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An Option to Avoid Layoffs: Short-Time Compensation

Seventeen states have adopted a federal option called Short-Time Compensation (STC) that provides partial unemployment benefits to workers who are not laid off, but are placed on reduced schedules. While these programs are not automatic and require that states approve a plan for reduced hours, this may be something unions in states with a STC provision may want to explore. Under this program, unemployment benefits are paid to workers for hours of work lost by this action, as a proportion of the benefit amount for a full week of unemployment. States with work-sharing programs in effect are Arizona, Arkansas, California, Florida, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, New York, Oregon, Rhode Island, Texas, Vermont, and Washington. Connecticut has a program but has not yet issued the regulations required to administer the program.

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