Shorttime Compensation STC an alternative to full layoffs

Short-time Compensation (STC) … an alternative to full layoffs. Presented by Special Programs Area Florida Department of Economic Opportunity Reemployment Assistance

BACKGROUND • 1982 federal legislation enacted which encouraged states to adopt Short Time Compensation. • Secretary of Labor was mandated to develop model legislative language for states to use when adopting Short Time Compensation programs. • July 1983, the legislative language was made available to states. Florida adopted the Short Time Compensation program in 1983.

Adopting Short Time Compensation Target population: Partially employed workers Contributors: Employer Contributions to the Unemployment Insurance Fund For a state to choose to adopt Short Time Compensation, the program must first be proposed in the state Legislature. Key stakeholders: • • State Governor Legislative Representatives Employer Representatives Labor Groups

Benefits to Short Time Compensation • Short-time compensation (STC) provides employers with an alternative to layoffs by allowing them to make work reductions to a larger group of workers. • Under Short Time Compensation workers whose hours are reduced, receive pro-rated reemployment insurance benefits for partial work. • Workers usually receive no Reemployment Assistance benefits for such partial layoffs in the absence of an Short Time Compensation program.

Short Time Compensation Program Benefits Cont. • Offers flexibility in within adjusting employment offered hours of work. • Allows for retention of skilled employees. • Reduces costs of reorganization necessitated by layoffs. • Prevent disruption in business/production. • Reduces costs of training. • Reduces costs of hiring/re-hiring. • Provides long term productivity gains as there is no interruption business production.

Short Time Compensation Benefits Effects • Prevent economic necessity for employees to seek new employment • Avoid placing disproportionate share of the effects of economic down turn on individual workers who would otherwise be laid off • Allow partial benefits to individuals who would otherwise not qualify under a States’ regular unemployment compensation partial payment provisions • Stimulate economy with revenue resulting from the pro-rated income the STC participant receives

Adoption Rules and Conditions Each state determines the administrative procedures, rules and conditions for STC participation. These include: • • Exclusions Minimum number of participants Percentage employees hours can be reduced Require employer maintain work benefits Duration employee can receive STC Worker attachment requirements Availability for all work hours STC employer has available

Short Time Compensation Program for Employees Within the State of Florida • If an employer establishes a Short Time Compensation Plan and the employee meet the qualifications to file an reemployment assistance claim in the state of Florida, they will receive a partial reemployment benefits to supplement their reduced paycheck. • As of October 15, 2014 the STC Program applications are completed on line via the CONNECT system. • Employers and participants are required to go online and complete application via the CONNECT system at floridajobs. org.

HOW TO APPLY • Claimants’ Login: https: //connect. myflorida. com/Claimant/Core /Login. ASPX • Employers’Login: https: //connect. myflorida. com/Employer/Cor e/Login. ASPX

Marketing Short Time Compensation After Adoption • • • Media Publicity Flyers Regular Articles Pamphlets or CD’s Web site Include as part of response to WARN notices

TOTAL SHORT TIME COMPENSATION PARTICIPANTS TOTAL STC PARTICIPANTS 7000 6000 5000 4000 3000 2000 1000 0 2006 2008 2010 2012 YEAR 2014 2016 2018

RESOURCES Florida STC Law: http: //199. 44. 254. 194/Statutes/index. cfm? App_mode=Display_Sta tute&Search_String=&URL=Ch 0443/SEC 1116. HTM&Title=->2004>Ch 0443 ->Section%201116 Florida’s STC Information: http: //www. floridajobs. org/office-directory/division-of-workforceservices/reemployment-assistance-programs. Unemployment Insurance Program Letter 45 -92 http: //wdr. doleta. gov/directives/corr_doc. cfm? DOCN=2383 http: //wdr. doleta. gov/directives/attach/UIPL/uipl 1992/uipl_4592. cfm#2