1
Customize This Template!
Insert your state agency’s logo Change the master slide to your
state agency’s PowerPoint template
Tailor the color scheme to match your state agency’s color scheme
Add or delete slides Edit slides to include your state
specific program information [see red text to “insert quotes from employees”]
Insert staff contact information
An Alternati ve to Employee Lay-off s
SHORT-TIME COMPENSATION
Insert State logo
here
What Is Short-Time Compensation?
Short-time compensation, also known as worksharing or shared work, preserves jobs and your employer’s trained workforce during declines in regular business activity by reducing hours of work for an entire group of affected employees rather than laying off some employees while others continue to work full-time.
3
STC cushions the adverse effect of the reduction in business activity and keeps employees on-the-job for when business demand increases.
Here’s How it Works
Rather than being laid off, eligible employees work a reduced number of hours in the work week and receive a portion of their weekly unemployment compensation (UC) payment based on the percentage of the reduction in hours.
4
100% Layoff Unemployment Compensation
20% Work Reduction
Short-Time Compensation
Total weekly UC benefit: $300
4 days regular pay (80% of $600) $480
+ Weekly STC payment $60_____________________________Total weekly income: $540
How Does STC Compare to a Layoff?
(Versus $600 at 40 hours for regular, full-time work)
Pat Smith normally works 40-hours per week & earns $600 in regular pay. Under the STC program, Pat’s hours are reduced by 1 day of work per week- from 5 days to 4 days (20% reduction). How does this compare to a total layoff for Pat?
[Note: Example provided for illustration purposes. State can revise numbers to reflect salary and UC payment typical for workers in the state]
5
What’s in it for Employees?
6
STC is an Alternative to Layoffs
[“Insert quote from employee participant here”]
Continued employment versus total unemployment in a challenging labor market
7
STC Keeps Employees on the Payroll
[“Insert quote from
employee participant here”] Employees retain connection with their current employer
Continue to work and earn wages
Receive a portion of unemployment insurance benefits
8
STC Allows Employees to Retain their Benefits[“Insert quote from
employee participant here”]
Healthcare coverage is maintained
Contributions to employee retirement plans continue
9
STC Keeps Workforce in Place
[“Insert quote from employee participant here”]
Work teams stay together
Employees remain productive and maintain skills
When times get better, employees are in place and ready to respond to the increase in business.
10
STC Maintains Morale
[“Insert quote from employee participant here”]
Company respects the value of their employees
Company acknowledges that employees can be part of the solution
Company recognizes the difficulties individuals experience with being totally unemployment and found an alternative to laying off its workers
11
STC is a Win for Employees!When business is slow, employees stay with their
employer – on-the-job and ready for when business demand increases.
Employees stay current on their work skills.
12
Want to Learn More?
Staff Contact:
Telephone:
E-mail:
Website:
13
Top Related