Layoff Prevention Act of 2020

Layoff Prevention Act of 2020

This bill provides 100% of temporary federal financing of limited short-time compensation (STC) payments in states with existing or new STC programs. (STC, also known as work sharing, is a program within the federal-state unemployment system that provides pro-rated unemployment compensation to workers whose hours have been reduced in lieu of a layoff.)

Certain states without an STC program may enter into an agreement with the Department of Labor under which Labor will temporarily finance 50% of the state's STC payments. If such a state subsequently enacts a state law implementing a STC program that meets federal requirements it shall be ineligible for such 50% financing, but shall be eligible for the 100% financing. Federal financing of STC payments is limited to 260 weeks.

Labor must

• award grants to states that enact STC programs to implement or improve administration of such programs and promote and enroll employers in STC programs;
• develop and provide model legislative language for states to develop and enact STC programs, including periodically reviewing and revising such language;
• provide technical assistance and guidance in developing, enacting, and implementing STC programs; and
• establish certain STC reporting requirements.