Short Time Compensation Act of 1981

Summary

Short-Time Compensation Act of 1981 - Declares the purpose of this Act to be to encourage States to provide unemployment benefits to individuals whose workweek is reduced pursuant to an employer plan under which such reductions are made in lieu of total layoffs. Directs the Secretary of Labor to: (1) develop legislation which may be used by States as a model in developing and enacting short-time compensation programs; (2) provide technical assistance to States to develop, enact, and implement such programs; (3) make grants and provide technical assistance to States to assist in developing, enacting, and implementing short-time compensation programs; and (4) study and evaluate the operation, costs, effect on State insured rate of unemployment, and other effects of such programs. Terminates the guideline and grant provisions of this Act after a three-year experimental period. Authorizes the Secretary to require specified provisions to assure minimum uniformity, even though States are encouraged to experiment. Defines a "Short-time compensation program" as one under which: (1) individuals whose workweek has been reduced, pursuant to a qualified employer plan by at least ten percent will be eligible for at least a pro rata portion of the unemployment benefits payable if such individual were totally unemployed; (2) eligible employees may apply for and collect short-time compensation or regular unemployment compensation benefits, as needed, but may not collect more than the maximum unemployment compensation benefit for full time unemployment; and (3) eligible employees will not be expected to meet the availability for work or work search test requirement while collecting short-time compensation, but must be available for their normal workweek. Defines "qualified employer plan" as one under which there is a reduction in the number of hours worked by employees rather than total layoffs if: (1) such plan is approved by the State agency; (2) the employer certifies that the aggregate reduction in work hours pursuant to such plan is in lieu of total layoffs which would result in an equivalent reduction of work hours; (3) such plan remains in effect for no more than one year and the employer reapplies for recertification;(4) the employer continues to provide health and pension benefits to employees whose workweek is reduced under such plan at the same level provided before such reduction; and (5) the appropriate official of the union or union hall has consented to the plan, in the case of employees represented by a union. Requires that such short-time compensation benefits be charged in a manner which insures that the benefits are financed by the employers to whom the benefits are attributable. Includes the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands under the term "State," for purposes of this Act. Directs the Secretary to establish a three-year experiment and conduct one or more controlled demonstration projects to evaluate the effectiveness of short-time compensation programs. Sets forth some of the effects of such programs which such projects must be designed to measure. Requires that: (1) such demonstration projects be conducted with the cooperation of the appropriate State agency; (2) the Secretary pay the administrative costs of such projects; and (3) such short-time compensation benefits be financed through the State unemployment compensation fund in States which have amended their statutes to permit such compensation. Directs the Secretary to submit an interim report to the Congress and a final report to the Congress and the President on the implementation of this Act, with an evaluation of such programs and recommendations. Authorizes appropriations for fiscal years 1982 through 1984 in limited amounts to carry out this Act.

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1 official file

• Introduced in House

  summary · EN · 2 April 1981

  Open at official source

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