The U.S. Department of Labor has announced a new online resource that provides guidance and information to states interested in developing or improving short-time compensation (STC) programs, also known as work-sharing.
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Get Your Report Now!The STC program is designed to avert employee layoffs for businesses faced with a temporary slowdown in business activity. The online resources, which will be available to state workforce agencies, state policymakers, and the general public, are located at: https://stc.workforce3one.org.
The new website provides helpful tools that can be used to expand STC education and outreach to states and the public. According to a DOL press release. The website includes guidance and model legislation for states interested in developing an STC program. The site also offers a compendium of state practices, outreach efforts, operational tools and vignettes from STC participants (employers and employees) who have benefitted from the program.
DOL encourages states to take advantage of federal financial incentives for states with active STC programs, available for only a limited time. The Middle Class Tax Relief and Job Creation Act of 2012 provided for 100 percent reimbursement of STC benefits for states with conforming STC programs through Aug. 22, 2015. States with conforming STC programs are also eligible for grants to support the implementation or improved administration of the STC program and to promote and enroll employers in the program. Applications for grants must be received by Dec. 31, 2014.
Technical assistance is available from DOL to help states develop their grant applications.
"I encourage every state to consider establishing or expanding a work-sharing program so that business owners have an additional tool they can use to weather hard economic times while still keeping their existing skilled employees," said Eric M. Seleznow, acting assistant secretary of labor for employment and training. "The information the Labor Department has made available online will make it easier for states to develop a program that fits the specific needs of their local workers and employers."
For more information about STC and how states can take advantage of the federal financial incentives currently available, please visit https://stc.workforce3one.org.
Also available is Secretary of Labor Thomas E. Perez's Short-Time Compensation: A Win for Employees and Employers blog post.