Senate Bill 536 Summary

• Establishes a short-time compensation program in North Carolina allowing employers to reduce employee work hours by 10-40% as an alternative to layoffs affecting at least 10% of affected unit employees.

• Requires employers to submit written plans for Division approval, including identification of affected employees, certified statements that hour reductions replace layoffs, and written approval from collective bargaining agents where applicable.

• Eligible employees receive weekly benefits equal to their weekly benefit amount multiplied by the ratio of reduced hours to normal hours, with benefits deducted from total entitlement amounts.

• Requires employers to maintain fringe benefits (health insurance, retirement, paid vacation, sick leave) for participating employees under the same terms as non-participants and prohibits participation by seasonal, temporary, or intermittent employees.

• Approved plans expire after 12 months and may be revoked for non-compliance; the Division must approve or deny plans within 15 days of submission.