Leaders Find Compromise on Frontline Worker Pay, Unemployment Insurance

April 28, 2022

Legislative leaders came to a deal on “hero pay” for Minnesota’s frontline workers this week, as well as settling the state’s unemployment insurance debt. 

On April 28, legislative leaders announced that $500 million will be distributed to 650,000 frontline workers in the form of $750 checks. They also announced a compromise to allocate $2.7 billion to repay the $1.3 billion unemployment insurance debt the state owes the federal government and refill the state’s unemployment insurance fund to its pre-pandemic amount. 

Both bodies passed their own versions of the bill earlier this week, essentially tying frontline worker pay to a deal on unemployment insurance. The House agreed to a $2.7 billion unemployment insurance deal but wanted $1 billion to be shared with about 666,000 frontline workers in the form of $1,500 checks. 

The Senate also passed a $2.7 billion unemployment insurance deal but wanted to stick to $250 million for frontline healthcare workers, an amount agreed to in the 2021 legislative session. 

The bill is expected to be sent to Gov. Walz for his signature on April 29. The compromise solidifies one of the largest legislative issues of the session. 

Lawmakers were pressured to come to a deal before April 30. Without legislative action to replenish the state’s unemployment insurance fund and pay back unemployment insurance debt owed to the federal government before then, Minnesota businesses would be required to pay higher first-quarter payroll taxes.