FAQ on Layoffs
FAQ Layoffs

I received a layoff notice in the mail in early June. Does that mean I will be laid off on June 30? 

Potentially. As of June 8, MMB still did not know who would be laid off and who would be designated as a priority 1 or 2 critical service. Conflicting legal precedent and many things that are yet to be decided at the legislature are leaving us with very little solid information on who will or will not be laid off if there is a government shutdown on July 1. 

If I am laid off, am I eligible for Unemployment Insurance? 

Yes.

If I am laid off on July 1, will I still receive my July 2 pay check?

Yes, the paychecks that go out on July 2 are for a pay period that ended June 22. In a shutdown scenario, agencies would keep enough payroll staff working to process payroll.

If I am laid off, can I use accrued time off (i.e. sick, vacation or comp time) during that time?

State employees will not be able to use any paid leave (VAC, SIK, Comp time, etc.) in the event of a shut down. State agencies are not able to operate without approved budgets so there would not be a way to pay employees.

If I am laid off, will I continue to be covered with Health insurance or will I need COBRA? 

Employees who are laid off on involuntary unpaid leaves of absence and are eligible to receive insurance through SEGIP will remain eligible with the same coverage level and employer contribution for the duration of the shutdown, regardless of years of service. This applies to unclassified employees as well.

How will my premiums be paid? 

Premium deductions for employees’ share of premiums that were missed during the shutdown will be taken out beginning with the second full paycheck received after the return to work and will be spread out on subsequent paychecks for as many periods that were missed. 

How do seniority and bumping rights affect layoffs, especially in areas with Priority 1 and 2 Critical Services? 

  • Layoffs or involuntary unpaid leaves of absence as a result of the shutdown and the MOU only applies to employees who will not be directed to perform priority 1 or 2 critical services.
  • The assignment of employees to perform priority 1 or 2 critical services will be by seniority provided that the senior employees are capable and qualified to perform the assigned work.
  • The MOU waives Article 17, Section 3 of the MAPE Contract for the first thirty (30) days for any layoffs as a result of a state shutdown.
  • If a layoff is longer than 30 days and an employee chooses to bump, the position change will be permanent.
  • Employees who are laid off and choose not to bump will return to their former position, work location, shift and schedule at the conclusion of the shutdown.
  • Employees who are laid off or on involuntary unpaid leaves of absence as a result of the shutdown will not be able to liquidate accrued vacation, severance, or comp time.

I work in the Minnesota State System. Does this apply to me? 

For employees of Minnesota State Colleges and Universities, a potential layoff or involuntary unpaid leave of absence would have to be triggered by the Board of Trustees determining that funds are no longer available to continue operation.

What happens at the end of the shut down? 

Once the shutdown ends, all employees who are laid off or on involuntary unpaid leaves of absence, who did not exercise bumping rights if the shutdown was longer than 30 days, will be recalled to work and will be returned to their prior position, work location, shift, and schedule. Employees will receive a return-to-work date in the recall notice they receive.

If a layoff is longer than 30 days and an employee chooses to bump, the position change will be permanent.

What happens to my pension during the shutdown? 

Time on layoff or involuntary unpaid leaves of absence because of the shutdown will be considered “continuous service” for purposes of vacation accruals, seniority, severance pay eligibility and eligibility for insurance for part-time employees.

Regarding your MSRS pension, service accruals are controlled by MSRS and can’t be altered with an MOU. MSRS counts months of service based on an employee getting paid for that month. Find out more information here about MSRS during a shut down. https://www.msrs.state.mn.us/state-shutdown-faq

Will I receive backpay after I return to work?

Unfortunately, no, but you would be eligible for unemployment insurance.

REMINDER: Employees who are laid off or on involuntary unpaid leaves of absence are eligible for unemployment benefits. For more information, visit our page on Unemployment Insurance.