HB 113 - Short-Time Compensation Program

• Establishes a short-time compensation program allowing employers to reduce employee work hours by 10-100% as an alternative to temporary layoffs, with employees receiving partial unemployment benefits.

• Requires employer submission of written plans to the director for approval, including identification of affected units, employee names, continuation of health and retirement benefits, and certification that hour reductions replace planned layoffs of at least 10% of the workforce.

• Employees in approved plans receive weekly benefits calculated as a percentage of regular unemployment compensation equal to their percentage reduction in work hours, up to 26 weeks per benefit year.

• Directors may revoke plan approval for good cause including non-compliance, unreasonable productivity standard changes, or violations of approval criteria, and must review each plan at least once during its operation.

• Effective July 1, 2012, with short-time compensation benefits charged to employer experience rating accounts the same as regular unemployment compensation.