Showing posts with label WORK SHARING. Show all posts
Showing posts with label WORK SHARING. Show all posts

Tuesday, August 14, 2012

U.S. DEPARTMENT OF LABOR ANNOUNCES $100 MILLION IN GRANTS FOR "WORK SHARING" PROGRAMS


FROM: U.S. DEPARTMENT OF LABOR
US Labor Department announces nearly $100 million in grants available for states to implement, improve short-time compensation or 'work sharing'
WASHINGTON
— The U.S. Department of Labor today announced the availability of nearly $100 million in grants for states to implement or improve existing short-term compensation, commonly referred to as "work sharing," programs. This funding has been made available through the bipartisan Middle Class Tax Relief and Job Creation Act of 2012 signed by President Obama in February, which authorized states to set up programs to give employers an alternative to layoffs.

"Establishing or expanding work-sharing programs nationwide will help business owners better weather hard economic times by temporarily reducing their labor costs while still keeping their existing skilled employees," said Secretary of Labor Hilda L. Solis. "This program is a win-win for businesses and employees alike."

Work sharing allows employees to keep their jobs and helps employers to avoid laying off their trained workforces during economic downturns by reducing the hours of work for an entire group of affected workers. Workers affected by reduced hours can have their wages compensated with a portion of their weekly unemployment compensation payments.

The legislation requires each state to submit a complete application to the Labor Department in order to receive a grant. Any state that currently has an active short-time compensation program is eligible to apply if the state's law on work sharing conforms to Section 3306(v) of the Federal Unemployment Tax Act and its program is not subject to discontinuation.

Each state has a designated allotment from the total grant funds available. One-third of the allotted grant money for each state will be used to implement or improve a short-time compensation program, and two-thirds will be available to promote and enroll employers in the program.

The department will provide technical assistance through webinars and other methods to help states achieve the purposes of the grants. The department also will collect and disseminate successful practices based on program implementation as well as outreach tools developed as a result of these grants.

Wednesday, June 20, 2012

U.S. DEPARTMENT OF LABOR ISSUES GUIDANCE ON "WORK SHARING" COMPENSATION


Picture:  Labor Day Celebration In New York City in 1882.  Credit:  Wikimedia.
FROM:  U.S. DEPARTMENT OF LABOR
US Labor Department announces guidance to state Unemployment Insurance agencies on implementing short-time compensation or ‘work sharing’

WASHINGTON — The U.S. Department of Labor today announced guidance to state agencies responsible for Unemployment Insurance regarding short-time compensation, commonly referred to as "work sharing." Today's announcement is the latest in a series of innovative reforms to the UI program made possible by the Middle Class Tax Relief and Job Creation Act of 2012 signed by President Obama in February.

"Work sharing is a win-win for workers and employers," said Secretary of Labor Hilda L. Solis. "This program will provide more flexibility to workers and employers so they may more efficiently and effectively weather the ups and downs of the economy."

Work sharing allows employees to keep their jobs and helps employers to avoid laying off their trained workforces during economic downturns by reducing the hours of work for an entire group of affected workers. Workers affected by reduced hours can have their wages compensated with a portion of their weekly unemployment compensation payments.

The guidance issued today provides detailed information about a new federal definition of short-time compensation — which includes more worker protections such as maintenance of health insurance and retirement benefits — as well as how states currently operating short-time compensation programs can transition to the new definition. The guidance also provides information to states that already have permanent short-time compensation programs on how to begin receiving 100 percent federal reimbursement of payments made by state programs.

The Labor Department will issue additional guidance to address other aspects of short-time compensation found in the Middle Class Tax Relief and Job Creation Act of 2012, including a two-year federal initiative to enable states to quickly implement and try out short-time compensation programs; and the provision of approximately $100 million in grants to states for the implementation or improved administration of, or for promotion of and enrollment in, a short-time compensation program. The department also is developing model legislative language, to be provided in the near future, that will assist states in amending their laws so they can adopt short-time compensation programs.

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