Keep Americans Working Act - Declares that the purpose of this Act is to keep Americans working by strengthening and expanding short-time compensation programs that provide employers with an alternative to layoffs.
Requires the Secretary of Labor to: (1) provide guidance to states in enacting short-term compensation programs; and (2) award start-up grants to state agencies in states that have enacted programs and meet certain requirements.
Amends the Internal Revenue Code to define "short-time compensation program" as one in which: (1) participation of an employer is voluntary; (2) an employer reduces the number of hours worked by employees through certifying that such reductions are in lieu of temporary layoffs; (3) an employee whose workweek that has been reduced by at least 10% is eligible for unemployment compensation; (4) an eligible employee may participate in an employer-sponsored job skills training program; and (5) an employer is required to certify that continuation of employee health and retirement benefits will not be affected by participation in the program.
Directs the Secretary to make payments to a state's unemployment compensation trust fund for the payment of unemployment compensation if the Secretary approves a state's application for certification to operate a short-time compensation program that requires the maintenance of health and retirement employee benefits.