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A Comprehensive Guide To Short-Time Compensation Programs

Updated : August 4th, 2020

In response to the Coronavirus pandemic, the federal government has passed the New Coronavirus Aid, Relief, and Economic Security (CARES) Act. This financial relief program includes several programs such as PUC, FPUC, retirement plan provisions, and funding for Short-Time Compensation (STC) programs. 

What Is A Short-Time Compensation Program?

Short-Time Compensation, also known as shared-work program or work sharing, is an alternative to layoffs for employers whose available work has reduced. It allows employers to reduce working hours of employees instead of laying-off some employees. This program protects employers’ trained workforce and employees’ jobs during times of lowered economic activity. 

For instance, an employer might reduce his/her employees’ working hours by 10% instead of laying off 10% of his/her full-time workforce. 

STC or shared-work programs are administered by state governments. The requirements may vary with states but they must meet certain federal requirements to receive funding for the programs. This includes:

  • The reduction in number of hours worked must be in lieu of layoffs 
  • Employers must report the estimated number of layoffs that would have occurred in the absence of STC program
  • The amount of UC payable must be in a prorated portion of what the employee would be receiving if he/she did not participate in the program 
  • Employers who offer health, retirement, or other benefits must certify that participating employees are still continuing to receive the benefits even after their work hours has been reduced 

Who Can Qualify For An STC Program?

To be eligible for an STC program, employers must have an approved STC plan with an appropriate state agency. The STC application process is initiated by employers. 

To qualify for a shared-work program, employees must be determined to qualify for UC benefits. While receiving benefits under an STC plan, employees need not meet work search or availability requirements, but must be available for their normal workweek. If the state requires, the employees should also serve “waiting week,” a non-paid week.

Does The Short-Time Compensation Program Help Employees?

The STC program not only helps employers but employees as well. That is, those employees who have experienced a reduction in working hours and lost a portion of wages can collect a percentage of unemployment compensation (UC) benefits. 

Unemployment benefits generally replace half of an average employee’s wages. If an employee has experienced a 10% reduction in working hours, UC benefits would account to 5% of the employer’s wages before the working hours were reduced. Employees would therefore receive a combined income of 95%,i.e., 90% as wages plus 5% as STC. 

Which States Have A Short-Time Compensation Program?

27 states have STC programs that meet the federal definition under Code Section 3306(v), and 26 among them have operational programs. The states that offer STC programs include:

  1. Arizona
  2. Arkansas
  3. California
  4. Colorado
  5. Connecticut
  6. Florida
  7. Iowa
  8. Kansas
  9. Maine
  10. Maryland
  11. Massachusetts
  12. Michigan
  13. Minnesota
  14. Missouri 
  15. Nebraska
  16. New Hampshire
  17. New Jersey
  18. New York 
  19. Ohio
  20. Oregon
  21. Pennsylvania
  22. Rhode Island
  23. Texas
  24. Vermont
  25. Washington
  26.  Wisconsin

With extra funding available for STC programs under the CARES Act, it is expected that more states will implement these programs.

Where Can You Apply For STC Programs? 

You can apply for STC programs through your state’s Unemployment Insurance agency. But before applying you must draw up a plan which must include: 

  • How many working hours will be reduced?
  • How many employees will be affected due to reduced hours?
  • How will the employees be notified about the reduced work hours?

It should also include:

  • A statement that benefits will be provided to employees even after reducing work hours
  • An estimate of the number of employees who would be laid off if a STC program is not implemented
  • Certification that affected employees can take part in training to upgrade their job skills during the shared-work program

Details Required While Applying For STC Program

You have to provide several information while applying for a shared-work program. They include:

  • Your company’s name, telephone number, address, fax number, and contact details for an authorized representative
  • Names and social security numbers of employees who are affected due to reduced work hours
  • Your tax account number 

Is An STC Benefit Taxable Income?

Yes, an STC benefit is taxable income. Individuals who have received STC benefits should fill a Form 1099-G from the state where they have filed a claim, to show the amount received. 

Closing Thoughts

STC programs can help you not only retain trained employees but also improve the morale of your business by avoiding layoffs. For employees, these programs do not replace 100% income but can help you if your work hours are reduced. However, if you are still laid off under unfortunate circumstances, you can apply for other unemployment benefits programs like Pandemic Emergency Unemployment Compensation (PEUC) program, etc. under the CARES Act. 

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  1. I had trouble getting my proof of self-employment to upload in secure file exchange and finally got it submitted by 12:06 am , 6 minutes late. What are the possibilities that they will deny it? I have received unemployment from March 2020 to some of Jan and some in Feb 2021. Most of Dec, Jan, Feb, March, & april were stopped for this proof of employment.
    Also, I see proof of Income as a 2nd issue but it is always on there. That was not on my TO DO list.
    I feel for u all on ID.ME…

    Anyone trying to reach UI, call their number, press 2 or 3 (questions abt filing a claim?) and then wait thru the message. At the end of it, u will be connected to a live person! I promise.. don’t push another button.. I’ve done it 4 times and it never failed.

    We lost our home, my ex took my child…. (kept her after a visit and called cps facilitating drama while the cops wouldn’t give her back without paperwork locked up in the court house..shut down for covid) I raised her by myself for 12 years & now she is with a violent alcoholic and parental alienating parent .. ….my dog, my 9-year sweet little best friend, was attacked, passing away 3 days later.. all in this time frame.
    But! It will all be ok. I have faith.

    Be grateful for your life and all that is in it today. What u dwell on daily will be your strength or weakness.
    Good luck to all of u.
    And thank you, Jeff, for responding out here. It is appreciated!
    Davulia S.

  2. I filed over two months ago. I have not received any information. My status says “pending resolution”. I have no way of contacting anyone. My position was eliminated at my job and I submitted the documentations online. I dont know what else I can do.

  3. I have been apply Ohio Pua unemployment since July 5th still pending issues. Upload what they ask for when ever I call says your case is in Adjudication. Very very frustrated, financially I am broke. Health issues. Waiting a long period.Don’t know what I will do ?

    1. Nafisa,

      I can understand your situation. There will be a delay considering the number of applications that are being processed. Please continue chasing the office/check your status online at regular intervals until payments normalize.

    2. Same here since Feb 2021 turned in all the documents still pending issues 3 months now. When you call they tell you to be patient. Pulling my hair out it’s so frustrating.

  4. I was receiving PUA unemployment. they made me file for a new claim in February. Now I am in adjudication even though I gave all the same information from my previous claim. Have been adjudication since February and I call and they say they will put in a ticket to have an Adjudicator call me. Nothing. I am wondering If I can go down to to Maryland Unemployment Office and demand that someone talk with me to release my claim for payment. It’s been 56 days. I read that they have a maximum of 45 days.

    1. Luis,

      Your adjudicator may be inundated with pending cases. Please continue to follow up (if you have the contact details) or consider the option of visiting an office in the vicinity if safe and feasible.

    2. t sounds just like mine only im disqualified yet actie every till sept 4th . they haven’t asked me for anything! i file then its disqualified yet im told im ok and have nothing to do bit wait for an answer? answer to what? they switched my program and all and asked me to provide proof for a claim that wa denied al eady back in 2018! deny me once and then again perhaps? lol idk

  5. My mom had unemployment in Florida. She just recently moved temporally to California with a sister since she needs assistance, and now the website is telling her she cannot do anything because she is register in another state. Can she keep filing unemployment in Florida, even if she is living and register now in another state? how is the process to change the unemployment? I tried calling and there is no answer. Thank you!

    1. Stephanie,

      Please ask your mother to consider transferring the UI benefits from FL to CA (details will be available on either of the websites). If there are benefits weeks left in the account, she will be able to claim them.

    1. Leatha,

      UI benefits are offered to claimants who lose employment involuntarily and be able to and available for work.

  6. I lived in ga in 2019 and move to florida in 2020 and work for the xmas months in nov-dec. I was told to do a combine wage claim. my question is which state do i file the claim in?

  7. I filed for pua in Ohio back in October 2020.My claim has been in ajudacatuon since 11/1/20.So 2 to 6 weeks is a total understatement! When I call.i am told to basically hurry up and wait some more.I have recently been redetermined and my claim is allowed.but I have one pending issue.How long is too long?

    1. Nicole,

      Unfortunately, nobody has an answer. There are perhaps thousands of pending applications. Please consider the option of visiting an office in the vicinity if safe and feasible.

  8. If you claim your weeks for unemployment and for the next 2 months you still have not received your money. Where can you go in volusia county to talk with a live person

      1. HI Jeff,
        I applied back in Dec 5th, 2020 and I haven’t received any correspondence, is there a local office that I can make an appt to make certain my claim is right.

        1. Adam,

          You can consider visiting an office in the vicinity if safe and feasible (details will be available on the Unemployment Office’s website).

  9. On NYS DOL website, my claim is saying current yet the information is for my old claim with 0 days remaining despite receiving 2 weeks of payments on the new claim and I was able to certify last night. I haven’t received anything; no letters or emails.

  10. I was disqualified for UI benefits for not providing an ID and other forms of identification. How do I fix this?

        1. Gary,

          You may not be eligible since unemployment insurance is only extended to those who become unemployed due to involuntary reasons.

    1. Hi Mike, I’m in NYS and was at the end of my BYE on 3/14, I was still certifying but wasn’t getting paid. I found out I had to file a new claim because my other was exhausted. I’m still waiting on approval. Maybe you have to file a new claim. I hope this helps.

  11. They say 2-6 weeks it’s more accurate to say 2-6 months; and when you call many of them are rude and unwilling to assist!

  12. someone needs to look into Sharon L. Anton gillette, wyo. or dickinson, nd she is a fraud and has done so many fraudulent things and please look into her

    1. Annette,

      Please report it to the Fraud Division of the Unemployment Office in your state. You can report on the website.

  13. I worked part time for thee years here in florida. I’m currently not working. I’m also retired and collects social security.
    My question is
    Am I qualified to file for unemployment ?

    1. Ruby,

      To be eligible, you’re required to have sufficient hours and earnings. Please use the “Benefits Calculator” available on this website.

  14. So adjudication takes 8 to 12 weeks. Oh okay, that explains why I havent received payment since July. That surely helps just like the rest of the information that you give. And by the way. What’s the NEW reason you can’t get through to the Call Center.

    1. Maria,
      I have gotten through to the call center (live agent) every time i’ve tried calling within the last 2 weeks. The number to a live agent (follow the prompts carefully) is (667)-207-6520. i have gotten through within 10 to 15 mins with each call i had made!

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