-related unemployment from 2020 does not negatively impact employers' 2021 rates.

The bill also clarifies that pandemic-related unemployment claims are not to be used in experience rating calculations for any future calendar year.

--Editing by Robert Rudinger.

For a reprint of this article, please contact reprints@law360.com.