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Washington State to receive funds to expand the Short-Time Compensation Program

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Are you a worker facing a layoff and your employer doesn’t take part in the Short-Time Compensation Program (STC)? Are you or your employer unsure what this program is or does for workers facing a layoff?

The Short-Time Compensation (STC) Program aids in preventing layoffs and is also known as “work sharing.” Employers would be able to choose to lessen the hours for a group of employees facing layoff rather than letting them go completely, allowing the companies to keep these trained folks that already know how to do the job instead of having to hire and train all new employees once business again rises. In turn, those that are affected by the loss of wages from reduced work hours would receive supplemented income in the form of a percentage of weekly unemployment compensation, thus allowing the workers to keep their jobs and benefits.

There’s good news for workers in Washington State that are facing such a situation or that expect to in the coming months. The United States Department of Labor recently announced that our state would receive $2,136,749 in order to expand and stimulate the STC Program for our state. Funding came from the Middle Class Tax Relief and Job Creation Act of 2012.

Washington State will assign about $708,000 of the funds to boosting the program itself while the rest of the allocation will be used to inform companies and workers about the positives of featuring this program and getting more companies to join in. States that utilize this program could be entitled to one-hundred percent reimbursement for program benefits that have been paid from the federal government.

So, if you’re a worker in a company facing layoffs where this program is not being utilized, talk to your company and guide them to this website, where they can learn more about taking advantage of federal financial incentives, including the STC Program.



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