Minnesota law provides, employees on an unpaid suspension for 30 calendar days or less, as a result of employment misconduct are not entitled to receive unemployment benefits.

However, in a recent unpublished Court of Appeals decision (pdf), the Minnesota Department of Employment and Economic Development conceded, if an employee who was placed on an unpaid suspension during an employment investigation was later exonerated or the conduct did not amount to misconduct, the employee would not be disqualified from receiving unemployment benefits during the unpaid suspension.

Minnesota employers should keep this in mind when deciding whether or not to place an employee on a paid or unpaid suspension pending an employment investigation. A wrong decision could increase your unemployment insurance rating and cost your business more money.